1 / 29

New Aid Officers Workshop

New Aid Officers Workshop. Student Loans. Bill Mack Associate Director of Financial Aid University of Texas at Dallas. Federal Loans. Federal Insured Student Loans (FISL) Guaranteed Student Loan (GSL) Auxiliary Loans to Assist Students (ALAS) Supplemental Loan for Students (SLS)

gazelle
Download Presentation

New Aid Officers Workshop

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. New Aid Officers Workshop

  2. Student Loans Bill Mack Associate Director of Financial Aid University of Texas at Dallas

  3. Federal Loans Federal Insured Student Loans (FISL) Guaranteed Student Loan (GSL) Auxiliary Loans to Assist Students (ALAS) Supplemental Loan for Students (SLS) Federal Family Education Loan Program (FFELP) Robert T. Stafford Loan Program William D. Ford Federal Direct Loan Program

  4. Required Processes

  5. Entrance Counseling First-time borrowers Inform them of their rights and responsibilities of taking out this loan www.studentloans.gov Exit Counseling All borrowers that depart from your institution Graduate, withdraw, transfer, do not return www.nslds.ed.gov Loan Counseling

  6. The school is required to notify the borrower within 14 or 30 days that a loan disbursement has been made and that the borrower may reduce or cancel the disbursement Loan Notification

  7. Document executed by borrower, which spells out the terms & conditions of the loan disbursements, use and repayment • If the note is for multiple loan periods and varying amounts, the school may elect to have the borrower use a Master Promissory Note Promissory Note

  8. Federal Loan Programs

  9. Oldest active federal educational loan • Institution administers this loan (Campus Based) • Previous allocations came from the Dept of Ed, now schools operate this loan from repaid funds • Fixed 5% interest rate • Repayment begins 9 months after student ceases to be enrolled at least 1/2 time • Minimum monthly payment is $30 • Maximum repayment term is 10 years Federal Perkins Loan

  10. Undergraduate annual limit $5,500 Underclassman (first two years) Aggregate limit $11,000 Undergraduate Aggregate limit $27,500 Graduate annual limit $8,000 Graduate Aggregate limit $60,000 Federal Perkins Loan

  11. Federal PLUS Loan is a loan for parents of dependent students • Parent borrower is fully liable for loan • FAFSA is required but is not based on need • Eligibility • Borrower must be the natural or adoptive parent of the student, or spouse of one of those people (step-parent can borrow if he/she is included in the FAFSA) • Borrower must be a US Citizen or eligible non-citizen • Borrower must have no Title IV loans in default • Borrower must be credit worthy or have credit worthy endorser Federal Parent Plus Loan

  12. No Annual limit other that COA minus Aid • No Aggregate limit • If the parent is not eligible the student may borrow a Stafford Loan using the independent student limits. Federal Parent Plus Loan

  13. Eligibility • Borrower must complete a FAFSA • Eligible graduate student attending at least half-time • Borrower must pass a credit evaluation or have an eligible “endorser”. • Annual Loan Limit • COA minus other aid • No aggregate maximum • 7.9 percent fixed interest. 4% Origination fee. Federal Graduate Plus Loan

  14. William D Ford Federal Direct Robert T. Stafford Loan Program Eligible student in an eligible program at an eligible institution (per General Provisions) Enrolled at least 1/2 time COA-aid= greater than zero COA-EFC-aid=greater than zero for subsidized loan

  15. Subsidized DL (Need-based) Interest: ED pays during • In-school • Deferment • Student pays during • Repayment Unsubsidized DL (Non need-based) Interest: Student responsible for all • Can be capitalized, or • Student can choose to pay interest while enrolled Direct Loans: Sub vs. Unsub

  16. 2012/2013 DL Limits 17

  17. 2012-2013 Change As of July 1, 2012 Graduate students are no longer be eligible for subsidized Stafford Loans.

  18. DL aggregate loan limits • * And dependent students whose parent was unable to obtain a PLUS loan.

  19. When an undergraduate student’s academic program is less than 1 year in length and • When a student is completing a remaining period of enrollment that is less than one academic year • Standard proration formula: Amount of Stafford Loan student could have for grade level ÷ 24 x number of enrolled hours Stafford Loan Proration

  20. Interest Rates & Fees • Perkins Loans – no fees • Fixed interest = 5% (no interest while enrolled or when in nine month grace period) • Direct Loans – 1% origination fee • 0.5% rebate • Undergrad sub = fixed interest of 3.4%, rising to 6.8% after July 1, 2012. • Unsubsidized = fixed interest of 6.8% • Direct Parent PLUS / Grad PLUS – 4% origination fee • 1.5% rebate • fixed interest = 7.9% To retain rebates,1st 12 payments must be on time

  21. Interest Rates & Fees • As of July 1, 2012 the borrower will be charged the full origination fee at disbursement.

  22. Interest Rates & Fees • Subsidized Stafford interest • 7/1/98-6/30/06 2.36 or 1.76 (varies annually) • 7/1/06-6/30/08 6.8 fixed • 7/1/08-6/30/09 6.0 fixed • 7/1/09-6/30/10 5.6 fixed • 7/1/10-6/30/11 4.5 fixed • 7/1/11-6/30/12 3.4 fixed • 7/1/12- ? 6.8 fixed

  23. Federal education loans that may be consolidated • FISL • FFELP • Direct Loans • National Direct Student Loans • PLUS • Perkins • Nursing Student Loan • Health Education Assistance Loan (HEAL) Federal Consolidation Loan

  24. Thirty-year repayment (maximum) • Interest rate will be a fixed interest rate, capped at 8.25% • A weighted average is used to figure the interest rate and then it is rounded up to the nearest 1/8 of a percent. • A consolidation loan can “cure” a defaulted federal student loan. Federal Consolidation Loan

  25. Interest rates are usually variable Origination and repayment fees vary Co-borrower requirements (underwriting) Most require school-certification Cannot be discharged in bankruptcy Private (Alternative) Loans

  26. International students SAP ineligible Non-degree students Reached federal annual or aggregate maximum Private (Alternative) Loans

  27. Borrowing is bad • Borrowing a federal loans is bad but not as bad as some other loans • If a student can afford to attend college without loans he should do that • If a student must borrow to attend college she should borrow as little as possible. • We cannot control how much a student borrows • We are responsible when a student defaults on their federal loan In Conclusion

  28. Bill Mack Bill.Mack@utdallas.edu 972-883-4795 Questions ???????

More Related