EXIT GUIDE. Borrowers. For Direct Loan SM COUNSELING

Transcription

1 EXIT For Direct Loan SM COUNSELING GUIDE Borrowers

2 EXIT COUNSELING GUIDE For Direct Loan SM Borrowers CONTENTS CONTACTS FOR YOUR DIRECT LOANS SM... 1 Money management 2 Repaying yor loan 4 Repayment plans 4 Things to consider 6 Payment of interest & capitalization 7 Avoiding delinqency & defalt 8 Deferment & forbearance (postponing payments) 8 Conditions for cancelling all or part of yor loan 10 Loan consolidation 11 NOTEPAD...12 LOAN REPAYMENT, BY PLAN & AMOUNT...13 STUDENT CONTACT INFORMATION...TEAR OUT/15 RIGHTS AND RESPONSIBILITIES SUMMARY CHECKLIST...Tear ot/17 REsorces for More Information...20 This gide provides a general overview of information that yo will need to sccessflly repay the Direct Sbsidized, Direct Unsbsidized, and Direct PLUS Loans that yo ve received to help pay for yor college costs. For more detailed information abot any of the topics covered in this gide, see yor Master Promissory Note or yor copy of the Borrower s Rights and Responsibilities Statement. Mch of the information in this booklet is a part of exit conseling, which yo mst complete when yo leave school. Yo may also take exit conseling on the Web bt check with yor school to see if it reqires its stdents to attend exit conseling sessions in person. All URL s were last accessed on Febrary 17, Throghot this gide, the words we, s, and or refer to the U.S. Department of Edcation. COVER PHOTO: istockphoto April 2010

3 CONTACTS FOR YOUR DIRECT LOANS Direct Loan SM Servicing Center: or (TTY) U.S. Department of Edcation Direct Loan Servicing Center P.O. Box 5609 Greenville, TX Call the Direct Loan Servicing Center for all of yor Direct Loan needs especially if yo re having troble repaying yor loan or if yo need to report a change of address or name change. Direct Loan Servicing Online: In most cases, the loans that yo received were made nder a Master Promissory Note (MPN). If yor school sed the mltiyear featre of the MPN, yor loans may have been made nder a single MPN. The MPN is a legally binding agreement and contains the terms and conditions of yor loans. Yo shold keep the MPN and any other loan docments in a safe place. An MPN can generally be sed for mltiple loans for p to 10 years, so if yo retrn to school later, yo may be able to receive additional loans withot signing a new MPN. Yo can se this Web site to look p yor accont information, reqest a deferment, make online payments, set p atomatic payments, change yor billing options, etc. Yo will need to se yor sonal Identification Nmber (PIN) to see yor accont information. Most stdents receive their PINs in a separate mailing after they first apply for aid. If yo can t find yor PIN, yo can reqest a new one from Direct Loan Servicing Online. (Direct Loans are also reported to the National Stdent Loan Data System SM, which may be viewed at and incldes yor financial aid history for other federal stdent aid programs.) PHOTO: Jpiter Images Corporation, Direct Loan Web site: 1

4 Money management Money management is jst as important after yo leave school as when yo were attending. Bt yor income will now come from work earnings rather than from stdent aid, and yo ll probably have some different expenses when yo start yor new job. The following tips will help yo manage yor money so that yo can meet yor hosehold expenses and keep making on-time loan payments. In the process, yo will be establishing a good credit rating, which is a key to yor financial independence. (1) Use the notepad on page 12 to develop a bdget that incldes items like rent, car payments, tility bills, food, clothing, insrance, and entertainment so yo have an accrate pictre of yor monthly expenses (in addition to yor loan payments). It s easy to nderestimate or overlook some of these expenses, so yo may want to rond each of yor estimated costs p. If yor income is less than yor expenses, yo ll need to find ways to ct yor expenses. If yo find yo jst can t make the loan payments, check Direct Loan Servicing Online or call the Direct Loan Servicing Center to see if yo qalify for deferment or forbearance. (2) As a borrower, know yor stdent loan rights and responsibilities. Make sre to apply for a deferment if yo re going back to school or are eligible for an nemployment or economic hardship deferment. (See the discssion of deferments and forbearance in this gide.) Keep the Direct Loan Servicing Center informed of yor address, phone nmber and other information. If yo are having troble making payments nder yor crrent repayment plan, contact the Direct Loan Servicing Center to discss yor options for changing repayment plans. Keep yor loan paperwork in a safe place, inclding yor promissory note, disclosre notices and billing statements. Remember, talk to the Direct Loan Servicing Center when yo have qestions or concerns. (3) Make the most of yor grace period. Each of yor Direct Sbsidized and Unsbsidized Loans has a 6-month grace period, and yo don t have to start making payments ntil it ends. Yor grace period is an excellent time to get yor finances in order. If yo are working, yo can se the grace period to get a head start on repaying yor loans. By making some payments dring the grace period, yo can redce the interest costs for yor loan. These payments don t have to be set monthly amonts yo can choose to prepay some of yor loan or jst to pay the interest that is charged on any of yor loans that are nsbsidized. We report stdent loan information to national credit agencies. If yo do not want these credit agencies to release yor contact information to banks or other companies, which might se it for blk mail or telephone offers, call the credit reporting indstry s Opt-Ot nmber at Direct Loan Exit Conseling Gide

5 PHOTO: Jpiter Images Corporation, (4) Pay the interest that accres on yor loans dring periods when yo aren t reqired to make loan payments. If yo pay the interest that is charged dring the grace period and any periods of deferment and forbearance, it may save yo a significant amont of money over the life of the loan. Start by making yor interest payments a bdget priority. Remember that paying a little more each month can save yo many dollars later. (5) Understand and limit credit card se. Credit cards are one form of borrowing money, bt they often carry a very high interest rate. Many credit cards give yo a low interest rate for the first few months and then raise the rate after this initial period. If yo decide yo need a credit card, it s best to stick with one card with a low limit. Pay off yor total balance each month. If that is not possible, always pay more than the minimm. If yo make a payment late (even a day late!), yo may have to pay a finance charge, and yor interest rate may go p. Direct Loan Web site: 3

6 Repaying yor loan Yo may need some time to find the right job and perhaps move to a new place. The good news is that yo won t have to start making payments on yor loan right after yo leave school. It is important that yo nderstand the type of Direct Loan(s) yo have received and when yo mst begin making payments. DIRECT SUBSIDIZED & UNSUBSIDIZED LOANS Each of yor Direct Sbsidized and Unsbsidized Loans has a 6-month grace period that starts the day after yo stop attending school or yo drop below half-time enrollment. Yo don t have to make payments dring this grace period. DIRECT PLUS LOANS Gradate/professional stdent PLUS borrowers. If yo are a gradate or professional stdent PLUS borrower, repayment is deferred while yo re enrolled in school at least half-time, and for Direct PLUS Loans first disbrsed on or after Jly 1, 2008, for an additional 6 months after yo gradate or drop below half-time enrollment. Parent PLUS Loan borrowers. Parent PLUS Loan borrowers may defer repayment of PLUS loans first disbrsed on or after Jly 1, 2008 while the stdent for whom the loan was borrowed is enrolled at least halftime and for an additional 6 months after that stdent is no longer enrolled. Parent borrowers mst apply for this deferment. Contact the Direct Loan Servicing Center to apply and to learn more information abot this deferment. The Direct Loan Servicing Center will notify yo of the date yor first payment is de and will send billing notices to the address that it has on file. However, yo mst make payments on yor loans even if yo do not receive a bill or repayment notice. Repayment plans If yo are a reservist called to active dty for more than 30 days, be sre to contact the Direct Loan Servicing Center to let s know yor stats. The time yo serve generally doesn t cont against yor grace period see yor copy of the Borrower s Rights and Responsibilities Statement. Yo may choose one of the following repayment plans to repay yor loan. If yo don t choose a repayment plan, we will place yo on the Standard Repayment Plan. Yo can change repayment plans at any time after yo begin repaying yor loan. Standard Repayment Plan Yo will make fixed monthly payments and repay yor loan within 10 years from the date the loan entered repayment (not inclding periods of deferment or forbearance). Yor payments mst be at least $50 a month and will be more if that is necessary to repay the loan within the reqired time period. 4 Direct Loan Exit Conseling Gide

7 Gradated Repayment Plan Yor payments will be lower at first and then will increase, sally every 2 years. Yo mst repay yor loan in fll within 10 years (not inclding periods of deferment or forbearance). At a minimm, yor payments mst cover the interest that accmlates on yor loan between payments. Extended Repayment Plan Yo will make fixed or gradated monthly payments and repay yor loan in fll over a period of time, not to exceed 25 years (not inclding periods of deferment or forbearance). To be eligible for the Extended Repayment Plan, yo mst have more than $30,000 in Direct Loan debt and yo mst not have had an otstanding balance on a Direct Loan on Oct. 7, Income Contingent Repayment Plan Yor monthly payment amont will be based on yor annal income (and that of yor spose if yo are married), yor family size and the total amont of yor Direct Sbsidized and Unsbsidized Loans. As yor income changes, yor payments may change. If the loan isn t flly repaid after 25 years nder this plan, the npaid portion will be forgiven. Yo may have to pay income tax on any amont forgiven. Note that Direct PLUS Loans made to parent borrowers may not be repaid nder this repayment plan. Income-Based Repayment Plan (IBR) This is a new repayment plan for Direct Loans, except parent Direct PLUS Loans or Direct Consolidation Loans that repaid parent PLUS loans. Under this plan, yor reqired monthly payment is capped at an amont that is intended to be affordable based on yor income and family size. To initially qalify for the IBR Plan, yo mst have a partial financial hardship. Yo are considered to have a partial financial hardship if the monthly amont yo wold be reqired to pay on yor eligible loans nder a Standard Repayment Plan with a 10-year repayment period is more than the monthly amont yo wold have to repay nder the IBR Plan. If yo repay nder this plan for 25 years and meet other reqirements, yo may have any remaining balance of yor loan(s) forgiven. For more detailed information abot this plan, or to download an IBR fact sheet, go to the Direct Loan Web site at: See the charts on pages of this gide to get an idea of maximm monthly payment amonts for a sample range of incomes and family size. Yo can get more information abot these plans and also calclate yor estimated repayments nder each plan by going to the Direct Loan Web site: Direct Loan Web site: 5

8 Things to consider If yo have a loan balance of $10,000 or less and a job right ot of school, yo may want to go with the Standard Repayment plan. If yo ve borrowed more than $10,000 and yor starting salary is relatively low, yo might want to consider the Gradated, Income-Contingent, or Income-Based Repayment plan. Bt remember: yo are likely to pay more interest with these plans. Yo can se the charts on pages of this gide to estimate the monthly and total amonts yo wold repay nder these plans. If yo have exceptional circmstances that aren t met by these repayment plans, contact the Direct Loan Servicing Center we may be able to provide yo with an alternative repayment plan. Yo may be tempted to go with the easiest repayment terms right ot of school, and yo may end p paying for that decision. Extending the repayment period or redcing payments while yor loan principal is high will significantly increase yor interest costs. There is no penalty if yo make loan payments before they are de or pay more than the amont de each month. PHOTO: Jpiter Images Corporation, Simplify yor life and save money, too! Sign p to make yor loan payments electronically and we ll knock 0.25% off yor interest rate while yo repay nder this option! When we send yor first bill, we ll tell yo how to sign p for an Electronic Debit Accont (EDA) and have yor bank atomatically make yor monthly loan payments for yo. Yo won t have to write checks, se stamps, or worry if the payment will get to s by the de date. (Yo can also find ot abot EDA at Direct Loan Servicing Online or by calling the Servicing Center at ) 6 Direct Loan Exit Conseling Gide

9 Payment of interest & capitalization All Direct Loans first disbrsed on or after Jly 1, 2006, have a fixed interest rate. The interest rate on Direct Sbsidized Loans for ndergradate stdents is based on the first disbrsement date as listed in the table below. Note that the interest rate for Direct Sbsidized Loans for gradate/professional stdents and Unsbsidized loans for all stdents is fixed at 6.8% and the interest rate for a Direct PLUS Loan is 7.9%. Interest Rates for Direct Sbsidized Loans First Disbrsement Date of Yor Loan Interest Rate On or after Jly 1, 2006 and prior to Jly 1, % On or after Jly 1, 2008 and prior to Jly 1, % On or after Jly 1, 2009 and prior to Jly 1, % On or after Jly 1, 2010 and prior to Jly 1, % On or after Jly 1, 2011 and prior to Jly 1, % Yo may be able to dedct some or all of the interest that yo pay on yor Direct Loans. See IRS Pblication 970 (available at We do not charge interest on sbsidized loans while yo are enrolled at least half-time, dring yor grace period and dring deferment periods, and certain periods nder the Income-Based Repayment plan. We charge interest on a Direct Sbsidized Loan dring all other periods (starting on the day after yor grace period ends), inclding forbearance periods. We charge interest on nsbsidized and PLUS loans dring all periods (starting on the day yor loan is disbrsed). Therefore, yo will pay more interest on an nsbsidized or PLUS loan than on a sbsidized loan. If yo choose not to pay the interest that accres dring periods when yo re not reqired to make loan payments, we will add the npaid interest to the npaid principal amont of yor loan. This is called capitalization. Capitalization increases the total amont yo will have to repay becase yo ll have to pay interest on this higher principal balance. Interest is not charged on Direct Loans first disbrsed on or after Oct. 1, 2008, dring periods of qalifying active dty military service (p to 60 months). For Direct Consolidation Loans, this benefit applies only to the portion that was sed to pay back loans first disbrsed to yo on or after Oct. 1, To give yo an example, if yo get a one-year deferment on repaying $15,000 in nsbsidized loans and choose to capitalize the interest that accres over that year, at the end of the deferment instead of paying the interest as it accres, yor monthly payments will be $11 higher and the total amont yo repay over a 10-year repayment period nder the Standard Repayment Plan will be $389 more (based on an interest rate of 6.8%). To get a better idea of how capitalization wold affect yor payments, se the interest calclator on the Direct Loan Web site at: Yo are not responsible for paying the interest on sbsidized loans dring a period of deferment. However, yo are responsible for paying the interest on yor nsbsidized and stdent PLUS loans dring a period of deferment. Yo are responsible for paying the interest on all loans dring a period of forbearance. Direct Loan Web site: 7

10 Avoiding delinqency & defalt If yo think yo might have a problem making the schedled payments on yor loans, contact the Direct Loan Servicing Center immediately to discss other repayment plan options and whether yo are eligible for a deferment or a forbearance. Yo are delinqent if yor monthly payment is not received by the de date. If yo fail to make a payment, we ll send yo a reminder that yor payment is late. If yor accont remains delinqent, we ll send yo warning notices reminding yo of yor obligation to repay yor loans and the conseqences of defalt. Late fees may be added, and yor delinqency will be reported to one or more national credit agencies. Defalt occrs when yo become 270 days delinqent in making payments on yor loans. If yo defalt: The entire npaid amont of yor loan becomes de and payable. We will report yor defalt to national credit agencies. We may se yo, take all or part of yor federal tax refnd or other federal payments, or garnish yor wages so that yor employer is reqired to send s part of yor salary to pay off yor loan. Yo ll have to pay collection fees and costs, pls cort costs and attorney fees. Yo ll lose eligibility for other federal stdent aid and most other federal benefit programs. Yo ll no longer be eligible for loan deferments (sch as deferments while yo re in school, nemployed, or experiencing economic hardship). Deferment & forbearance (postponing payments) In some cases, yo can get a deferment that allows yo to temporarily stop making payments on yor loan. Yo may receive a deferment while yo are: Enrolled at least half-time at a school that s eligible to participate in the Department s FSA programs, or stdying fll-time in a gradate fellowship program, or an approved disability rehabilitation program. Unemployed or meet or rles for economic hardship.* Yo may also be eligible for a deferment based on qalifying active dty service in the U.S. Armed Forces or National Gard. Refer to the Master Promissory Note for yor loan or contact the Direct Loan Servicing Center for more information abot specific qalifications for deferment based on military service. * Deferment limited to a total of 3 years. 8 Direct Loan Exit Conseling Gide

11 In most cases, yo need to sbmit a deferment reqest to the Direct Loan Servicing Center along with docmentation of yor eligibility for the deferment. Visit Direct Loan Servicing Online for more deferment information and forms, or call the Servicing Center for assistance. If yo ve gone back to school and the Direct Loan Servicing Center receives enrollment information that shows yo re enrolled at least half-time, the Servicing Center will atomatically pt yor loans into deferment and notify yo. (Yo have the option of cancelling the deferment and contining to make payments on yor loan.) If yo are in defalt on yor loan, yo are not eligible for a deferment. If yo can t make yor schedled loan payments, bt don t qalify for a deferment, we may be able to give yo a forbearance. A forbearance allows yo to temporarily stop making payments on yor loan, temporarily make smaller payments, or extend the time for making payments. Some common reasons for getting a forbearance are illness, financial hardship or serving in a medical or dental internship or residency. (See yor copy of the Borrower s Rights and Responsibilities Statement for more examples. Yo can get more information and forbearance forms from Direct Loan Servicing Online or by calling the Direct Loan Servicing Center.) Under certain circmstances, we may also give yo a forbearance withot reqiring yo to sbmit a reqest or docmentation. These circmstances inclde, bt are not limited to, the following: Yo may be eligible to receive additional deferments if yo received a federal stdent loan before Jly 1, Check yor copy of the Borrower s Rights and Responsibilities Statement for details on these older deferments. iods necessary for s to determine yor eligibility for loan discharge; A period of p to 60 days in order for s to collect and process docmentation related to yor reqest for a deferment, forbearance, change in repayment plan, or consolidation loan (we do not capitalize the interest that is charged dring this period); or iods when yo are involved in a military mobilization, or a local or national emergency. Yo are responsible for paying the interest on Direct Sbsidized, Unsbsidized, and PLUS Loans dring any period of forbearance. Yo may have received an p-front interest rebate the notice we send yo will tell yo if yo received it. To keep the rebate, yo mst make all of yor first 12 monthly payments on time when yor loan enters repayment. If yo lose the rebate, we will add the rebate amont back to yor loan balance. Direct Loan Web site: 9

12 Conditions for cancelling all or part of yor loan If yo are a new borrower* and are a fll-time teacher in a low-income elementary or secondary school for 5 consective years, yo may be able to have as mch as $17,500 of yor sbsidized or nsbsidized loans cancelled. See or Stafford Loan Forgiveness Program for Teachers brochre online at: or contact the Direct Loan Servicing Center ( ) for more information. If yo make 120 payments on yor Direct Loans after Oct. 1, 2007 while employed in certain pblic service jobs, the remaining balance that yo owe may be forgiven. Only payments made nder certain repayment plans may be conted toward the reqired 120 payments.yo mst not be in defalt on the loans that are forgiven. Parent PLUS borrowers also may qalify. Yo can read more abot the Pblic Loan Forgiveness Program on Stdent Aid on the Web at: In certain cases, yo may be able to have all or a part of yor loan cancelled becase: Yor school closed before yo completed yor program. Yor school forged yor signatre on yor promissory note or falsely certified that yo were eligible to get the loan. Yor loan was falsely certified becase of identity theft (additional reqirements apply). Yo withdrew from school bt the school didn t pay a refnd that it owed nder its written policy or or reglations. Check with the school to see how refnd policies apply to federal aid at the school. In general, yo mst repay yor loan even if yo don t gradate, can t find work in yor field of stdy or are dissatisfied with the edcation program. Yor loan may be discharged if yo are determined to be totally and permanently disabled and yo meet certain reqirements dring a 3-year conditional discharge period. To apply for this discharge, yo mst provide a physician s statement that yo became totally and permanently disabled after the loan was made. See yor copy of the Borrower s Rights and Responsibilities Statement for more information on the procedres and conditions for this discharge. Yor loan may be cancelled if it is discharged in bankrptcy. This is not an atomatic process yo mst prove to the bankrptcy cort that repaying the loan wold case nde hardship. The last provision is cancellation for death. To cancel the loan, a family member or other representative mst provide an original or a copy of the original or a certified copy of the death certificate to the Direct Loan Servicing Center. Go to Direct Loan Servicing Online at or call the Servicing Center for more information or to get a cancellation form. Yo can also find more information in yor copy of the Borrower s Rights and Responsibilities Statement. * Yo are considered a new borrower if yo did not have an otstanding balance on a Federal Family Edcation Loan (FFEL) or Direct Loan on Oct. 1, 1998, or on the date yo obtained an FFEL or Direct Loan after Oct. 1, For information abot the FFEL Program go to Stdent Aid on the Web at: 10 Direct Loan Exit Conseling Gide

13 Loan consolidation There may be advantages to consolidating (combining) yor federal stdent loans into one loan, starting with the convenience of making a single monthly payment. Consolidation generally extends the repayment period, reslting in a lower monthly payment. This may make it easier for yo to repay yor loans. However, yo will pay more interest if yo extend yor repayment period throgh consolidation. Yo can se the chart on page 14 of this gide to estimate the monthly and total amonts yo wold repay if yo consolidate yor loans. Contact the Direct Loan Consolidation Center for more information abot loan consolidation at , TTY for the hearing-impaired at The Direct Loan Consolidation Web site also has an online calclator that yo can se to find ot how mch yo ll pay each month if yo consolidate. Go to: PHOTO: Jpiter Images Corporation, The FSA Ombdsman works with federal stdent loan borrowers to resolve loan disptes or problems from an impartial, independent viewpoint. If yo have a problem with a federal stdent loan, yo shold contact the holder of the loan (for Direct Loans, contact the Direct Loan Servicing Center) and try to resolve the problem. If yo can t resolve the problem with the loan holder, contact the FSA Ombdsman at or Direct Loan Web site: 11

14 NOTEPAD Stdent Loans amont borrowed: Expected start of repayment: Contact Information Direct Loan Servicing Center P.O. Box 5609 Greenville, TX or (TTY) Web site: Job Resorces Occpational Otlook Handbook average crrent salaries in different career fields America s Job Bank listings for crrent jobs Reminders ly bdget Estimated monthly loan payment: Rent or mortgage payment: Utilities: (gas, electric, phone, cable) Transportation: (car payments, gas) Groceries: Entertainment/ dining ot: Average allowance for non-monthly expenses: (car & health insrance, clothing, vacation, car & home repairs and other npredictable expenses) expenses: ESTIMATED MONTHLY SALARY: Yo will receive a sample monthly repayment schedle based on the total amont that yo borrowed from the Direct Loan Program. (This will be either given to yo as a part of exit conseling or mailed to yo.) Of corse, yo can get an estimate of yor loan payments at any time by sing the repayment calclator on the Direct Loan Web site at: Yor school will need to get contact information when yo leave school: yor expected permanent address (where yo plan to live after yo leave school); the address of yor next of kin; and the name and address of yor expected employer (if yo have a job lined p). Yo are reqired to notify the Direct Loan Servicing Center if yo change yor name, address, telephone nmber, or employer (or if yor employer s address or telephone nmber changes), or if yo have any change in stats that wold affect yor loan (for instance, yo no longer meet the eligibility reqirements for a deferment). This is essential one of the most common reasons a loan goes into defalt is becase the borrower fails to report these kinds of changes. 12 Direct Loan Exit Conseling Gide

15 Estimated Direct Sbsidized and Unsbsidized Loan Repayment Amonts, by Type of Repayment Plan and Debt Amonts Estimated ly Payments Under The Standard, Extended (fixed and gradated), and Gradated Repayment Plans a Debt When Loan Enters Repayment Standard Extended b Fixed Extended b Gradated c Gradated $5,000 $58 $6,904 Not Available Not Available $40 $7,275 10, ,809 Not Available Not Available 79 14,550 25, ,524 Not Available Not Available ,375 50, , , , , ,000 1, , , , ,498 Debt When Loan Enters Repayment Estimated ly Payments Under the Income Contingent and Income-Based Repayment Plans a Income Contingent d Income = $25,000 Income-Based d Income = $25,000 Single Married/HOH e Single Married/HOH e $5,000 $37 $8,347 $36 $11,088 N/A N/A $39 $8,005 10, , ,158 $110 $13, ,081 25, , , , ,754 50, , , , , , , , , ,020 a Payments were calclated sing a fixed interest rate of 6.8% for Direct Sbsidized and Unsbsidized Loans disbrsed on or after Jly 1, b To be eligible for the Extended Repayment Plan (fixed or gradated), yo mst have more than $30,000 in Direct Loan debt and yo mst not have had an otstanding balance on a Direct Loan on Oct. 7, c This is yor beginning payment, which may increase dring yor 10-year repayment term. d Assmes a 5% annal income growth (Censs Brea). e HOH is Head of Hosehold. Assmes a family size of two. For more cstomized estimates, se the online repayment calclator at: Direct Loan Web site: 13

16 Estimated Direct PLUS Loan Repayment Amonts, by Type of Repayment Plan and Debt Amonts Estimated ly Payments Under the Standard, Gradated, and Extended Repayment Plans a Debt When Loan Enters Repayment Standard Gradated Extended b c $5,000 $60 $7,248 $42 $7,694 Not Available 10, , ,388 Not Available 25, , ,472 Not Available 50, , , , ,000 1, , , , ,000 1, ,448 1, , , ,000 1, ,440 1, ,824 1, ,342 a The estimated payments were calclated sing the maximm interest rate for Direct PLUS Loan borrowers, 7.9%. b To be eligible for the Extended Repayment Plan, yo mst have more than $30,000 in Direct Loan debt and yo mst not have had an otstanding balance on a Direct Loan on Oct. 7, This example shows fixed monthly payments. c This is yor beginning payment, which may increase. Estimated Direct Consolidation Loan Repayment Amonts, by Type of Repayment Plan and Debt Amonts Estimated ly Payments Under the Standard, Extended (fixed & gradated) and Gradated Repayment Plans a Debt When Loan Enters Repayment Standard Extended Fixed b Extended Gradated b Gradated $5,000 $61 $7,359 Not Available Not Available $38 $7,978 10, ,461 Not Available Not Available 69 19,165 25, ,123 Not Available Not Available ,491 50, , , , , , , , , ,305 Debt When Loan Enters Repayment Income-Contingent Income = $25,000 Income-Based Income = $25,000 Single Married/H0H c Single Married/H0H C $5,000 $40 $9,414 $38 $12,294 $40 $9,414 $38 $12,294 10, , , , ,587 25, , , , ,588 50, , , , , , , , , ,153 a Payments are calclated sing the maximm interest rate for consolidation loans, 8.25%. b Assmes a 5% annal income growth (Censs Brea). c HOH is Head of Hosehold. Assmes a family size of two. 14 Direct Loan Exit Conseling Gide

17 STUDENT CONTACT INFORMATION I have attended exit conseling for Direct Sbsidized, Direct Unsbsidized, and Direct PLUS Loan borrowers. I nderstand that I mst repay my loan according to the terms of my promissory note. Stdent Information Section (Please print clearly.) Name (last, first, middle initial) Social Secrity Nmber Date of Birth Expected manent Address (street, city, state, zip code) Home Area Code/Telephone Nmber Driver s License (state and nmber) Write N/A if yo do not know the information reqested for yor expected employer. Expected Employer (after leaving school) Expected Employer s Area Code/Telephone Nmber Expected Employer s Address (street, city, state, zip code) Yo mst list yor next of kin with a U.S. address different from yors, who will know yor whereabots for at least 3 years. 1. Name Street Address City, State, Zip Code Area Code/Telephone Nmber References: Yo mst list 2 persons with different U.S. addresses, who will know yor whereabots for at least 3 years. 1. Name 2. Name Street Address Street Address City, State, Zip Code City, State, Zip Code Area Code/Telephone Nmber Area Code/Telephone Nmber Stdent s Signatre Date This page can be sed to pdate yor contact information at the Direct Loan Servicing Center. Yor school is reqired to pdate this information with the Servicing Center after yo ve completed exit conseling. Yo are also reqired to notify the Servicing Center of any changes to this information after yo leave school. U.S. Department of Edcation Direct Loan Servicing Center P.O. Box 5609 Greenville, TX Direct Loan Web site: 15

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19 Rights and Responsibilities Smmary Checklist Exit Conseling I nderstand that I have a right to the following (check all boxes that apply): q Written information on my loan obligations and information on my rights and responsibilities as a borrower q A grace period and an explanation of what this means q A disclosre statement, received before I begin to repay my loan, that incldes information abot interest rates, fees, the balance I owe, and the nmber of payments q Deferment of repayment or forbearance for certain defined periods, if I qalify and if I reqest deferment or forbearance q Prepayment of my loan in whole or in part anytime withot an early-repayment penalty q A copy of my MPN either before or at the time my loan is disbrsed q Docmentation that my loan is paid in fll I nderstand I am responsible for: q Completing exit conseling before I leave school or drop below half-time enrollment q Repaying my loan even if I do not complete my academic program, I am dissatisfied with the edcation I received, or I am nable to find employment after I gradate q Notifying the Direct Loan Servicing Center if I: Move/change my address; Change my telephone nmber; Change my name; or Change employers or my employer s address or telephone nmber changes. q Making monthly payments on my loan after my grace period ends, nless I have a deferment or a forbearance q Notifying the Direct Loan Servicing Center of anything that might alter my eligibility for an existing deferment or forbearance I have received exit conseling materials for Direct Sbsidized, Direct Unsbsidized, and Direct PLUS Loan borrowers. I have read and I nderstand my rights and responsibilities as a borrower. I nderstand that I have a loan from the federal government that mst be repaid. Stdent s Name (Please Print) Stdent s Social Secrity Nmber Stdent s Signatre Date Yor school may ask yo to complete and sign this checklist to docment that yo completed exit conseling. Direct Loan Web site: 17

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21 NOTES Direct Loan Web site: 19

22 RESOURCES FOR MORE INFORMATION For general information abot stdent aid and applying for stdent aid: Federal Stdent Aid Information Center FED-AID (TTY ) Stdent Aid on the Web: Visit the Web site or call for general information abot stdent aid. From the Web site, yo can access a variety of stdent aid pblications in English and Spanish, inclding Fnding Edcation Beyond High School: The Gide to Federal Stdent Aid, a comprehensive overview of the financial aid process. For information abot everything related to Direct Loan Repayment: Borrower Services at the Direct Loan Servicing Center (TTY ) Direct Loan Servicing Online: For information abot Direct Loans: Direct Loan Web site: Track yor otstanding federal stdent loans: National Stdent Loan Data System (NSLDS) Web site: Note: NSLDS only tracks federal stdent loans; yo will need to track any private edcation loans yo may have sing yor own records. For everything yo need to know abot Direct Consolidation Loans, inclding an online application: Direct Loan Consolidation Center (TTY ) Direct Loan Consolidation Web site: 20 Direct Loan Exit Conseling Gide

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