Federal Student
Loan Repayment
SUFFOLK UNIVERSITY STUDENT FINANCIAL SERVICES
You Are in Control!
With a myriad of loan repayment
options and consumer protections, you
We’ll cover:
•
Organizing and Researching Your Loans
•
Understanding your Rights and
Responsibilities
•
Understanding Your Own Situation
•
Public Service Loan Forgiveness
•
Learning about the Different Payment Plans
•
Other Loan Forgiveness
Organize and Research
ORGANIZE
Use methods you are
comfortable with
Scan and keep all documents
electronically
Good old fashioned
expandable folder and manila folders for each loan/type of issue
RESEARCH
National Student Loan Data
System (NSLDS)
Gather all records from all
schools and compare to NSLDS
Create spreadsheet with all
federal student loans (and alternative loans, if any)
nslds.ed.gov -
National Student Loan Data System
Provides a list of each of your federal student loans,
including:
•
Amount initially borrowed
•Current principal due
•
Type of interest (fixed /variable)
•Interest rate
•
Provides the federal loan servicer for each of your federal
Rights and Responsibilities
Rights
Grace Period
Deferment and Forbearance Options Loan Forgiveness Options
Choice of Repayment Plan No prepayment penalty
Ability to Change Repayment Plan
Annually
Responsibilities
Always notify the Loan Servicer of:
Address changes
Income changes if on IBR
Change in ability to pay loan for any
reason
And:
Your Own Situation
You can tailor your loan repayment
approach based on your own
circumstances:
Type of job expected
Other financials
Public Service Loan Forgiveness
If you are:
employed full-time in qualifying public service job and
have made120 qualifying payments on your Direct Loans
(after Oct. 1, 2007), in a qualifying payment plan
- the remaining balance on loans that you owe may be
forgiven. You must not be in default on the loans that are
forgiven.
Public Service Loan Forgiveness
Qualifying Employment – Complete Employment Certification Form
Government organizations at any level (federal, state, local, or tribal)
Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue
Code
Other types of not-for-profit organizations that provide certain types of qualifying public services
Definition of ‘Full-Time’
For PSLF, you are generally considered to work full-time if you meet your employer’s definition of
full-time or work at least 30 hours per week, whichever is greater.
If you are employed in more than one qualifying part-time job at the same time, you may meet
the full-time employment requirement if you work a combined average of at least 30 hours per week with your employers.
Qualifying Loans
Public Service Loan Forgiveness
Qualifying Repayment Plans
Any of the Income Driven Repayment Plans 10 year Standard Repayment Plan
Qualifying Monthly Payment
after October 1, 2007;
under a qualifying repayment plan;
for the full amount due as shown on your bill; no later than 15 days after your due date; and
while you are employed full-time by a qualifying employer.
You can make qualifying monthly payments only during periods when you are required to make a payment. Therefore, you cannot make a qualifying monthly payment while your loans are in
an in-school status, the grace period, a deferment, a forbearance, or default.
Your 120 qualifying monthly payments do not need to be consecutive. You do not have to pay taxes on the amount forgiven.
Payment Plans
Standard (Default Option) Payments are a fixed amount for up to 10 years.
Graduated Payments are lower at first and then increase, usually every two years
Extended Payments may be fixed or graduated for up to 25 years
PAYE* (negative amortization) Payments are 10 percent of discretionary income (if married, spouse’s
income considered only if file jointly)
REPAYE* (negative amortization) Payments are 10 percent of discretionary income (if married, spouse’s income considered regardless of filing status)
IBR* (negative amortization) Payments are 15 percent of discretionary income (if married, spouse’s
income considered only if file jointly)
ICR* (negative amortization) Payments are 20 percent of discretionary income (if married, spouse’s income considered only if file jointly)
*Payments are recalculated each year and are based on updated income and family size
Payment Comparison
($125,000 debt/$40,000
income/single/Massachusetts)
Income-Driven Payment Plan Loan Repayment Periods
(Loan
Forgiveness at end of Loan Repayment Period – Taxes owed on amounts
forgiven)
Income-Driven Repayment Plan Repayment Period
REPAYE Plan 20 years if all loans were received for undergraduate 25 years if any loans were received for grad or prof
PAYE Plan 20 years
IBR Plan 20 years if new borrower on or after July 1, 2014 25 years if NOT new borrower on or after July 1, 2014
Direct Loan Consolidation
Fixed interest rate for the life of the loan Fixed rate is based on the weighted average of the interest rates on the
loans being consolidated, rounded up to the nearest one-eighth of 1%.
There is no cap on the interest rate of a Direct Consolidation Loan.
Pros
Simplify
Cons
STAY IN CONTROL
Change your payment due date
(check with your servicer for availability).
Change your repayment plan.
Consolidate your loans.
Consider Deferment or Forbearance
Changes in Federal Student Loan
Laws/Regulations
Keep your eyes open; follow the bills.
There are many new bills in Congress regarding financial aid and
student loans. Follow the news and check with your loan servicer
periodically to find out if any changes have been made that would
affect your repayment terms, rights, or responsibilities as a federal
student loan borrower.
$ALT –
A Responsible Borrower Program
Suffolk University Law School has teamed up with SALT to offer a comprehensive
financial literacy program, brought to you in partnership with Student Financial
Services and American Student Assistance (ASA).
SALT offers services built around YOU:
Neutral financial education resources, advice, and self-paced courses
Live one-on-one counseling by trained advisers who can answer your questions
objectively and advocate on your behalf
Easy-to-use tools that help you monitor and manage your loans and payments
online
Resources
studentloans.gov
studentaid.ed.gov
nslds.ed.gov
loanconsolidation.ed.gov
Suffolk University Office of Student Financial Services
jevans@Suffolk.edu 617-573-8147
$ALT –
A Financial Literacy Program – through the Office of Student Financial Services and American Student Assistance (at the Financial Literacy section of our website) –Register Now! – saltmoney.org
