Managing Your Student Loans

Presented By:

Student Loans

The average American college student will graduate with an

average student loan debt of $28,000

70% of students take out at least one student loan

Your student loan payment can impact: • Home-buying

• Starting a Family

Private Loans

• Generally have higher interests rates

• Subject to the terms and conditions of the contract

• Cannot be consolidated into a federal loan

Student Loan

When taking out your loan, hopefully you considered:

• Potential Income • Additional Debts

• Terms and Conditions of the Loan

Managing Your Student Loans

Your Goal

Pay off your student loan as agreed • In the least amount of time

• Paying the least amount of interest WHY?

• Will cost you less money in the long run • Gets you out of that debt on schedule

Incorporate Payments into a

Spending Plan

What is it?

• A step-by-step plan for ensuring bills are paid on time and money is prioritized to help you reach your financial goals

Benefits

• Reduces money-related anxiety and stress • Gives you control of your financial situation

• Helps you stay on track to reach your financial goals • Home buying

• Family

Elements of a Spending Plan

• Expense Tracking

• Track expenses for 30 days • Fixed Expenses (Car, Housing)

Managing Your Student Loans

Pay Your Debts Off Faster

Gather Information on all of your debts

%

• Lenders

• Payment amounts

• Due dates

Your First Payment

When you have to start to pay

• 6-month grace period

• Begin paying even before you have to

• Make sure extra payments are going toward the principal

• PLUS Loans

• No grace period

• Possibly eligible for deferment

Repayment Plans

Four types of repayment plans:

• Standard • Graduated • Extended

• Income-based

Among other stipulations, income-based plans are determined by

Repayment Plans

Standard Repayment Plan

• Pay less interest over life of loan

• Payments made over 10 years

Special Program

Public Service Loan Forgiveness (PSLF) Program

• Work in public service (government or non-profit)

• Must not be in default

Creating Your Payoff Plan

Use Your Spending Plan

• Make minimum payments on debts with lower interest rates

• Apply additional income to any debt with higher interest rate (student loans, credit cards, car loan, etc.)

Managing Your Student Loans

Defaulting on Student Loans

You are responsible for paying your loan

• Even if:

• You do not graduate

• You are not happy with your school • You can’t find a job

Defaulting on Student Loans

Consequences of Default

• Loans turned over to collections agency

• Liable for costs associated with collecting on loan, court and attorney fees

• Can be sued for entire amount • Wages may be garnished

Defaulting on Student Loans

Consequences of Default

• Ineligible to receive any more federal financial aid

• You will be ineligible for deferments

• Subsidized interest benefits will be denied

• You may not be able to renew a professional license

Before You Default

Deferment

• Federally-funded subsidized loans

• Principal and interest are temporarily delayed

• Payments postponed

• Qualifications:

• Unemployed

• Returning to school

Before You Default

Forbearance

• Temporary delay from having to repay (up to one year)

Financial Troubles?

Only two ways to resolve this dilemma

Options

• Get a second job or search for temporary work • Use community resources

• Cut back on eating out and other entertainment expenses • Barter your services

• Sell “stuff” you have laying around the house

• Check with your employer to see what benefits you have with area merchants • Do your homework before you go out shopping (Know were the best deals

are)

Options

• Use direct deposit. You will be less likely to spend money if it goes straight to your account, especially your savings account

• Don’t use credit to supplement income you do not have

Settlements

Is Settling Your Debt an Option?

Difficult to Discharge Student Loan Debt

• Must file adversary proceeding in conjunction with bankruptcy

• Prove

• Undue hardship

• School was not credible

• You have total or permanent disability

Seek Help

Options for counseling with a trusted agency

• Debt Management Programs to help repay unsecured debt such as credit cards and medical bills

• Student loan and credit report education

For more information about managing your

personal finances, contact Apprisen at:

1-800-355-2227

www.apprisen.com

Follow us on Twitter, Google+ & LinkedIn: @Apprisen