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Graduate Student Financing: Show them and they will listen Kevin Towns The Ohio State University

Graduate Student Financing: Show them and they will listen Kevin Towns The Ohio State University. OASFAA Supports 45 Years. Objectives. Review of financing options Understanding the debt Plan to educate our students Round table discussion. OASFAA Supports 45 Years. What can I get?.

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Graduate Student Financing: Show them and they will listen Kevin Towns The Ohio State University

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  1. Graduate Student Financing: Show them and they will listenKevin TownsThe Ohio State University OASFAA Supports 45 Years

  2. Objectives • Review of financing options • Understanding the debt • Plan to educate our students • Round table discussion OASFAA Supports 45 Years

  3. What can I get? • Direct Unsubsidized Loan • Student does not have to demonstrate need • Interest always accruing • Current interest rate 5.41% with loan fee of 1.072% (July 1, 2013- June 30, 2014) • Maximum is $20,500 • Aggregate limit $138,500 with $224,000 for health professions OASFAA Supports 45 Years

  4. OASFAA Supports 45 Years

  5. What can I get? • Graduate PLUS Loan • Student must complete FAFSA in order to apply • Current interest rate 6.41% with 4.288% loan fee (July 1, 2013- June 30, 2014) • Maximum is determined by institution and their Cost of Attendance OASFAA Supports 45 Years

  6. What can I get? • Private (Alternative) Education Loan • Offered by private lenders such as banks and credit unions • There is no federal application to qualify • Application, interest rate, and other details are different for each lender OASFAA Supports 45 Years

  7. PLUS vs. Private PLUS • Fixed rate only • Interest: 6.41% • Upfront loans fees: 4.288% • Standard 10 year repayment period • Offers in-school deferment Private • Fixed and variable • Interest varies • May or may not have fees • 5-20 repayment period • Deferment varies by lender OASFAA Supports 45 Years

  8. Percent of Graduate Student’s Receiving Aid by Type2011–12 National Postsecondary Student Aid Study OASFAA Supports 45 Years

  9. What’s tuition looking like? • Average cost for public graduate programs is approximately= $30,000 [US News] • At OSU, the average cost for a grad student is $12,200 in-state and $29,512 out-of-state OASFAA Supports 45 Years

  10. What does this population look like? • Average income as of 2011= $59,230 [NCES] • Masters degree or higher • Based on 2011 census, 32 % of Ohioans have bachelors degree or higher • 82% of grad students work while in school [CBS] OASFAA Supports 45 Years

  11. What’s my debt like? • The current loan debt is about $1 trillion • 1 in 10 borrows default on student loans within two years of entering repayment • These amounts do not include undergraduate amounts or multiple years of attendance OASFAA Supports 45 Years

  12. Total Number of Undergraduate and Graduate Federal Subsidized and Unsubsidized Student Loan Borrowers and Average Amount Borrowed in 2012 Dollars, 2002-03 to 2012-13 NOTE: Dollar values are rounded to the nearest $10. SOURCE: Trends in Student Aid website (trends.collegeboard.org), Tables 6A and 6B.

  13. Average Undergraduate Debt, Graduate School Debt, and Total Debt for Graduate Degree Recipients, 2007-08 Note: First-professional degrees include graduate degrees in medicine, dentistry, chiropractic, optometry, osteopathic medicine, pharmacy, podiatry, veterinary medicine, law and theology. Total debt amount includes Stafford Loans, Graduate PLUS Loans, an

  14. Distribution of Graduate School Debt Levels for 2007-08 Graduate Degree Recipients Note: First-professional degrees include graduate degrees in medicine, dentistry, chiropractic, optometry, osteopathic medicine, pharmacy, podiatry, veterinary medicine, law and theology. Total debt amount includes Stafford Loans, Graduate PLUS Loans, an

  15. Financial Literacy • How are we communicating this population? • Counseling, emails, website? • Working with other departments • Admissions, Financial Wellness, Bursar OASFAA Supports 45 Years

  16. What do we communicate? • Questions from other students • Types of professional judgments • Exit counseling sessions • Average debt of students • Budgeting • Tips for borrowing and loan management • Investments and money management OASFAA Supports 45 Years

  17. When do we communicate? • Initial consideration by student • Once the student has turned in their acceptance fee • Before accepting loans (additional counseling) OASFAA Supports 45 Years

  18. Questions/Discussion Kevin Towns The Ohio State University Towns.37@osu.edu OASFAA Supports 45 Years

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