After Graduation: Repaying Your Student Loan and job searching

1. After Graduation:Repaying Your Student Loan and job searching Student Financial Assistance and Awards & Career Services

2. If you have student loans and are graduating, it’s important to know your next steps so you can stay on track…

3. Returning for Grad School or upgrading? • Graduate students must be paying full-time fees to qualify for student loans or interest free status • Upgrading? • Unclassified students can receive student loan funding or interest free status for max. 52 weeks • Must be registered in 60% of f/t course load • Apply for government student loans or interest free status through home province (Out of province students must have IF documents filled out by school.)

4. Not returning to full-time studies? • Update your address with each of your lenders • Use a permanent address (e.g. parents) so that mail from your lenders gets to you promptly • Read what they send you! • Call them if you need clarification.

5. What happens when you’re in repayment? • Repayment begins after a 6 month “grace period”; no payments are required but interest does accrue during this time. • Term ends in December – 1st payment due July 2010 • Term ends in April - 1st payment due November 2010 • Remember you’re dealing with multiple lenders- it’s your responsibility to ensure you communicate with each one! • Ready or not, money will come out of your account- so be prepared and know your repayment terms!

6. How much are monthly payments? • Check the Consolidation Agreement you’ll receive in the mail from each of your lenders 5 months after graduation • Agreement outlines your loan repayment details • balance owing • expected monthly payments • start date of repayment • length of repayment • interest rate options

7. What about interest? • Prime is the reference interest rate used by banks • Currently prime rate = 2.25% What interest rate will you pay? • Fixed interest rate of prime rate at time of consolidation +5% (7.25%); or • Floating interest rate of prime +2.5% (4.75%)

8. Can I make payments during my grace period? • YES! • This is a smart way to pay down your loan principal and reduce the interest charged • How? • Contact your lenders to arrange early payments and have a consolidation agreement sent to you

9. How long is the repayment period? • Canada Student Loan is normally amortized over a repayment period of 9.5 years. • BC Student Loan over 14.5 yrs* • If monthly payments are too high to manage, repayment period for your CSL can be increased up to 14.5 yrs; BCSL to 19.5 yrs *Repayment period for BCSL issued prior to Aug01/00 is normally 9.5 yrs

10. Value of paying off loans quickly: • Decrease the overall amount of interest that you will pay • $20,000 loan at fixed rate paid back over 14.5 years will cost • $37,431.63 ($215/month) • Same loan paid back over 5 years will cost • $25,349.09 ($422/month)

11. What if you can’t repay your loans? • 1st step – contact all of your lenders and discuss the situation • Do not ignore the situation – it will not go away! • What about bankruptcy? Not a quick fix… The waiting period before student loan debt can be discharged from bankruptcy is seven years. (Canlearn.ca)

12. Student Loan Default • Failure to make regular monthly payments = defaulting on your loan(s) • This could result in: • Loss of future income tax refunds, GST credits • Outstanding balance on your loans will be taken each year from tax refund • Wage garnishments or property liens • Legal action • Loss of future student loan/grant assistance, and govt debt management programs • If you anticipate difficulty making your payments, contact your lenders BEFORE you run into trouble!

13. How does the government help you with repayment of your student loans?

14. Repayment Assistance Plan (RAP) • The new Repayment Assistance Plan (RAP) is available to borrowers who are having difficulty making their Canada Student Loan payments. Under the Plan, the amount borrowers are required to pay back is based on the borrower's family income and family size. • The Repayment Assistance Plan replaces the Interest Relief and Debt Reduction programs, for your federalloans. • To be eligible for the new Repayment Assistance Plan, borrowers must: • be a resident of Canada; • have received their Consolidated Student Loan Agreement; and • be unable to afford the calculated monthly loan payment amount

15. RAP cont’d • Borrowers must submit an application and reapply every six months in order to maintain eligibility • Borrowers who have exhausted 54 months of Interest Relief are still eligible for the Repayment Assistance Plan. • If you have a student loan for full time studies and you are in school part time, you can still be eligible for the Repayment Assistance Plan. • More Info at: Canlearn.ca • National Student Loans Service Centre (NSLSC) 1-888-815-4514.

16. Revision of Terms & Interest only payments • Not eligible for Repayment assistance programs but still have difficulty making monthly payments? • Ask your lenders (federal and provincial) about revising your repayment terms and extending loan repayment period, lowering your monthly payment • Ask about interest only payments, for 1-6 months • No qualification process or formal application, you can phone your lenders to ask

17. BC Loan Forgiveness Program • Recent graduates in some specific professions can have their BC student loans forgiven by working at publicly funded facilities (and sometimes underserved areas) in BC. • The eligible professions are: • nursing, nurse practitioner • medicine • midwifery • pharmacist • speech language pathology • pediatric occupational therapy and physiotherapy • audiology • teachers for the visually impaired • teachers for the deaf and hard of hearing • technology education teachers • school psychologists

18. Pacific Leaders Loan Forgiveness Program • Promotes the BC Public Service as a potential employer to new post-secondary graduates, by forgiving their outstanding BC student loan debt at a rate of one third per year. • As of November 2007, all current or new employees must submit an application to enroll in the Pacific Leaders B.C. loan forgiveness program.For info, call SABC at: 1-800-561-1818

19. BC Interest Relief Program • Helps people who have difficulty repaying their BC student loans because of low income and financial hardship. • BC govt will pay the interest on your BC student loans for six-month periods up to a maximum of 30 months. During this time, you do not have to make any BC loan payments. • You may apply at any time during your repayment period. • You cannot apply for interest relief during the six-month grace period. • Loans must be in good standing (i.e. not in default!) • Apply online or phone your lender.

20. BC Loan Reduction Program • Helps full time students who must borrow most of the money they need to pursue their post-secondary education. (Must successfully complete each year.) • There is no application. You will automatically be considered for loan reduction each year through information from your loan application. • SABC sets the yearly loan reduction limit for all BC post-secondary students based on the number who are eligible and the budget for that program year. • Graduate students, students in professional programs (law, medicine or dentistry), and students in programs of less than two years are not eligible.

21. Online resources to help you plan • www.canlearn.ca • Repayment calculator • Budgeting tools • Helpful tips and info on repayment • Fun websites with tips and tools for • financial planning for students: • www.piggypal.ca • www.gailvazoxlade.com

22. Key Contacts • Student Financial Assistance & Awards main floor of Brock Hall www.students.ubc.ca/finance awards.inquiry@ubc.ca Tel: 604-822-5111 • National Student Loans Service Centre 1-888-815-4514 • BC Student Loan Services Bureau 1-877-535-7680 • www.canlearn.ca

23. How will I pay my loans? I need to find a job!

24. Where are the jobs? • First stop… Job Boards • www.careers.ubc.ca • Offers a range of postings in various industries • www.indeed.ca • Indexes some of the most common job search sites • www.eluta.ca • Provides an employer directory for students based on their degree and major

25. Job Posting • Is this a fit? • How much experience do I need? • Less than 3 years • Key language to look for: • Assistant • Coordinator • “Opportunity to grow” vs. “Seasoned professional”

26. Starting your Career search • How long should I be searching? • 4-8 months • Get offline with volunteering, networking, career fairs, and other events • Prepare an individually targeted resume and cover letter for each position

27. Next Steps • Attend a workshop to access the hidden job market or practice for an interview • Meet employers at Career Fairs and Info Sessions • Attend an alumni panel • Arts Career Expo (Jan. 28) • Beyond the BSc. (Mar. 10?) • Have your resume revamped with our online content and an in-person clinic

28. Career Services Office • Located in Brock Hall across from the Welcome Centre • 8:30-4:00 pm Mon, Tues, Wed, Fri • 10:00-4:00 pm Thurs www.careers.ubc.ca

29. Questions?