RESPONSE TO REQUEST FOR INFORMATION BY SUNY FREDONIA

Transcription

1 RESPONSE TO REQUEST FOR INFORMATION BY SUNY FREDONIA PNC EDUCATION LENDING MARCH 2018 NOTE: INFORMATION IS SUBJECT TO CHANGE WITHOUT NOTICE. FOR INTERNAL USE ONLY. NOT FOR DISTRIBUTION.

2 HELPING STUDENTS TAKE THE NEXT STEP For over half a century, PNC has been helping students and their families afford the costs of higher education. Our team of experienced professionals work to exceed our customers expectations through personalized, quality service. We re committed to continuous improvement of the Education Loan Center through training, personal development and teamwork. CampusDoor, our loan originator, brings years of experience in education finance, information technology and financial services. Our long-term servicing relationship with American Education Services (AES) and our ability to adapt to the ever-changing student loan industry keeps us among the top education loan providers in the country. PNC EDUCATION LOAN CENTER pnconcampus.com M-F 8 a.m. to 5 p.m. EST FUNDAMENTAL VALUES COMPETITIVE PRODUCTS AND PRICING We offer loan solutions for students in undergraduate, graduate, health profession and bar study programs. Borrowers can also choose a variable or fixed interest rate. CONVENIENT APPLICATION PROCESS Borrowers may apply online 24 hours a day or by phone during regular business hours. Upon submission of the application, borrowers will receive a preliminary credit decision. The borrower will only need to submit one application to be presented both a variable and a fixed rate option. DEDICATED STAFF PNC maintains a highly effective customer service department that has an average of 7 years of experience in education lending. We also work with CampusDoor and AES to provide efficient, streamlined processes for students and schools. INNOVATIVE FINANCIAL LITERACY TOOLS Our web-based financial literacy tools offer a holistic approach to helping students create a financial plan, from the time they enter college through repayment. CONNECTING STUDENTS TO SMART EDUCATION FINANCING SOLUTIONS PNC continually invests in enhancing our education lending process by: Making customer service more personal Employing new web-based loan processing formats Offering loan education tools that help students and families make financial decisions We re committed to combining the right financing with the financial tools, resources and education our customers need. 2 NOTE: INFORMATION IS SUBJECT TO CHANGE WITHOUT NOTICE. FOR INTERNAL USE ONLY. NOT FOR DISTRIBUTION.

3 LOANS FOR UNDERGRADS, GRADS, HEALTH PROFESSIONS AND BAR STUDY The PNC Solution Loan is a private student loan that can provide creditworthy students and/or co-signers the funds to finance a college education. ELIGIBILITY All borrowers and/or co-signers (if any) must: Be U.S. citizens or permanent residents Have lived in the U.S. for the previous two years Meet the credit guidelines listed below Please note: A creditworthy co-signer is typically required for undergraduate students; a creditworthy co-signer is required for 17-year-old students. CREDIT GUIDELINES All borrowers and co-signers (if any) must: Have two years of satisfactory credit history and two years of continuous income and/or employment history Have proof of current income If self-employed, have been in business for at least two years Meet debt-to-income requirements BORROWERS WHO HAVE EXHAUSTED ALL OF THEIR FEDERAL LOAN OPTIONS CAN APPLY AT THEIR CONVENIENCE: Online: 24 hours a day By phone: M F 8 a.m. to 5 p.m. EST Once borrowers submit an application, they will provide an address for a co-signer (if applicable). An containing an application ID number and web link to apply will be sent to the co-signer. Co-signers may also apply by phone if they prefer. Should the borrower or co-signer be unable to complete an application for any reason, they will be provided with the application ID number to resume the application at a later time. 3 NOTE: INFORMATION IS SUBJECT TO CHANGE WITHOUT NOTICE. FOR INTERNAL USE ONLY. NOT FOR DISTRIBUTION.

4 PNC SOLUTION LOAN PRODUCT OVERVIEW PNC SOLUTION LOAN FOR: Enrollment Undergraduates Graduates Health & Medical Professions and Residency At least half-time as determined by the school. No Satisfactory Academic Progress (SAP) requirements. Bar Study At least half-time or have graduated within the last 6 months. No SAP requirements. Annual Limits $1,000 up to $40,000 $1,000 up to $65,000 $1,000 up to $65,000 Residency: $1,000 $15,000 $1,000 up to $15,000 Current Variable and Fixed Interest Rates Variable rate loan interest rates range from 4.58% to 11.53% (APRs from 4.42% to 11.53%) 1 Fixed rate loan interest rates range from 6.49% to 12.99% (APRs from 6.23% to 12.99%) 1 Grace Period 6 months Repayment Options Immediate Maximum 15-year repayment term Interest-Only $25 minimum payment per loan per month Fully Deferred 2 Borrower Benefits 0.50% interest rate reduction when borrower elects to have payments automatically deducted from any checking or savings account 3 Co-signer release option available after 48 consecutive on-time payments, subject to credit approval 4 In the event of a student borrower s death, PNC will forgive any and all remaining loan balance regardless of repayment status. The co-signer, if any, will also be released in the event of the student borrower s death. 1 Variable interest rates are equal to the London Interbank Offered Rate (LIBOR) index plus a margin depending on the creditworthiness of the borrower and co-signer, if any. The LIBOR index, adjusted quarterly, is equal to the average of the one-month LIBOR rates as published in the Money Rates section of the Wall Street Journal on the first business day of each of the three (3) calendar months immediately preceding each quarterly adjustment date. The LIBOR index is currently 1.28%. Rates effective as of 1/1/18. Please call the Education Loan Center for the most up to date rate information. 2 Interest will accumulate while the student is enrolled in school if payments are deferred. If not paid, the accumulated interest will be added to the principal at repayment. 3 During repayment, an interest rate reduction of 0.50% is available for automated payments once the borrower is no longer attending school on at least a half-time basis. The borrower must be making scheduled payments through servicer American Education Services (AES) that include both principal and interest from his/her checking or savings account. If automatic payment is discontinued, the borrower will no longer receive an automatic payment discount. Discount may be suspended during periods of forbearance. A federal regulation limits the number of transfers that may be made from a savings or money market account. Please contact the financial institution for more information on transfer limitations on savings accounts. 4 A request to release a co-signer requires that, as of the date of the request, the borrower has made at least forty-eight (48) consecutive timely payments of principal and interest with no periods of forbearance or deferment within the forty-eight (48) month timeframe. Timely payment means each payment is made no later than the 15th day after the scheduled due date of the payment. Consecutive payment means the regularly scheduled monthly payment must be made for the most recent forty-eight (48) months straight without any interruption. To qualify for a co-signer release, the borrower must submit a request, meet the consecutive, timely payment requirements, provide proof of income and pass a credit check. Please Note: PNC reserves the right to modify or discontinue any or all terms of these programs at any time without notice. 4 NOTE: INFORMATION IS SUBJECT TO CHANGE WITHOUT NOTICE. FOR INTERNAL USE ONLY. NOT FOR DISTRIBUTION.

5 SIMPLE, CONVENIENT APPLICATION PROCESS Students and co-signers can apply for a PNC Solution Loan 24 hours a day via the Apply Now button on our home page ( Information is displayed for all five loan types, so applicants can choose the product that best suits their needs. They can also apply by calling during regular business hours. Once the application is submitted, a credit check is performed. If the loan is credit-approved, a Preliminary Interest Rate Notification (PIRN) is presented (see sample PIRN below). The PIRN indicates the interest rate they will qualify for if they complete the application process. This resource is to help the applicant(s) make an informed decision. They may use this PIRN to compare loan terms to find the loan that best fits their needs. If the loan application is denied, applicant(s) will be notified regarding the reasons for denial. PNC Solution Loan Preliminary Interest Rate Notification Please note: This is not an offer or a commitment to lend money. Before you proceed, review this Preliminary Interest Rate Notification (PIRN) and select one of the two options listed below. You must make a selection to proceed. Purpose: To make the process of shopping for student loans as easy as possible, PNC is providing this resource to assist you in making an informed decision. You may compare this PIRN with other loan terms so you can find the best loan that fits your needs. You have been credit-approved and this PIRN provides you with the interest rate you will qualify for if you complete this application process. Next steps include submission of income verification and enrollment verification, if applicable. You may also be asked to submit identity verification documentation. Once you submit the required documentation, you will be asked to configure your loan offer by selecting an interest rate type (fixed or variable*) and a repayment option.** When you make your selection, we will provide you with an Approval Disclosure, detailing the terms of your loan offer. Example Loan Summary: For reference, the information below simply estimates the costs of a fully-deferred loan based on your information shared so far. Fixed Rate Option Variable Rate Option Loan Amount: $10, Loan Amount: $10, Fixed Interest Rate: 6.49% Variable Interest Rate*: 4.58% Repayment Term: 180 Repayment Term: 180 Estimated In-School Monthly Payment: Estimated Post-School Monthly Payment: $0.00 Estimated In-School Monthly Payment: $ Estimated Post-School Monthly Payment: Estimated Total Cost: $19, Estimated Total Cost: $16, * The variable rate may change quarterly. ** View loan Application and Solicitation Disclosure for additional information regarding available repayment options. $0.00 $90.28 Applicants can view their application status by logging into their online account. A timeline shows the applicant(s) a list of key steps prior to loan disbursement. Step 1: Submit Application Step 2: Decision Pending Income Step 3: Offer Acceptance Step 4: Loan Documentation Step 5: Enrollment Certification Step 6: Revised Offer Acceptance Step 7: Final Disclosure Receipt Step 8: Partially Disbursed Step 9: Fully Disbursed 5 NOTE: INFORMATION IS SUBJECT TO CHANGE WITHOUT NOTICE. FOR INTERNAL USE ONLY. NOT FOR DISTRIBUTION.

6 KEY STEPS IN THE APPLICATION PROCESS 1The student and co-signer (if applicable) complete the application process and review the Application and Solicitation Disclosure. They click the Submit button to continue the application. If credit is approved, a Preliminary Interest Rate Notification (PIRN) is presented along with a checklist indicating the documentation needed to complete the application process. 5The Final Disclosure is mailed to the borrower(s) within one business day of being certified by the school. Upon receipt of the Final Disclosure, the borrower(s) will be allotted a three-day Right to Cancel period prior to the funding of the loan. The Right to Cancel request may be submitted in writing or electronically. 2Once all documentation is received (e.g., proof of income, proof of employment, etc.), an Approval Disclosure is sent to the borrower and co-signer (if applicable) via their preferred communication method. The Approval Disclosure must be accepted by the applicant(s) in one of two ways: Online When the borrower(s) receive conditional approval, they can view the Approval Disclosure and click on the appropriate box to accept or decline the loan terms. Telephone Borrower(s) can accept the loan by speaking to a customer service representative at Borrower(s) choose to esign, fax or upload to CampusDoor the credit agreement, Self Certification form and any necessary verification documents. 6Financial Aid Office: Disbursement of funds is scheduled after the Final Disclosure is sent. PNC Solution Loan funds will be disbursed no earlier than seven calendar days after the receipt of the Final Disclosure to allow for the expiration of the borrower s threeday receipt period and the three-day Right to Cancel period. 7Financial Aid Office: PNC Solution Loan funds are disbursed to the school via your preferred method: Electronic funds ELM National transfer (EFT) Disbursement Network (NDN) Paper check Sallie Mae CDS Great Lakes CDS Exception: Bar study and health professions residency funds are payable to the borrower(s) only in one disbursement. 4Financial Aid Office: School certification is sent to your office after the receipt of the signed credit agreement and all supporting documents (e.g., proof of income, proof of employment, Self Certification Form, Acceptance of Approval Disclosure, etc.). All of PNC s Solution Loan Products require school certification except for the health profession residency loan. Options to certify include: ELM ScholarNet ecourier CampusDoor Campus Connections CampusDoor can fax a certification form 6 NOTE: INFORMATION IS SUBJECT TO CHANGE WITHOUT NOTICE. FOR INTERNAL USE ONLY. NOT FOR DISTRIBUTION.

7 PROVIDING A POSITIVE CUSTOMER EXPERIENCE DEDICATED SERVICE FOR BORROWERS AND SCHOOLS CUSTOMER SERVICE IS A CRITICAL PNC VALUE The PNC Education Loan Center has a highly trained and experienced customer service staff, whose only responsibility is serving education loan customers. We offer schools and borrowers full service from application through repayment. Our focus on key service metrics ensures all encounters are personal and solution-centric: LIVE CHAT OPTION As another convenient contact method, the PNC Education Loan Center offers a live chat capability through our website, Customers simply click on the NEED HELP link on the right side of the screen to connect with an education lending specialist. All chats are conducted on a secure network to safeguard personal customer information. Service Levels All calls are promptly answered by a live customer service consultant. Our 2017 average speed-to-answer was 7.7 seconds. Accuracy Our customer service team strives to provide personalized, consistent and accurate account information to each and every school and borrower. Completeness Our customer service team members act, taking ownership of any caller issues and striving for resolution during the initial call. If more research time is needed, a response will be provided within two business days. Experience Our customer service team receives ongoing training in all aspects of customer service and the borrowing process, delivering a better borrower experience. Calls are recorded and continually monitored for training purposes. Response Times All voic s and s are answered within one business day. 7 NOTE: INFORMATION IS SUBJECT TO CHANGE WITHOUT NOTICE. FOR INTERNAL USE ONLY. NOT FOR DISTRIBUTION.

8 PARTNERSHIPS FOR QUALITY SERVICE DEDICATED SERVICE FOR BORROWERS AND SCHOOLS WORKING TOGETHER TO SERVE STUDENTS Each school is assigned a dedicated PNC Campus Relationship Manager with an average of 18 years experience in the financial aid industry. They can provide up-to-date product information, training, information on industry trends, legislative updates and resolution of any loan-related issues. For schools with questions regarding a specific borrower or loan account, Priority Service Representative Tejuan Smith is available Monday Friday from 8:15 a.m. to 5:00 p.m. EST at ext. 431, or at tejuan.smith@pnc.com. LIFE OF LOAN SERVICING PNC does not currently sell our private loans to third parties. We work with CampusDoor for origination and with American Education Services (AES) for servicing the PNC Solution Loan; they share our high standards for service and knowledge. CampusDoor is a leader in developing ways to ease the application process while streamlining processing efforts by interfacing with prominent platforms such as ELM, OpenNet and ScholarNet. PNC offers borrowers exemplary customer service continuing through repayment. Customers can always contact the PNC Education Loan Center through their preferred method: INFORMATION WHEN YOUR STUDENTS NEED IT PNC understands the importance of borrowers having access to information when they need it. Once borrowers start an application, they can check the status 24/7 at by following the Returning Applicants link on the home page. By phone M F 8 a.m. to 5 p.m. EST Online (Live Chat) By eduloans@pncbank.com By mail 2600 Liberty Avenue Suite 200 Pittsburgh, PA We offer 24/7 loan servicing information through our partner AES by phone or online. Borrowers can access information such as: Loan status Interest accrual Account/payment history Outstanding balances Online payment portal Online customer service Borrowers can also address servicing questions to American Education Services (AES): By phone M F 7:30 a.m. to 9 p.m. EST Online 8 NOTE: INFORMATION IS SUBJECT TO CHANGE WITHOUT NOTICE. FOR INTERNAL USE ONLY. NOT FOR DISTRIBUTION.

9 FINANCIAL LITERACY & CRITICAL SUPPORT FOR THE FUTURE BUILDING A STRONG FOUNDATION At PNC, we believe that no student should leave school and go out into the world without a fundamental grasp of personal finance. We offer students access to a range of financial tools because we feel strongly that understanding debt management and default prevention is good for borrowers, schools and lenders. PNC also offers multimedia tutorials on a variety of financial topics at pnconcampus.com, where students will find resources and calculators along with two curriculum paths with multiple courses: Paying for College (a holistic understanding of the cost of college and applying for aid) and Financial Literacy (reducing overall college debt by making smart financial choices while in college). Students can either complete courses sequentially or view only those of interest. Registering with the site lets students customize tools and save their progress. Schools can link directly to the site at pnc.financialliteracy101.org. The primary goals of our financial literacy resources are: Promoting responsible borrowing, including federal borrowing first. Educating students on debt management and financial planning through interactive financial literacy tools. Awareness is the first step in helping students. By promoting use of these available tools together, we can help them succeed. DEFAULT PREVENTION To aid the borrower entering repayment, AES provides an early-awareness campaign days prior to the loan entering repayment. Borrowers and co-signers are counseled on their repayment obligations to increase financial awareness. Representatives offer solutions for borrowers who may be unable to make payments as scheduled, including Modified Graduated Repayment Schedule (MGRS) options. Forbearance requests are carefully evaluated and may be instituted as appropriate. 9 NOTE: INFORMATION IS SUBJECT TO CHANGE WITHOUT NOTICE. FOR INTERNAL USE ONLY. NOT FOR DISTRIBUTION.

10 PNC EDUCATION REFINANCE LOAN HELPING BORROWERS CONSOLIDATE LOANS INTO ONE MONTHLY PAYMENT Borrowers can manage loan debt with the PNC Education Refinance Loan that lets qualified borrowers combine their higher-interest federal and/or private student loan debt into a single monthly payment. 1 FEATURES AND BENEFITS: 0.50% interest rate reduction if monthly payments automatically deducted from checking or savings account. 2 Co-signer release option available after 48 consecutive on-time monthly payments. 3 Financial independence by refinancing without a co-signer. REQUIREMENTS: To be eligible for our Education Refinance Loan, a borrower must: Have repayed federal and/or private student loans for at least 24 months. 4 Have a satisfactory credit profile. Be a U.S. citizen, permanent resident or resident alien with a valid U.S. Social Security Number, residing in the U.S. for the previous two years. Have two years of continuous income or employment history. Outstanding debt forgiven upon death of borrower. 1 Refinancing at a longer repayment term may lower the borrower s monthly student loan payments, but may also increase the total interest paid over the life of the loan. Refinancing at a shorter repayment term may increase the borrower s monthly student loan payments, but may lower the total interest paid over the life of the loan. For example, if the borrower has a 15-year loan that matures in 10 years and the borrower refinances for another 15 years at a lower rate, the borrower s payments will be lower, but the borrower will pay interest for an additional 5 years. The borrower should contact us to discuss the option that best meets the borrower s needs. Certain Federal Benefits Will Be Lost or Not Available: By refinancing federal loans through this PNC Education Refinance Loan, the borrower will lose or not be able to select other payment plans available to federal student loan borrowers, such as income-contingent repayment or incomebased repayment. In addition, federal student loans offer deferment, forbearance and loan forgiveness options that may not be available under a PNC Education Refinance Loan. The borrower should compare current benefits with this program to ensure any loss of existing benefits is fully understood. 2 During repayment, an interest rate reduction of 0.50% is available for automated payments once the borrower is no longer attending school on at least a half-time basis. The borrower must be making scheduled payments through servicer American Education Services (AES) that include both principal and interest from a checking or savings account. If automatic payment is discontinued, the borrower will no longer receive an automatic payment discount. Discount may be suspended during periods of forbearance. A federal regulation limits the number of transfers that may be made from a savings or money market account. The borrower should contact their financial institution for more information on transfer limitations on savings accounts. 3 A request to release a co-signer requires that, as of the date of the request, the borrower has made at least forty-eight (48) consecutive timely payments of principal and interest with no periods of forbearance or deferment within the forty-eight (48) month timeframe. Timely payment means each payment is made no later than the 15th day after the scheduled due date of the payment. Consecutive payment means the regularly scheduled monthly payment must be made for the most recent forty-eight (48) months straight without any interruption. To qualify for a co-signer release, the borrower must submit a request, meet the consecutive, timely payment requirements, provide proof of income and pass a credit check. 4 Qualifying federal and private loans must have been used only for qualified higher education expenses at an accredited U.S. undergraduate or graduate school. 10 NOTE: INFORMATION IS SUBJECT TO CHANGE WITHOUT NOTICE. FOR INTERNAL USE ONLY. NOT FOR DISTRIBUTION.

11 PREPARED BY YOUR PNC CAMPUS RELATIONS MANAGER Edward M Hill AVP, Campus Relations Manager PNC Education Lending Toll-Free: ext. 224 Office/Fax: / Edward.Hill@pnc.com NOTES NOTE: INFORMATION IS SUBJECT TO CHANGE WITHOUT NOTICE. FOR INTERNAL USE ONLY. NOT FOR DISTRIBUTION The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC