STUDENT FINANCIAL SERVICES Wrap-Up Session Keneshia Estimé
AGENDA The Financial Aid Repayment Process Repaying Federal Loans Repaying Private Loans Repaying BU Loans Consolidation Planning for the future Credit Reports and Scores Helpful Resources Sign-out Process
Repayment of Federal Loans Repayment begins 6 months after you graduate for direct loans Loans that were in repayment before entering Dental school go into repayment immediately Be sure that you are prepared to make your first payment
All About Your Federal Loans Visit NSLDS.ED.GOV Itemized list of loans and servicer s information
Federal Repayment Plans Standard Repayment Plan - 10 year payment plan - Payments are fixed - Not a good option if seeking PSLF Graduated Repayment Plan - 10 year payment plan - Payments are lower initially, increase every 2 years - Not a good option if seeking PSLF No Prepayment Penalty with Federal Loans Extended Fixed Plan - 25 years - Payments are fixed - Will pay more over lifetime of loan
Standard Graduated Extended
Income Driven Repayment Plans Pay As You Earn (PAYE) - Must display financial hardship - Monthly payments will be 10 percent of discretionary income - Good option if seeking PSLF - Any outstanding balance will be forgiven after 20 years Must reapply annually! Revised Pay As You Earn (REPAYE) - Do not have to display financial hardship - Monthly payments will be 10 percent of discretionary income - Good option if seeking PSLF - Any outstanding balance will be forgiven after 20 or 25 years
More IDR Plans Income Based Repayment - Must display financial hardship - Monthly payments will be 10 or 15 percent of discretionary income - Good option if seeking PSLF - Any outstanding balance will be forgiven after 20 or 25 years Income-Contingent Repayment - Must display financial hardship - Monthly payments will be 20 percent of discretionary income - Good option if seeking PSLF - Parent borrowers can access this plan Forgiveness may be taxed
How To Apply For Plans? Step 1: Apply on StudentLoans.gov Step 2: Supply Income Information Step 3: Confirm personal information Step 4: Submit application Remember to recertify annually!
Federal Loan Repayment Estimator Use your loans! https://studentloans.gov/mydirectloan/repaymentestimat or.action
Repaying Private Loans The terms and conditions vary; check in with your lender Always follow up when making additional payments Ask about incentives for on-time payments and co-signer release Private loans do not show up on NSLDS.ED.GOV Visit www.annualcreditreport.com for private loans Private loans do not have flexible payment plans
Repaying BU Loans BU Loans: Terms and Conditions - 12 month grace period - No interest accrues while you are in school - 10 year repayment timeline - No prepayment penalty - Set up an account on https://heartland.ecsi.net Please note: the servicer of BU loans is no longer Campus Partners
Loan Forgiveness Options Public Service Loan Forgiveness (PSLF) National Health Service Corps (NHSC) Massachusetts Loan Repayment (MLRP) Eligible Loans Direct Loans, Grad Plus All federal, state, or private loans Time Commitment 10 years 2 years 2 years All federal, state, or private loans Job Status Full-time Full-time or Part-time Full-time or Part-time Eligible Jobs Any state, federal, or local government; 501c3 Federally designated Health Professional Shortage Area (HPSA) Federally designated Health Professional Shortage Area (HPSA) Amount Forgiven Any outstanding balance Up to $50,000 Up to $50,000
Consolidation Should you consolidate your loans? PROS Could simplify loan repayment CONS May lose borrower benefits Interest rate is a weighted average Could lower monthly payment by extending repayment period May pay more in interest and make more payments Federal consolidation may become eligible for PSLF May lose credit towards PSLF
Let s Talk About Credit
Why is Credit Important? Lenders use your credit score and credit report to gauge the likelihood of default Your credit report is your financial reference Credit reports may be used in non-lending situations (i.e. employment, apartment rentals, utilities, etc.)
What is included in a credit report? Personal information Name, address, SS#,etc. Public Records Bankruptcies, tax liens, civil judgements Account Information Includes open, negative, and closed accounts Inquiries May remain on your credit report for up to two years Dispute Instructions If you disagree with an item, you may dispute it.
Do you know your credit score?
FICO SCORE What s in your score: What s NOT in your score: Race/Ethnicity/Religion Age/Sex/Marital Status Salary, Occupation or Employment History Child Support or Alimony Responsibilities Location
How long does information remain on a credit report?
Credit Check All US residents may receive one free credit report from each bureau annually Review all information carefully Remember: www.annualcreditreport.com is free and www.freecreditreport.com is not Every detail is important You can request all three reports at once or at different points in the year
Helpful Hints Make payments on time Keep balances on your credit cards low Keep receipts Don t open cards you don t need You do not need a credit repair company
Credit Karma Free online service Provides free credit monitoring Uses Vantage score instead of FICO Provides credit card recommendations May be integrated into personal credit card Cannot access actual credit report
What Should You Do Now? Organize your financial aid documents: Do you have undergrad loans? Organize all contact information Identify and organize all loans by highest interest rate and amount Plan a budget Sign up for a repayment plan for all of your federal loans Know when your first payment is due!
How to Sign-Out of SFS If you have BU Loans: complete and submit the BU Exit Counseling Form If you have Federal Loans: Complete Federal Exit Counseling on: www.studentloans.gov Email online confirmation to OSFS-SDM@BU.EDU
Questions?