Graduate Student Loan Exit Counseling

1. GraduateStudent Loan Exit Counseling

2. Please complete and sign the personal data sheet. • Personal references: friends or relatives living at different 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 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.edu

3. 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!

4. Summary letters Does not reflect accrued interest or any payments you may have made.

5. CAESAR > Main Menu > Student Center > View Northwestern Financial Aid History

6. Monitor Your Federal Loans • 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

7. National Student Loan Data System (NSLDS) • Status • Servicer • Balance • Prior loans

8. Federal Stafford Loans • 6 month grace period ends December 14, 2013. • Interest rate was fixed at 6.8% effective July 1, 2006. • Loans disbursed from July 1, 1998 to June 30, 2006 have a variable 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 capitalized at the end of the 6 month grace period. • 6 repayment plan options can be changed as needed.

9. Federal GradPLUS Loan • No grace period: • Loans disbursed on or after July 1, 2008 have a 6 month post-enrollment deferment. • Loans disbursed before July 1, 2008 will begin repayment within 60 days of the final disbursement. • Fixed interest rate: • Direct loans = 7.9% • FFELP loans = 8.5% (Federal consolidation can reduce the interest rate to 8.25%.) • Interest has accrued from the date of disbursement. Unpaidinterest will be capitalized when repayment begins. • 6 repayment plan options can be changed as needed.

10. Federal Direct Consolidation Loan Federal Direct Consolidation Loan program: • Combines multiple federal loans (Stafford, GradPLUS and Perkins*) 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 payment. (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 Forgiveness. • Contact the Direct Loan Servicing Center. www.loanconsolidation.ed.gov *Do not consolidate your Perkins Loan if you qualify for full or partial cancellation.

11. 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: NU Student Loan Office • Loan Servicer: Campus Partners

12. Private NU Loan 6 month grace period 3 months for loans prior to 2011-2012 academic year 10 year repayment term. Variable 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 interestwill be capitalized at end of the grace period when repayment begins. Forbearance (no deferments) may increase monthly payments. Cannot be included in a Federal Consolidation Loan.

13. Campus PartnersLoan servicer for Federal Perkins & private NU Loans

14. Private NU Loan (International Payments) 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”

15. NU Student Loan Office For questions about your Federal Perkins Loans and private NU Loans Student Loan Office 555 Clark St - 3rd Floor Evanston, IL 60208 847-491-3125 studentloans@northwestern.edu

16. Repayment Plans - Stafford & GradPLUS

17. 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 onsubsidized Stafford debtwill be paid by the U.S. Department of Education for up 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.

18. “Partial Financial Hardship” (IBR Plan) Approx Maximum AGI for “Partial Financial Hardship” at Specified Debt (2012 Poverty Guidelines) Assumptions: - Interest rate = 6.8% - Household size of 1 - Residing in 48 contiguous states

19. 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 Pay As You Earn (PAYE)

20. IBR vs. PAYE Direct and FFEL loans Payment amount based on15%of “Discretionary Income” Loan cancellation after 25years Direct loans only Payment amount based on 10% of “Discretionary Income” Loan cancellation after 20years Must meet additional eligibility criteria IBR PAYE

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

22. 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 not have to be continuous work Keep documentation from employers (see online) After making 120 qualifying,on-time,Direct Loan payments after October 1, 2007, your entire loan balance (principal & interest) are forgiven (not taxable). More details available at Repay Your Loans: http://studentaid.ed.gov/

23. Perkins Cancellations Perkins loans may receive full or partial cancellation 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.htm

24. Loan Cancellation/Forgiveness Most loans (federal and private) may be discharged in cases of: Death/Disability Closed school/False certification Identity Theft Partial forgiveness for service in areas of national need is also available for Federal Stafford and Federal Consolidation Loans. If you think you are eligible for loan cancellation or forgiveness, contact all 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.

25. Postponement Options • Deferment • In-school – no time limit – must be enrolled at least half-time • Economic Hardship – up to 36 months • Unemployment – up to 36 months • Military – 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 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 • Does not affect your credit rating

26. Postponement Options • 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. • Granted (usually) for periods of 6 months. • Interest accrues on Perkins, GradPLUS and both subsidized and unsubsidized Stafford loans. • Unpaid interest is usually capitalized at the end of the period of forbearance. • Forbearance does not affect your credit rating.

27. Rights/Responsibilities • Review your promissory notes for a complete list of all your rights and responsibilities. • 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/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! Contact your lender/servicer BEFORE you miss a payment if unable to make payment for ANY reason.

28. FSA Ombudsman • The FSA Ombudsman is an impartial, confidential resource after other avenues are exhausted to resolve borrower concerns. • Self-Resolution Checklist • To request mediation regarding federal student loan issues, you may contact the Office of the FSA Ombudsman at: • https://studentaid.ed.gov/repay-loans/disputes/prepare

29. 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 loan balance. Default Consequences • 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 types of employment.

30. Your Credit • All of your federal loans are reported to at least one of the three national credit bureaus. • Factors reported: • Timeliness of your payments • Missed payments • Outstanding balance • Your credit score will affect your ability to obtain credit. • Access free annual credit reports at: www.annualcreditreport.com • Experian • Equifax • Trans Union

31. 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. www.irs.gov/publications/p970

32. 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.gov • http://studentaid.ed.gov/repay-loans

33. Looking Ahead Compare your loan amounts in CAESAR with theamounts on NSLDS, the national database. Checkyourcredit reports for errors. Create a folder for all your loan documents (preferably online). Update your address on your loan servicer(s) website(s). Developan affordable spending plan. Know where your money is going. When 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 plan. Postpone repayment by filing the necessary deferment or forbearance forms with your loan servicer(s). Pay your billson time (preferably online). You received a rebate on the loans fees for your Direct Loans. To 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!

34. We are here to help! Student Financial Services 555 Clark St, 1st Floor Evanston, IL 60208 (847) 491- 8950 student-financial-services@northwestern.edu Please turn in your data sheets!

35. Congratulations!