Graduate Student

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Northwestern University

• Graduate Student
• Exit Interview

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Please complete and sign the Personal Data Sheet

• Anticipated permanent address enter the address
  where you would like your first bill sent. This
  address can always be updated on the lender
  website.
• Personal references friends or relatives living
  at different addresses in the U.S.A.
• Parent or nearest relative (other than your
  spouse)
• If you have a Perkins loan, please sign the
  original repayment schedule.
• Last day of actual attendance
• Separation Date June 13, 2008
• All forms will be collected before the session.
  If you do not have all the information necessary,
  you can email the information to
  studentloans_at_northwestern.edu

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Agenda

• Loan Repayment Handbook
• Federal Stafford Loans
• Federal GradPLUS Loan
• Repayment Plans
• Federal Perkins Loan
• Cancellations
• Deferments
• NU Private Loan
• Forbearance
• Credit/Default

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Federal Stafford Loans

• Loans disbursed before July 1, 2006 have variable
  interest rates subject to change every July 1st.
• Loans disbursed after July 1, 2006 have a fixed
  interest rate of 6.8.
• 6 month grace period, ends December 13, 2008
• Subsidized Stafford Loan will accrue interest
  after the 6 month grace period when repayment
  begins.
• Unsubsidized Stafford Loan has accrued interest
  as funds were disbursed.
• Unpaid accrued interest will capitalize at the
  end of the 6 month grace period.
• 10 year repayment term
• Purple Handbook Pg 5

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Federal GradPLUS Loans

• Loans have a fixed interest rate of 8.5.
• Interest accrues as funds are disbursed.
• Unpaid interest will capitalize when repayment
  begins.
• Repayment begins within 60 days of the final loan
  disbursement for the year (no grace period).
• 10 year repayment term
• Purple Handbook Pg 6

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Repayment Plans

• Standard Repayment
• Ten year maximum repayment period
• Fixed Schedule of monthly payments (50 minimum)
• Graduated Repayment
• Starts with smaller monthly payments that
  increase gradually over time
• Income-Sensitive Repayment
• Payment will be the greater of your monthly
  interest amount or 4 percent of your gross
  monthly income
• Eligibility and payment amount verified annually
• Extended Repayment
• Available to new borrowers on or after October 7,
  1998, who have a minimum balance of 30,000 in
  loans
• Payment amounts can be either fixed annually or
  graduated
• Maximum repayment term is 25 years
• Longer repayment term more interest overall
• No Penalty for Prepayment

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Perkins Loans

• Fixed interest rate of 5
• 10 Year standard repayment term
• 9 month grace period with 0 interest ends March
  13, 2009
• 6 month post-deferment grace period
• Cancellation available in certain circumstances
• Northwestern is the holder of this loan
• Purple Handbook Pg 9

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Cancellations

• Perkins loans may receive full or partial
  cancellations depending on employment or service
• Teaching in certain school districts
• Full time special ed teacher
• Full time teacher of math, science, foreign
  language and bilingual education
• Medical Technician, Health Care Provider
• Peace Corps, Teach for America
• Full time law enforcement, corrections officer.
  Must be in the criminal division
• Purple Hand book Pg 12

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Deferments(Federal Loans only)

• Deferment allows you to postpone payments for
  several reasons including
• Returning to school
• deferments are unlimited
• Unemployment and Economic Hardship
• deferments available up to 36 months
• Subsidized Stafford and Perkins loans do not
  accrue interest during periods of deferment.
• Unsubsidized Stafford and PLUS loans do accrue
  interest during periods of deferment. Unpaid
  interest is capitalized at the end of the
  deferment period.
• Keep full repayment term of loan
• Purple Handbook Pg 7, 8, 10, 11

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NU Loan

• Recommended
• Optional
• Interest rates are variable and change every
  Sept. 1st
• 3 month grace period ends September 13, 2008
• Interest accrues from date of first disbursement.
  Unpaid interest will be capitalized at the end of
  the 3 month grace period.
• 10 year repayment term
• NU Loans are eligible for forbearance only
• NU Loans are private loans and cannot be included
  in a Federal Consolidation Loan.
• Purple Handbook Pg 13

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What is forbearance?

• Forbearance is an agreement with your lender to
  postpone payments when you are having financial
  difficulty and do not qualify for a deferment.
• Documentation is required to verify your income
  and student loan debt.
• 6 month intervals of forbearance for a period up
  to 3 years.
• Interest will continue to accrue during the
  period of the forbearance. Unpaid interest will
  be capitalized at the end of the forbearance
  period.
• Higher monthly payments once forbearance ends on
  some private loans due to shortened repayment
  term.

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Your Credit

• All of your federal loans are reported to at
  least one credit bureau.
• Factors reported
• Timeliness of your payment
• Non-payment
• Outstanding balance
• Credit Score
• Free annual credit reports are available at
• www.annualcreditreport.com
• Purple Handbook Pg 4

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Default Consequences

• Your income tax refund may be withheld.
• Your credit rating and ability to borrow will be
  seriously damaged.
• You may lose future eligibility for financial aid
  and student loans.
• Your professional license could be denied or
  revoked.
• You may be denied certain jobs.

• Your academic records will be placed on hold.
• You may be liable for all collection costs.
• You may be subject to Administrative Wage
  Garnishment.
• You may be sued with court costs and legal fees
  added to your balance.
• Purple Handbook Pg 17

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My Responsibilities

• KEEP IN TOUCH WITH YOUR LENDERS/ SERVICERS
• Notify lenders/servicers of name and address
  changes.
• Make payments even if you have not completed the
  program
• Make payments even if you are unable to obtain
  employment upon completion of your program.
• Make payments even if a billing statement is not
  received
• Contact lender/servicer BEFORE you miss a payment
  if unable to make payments for ANY reason.

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Additional Information

• Access information about federal loans
  outstanding balances, disbursements, loan status,
  and loanholder by checking with the National
  Student Loan Data System (NSLDS).
• www.nslds.ed.gov
• For mediation in a dispute with your
  lender/servicer, contact the FSA Ombudsman.
• www.ombudsman.ed.gov
• Purple Handbook Pg 24

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Monthly Loan Payment Estimate and Other
Calculators

• http//mappingyourfuture.org/money/calculators.htm
  
• or
• www.collegezone.com/studentzone/416_900.htm

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Student Loan Office

• For students with Perkins and NU Loans
• You can check your account status, update your
  address, download forms or pay online at
  www.mycampusloan.com
• Student Loan Office
• 555 Clark Street, 3rd Floor
• Evanston, IL 60208
• 847-491-3125
• studentloans_at_northestern.edu
• Purple Handbook Pg 20, 22

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Questions

• ?
• For Additional Info
• One-on-one Exit Interviews
• Contact
• Marion Feinberg/Colleen Delaney
• Student Financial Services Counselor
• 847-491-8950
• m-feinberg_at_northwestern.edu
• c-delaney_at_northwestern.edu

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• Good luck in all your future endeavors!