Graduate Student Loan Exit Counseling

Please complete and sign the personal data sheet.

Personal references: friends or relatives living at different addressesdifferent addresses in the U.S.A.

Parent or nearest relative (other thanother than your spouse) If you have a Perkins loanIf you have a Perkins loan, please sign the original

repayment schedule. Last day of actual attendance:

June 14, 2013 All forms will be collected after the session. If you do not have all the necessary information to

complete the forms, you can email the information to:

studentloans@northwestern.edustudentloans@northwestern.edu

Keys to successfully managing your loan repayment

Know how much you have to repay, when and to whom.

Understand the terms and conditions of your loans.

Select the loan repayment plan that best fits your needs.

Take advantage of the loan forgiveness programs for which you may qualify.

Keep good financial records.

Ask questions!

Summary letters

Does notnot reflect accrued interest or any payments you may have made.

CAESAR > Main Menu > Student Center >

View Northwestern Financial Aid History

Monitor Your Federal Loans

National Student Loan Data System (NSLDS)National Student Loan Data System (NSLDS)

To access you provide:

- SS#

- Date of Birth

- First 2 letters (last name)

- PIN # (www.pin.ed.gov)

www.nslds.ed.gov

National Student Loan

Data System (NSLDS)

•Status•Servicer•Balance•Prior loans

Federal Stafford Loans

6 month grace period ends December 14, 2013.

Interest rate was fixedfixed at 6.8% effective July 1, 2006.

Loans disbursed from July 1, 1998 to June 30, 2006 have a variablevariable interest rate that changes each July 1st. (1.79% in deferment; 2.39% in repayment/forbearance)

Subsidized Stafford loan will accrue interest after the 6 month grace period when repayment begins.

Unsubsidized Stafford loan has accrued interest since initial disbursement.

Unpaid interest will be capitalizedUnpaid interest will be capitalized at the end of the 6 month grace period.

6 repayment plan options can be changed as needed.

Federal GradPLUS Loan

No grace period: Loans disbursed on or after July 1, 2008July 1, 2008 have a

6 month post-enrollment deferment. Loans disbursed before July 1, 2008July 1, 2008 will begin repayment within

60 days of the final disbursement.

Fixed interest rate: DirectDirect loans = 7.9% FFELPFFELP loans = 8.5% (Federal consolidation can reduce the

interest rate to 8.25%.)

Interest has accrued from the date of disbursement. Unpaid interest will be capitalized when repayment begins.

6 repayment plan options can be changed as needed.

Federal Direct Consolidation Loan

Federal Direct Consolidation Loan programFederal Direct Consolidation Loan program:

Combines multiple federalfederal loans (StaffordStafford, GradPLUSGradPLUS and PerkinsPerkins*) into one new loan with a single payment and a single fixed interest rate(weighted average rounded up to the nearest 1/8th percent, capped at 8.25%).

Can lengthen the repayment term up to 30 years which reduces your monthly reduces your monthly paymentpayment. (This will increase the amount of interest you will pay over the life of the loan.)

Allows you to take advantage of certain repayment plans.

Qualifies your loans for Public Service Loan ForgivenessPublic Service Loan Forgiveness.

Contact the Direct Loan Servicing CenterDirect Loan Servicing Center.

www.loanconsolidation.ed.gov

*Do notnot consolidate your PerkinsPerkins Loan if you qualify for full or partial cancellation.

Federal Perkins Loans

Fixed interest rate of 5%

10 year standard repayment term

9 month grace period with 0% interest ends March 14, 2014

6 month post-deferment grace period

Lender/Loan holder:Lender/Loan holder: NU Student Loan Office

Loan Servicer:Loan Servicer: Campus Partners

Private NU Loan

6 month grace period 3 months for loans prior to 2011-2012 academic year

10 year repayment term.

VariableVariable interest rate changes each September 1st.

Need-based = 5.00% Optional and GPAL = 5.50% International A = 5.5% International B = 6.0%

Interest has accrued from the date of disbursement.

Unpaid interestUnpaid interest will be capitalizedwill be capitalized at end of the grace period when repayment begins.

ForbearanceForbearance (no deferments) may increase monthly payments.

Cannot be included in a FederalFederal Consolidation Loan.

Campus Partners

Loan servicer for Federal Perkins & private NU Loans

Private NU Loan (International Payments)

peerTransfer:peerTransfer:

Streamlines the loan repayment process Offers excellent foreign exchange rates Allows you to pay from any country & any bank

In your home currency (in most cases) Saves money on bank fees & ensures payment is received in full Provides peace of mind with 24/7 multilingual customer support Tracks your payment from start to finish Sends an email when your payment is received by NU Go to www.peertransfer.com/ Select “Northwestern University Student Loan Office”

NU Student Loan Office

For questions about your Federal Perkins Loans and private NU Loans

Student Loan Office555 Clark St - 3rd Floor

Evanston, IL 60208847-491-3125

studentloans@northwestern.edu

Repayment Plans - Stafford & GradPLUS Repayment Plan (Stafford, GradPLUS & Consolidation Loans)

Payment Structure

Maximum Payment Period

Additional Features

StandardStandard FixedFixed 10 years10 years - - Highest initial paymentHighest initial payment- - Lowest total interestLowest total interest- No negative amortization- No negative amortization

GraduatedGraduated TieredTiered 10 years10 years - Payments increase incrementally- Payments increase incrementally- No negative amortization- No negative amortization

ExtendedExtended Fixed or tieredFixed or tiered 25 years25 years - Lowest initial payment without - Lowest initial payment without considering incomeconsidering income- - Direct Loan & FFELP debt must Direct Loan & FFELP debt must eacheach be > be > $30,000 $30,000- No negative amortization- No negative amortization

Income Sensitive Income Sensitive (FFEL Loans only)(FFEL Loans only)

Adjusted annually Adjusted annually based on: based on: annual incomeannual income

10 years10 years- No negative amortization- No negative amortization

Income Contingent Income Contingent (Direct Loans only) (Direct Loans only)

Adjusted annually Adjusted annually based on: based on: - AGI, family size, - AGI, family size, - Direct Loan debt- Direct Loan debt

25 years25 years - Payment = - Payment = 20% 20% of “disposable” incomeof “disposable” income- Balance forgiven after 25 years (taxable)- Balance forgiven after 25 years (taxable)- Negative amortization allowed; unpaid - Negative amortization allowed; unpaid interest capitalized interest capitalized

Income Based (IBR)Income Based (IBR) Adjusted annually Adjusted annually based on: based on: - Household AGI- Household AGI- Family size- Family size- Poverty guideline in- Poverty guideline in state of residence state of residence

25 years25 years - Payment = - Payment = 15% 15% of “disposable” income of “disposable” income with “partial financial hardship” (PFH)with “partial financial hardship” (PFH)- Balance forgiven after 25 years (taxable)- Balance forgiven after 25 years (taxable)- Negative amortization allowed; interest on- Negative amortization allowed; interest on subsidized loans covered for 3 years subsidized loans covered for 3 years

Pay As You Earn Pay As You Earn (PAYE)(PAYE)

Adjusted annually Adjusted annually based on: based on: - Household AGI- Household AGI- Family size- Family size- Poverty guideline in- Poverty guideline in state of residence state of residence

20 years20 years - New borrower as of October 1, 2007- New borrower as of October 1, 2007- Payment = - Payment = 10% 10% of “disposable” incomeof “disposable” income with “partial financial hardship” (PFH)with “partial financial hardship” (PFH)- Balance forgiven after 20 years (taxable)- Balance forgiven after 20 years (taxable)- Negative amortization allowed; interest on- Negative amortization allowed; interest on subsidized loans covered for 3 yearssubsidized loans covered for 3 years

Income Based Repayment Plan (IBR)

Once in the IBR plan, your monthly payment is lesser of: Amount calculated using the IBR formula.

Amount calculated based on the standard 10-year fixed repayment plan at the time you began loan repayment.

Monthly payment can be less than accrued interest.(negative amortization)

Unpaid interest that accrues on subsidized Stafford debtwill be paid by the U.S. Department of Education for up to the first 3 yearsup to the first 3 years in repayment under the IBR plan.

Repayment period for IBR plan can extend beyond 10 years regardless of the amount of your eligible debt.

Any outstanding eligible loan balance is cancelled after 25 years of being “economically challenged.” Amount forgiven may be taxable.

Approx Maximum AGI for “Partial Financial Hardship” at Specified Debt (2012 Poverty Guidelines)

Debt AGI

$25,000 $39,771

$35,000 $48,977

$45,000 $58,184

$55,000 $67,390

$65,000 $76,597

$75,000 $85,803

$85,000 $95,010

$95,000 $104,216

Debt AGI

$105,000 $113,422

$115,000 $122,629

$125,000 $131,835

$135,000 $141,042

$145,000 $150,248

$155,000 $159,455

$165,000 $168,661

$175,000 $177,867

Assumptions: - Interest rate = 6.8%Assumptions: - Interest rate = 6.8% - Household size of 1 - Household size of 1

- Residing in 48 contiguous states- Residing in 48 contiguous states

“Partial Financial Hardship” (IBR Plan)IBR Plan)

Pay As You Earn (PAYE)

Created by Executive Order on October 26, 2011

Enhanced version of Income-Based Repayment (IBR)

Available to eligible borrowers beginning December 21, 2012

Must be a “new borrower” on or after 10/1/2007

Cannot have had an outstanding balance on an existing federal student loan when you borrowed your first federal student loan on/after 10/1/2007)

Must have had a disbursement of a federal student loan on or after 10/1/2011 19

IBR vs. PAYE

Direct and FFEL loans Payment amount

based on 15% of “Discretionary Income”

Loan cancellation after 25 years

Direct loans only Payment amount

based on 10% of “Discretionary Income”

Loan cancellation after 20 years

Must meet additional eligibility criteria

IBR PAYE

20

Comparison of Estimated Payments for Loan Debt of $100,000

Repayment OptionRepayment Option Repayment Repayment PeriodPeriod

Monthly Payment AmountMonthly Payment Amount Total Total

Interest Interest

PaidPaid

Total Total Amount Amount

PaidPaid

Standard 10 years $1185 $42,254 $142,254

Graduated 10 years $823 initial payment$1778 final payment

$50,596 $150,596

Extended (fixed payments)

25 years $737 $121,112 $221,112

Income-Contingent*(ICR)

12.7 years $814 initial payment$1312 final payment

$60,259 $160,259

Income-Based * (IBR) 21.7 years $541 initial payment$1185 maximum payment

$121,251 $223,427

Pay as You Earn* (PAYE)

20 years $360 initial payment$809 maximum payment

$124,470 $133,647

*Assumptions: $41,000 Stafford at 6.8%, $59,000 GradPLUS at 7.9%, Family size = 1, 2012 Poverty Guidelines , AGI = $60,000 with 4% annual increases

Public Service Loan Forgiveness (Direct Loans only)

Must work full-time (30 hours per week) for 10 years in Public Service:

Non-profit, tax exempt, 501(c)(3) organizations Federal, state or local government Public schools and colleges Military service

Does notnot have to be continuous work

Keep documentation from employers (see online)

After making 120 qualifying,qualifying, on-time,on-time, Direct LoanDirect Loan payments after October 1, 2007, your entire loan balance (principal & interest) are forgiven (not taxable).

More details available at Repay Your LoansRepay Your Loans: http://studentaid.ed.gov/

Perkins Cancellations

Perkins loans may receive full or partial cancellation Perkins loans may receive full or partial cancellation depending on employment or service:depending on employment or service:

Teaching in certain school districts

Special education, Speech & Language Pathology, Family Services, Head Start

Full time teacher of math, science, foreign language and bilingual education

Nurse or Medical Technician, Health Care Provider

Vista, Peace Corps, Teach for America

Fire fighter, law enforcement, corrections officer

More details at:

http://mappingyourfuture.org/paying/forgiveness.htmhttp://mappingyourfuture.org/paying/forgiveness.htm

Loan Cancellation/Forgiveness

Most loans (federal and private) may be discharged in cases of:

Death/DisabilityDeath/Disability Closed school/False certification Identity Theft

Partial forgivenessPartial forgiveness for service in areas of national need is also available for Federal Stafford and Federal Consolidation LoansFederal Stafford and Federal Consolidation Loans.

If you think you are eligible for loan cancellation or forgiveness, contact all of your loan servicersall of your loan servicers.

Don't stop making payments until you receive written notification from each of your loan servicers that your loan has been cancelled.

If only a portion of your loan was cancelled, update your records withyour new balance after verifying the information with your loan servicers.

Postponement Options

Deferment Deferment

In-schoolIn-school – no time limit – must be enrolled at least half-time Economic HardshipEconomic Hardship – up to 36 months UnemploymentUnemployment – up to 36 months MilitaryMilitary – no time limit Your loan servicer will require documentation of eligibility

which must be renewed (usually) semi-annually (check with your servicer)

Subsidized Stafford and Perkins loans do do notnot accrue interest accrue interest during periods of deferment

Unsubsidized Stafford and GradPLUS loans dodo accrue interest accrue interest during periods of deferment. UnpaidUnpaid interest is capitalized interest is capitalized at the end of the deferment period

Does notnot affect your credit rating

Postponement Options

ForbearanceForbearance

Forbearance is an agreement with your lender to reduce or postpone payments reduce or postpone payments when you are having financial difficulty and do not qualify for a deferment.

Documentation is required to verify your income and student loan debt.

Granted (usually) for periods of 6 months. Interest accrues on Perkins, GradPLUS and

bothboth subsidized and unsubsidized Stafford loans. Unpaid interest is usually capitalized at the end of the

period of forbearance. Forbearance does notnot affect your credit rating.

Rights/Responsibilities

Review your promissory notes for a complete list of all your rights Review your promissory notes for a complete list of all your rights and responsibilities.and responsibilities.

Student loans must be repaid whether or not:Student loans must be repaid whether or not: Program was completed Program completed in normal amount of time Satisfied with your educational experience Employment is obtained

Keep In Touch with your Lenders/ServicersKeep In Touch with your Lenders/Servicers Notify all lenders/servicers of name and address changes. Make payments even if you have not completed the program. Make payments even if a billing statement is not received. BE PROACTIVE! BE PROACTIVE! Contact your lender/servicer BEFOREBEFORE you miss

a payment if unable to make payment for ANYANY reason.

FSA Ombudsman

The FSA OmbudsmanThe FSA Ombudsman is an impartial, confidential resource after other avenues are exhausted to resolve borrower concerns.

Self-Resolution ChecklistSelf-Resolution Checklist

To request mediation regarding federalfederal student loan issues, you may contact the Office of the FSA Ombudsman at:

– https://studentaid.ed.gov/https://studentaid.ed.gov/repay-loans/disputes/prepare repay-loans/disputes/prepare

Default Consequences

Your academic records academic records will be placed on hold.

You may be liable for all collection costscollection costs.

You may be subject to administrative wage wage garnishmentgarnishment.

You may be sued with court costscourt costs and legal feeslegal fees added to your loan balance.

Your income tax refund income tax refund may be withheld.

Your credit ratingcredit rating and ability to borrow will be seriously damaged.

You may lose future eligibility for financial aid financial aid and student loans.

Your professional licenseprofessional license could be denied or revoked.

You may be denied certain types of employmentemployment.

Your Credit

All of your federal loans are reported to at least one of the three national credit bureaus.

Factors reported: TimelinessTimeliness of your payments Missed payments Outstanding balance

Your credit scorecredit score will affect your ability to obtain credit.

Access freefree annual credit reports at:

www.annualcreditreport.comwww.annualcreditreport.com

ExperianEquifaxTrans Union

Full DeductionPartial Deduction

NO Deduction

Single $60,000 or less$60,001 to

$74,999$75,000 or more

MarriedFilingJointly

$125,000 or less$125,001 to

$154,999$155,000 or more

www.irs.gov/publications/p970

The Taxpayer Relief Act of 1997

IRS Form 1098E will be issued by your lender/servicer(s) for eligible interest payments of $600 or more in any calendar year.

Voluntary payments may be eligible. Capitalized interest may be included. Deduction may not exceed $2,500 per year.

Go Green!

Access account information Loan balance Accrued interest Payment history

Make E-Payments Sign up for auto-debit Sign up for E-Billing Update your address Bookmark:

www.nslds.ed.govwww.nslds.ed.gov http://studentaid.ed.gov/repay-loanshttp://studentaid.ed.gov/repay-loans

Looking Ahead

1.1. CompareCompare your loan amounts in CAESARCAESAR with theamounts on NSLDSNSLDS, the national database.

2.2. CheckCheck youryour creditcredit reports for errors.

3.3. Create a folderCreate a folder for all your loan documents (preferably online).

4.4. Update your addressUpdate your address on your loan servicer(s) website(s).

5.5. DevelopDevelop an affordable spending planan affordable spending plan. Know where your money is going.

6.6. When you receive noticeWhen you receive notice from your loan servicer(s) that your loans will be going into repayment in the near future:

Contact your loan servicer(s) to select a repayment planselect a repayment plan.

Postpone repayment by filing the necessary deferment or forbearance formsdeferment or forbearance forms with your loan servicer(s).

7.7. Pay your billsPay your bills on timeon time (preferably online).

You received a rebate on the loans fees for your Direct Loans. To keep the rebateTo keep the rebate, you must make 12 consecutive on-time payments.

On-time payments are a key factor in determining your credit score.

NO PENALTY FOR PREPAYMENT!NO PENALTY FOR PREPAYMENT!

We are here to help!

Student Financial Services

555 Clark St, 1st FloorEvanston, IL 60208

(847) 491- 8950

student-financial-services@northwestern.edu

Please turn in your data sheets!

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