Northwestern University

1. Northwestern University Graduate Student Exit Interview

2. Please complete and sign the Personal Data Sheet • Anticipated permanent address. This address can always be updated on the lender website. • Personal references: friends or relatives living at separate addresses in the U.S.A. • Parent or nearest relative (other than your spouse) • If you have a Perkins loan, please sign the original repayment schedule. • Last day of actual attendance: June 12, 2009 • All forms will be collected before the session begins. If you do not have all the information necessary, you can email the information to studentloans@northwestern.edu

3. International NU loan • Intl. NU loans have two types, A & B - A - An American citizen or permanent resident as a co-maker - B - An International co-maker • Variable interest rates - change as of September 1st. of any year

4. International NU loan • Interest accrues as of first disbursement • Unpaid interest will be capitalized at end of 3 month grace period ( 09/12/2009) • 10 year re-payment term • Forbearance

5. Agenda • Loan Repayment Handbook • Federal Stafford Loan • Federal GradPLUS Loan • Repayment Plans • Federal Perkins Loan • Deferment • Forbearance • Cancellation/Forgiveness • NU Private Loan • NU Forbearance • Credit/Default

6. Federal Stafford Loans • Subsidized Stafford loan will accrue interest after the 6 month grace period when repayment begins. • Unsubsidized Stafford loan has accrued interest since initial disbursement. • Loans disbursed before July 1, 2006 have variable interest rates subject to change every July 1st. • Loans disbursed after July 1, 2006 have a fixed interest rate of 6.8%. • 6 month grace period ends December 12, 2009. • Unpaid interest will capitalize at the end of the 6 month grace period. • 10 year standard repayment term (other options available) Purple Handbook Pg 5

7. Federal GradPLUS Loans • Loans have a fixed interest rate of 8.5%. • Interest has accrued since initial disbursement. • Unpaid interest will capitalize when repayment begins. • Repayment begins within 60 days of the final loan disbursement (no grace period). • You may contact your lender and request a six month forbearance period to coordinate with your Stafford Loans. • 10 year standard repayment term (other options available) Purple Handbook Pg 6

8. FFELP Repayment Plans Federal Family Education Loan Program (FFELP)(Stafford and GradPLUS Loans only) Standard Repayment Graduated Repayment Extended Repayment Income-Sensitive Repayment Income-Based Repayment (available 7/1/2009) Choice of a repayment plan will depend on your eligibility for that plan. You can change to a different plan usually once a year provided you qualify for that plan. Check with your lender.

9. FFELP Repayment Plans

10. Comparing Payment Plans$100,000 Stafford Loan Balance Assumptions: - 6.80% fixed interest rate with $100,000 of loan debt - No payment incentives - For IBR Payment: - Household AGI = $40,000 in year 1, then increases by 4 % annually - 2008 Poverty Guideline for household size of 1 = $10,400

11. For more information on IBR and Public Service Loan Forgiveness • “Project on Student Debt” has created a special Website specifically about IBR at : IBRinfo.org • Equal Justice Works has information about both programs at: EqualJusticeWorks.org • Loan Calculators at: FinAid.Org/calculators

12. Perkins Loans • Northwestern is the holder of this loan • Fixed interest rate of 5% • 10 year repayment term • 9 month grace period with 0% interest ends March 12, 2010 • Deferments are available • Forbearance available up to 36 months • Cancellation available in certain circumstances Purple Handbook Pg 10

13. Deferments • Deferment allows you to postpone payments for several reasons including: • Returning to school • deferments are unlimited • Unemployment and Economic Hardship • deferments available up to 36 months • Subsidized Stafford and Perkins loans do not accrue interest during periods of deferment. • Unsubsidized Stafford and GradPLUS loans do accrue interest during periods of deferment. Unpaid interest is capitalized at the end of the deferment period. Purple Handbook Pg 7 & 11

14. Forbearance • Forbearance is an agreement with your lender to 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. • Interest will continue to accrue on all loans during the period of forbearance. • Unpaid interest will be capitalized at the end of the forbearance period. Purple Handbook Pg 6

15. Loan Cancellation/Forgiveness Under certain circumstances, your student loan, or a portion of your loan, may be cancelled, forgiven, or discharged; in other words, you won't have to repay it. Some loans are cancelable in the case of death or permanent disability. Although most cancellation/forgiveness benefits are for the Federal Perkins Loan (for example: Medical Technician, Health Care Provider, Peace Corps, Teach for America), forgiveness for service in areas of national need is available for Federal Stafford and GradPLUS Loans. Stafford and Perkins loans both have forgiveness benefits for teaching in certain school districts. Details are available at: mappingyourfuture.org/paying/forgiveness.htm If you think you are eligible for loan cancellation or forgiveness, contact your loan holder. Be sure to contact all of your loan holders, and don't stop making payments until you receive written notification from each one that your loan has been cancelled. If only a portion of your loan was cancelled, update your records with your new balance after verifying the information with your loan holder. Purple Handbook Pg 12

16. Federal Consolidation Loan The Federal Consolidation Loan program allows you to: • Combine all your Federal Stafford, GradPLUS, and Perkins loans into one new loan with a single payment. • Lengthen the repayment term up to 30 years and reduce your monthly payment. • Contact the Direct Loan Consolidation Center at: • 800/557-7392 • loanconsolidation.ed.gov • Do not consolidate your loan if you qualify for full or partial cancellation/forgiveness as those benefits will be lost. Purple Handbook Pg 16

17. Finding Your Federal Loans • www.nslds.ed.gov • To access you must provide: • - SSN • - Date of Birth • - First 2 letters (last name) • - PIN # (www.pin.ed.gov)

18. FSA Ombudsman • The FSA Ombudsman is an impartial, confidential resource after other avenues are exhausted to resolve borrower concerns. • To request mediation regarding federal student loan issues, you may contact the Office of the FSA Ombudsman at: • 877/557-2575 • ombudsman.ed.gov Purple Handbook Pg 24

19. Private NULoan • Recommended – 7.00% • Optional – 7.50% • Interest rates are variable and change each Sept 1st • 3 month grace period ends September 12, 2009 • Interest accrues from date of first disbursement. Unpaid interest will be capitalized at the end of the 3 month grace period. • 10 year repayment term • NU Loans are eligible for forbearance only • NU Loans are private loans and cannot be included in a Federal Consolidation Loan. Purple Handbook Pg 14

20. NU Loan Forbearance • 6 month intervals of forbearance for a period up to 3 years. • Interest will continue to accrue during the period of forbearance. Unpaid interest will be capitalized at the end of the forbearance period. • May result in higher monthly payments once the forbearance ends due to the shortened repayment term. • Forbearance forms are available on the SFS website under “Downloadable Forms”.www.northwestern.edu/sfs/ Purple Handbook Pg 15

21. Loan Repayment Summary

22. Your Credit • All of your federal loans are reported to at least one credit bureau. • Factors reported: • Timeliness of your payment • Non payment • Outstanding balance • Credit score will affect your ability to obtain credit • Free annual credit reports are available at: www.annualcreditreport.com Purple Handbook Pg 4

23. Consequences of Default • Your income tax refund may be withheld. • Your credit rating and ability to borrow will be seriously damaged. • You may lose future eligibility for financial aid and student loans. • Your professional license could be denied or revoked. • You may be denied certain jobs. • Your academic records will be placed on hold. • You may be liable for all collection costs. • You may be subject to Administrative Wage Garnishment. • You may be sued with court costs and legal fees added to your balance. Purple Handbook Pg 17

24. Your Responsibilities KEEP IN TOUCH WITH YOUR LENDERS/ SERVICERS • Notify 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 • Contact lender/servicer BEFORE you miss a payment if unable to make payments for ANY reason. Review promissory note for all rights and responsibilities

25. Go Green – on line • Access Account Information • Make E-Payments • Sign up for autodraft • Sign up for E-Bill • Update your address

26. mycampusloan.com

27. Student Loan Office • For students with Perkins and NU Loans Student Loan Office 555 Clark Street, 3rd Floor Evanston, IL 60208 847-491-3125 studentloans@northwestern.edu Purple Handbook Pg 20, 22

28. 1098E Statements • Provided by each lender for eligible payments of student loan interest, capitalized interest, or origination fees. • Amounts paid of $600 or more are being reported to the IRS. • Information can be found in IRS Publication 970.www.irs.gov • Please contact a tax professional to discuss your eligibility.

29. Questions ? For Additional Info One-on-One Exit Interviews Contact: Marion Feinberg / Colleen Delaney Student Financial Services Counselor 847-491-8950 m-feinberg@northwestern.edu c-delaney@northwestern.edu

30. Good luck in all your future endeavors!