Budget
– In-school Budget
– After-school Budget
Student Loan Types
– Federal Loans
– Private Loans
Keep Track of Your Loans
– National Student Loan Data Service (NSLDS)
Repayment Options
– Repayment Plans and Consolidation
– Deferment and Forbearance
Communicate
– Stay in Contact with Your Lenders/servicers
Questions?
Develop an In-School Budget
– Talk with Your Family
– Search Internet for Budget Calculator
– Create a Spreadsheet
• Weekly, Monthly, Yearly
• Estimate Expenses and Sources of Income
• Track Actual Expenses
List Expenses
– What You Expect to Spend for the Semester/year
•
•
•
•
Tuition
Room and Board
Books and Supplies
Personal Expenses
Clothing
Transportation
Food – Above the Meal-plan Cost
Entertainment – Movies, Restaurants, Clubs, I-Apps,
etc.
– Existing Bills
–
–
–
–
List Sources of Income
– Funds You Expect to Receive
• Scholarships
• Grants
• Outside Resources
–
–
–
–
529 College Savings Plan
Tuition Benefits
Parent Contribution
Financial Gifts from Family
Total Est. Expenses Minus Total Est. Income
Equals Income Needed for Period
Total Est. Expenses
Total Est. Income
Total Income Needed
50,932
35,260
15,672
**Please Note, Financial Aid Cannot Exceed
the Cost of Attendance for the Year
Visit the Financial Aid and Billing page, or visit the Office of
Student Financial Services, for More Information
Develop an After-School Budget
–
–
–
–
Similar to In-School
Talk with Your Family
Search Internet for Budget Calculator
Create a Spreadsheet
• Weekly, Monthly, Yearly
• Estimate Expenses and Sources of Income
• Track Actual Expenses
List Potential Expenses
– What You Can Expect to Spend
•
•
•
•
•
•
Rent/Mortgage
Bills – Car Payment, Cell Phone, Electric, Etc.
Clothing
Transportation
Groceries
Entertainment – Movies, Restaurants, Clubs, I-Apps,
etc.
Estimate Potential Income AFTER Graduation
– Ithaca College Career Services Career Guide:
www.ithaca.edu/sacl/careers/docs/Guides/IC_Career_Guide/
– Bureau of Labor Statistics:
www.bls.gov/oco/
– O*NET:
www.onetonline.org/
Below is an Example of Salary for a Kindergarten Teacher
(Except Special Education) from O*NET
Total Est. Income Minus Total Est. Expenses
Equals Discretionary (available) Income
Total Est. Income
Total Est. Expenses
Total Annual Discretionary Income
31,700
25,540
6,160
Break This Down Into 12-Months and the Monthly
Discretionary Income is $513
Meet with Someone in the Office of Student
Financial Services to Discuss Your Potential
Loan Debt
Create a Spreadsheet
Use Loan Calculators to Estimate Payments
• Gather Interest Rate Information on Each of Your Loans
• Examples of Available Loan Calculators
– Direct Loan Calculator
http://www2.ed.gov/offices/OSFAP/DirectLoan/calc.html
– FinAid.Org – Loan Calculator
http://www.finaid.org/calculators/loanpayments.phtml
Federal Direct Loans
– FFELP Stafford Loans
• Related to the Direct Loan Program
• Federal Loans Disbursed Through Banks and Private Institutions
• Program Eliminated in 2010; However, You May Have FFELP Stafford
Loans as well as Direct Loans
Federal Perkins Loan
Federal Direct PLUS Loans
– Parent PLUS
– Graduate PLUS
Alternative/Private Loans
Direct Student Loans are Loans Made Directly from the
U.S. Department of Education
– Loans are Awarded by Ithaca College, but They are
Repaid to the Federal Government
There are Two Types of Direct Loans:
– Direct Subsidized – Need-based
– Direct Unsubsidized – Not Need-based
Annual Loan Limits are Determined by Grade Level in
College (as Combined with Direct Subsidized Loan)
Repayment Grace Period is 6-months from the Time
the Student Drops Below Half-time, Withdrawals, or
Graduates
Need-based, Determined by the Information in Your
FAFSA
Interest is Paid by the Government While You are:
– In School at Least Half-time
– Deferment Periods - Changing
Current Loan Fee is 1.0%
Interest Rate
– Determined by Date of First Disbursement
• 2011 – 2012 Interest Rate 3.4%
• 2012 – 2013 Interest Rate 6.8%
Graduate Students are Not Eligible for Direct
Subsidized Loans After July 1, 2012
NOT Need-based
Interest Accumulates from the Date of the First Loan
Disbursement
Current Loan Fee is 1.0%
The Interest Rate is Fixed at 6.8%
Low-interest Loans for Undergraduate Students with
the Greatest Financial Need
Awarded by and Repaid to Ithaca College
No Loan Fees Associated with Federal Perkins Loans
The Interest Rate is Fixed at 5.0%
Repayment Grace Period is 9-months from the Time
the Student Drops Below Half-time, Withdrawals, or
Graduates
Low-interest Federal Loans
– Parent Can Obtain for Dependent Undergraduate
Students
– Graduate Students
The Interest Rate is Fixed at 7.9%
Loans are Awarded by Ithaca College, but They are
Repaid to the Federal Government
May Borrow Up to the Cost of Attendance Minus Other
Aid, Each Academic Year.
Current Loan Fee Associated with Direct PLUS Loan is
4.0%
For Parents, Only One Parent Can Borrow (per
Application)
Borrower Must Not Have Adverse Credit History to
Participate in This Program
– If Direct PLUS is Denied:
• Borrower May Request a Review of Credit Check by
Contacting the Direct Loan Servicer at 1-800-557-7394
• Provide an Endorser that Must Pass a Credit Check by
Contacting the Direct Loan Servicer at 1-800-557-7394
• Not Pursue the PLUS Loan, No Further Action is Need at that
Time
• Dependent Student May be Eligible to Borrow Additional
Direct Unsubsidized Loan IF Parent is Denied PLUS Loan
Private Loans are Not Guaranteed by the Federal
Government
– Ithaca College Requires an Official Loan Approval and Request
for Loan Certification, Directly from the Individual Lender
Private Loans Options Tend to be More Stringent with
Respect to Qualifying Criteria and Credit Standards
You May be Required to Have a Co-signer
Fees and Interest Rates Vary from Lender to Lender
Private Loan Interest Accrues Once the Loan Has Been
Disbursed
Processing Time of Private Loans Can Take As Long As
30 Days, Depending on Response Time of Student,
Parent, Endorser, and Lender
–
If Private Loans are an Option You Would Like to Exercise, the Office of
Student Financial Services Has Compiled a List of Preferred Private
Lenders. However, the Choice of Lender(s) is Yours to Make. You are Not
Required to Use a Preferred Lender, Nor Will Ithaca College Penalize You
Should You Choose a Different Lender. You Must Check with the Lender
to Ensure that They Will Certify a Loan for Ithaca College, As Some
Lenders Prefer to Work Within Certain Regions and with Specific
Institutions.
Know Your Rights and Responsibilities
– Complete Entrance and Exit Counseling
• Required for Federal Direct Loans and Federal Perkins
Loans
– Review All Information Received
– Submit All Information Requested
Ask Questions
– Visit the Office of Student Financial Services
– Contact Your Lender or Servicer
Monitor Federal Loans Using NSLDS for Students
– www.nslds.ed.gov/nslds_SA/
Monitor Alternative/Private Loans by Reviewing Your Student
Account, Online Services Provided by Your Lender, etc.
Federal Loans – Subsidized, Unsubsidized, PLUS
– Standard Repayment
• Payment is Fixed
• Monthly Payments Will be at Least $50
• 10-years to Repay Loan
– Extended Repayment
• Have to Have More Than $30,000 in Direct Loan Debt
• Must Not Have an Outstanding Balance
• Up to 25-years to for Repayment
–
–
Fixed Payments – Same Each Month
Graduated Payments – Start Low and Increase Every Two-years
– Graduated Repayment
• Payments Start Low and Increase Every Two-years
• 10-years to Repay Loan
– Income Contingent Repayment
• Only for Direct Loans
• Not Available for PLUS Loans
• Monthly Payments are Calculated on Adjusted Gross Income
(AGI), Family Size, and the Total Amount of Your Direct
Loans
• Payment Will be Lesser of the Two:
– Amount If You Paid Your Loan in 12-years Multiplied by Income
Percentage Factor that Varies with Your Annual Income
– 20% of Your Monthly Discretionary Income
– Income-Based Repayment
• Payment Will be Based in Your Income During Any Period
You Have a Partial Financial Hardship
• Payments May Exceed 10-years
Alternative/Private
– Can Vary by Lender
– Private Student Loan Repayment Terms
• Depending on the Total Amount Borrowed, Repayment
Terms Range from 10 - 25 Years
– Full Deferral
• No Principal or Interest Payments are Due While Enrolled in
School (up to Four Consecutive Years)
• Payment of Principal and Interest Will Begin 6 Months After
Graduation, or If Enrollment Drops Below Half Time
• Interest Will Continue to Accrue During the Deferment
Period and Will be Capitalized (added to the Loan) at the
Time of Repayment.
– Interest Only
• Pay Only Accrued Interest While Enrolled in School (up to
Four Consecutive Years)
• Payment of Principal and Interest Will Begin Either 45 Days
After Graduation, or If Enrollment Drops Below Half-Time
– Immediate Repayment
• Payment of Principal and Interest Typically Begins
Immediately After the Loan is Fully Disbursed
– Read Your Application and Promissory Note
Carefully for Details of the Loan
Combining Loan Debt for a Single Monthly Payment
–
Cannot Combine Federal and Private Loans Together
• One Payment for Federal Loans
• One Payment for Alternative/Private Loans
Consolidation Resets the Term of the Loan
Longer Loan Term, More Interest to Pay
Federal Loans
–
Visit Direct Consolidation Loans for More Information
• http://loanconsolidation.ed.gov/
Alternative/Private
– Contact Your Lender for More Information on Consolidation
A Postponement of Payment on a Loan,
– During Which Interest Does Not Accrue if the Loan is a Federal
Subsidized Loan
– Alternative/Private Principal and Interest Payments May be
Deferred While the Borrower is Continuously Enrolled Up to a
Maximum of 48 Months
You May Qualify for a Deferment While You Are:
– Enrolled at Least Half-time in an Eligible Postsecondary School
– Studying Full-time in a Graduate Fellowship Program or an
Approved Disability Rehabilitation Program
– Unemployed or Meet Rules for Economic Hardship
• Limited to 3 Years for Federal Loans
Contact Your Lender/Servicer for More Information
on Deferment
Allows You to Temporarily Stop Making Payments on
Your Loan, Temporarily Make Smaller Payments, or
Extend the Time for Making Payments
Common Reasons for Getting a Forbearance
– Illness
– Financial Hardship
– Serving in a Medical or Dental Internship or Residency
See Your Copy of the Borrower's Rights and
Responsibilities Statement for More Examples
Contact Your Lender/Servicer for More Information on
Forbearance
Failure to Make Payments on Your Student Loan
According to the Terms of Your Promissory Note
Consequences of Default:
–
–
–
–
–
–
Credit Rating will Suffer
Ineligible for Additional Federal Student Aid
Wage Garnishment
State and Federal Income Tax Refunds can be Seized
You can be Sued
Late Fees and Collection Costs
Try to Keep Your Loan Debt Down
– Do Not Borrow More Than You Need
– If You Have a True Credit Balance on Your Student Account,
Request It be Returned to a Loan of Higher Interest
– Visit the Office of Student Financial Services for Assistance
– Ask Questions
Track Your Loans In-School and After-School
– Use NSLDS for Federal Loan Information
– Know Your Level of Indebtedness and Interest Rates
Make Payments On-time
– Inquire About On-time Repayment Incentives
– Contact Lender If You Cannot Make Payments On-time
Stay in Contact with Your Lenders and Servicers
– Consider and Discuss Repayment Options
– Update Your Contact Information as it Changes, Address,
Phone, etc.
Avoid Default
Ask Questions
Student Financial Services
–
–
Toll Free: 1-800-429-4275
www.ithaca.edu/finaid/
Direct Loan Servicing
–
–
Toll Free: 1-800-557-7392
www.myedaccount.com
Federal Student Aid Information Center
–
Toll Free: 1-800-433-3243
Federal Perkins Loan Servicing for Ithaca College
–
–
ECSI Toll Free: 1-866-841-3274
www.ecsi.net
Alternative/Private Lenders
–
Varies by Lender, Keep Contact Information
Denise Fullerton
Assistant Director
Student Financial Services
Ithaca College
dfullerton@ithaca.edu
800.429.4275 (phone)
607.274.1895 (fax)
www.ithaca.edu/finaid
sfs@ithaca.edu
Questions?