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Manage Your Student Loans

Manage Your Student Loans

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Manage Your Student Loans

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  1. Manage Your Student Loans Sandi Nowakowski, Loan Manager Office of Student Financial Aid 608-262-4987 sandi.nowakowski@finaid.wisc.edu Graduate & Professional Students • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  2. Identify what you owe. • How do I repay? • Consolidation • Repayment Plans • Forgiveness • What if I need help? • Forbearance • Deferment • Discharge Tackling Your Debt • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  3. Federal Family Education Loan Program(FFELP) • Stafford Subsidized Loan • Stafford Unsubsidized Loan • FFEL Consolidation Loan • Federal Direct Lending(DL) • Direct Subsidized Loan • Direct Unsubsidized Loan • Direct Subsidized Consolidated Loan • Direct Unsubsidized Consolidation Loan • Federal Perkins Loan • Graduate PLUS Loan (FFELP or DL) Identify Your Loan Debt • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  4. Chose a lender, payments go to servicer. • No new loans originated after 2010. • Subsidized Stafford Loan • Fixed interest • Didn’t accrue interest while you were in school. • Didn’t accrue interest during the grace period. • Unsubsidized Stafford Loan • Fixed interest • Accrued interest once the loan was disbursed. • FFEL Consolidated Loan • Loans paid into one consolidation loan. • All borrower benefits adjusted. • Fixed interest based on consolidated weighted average. Federal Family Education Loan ProgramFFELP • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  5. Department of Education is the lender, payments go to the servicer. • Federal Direct Subsidized Loan • Fixed interest did not accrue while you were in school. • Interest started accruing during grace period for loans going into repayment from 7/1/12 through 6/30/14. • Federal Direct Unsubsidized Loan • Fixed interest accrued once the loan was disbursed. • Direct Consolidated Subsidized or Unsubsidized Loan • Loans are paid into one consolidation loan. • All borrower benefits are adjusted. • Fixed Interest is the weighted average of the loans consolidated. • Accrues interest while the student is in school. Avoid consolidating until done with school. William D. Ford Federal Direct Loans Direct Loans (DL) • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  6. Federal Perkins Loan • Didn’t accrue interest while enrolled ½ time or higher. • Lender is the school, payments go to the school. • Can be consolidated with Sub and Unsub. • Make payments at www.ECSI.net for UW-Madison Perkins loans • Graduate PLUS Loan (FFEL or DL) • Could be FFEL (prior to 2010) or DL • Payment goes to servicer. • Payment begins 60 days after the student drops below half-time enrollment Federal Perkins & Federal PLUS • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  7. 1.Log onto www.nslds.ed.gov the National Student Loan Data System Evaluate Your Loans • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  8. 2. Identify your loan types. 3. Identify the amount of each loan • Principal • Interest accrued + Principal Interest = Amount Owed • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  9. 4. Identify who your servicers are and their websites. 5. Identify what your interest rates are. 6. Do you have private loans? Check your free credit report (Experian, Equifax, TransUnion) www.annualcreditreport.com • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  10. Determine each loan amount and when your grace periods end. • Subsidized and Unsubsidized loans - 6 months • Federal Perkins - 9 months • Federal PLUS has no grace period • Complete Exit Counseling at www.studentloans.gov (FFFEL & DL) and www.ecsi.net (Perkins • Federal Perkins loan repayment can also be setup at www.ECSI.net • Create an action plan & payment priority. • How long will it take you to repay and what are your career/life goals? • What is the most expensive loan you owe and how quickly can it be paid? • Graduate School Plans? Be aware about the elimination of graduate professional subsidy. • Setup your payment plan(s) and auto-debiting (0.25% interest reduction). • Repayment plan and Auto-debit can be setup on the servicer’s website or over the phone. How do I repay? • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  11. Should I consolidate? • Done attending school and grace periods have ended? • Have a mixture of FFEL or DL loans and multiple servicers? • Have loans in default? • Complete consolidation at www.studentloans.gov • Application & MPN required • Approximately 3 month processing time • *Choose which loans you want to consolidate • *All your federal loan debt is provided in the application for you • Setup interim consolidation processing repayment plan or forbearance • Consolidation Outcome • Weighted average determines interest rate of DL Consolidation loan • Creates a new DL Subsidized and DL Unsubsidized Consolidation Loan(s) • One servicer, access to DL borrower benefits Direct Loan Consolidation • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  12. Repayments • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  13. Repayments • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  14. Repayments • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  15. Repayments • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  16. Public Service Forgiveness • Work full-time for 10 years • state, federal, or non-profit • 120 monthly consecutive on-time payments • IBR, ICR, Standard repayment plan Teacher Loan Forgiveness • Teach Full-time for 5 academic years • Qualifying elementary and secondary schools • Up to $17,500 in principal and interest • FFEL and/or DL loans. Loan Forgiveness • For more information on Loan Repayment go to www.finaid.wisc.edu/direct-loans.htmand click on “Student Loan Repayment” under the “Federal Direct Loan Servicers” heading. • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  17. Environment of support • Stay in contact with your servicer. • Repayment plans are fluid. • Contact our office if you need advice. Partial Financial Hardship Deferment • Reduction in income • Contact servicer • Billing postponed • Interest frozen on Sub and Perkins Forbearance • Contact servicer • Billing postponed • Interest still accrues What if I need help? • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu

  18. Questions? Sandi Nowakowski, Loan Manager Office of Student Financial Aid 608-262-9068 sandi.nowakowski@finaid.wisc.edu • Office of Student Financial Aid, Federal Direct & Private Loans Individual Repayment Counseling offered by appointment (phone or in-person) 608-262-4987, directloans@finaid.wisc.edu