Federal Student Loan Exit Counseling

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Federal Student LoanExit Counseling

• Roanoke College Financial Aid

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Why do I need to know this stuff?

• You need to know this information because you
  have received a Federal Stafford Loan, a Federal
  Perkins Loan, an alternative loan and/or RC
  Institutional loan through Roanoke College.
• The Federal Government requires that the school
  conducts Exit Counseling with the student
  (borrower). Also, Roanoke College is audited
  yearly to make sure that we are in compliance
  with the Federal Regulations.
• The loan is in YOUR name and you need to be aware
  of your rights and responsibilities as a
  borrower.
• These loans are reported to all three credit
  bureaus and can have a positive or negative
  impact on your credit as well as the co-signers
  credit history.

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Loan History
(Reflects only loans that you have taken out
while at Roanoke College)
Loan Types

• Federal PLUS Loan
• This is a loan that your parent took out in their
  name. Repayment should have already begun and
  will continue for up to 10 years.
• Federal Subsidized Stafford Loan
• Government paid interest while you were in
  school.
• Interest will continue to be paid for the first
  six months after you leave school and during
  deferments
• Federal Unsubsidized Stafford Loan
• Your loan account has accrued interest since your
  first disbursement.
• Either you have been paying the interest or the
  interest has been capitalized while in school.

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Loan History
Loan Types

• Federal Perkins Loans
• No interest was charged while you were in school.
• Interest will not begin to be charged until 9
  months after you leave school.
• Roanoke College Loan
• No interest was charged while you were in school.
• Interest will not begin to be charged until 6
  months after you leave school.
• Alternative Loan
• Could have been taken out from a variety of
  lenders (i.e. GATE, Sallie Mae, Citibank, TERI,
  Key Bank, Chase).
• Repayment terms and interest rate may vary. On
  most of these loans, however, interest has
  accrued since the 1st disbursement was made to RC.

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Loan History
Lender Contact

• Federal Stafford Loan
• Lender Name should be listed on your loan
  history.
• Many lenders service out collection of these
  loans
• Access www.nslds.ed.gov and use your federal PIN
  for current loan contact information and phone
  numbers.
• Federal Perkins Loan and Roanoke College Loan
• These funds were disbursed by Roanoke College.
• Serviced by Campus Partners at [phone].
  Please contact Campus Partners or Paige Wygal,
  [phone], for inquiries, name and/or
  address changes, etc.
• Alternative Loans
• Refer to your records for lender name and contact
  information

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Loan History
Interest Rates

• Federal Stafford Loans
• When was it disbursed?
• After 07/01/06 6.8 fixed rate
• Prior to 07/01/06 Variable (Changes every
  July1st but will never exceed 8.25)
• During School, for six months after you
  leaveschool, and during deferments - based on 91
  Day Treasury Bill 1.7
• When in repayment or forbearance, the
  rateincreases to the 91-day T-Bill 2.3
• Federal Perkins Loan Fixed 5
• Roanoke College Loan Fixed 8
• Alternative Loans Variable depending on lender

The Princeton Review ranks Roanoke as one of the
best in the Southeast.
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Repayment Schedules

• When does repayment technically begin?
• Either upon graduation, when the student leaves
  school or when they drop below half-time
  enrollment status.
• When do I have to start making payments?
• Stafford and RC Loans have six month grace
  period
• Perkins - nine month grace period
• How long will I have to repay these loans?
• Depends on amount borrowed
• No more than 10 years to repay for PLUS, Stafford
  and Perkins
• No more than 5 years for RC Loan.

Independent studies provide students with a
practical application of their particular majors .
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Repayment Schedules

• When will I be billed?
• Federal Stafford and RC Loans will be billed
  monthly (unless specified differently)
• Perkins Loan will be billed quarterly.
• Can you give me an estimate of my monthly
  payment?
• Federal Stafford Loans
• Use the Student Loan Repayment Chart in the
  Goodbye brochure
• Calculate your estimated interest paid,
  anticipated monthly payments and estimated total
  payments
• May also use any loan repayment calculator online
  (example www.finaid.org)
• Roanoke College/Perkins Loans
• Refer to Student Loan Repayment Schedule and
  Disclosure Statement in your packet

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Repayment Schedules

• What options do I have in regards to repayment?
• Standard Repayment
• Minimum monthly payment depends on debt.
• Automatically used.
• Even payments.
• Graduated Repayment
• Payments start small then increase over time.
• Helpful if you dont have a job right after
  graduation.
• Income Sensitive Repayment
• Payment is based on a percentage of your gross
  monthly income.

One of the best places you can learn firsthand is
in the classroom
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Repayment Schedules

• Extended Repayment
• If you borrowed more than 30,000 in FFELP loans
  on or after 10/07/98 this may be an option for
  you.
• Allows you to stretch out your payments for up to
  25 years using a fixed or graduated repayment
  amount.
• Can I change repayment schedules at any point?
• Contact your lender to discuss.
• Can I prepay my loan?
• Yes.
• No penalties assessed.
• Contact your lender to find out where to send
• payments to.

Roanoke Students participate in the R House
project and learn firsthand what it feels like to
give back to the community
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Federal Loan Consolidation

• What is it?
• A new loan that allows you to combine different
  types of federal education loans into one
  monthly payment.
• Roanoke College Alternative Loans can not be
  consolidated.
• Is it required?
• No! Not for everyone, you need to research!
• Repayment term is based on the total amount you
  owe will not exceed 30 years.
• Interest rate?
• Weighted average interest rate of the loans you
  consolidate
• Rounded up to the nearest 1/8 of 1, or 8.25,
  whichever is less.
• Borrower benefits vary among different lenders

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Federal Loan Consolidation
The Pros

• You get a lower payment.
• You get a fixed interest rate.
• You may qualify for attractive borrower benefits.

The Cons

• New loans disbursed on or after 07/01/06 have
  fixed rates already!
• Stretching the payments out over a longer period
  of time means youll pay more in interest and in
  total repayment costs.
• Your Stafford lender may offer better borrower
  benefits than the consolidation lender. Once you
  consolidation, these benefits may go away.
• You can usually only consolidate once.
• If you are a new borrower with 30,000 in loan
  debt, you already have an Extended Repayment
  option.
• NO GRACE PERIOD!
• For Perkins Loan Borrowers You will lose
  cancellation benefits.

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Options for payment if you are having difficulty

• Deferment

• Allows you to postpone your payments for a
  specified period of time based upon authorized
  reasons.
• Must contact lender and provide documentation of
  eligibility.
• Graduate School
• Unemployment
• Temporary/Permanent Total Disability
• Economic Hardship
• More Options available
• For Perkins and RC Loans, deferment forms are to
  be filled out each semester. Visit the
  www.mycampusloan.com to download form.)

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Options for payment if you are having difficulty

• Forbearance

• Allows you to temporarily postpone repayment.
• Interest always accrues on your loan regardless
  of whether you have a Subsidized, Unsubsidized or
  Perkins Loan.
• Not available for RC Loan.
• Contact your lender or servicer to apply.
• May need to provide written proof of your status.
• Examples of situations for which you may be
  entitled to a forbearance
• Your debt exceeds monthly income.
• Serving an internship or residency period and
  deferment is not available.

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Consequences of Default

• You may be reported to the National Credit
  Bureaus
• Damages credit rating
• Compromises your ability to obtain financing for
  future purchases (car, house, credit card,
  etc.).
• Legal action can be taken against you.
• Lose your Federal income tax refund.
• Wages can be garnished.
• Balance of your loan can increase, 50 of the
  loan balance, due to collection fees being added
  on.
• Lose right to deferments or forbearance.
• Lose eligibility for future federal financial aid.

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Helpful Repayment Tips to Avoid Default

• Keep copies of all loan documentation and
  repayment information.
• Do not default on your loans.
• If you are having problems making payments,
  contact your lender to explore another repayment
  schedule, deferment or forbearance.
• Establish a budget and/or financial plan.
• Keep in touch with your lender/servicer.
• If you move, make sure to provide your lender
  with your new address.
• The lender needs to be able to send you bills and
  contact you regarding your loans.
• Perkins and/or R C loan borrowers , you will need
  to notify Campus Partners at [phone] or
  Paige Wygal, Federal Programs Office, at (540)
  375-2266.

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Discharging Your Student Loan

• Under what circumstances could my obligation to
  repay my loans be reduced or eliminated?
• You die or become totally and permanently
  disabled.
• You serve as a full-time child care provider in a
  low-income community.
• You teach certain subjects at a Title I school.
• Your loan was falsely certified due to identify
  theft.
• Your school closed before you could complete your
  program.
• Your school owes your lender a refund, forged
  your signatureon a promissory note, or certified
  your loan even though you didn't have the
  ability to benefit from the coursework.
• You file for bankruptcy. (This cancellation is
  rare and occurs only if a bankruptcy court rules
  that repayment would cause undue hardship.)

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How can I protect myself from Identity theft?
14 tips to avoid identity theft By Frank W.
Abagnale Bankrate.com

• Guard your Social Security number
• Monitor your credit report.
• Shred all old bank and credit statements and
  "junk mail" credit card offers before trashing
  them.
• Remove your name from the marketing lists of the
  three credit reporting bureaus to reduce the
  number of pre-approved credit offers you receive.
• Add your name to the name-deletion lists of the
  Direct Marketing Association's Mail Preference
  Service and Telephone Preference Service used by
  banks and other marketers.
• Do not carry extra credit cards or other
  important identity documents except when needed.
• Place the contents of your wallet on a photocopy
  machine. Copy both sides of your license and
  credit cards so you have all the account numbers,
  expiration dates and phone numbers if your wallet
  or purse is stolen.

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• Do not mail bill payments and checks from home.
• Do not print your Social Security number on your
  checks.
• Order your Social Security Earnings and Benefits
  statement once a year to check for fraud.
• Examine the charges on your credit card
  statements before paying them.
• Cancel unused credit card accounts.
• Never give your credit card number or personal
  information over the phone unless you have
  initiated the call and trust that business.
• Subscribe to a credit report monitoring service
  that will notify you whenever someone applies
  for credit in your name.

Identity theft again tops the Federal Trade
Commision's list of consumer complaints. Frank W.
Abagnale, a reformed thief, is now a respected
authority on identity theft and other forms of
fraud. His book, "Catch Me If You Can," which
details his criminal escapades, was made into a
feature film by Steven Spielberg and stars
Leonardo DiCaprio as Abagnale. Frank Abagnale
wrote this commentary for Bankrate.com.