HSPH HUECU Graduate Student Loan

1. HSPHHUECU Graduate Student Loan Presented by: Thomas Murphy Director of Student Services

2. Presentation Objectives • Harvard University Credit Union Overview • Loan Repayment Information • Managing Your Finances • Budgeting • Contact Information

3. Why are you here today? • Federal Regulations require all student loan borrowers attend an exit interview • Institutional Requirement for graduation • Inform you of your rights and responsibilities as a student loan borrower • Help you make a smooth transition from borrowing to repayment in order to avoid default.

4. Harvard University Credit Union Overview • Background on credit union • Member owned • Who are the members? • Critical nature of loan program success The Harvard University Credit Union is the lender of this loan. The Credit Union’s membership consists of students, alumni, faculty and other employees of Harvard University. Timely repayment of your loan is essential to the wellness of the program.

5. Loan Repayment Information Harvard University Credit Union Loan Repayment Information • Paying back your loan • Loan Servicer • Setting up on-line access • Contact Information

6. Loan Repayment Information • Repayment begins six months after the student graduates or separates from the school. Student can even choose to begin making payments today • Repayment term is 20 years if balance is less than or equal to $40,000 • Repayment term is 25 years if balance is greater than $40,000 • Two Repayment Options Available • Straight Repayment • Graduated Repayment

7. Loan Repayment Options • Straight Repayment Option • With the straight repayment option, you pay a level amount every month for the full 20 or 25 year repayment term. • If the interest rate increases or decreases, your monthly payment amount may go up or down accordingly in order to ensure the loan is fully paid over the remaining repayment period. • Graduated Repayment Option With the graduated repayment option, the first 2 years of payments are lower than in straight repayment • Thereafter loan repayment is similar to straight based on 18 or 23 year repayment term • If you are interested in graduated repayment you need to contact loan servicer prior to entering repayment.

8. General Repayment Information Please note these very important facts concerning the repayment of your loans. 1. All student loans are reported to a credit bureau 2. Derogatory information will remain on the credit bureau for 7 years 3. Communicate with your lender during financial hardship. If you change your name, address, or social security number be sure to inform your lenders.

9. Making Payments • Please note that there is no deferment option available if you return to school. • Contact loan servicer (UAS) immediately if you can’t make regularly scheduled payment. • Loan payments need to be made in U.S. dollars • Making payments • Pay by Mail • Pay Online • Pay via TravelEx option • Enroll in Automatic Payment Option

10. Automated Electronic PaymentImmediate Discount • There is a 0.25% rate discount during repayment for automated electronic payment • One small step may equal over $1,000. • How do you sign up for auto payment discount? • Contact loan servicer • Go to https://loanservice.uasecho.com where you can view account balances and make a payment 24 hours a day 7 days a week.

11. Making Payments Through Harvard University Credit Union • Student loan payments must be in US $ • Establish a checking account with the credit union • Transfer funds to checking account • Currency conversion can be coordinated with credit union • Make payments via Travelex

12. TravelEx – International Payment Gateway • International currency exchange – over 26 different currencies available • European, Asian, North America and Middle East • Local transfer of funds from local bank • Lower exchange costs • Visit HUECU website for more information

13. Loan Servicer Contact Information • The servicer for the loan is University Accountings Services (UAS). • Your loan repayment information will be sent on behalf of Harvard University Credit Union to the student borrower directly from UAS. • Insert logo for UAS

14. Loan Servicer Contact Information Contact information for UAS 800-723-2210 Or • (262) 780-2000 extension 1705 (for calls outside the U.S.) • Website: https://loanservice.uasecho.com • e-mail: uasloanservice@ncogroup.com

15. Setting Up On-line Account Website: https://loanservice.uasecho.com Step 1: • In order for a borrower to access the online account, the borrower must enroll in the borrower portal page under New Member. • The following information is required for the initial set-up: − School Name /Institution − Borrower ID/SSN (Borrower ID is found on all statements) − Borrower Zip code (where the statement is sent) Step 2: Verify and update personal information (including name, address, telephone number, email address) Step 3: Create a Screen ID and Password. Step 4: The Borrower will receive an e-mail confirmation of enrollment Step 5: • Upon receipt of the confirmation email, the Borrower clicks on the “Activate Account” link to complete the registration process. • The Borrower can now log in and view the account and make and schedule payments.

16. Loan Repayment Login Page

17. Harvard University Credit Union Loan Repayment Summary • Repayment begins within 6 months • Choose your repayment option • Make payments in U.S. $ • Set-up on-line account access • Contact Information 800-723-2210 Or • (262) 780-2000 extension 1705 (for calls outside the U.S.) • Website: https://loanservice.uasecho.com • e-mail: uasloanservice@ncogroup.com

18. Managing Your Finances • Budgeting after graduation • Understand steps to set up spending plan • Identify spending leaks • Track spending, find ways to save • Set short- and long-term financial goals.

19. Success to meeting goals • What helps you make progress to meeting your goals? • Having goals to aspire towards • Having a plan • Disciplined approach to meeting objectives • Seeing results/ progress

20. Most people don’t plan to fail…they simply fail to plan

21. Spending Choices • Many factors impact consumer behavior • These factors may lead to decisions that are not in our best interest • Understanding why we buy what we buy can help us make smart decisions in the future

22. The Planning Process Set Savings Goals / Turn your NEEDS into GOALS Long- term goals / Short- term goals A realistic goal is $MART (in more ways than one) $pecific Measurable Adjustable Relevant Time-related

23. Life time savings goals • Stage 1 – Save $1,000 • Stage 2- Steal from Tomorrow debt • Stage 3 – Build 6 month security fund to pay must haves • Stage 4 – Lifetime of wealth • Save for retirement • Save for your other dreams

24. Barriers to meeting goals • What challenges you the most in making progress toward your financial goals? • Impulse buying • Unplanned spending and use of credit cards • Poor spending habits • Loss of job • Financial emergencies

25. Budgeting Challenges • “No time to budget” • “No interest to track receipts” • “Don’t like math” • “No reason to budget”

26. Where Does the Money Go? Building a Budget… …It’s An Attitude.

27. Why Have a Spending Plan? • Operating without a budget is like driving a car without a steering wheel… • A plan to meet your goals • Minimize anxiety of how to pay bills

28. Credit Card Caution Credit Card \kred’-et kard\ n.: A means for buying something you don’t need, at a price you can’t afford, with money you don’t have.

29. The Role of Credit • People spend more when they use credit • Credit allows you to get something today without having to pay for it • If you charge too much and cannot pay off balance in full, you will have to pay interest • Use a debit card or cash for most purchases • Make- and pay off- a small purchase each month with a credit card

30. Building A Budget Determine your income Estimate expenses by category Housing Food Clothing Utilities (e.g. telephone, heat) Transportation Miscellaneous Use the budget outline

31. Visit the Credit Union website for the on-line budget calculator https://www.huecu.org/calculators/home-budget-analysis,349.html Budget Worksheets

32. Give yourself the 4th degree Needs vs. Wants / Ask yourself the following. Do I really need it? Do I have to have it today? What will happen if I don’t buy it now? (for better or worse) Why have I gotten along without it until now?

33. Credit Basics • Credit – Utilizing something now (e.g. education, car or home) and paying for it over a period of time. • 3 C’s of Credit • Character – How well do you honor your financial obligations • Capacity – How easy will it be for you to repay the debt • Collateral – Will the loan be secured by something

34. What’s on the Credit Report? • Personal Information • Names, current & previous addresses, employers, DOB • Credit Information • Credit granted and history & timeliness of repayment, revolving, installment or open ended, payment patterns for past 7 years • Public Record Information • Records found on public documents: bankruptcies, tax liens, collection accounts, overdue child support • Inquiries • List of creditors and agencies who have requested your credit report

35. Getting Your Credit Report www.Annualcreditreport.com Receive a free copy of report from each of 3 bureaus - order report every 4 months to monitor Must provide free if denied credit within 60 days Review for accuracy annually Dispute incorrect information MYFICO.COM

36. Annualcreditreport.com

37. What Is Your Credit Score? • Forecast of how well you will repay a loan as agreed during the next 24 months – the higher the score, the better the forecast that you will repay • Snapshot of your credit history at a particular point in time • Only includes factors related to an individual’s credit • Always changing

38. Credit Score Ranges • FICO Scores range – 300 to 850 • Only 18% of population have a FICO Score of 800 or better • 7% of population have scores below 500 • Question: • Do you want to be considered the best?

39. Credit Score Factors • Payment History - 35% or higher • Amounts Owed – 30% • Length of Credit History – 15% • New Credit – 10% • Types of Credit in Use – 10%

40. Payment history on all accounts Payment information on types of accounts Public records Number of accounts with no late payments Details on late payments Severity, frequency, how recent, amount How to Improve Pay bills on time If you miss a payment, get current Ask for help with lender Score Factors: Payment History

41. Credit Impact: Slow Payments One 60 day delinquency can decrease a credit score by… • 50 • 75 • 100 points

42. Credit Impact: Rates and Payments Source: Myfico.com – 36 month car loan - $25,000

43. Managing Finances Summary Drive the car with a steering wheel Make a list of your values Set at least one goal to start Determine income Determine expenses Create a spending plan Review on a regular basis

44. Harvard University Credit UnionLoan Repayment Information • Contact Information • Customer Service: • 800-723-2210 Or • (262) 780-2000 extension 1705 (for calls outside the U.S.) • Website: https://loanservice.uasecho.com • e-mail: uasloanservice@ncogroup.com Call or e-mail with any questions about loan. • Sign up for on-line access to UAS system today • Financial Budgeting: • Visit a Harvard University Credit Union Branch office

45. Thank You! Tom Murphy 617-495-1720 Tom_Murphy@Harvard.edu