Student Loans FINANCIAL AID OFFICE KNOW WHO YOU OWE AND HOW MUCH and WHERE ARE YOU GOING???
Note You MUST READ this complete presentation to be able to answer the related questions on the Federal Direct Loan Worksheet. The purpose of this information is to benefit to YOU! We want you to have the information needed to be a responsible borrower and to understand your repayment obligations.
Direct Loan Requirements G o t o h t t p : / / w w w. b l a c k r i v e r t e c h. o r g / f i n a n c i a l - a i d / l o a n s f o r t h e f o r m s : 1. L o a n A p p l i c a t i o n 2. F e d e r a l Direct L o a n W o r k s h e e t 3. U p d a t e d C o n t a c t s L i s t G o to w w w. s t u d e n t l o a n s. g o v ) t o C o m p l e t e : 4. D i r e c t L o a n E n t r a n c e Counseling 5. M a s t e r p r o m i s s o r y note ( M P N ) 6. E x i t C o u n s e l i n g ( O n c e d e g r e e i s c o m p l e t e )
Do you really need a loan? Almost 60% of BRTC students qualify for a Pell grant - if you qualify for at least $1700 Pell/semester, it is enough to cover Tuition, Fees, and $500 books for 12 credit hours -- No loans needed Loans are NOT free! You have to pay them back. Borrow conservatively.think ahead..plan ahead!. Create a budget and stick to it! Review the loan payment schedule later in this presentation. Can you afford payments?? Can you decrease any of your current expenses? Try ALL other options before taking loans. Pell Scholarships Family/Friend Loans CREATE A BUDGET!! Working at least one job!! (go to school 2 days/nights a week) (depending on program demands)
Authorized Educational Expenses Authorized educational expenses include: Tuition Room and board Institutional fees Books Supplies Equipment Dependent child care expenses Transportation and commuting expenses Rental or purchase of a personal computer Loan fees Other documented, authorized costs
What is your goal?? Think ahead and plan so that you are proactive in your own success! Are you planning on obtaining a Bachelor s? Are you getting your college BASICS? Do your courses at BRTC transfer to???? Go to acts.adhe.edu/ Visit the Registrar of the school you plan to attend and make sure they accept. How much will I need to complete Bachelor s ($20,000) and/or Master s ($20,000)? What will the total be if I take loans for a Technical Certificate/Associates???? If you have over 60 hours, get a degree audit NOW!! How close are you to graduating? Am I close to reaching my 150% max hours limit at BRTC for my Financial Aid? Will every class I take transfer? MAKE EVERY CLASS COUNT toward your final educational goal! Will I have Pell when I transfer?? CAN I PAY THE LOANS BACK with the education I am getting???? * Visit with a Financial Aid Officer or your Advisor if you can not answer these questions.
Where are you going and how do you get there? acts.adhe.edu is the Arkansas Transfer Coursework Website Bachelors degree programs in today s educational fast tracks. General Education requirements for your Bachelor s program
Degree Plans Know what you want to do. - KUDER test information is available in the Career Pathways Office in Administration Building. - DiscoverArkansas.net has occupations and salaries to help you decide what you want to do. Know what degree you are working on and take ONLY the courses that will lead to completion of that program. Don t waste loan money on classes you don t need! You are limited to how many credit hours you may attempt toward your chosen degree and still maintain Financial Aid eligibility. Get advice from Financial Aid when changing degree plans, transferring to a university, dropping a class or getting close to 100 hours to understand the effects this will have on your eligibility to Title IV Funds. (Pell and Loans)
BRTC STUDENT EMAIL We communicate with students primarily by BRTC email. Make sure you have set up your GMAIL account. Go to www.blackrivertech.edu and access Current Students to activate your account. Make sure your inbox doesn t fill up. Email cannot be delivered to a full inbox. Check this EMAIL weekly, if not daily. This is how you will be notified of dates that Financial Aid REFUNDS are mailed. Other departments will also expect you to check this account frequently.
Campus Connect https://connect.blackrivertech.org/cc3_scripts/cc_server.exe Link is at bottom of BRTC homepage Student account access. Use it to: View mid-term and final grades Register for classes View your Student Account and financial aid View your award letter View Holds If a new user, Log in using your * User id SSN * Password - 1111 Change your password after first log-in
Types of Loans Subsidized Unsubsidized For students with financial need. No interest is charged while: in school at least half time during your grace period during deferment periods. Don t have to make payments while you are attending school at least half time and during your grace period. Not based on financial need. Interest is charged during all periods. Don t have to make payments while you are attending school at least half time and during your grace period.
Requesting a LOAN At BRTC, you must submit a LOAN APPLICATION and request a specific amount. The form must be submitted along with the previously mentioned documents: - Direct Loan Worksheet - Updated Contacts List - AND Complete Online: - Entrance Counseling - Master Promissory Note View this Presentation!!! 2013-2014 BRTC STUDENT LOAN APPLICATION PO BOX 468 POCAHONTAS, AR 72455 (870) 248-4000 FAX (870) 248-4100 Name SSN *** STUDENT LOANS ARE OPTIONAL *** STEP 1: Entrance Loan Counseling is required to be completed ONLY once under the Direct Lending program. You must complete ELC at the following web address www.studentloans.gov. STEP 2: The Master Promissory Note or MPN is required before submitting your loan request to the FA Office. To complete an MPN online, you will be required to use your Department of Education-issued PIN that you used to complete your FAFSA. You must complete the Promissory Note via electronic signature at the following web address www.studentloans.gov. If you do not have a PIN or do not remember yours, you may request one from http://www.pin.ed.gov/pinwebapp/pinindex.jsp. *** This box MUST be COMPLETED, or the loan will NOT be processed. *** SEMESTER LOAN LIMITS DEPENDENT Subsidized & Unsubsidized INDEPENDENT Subsidized & Unsubsidized Freshman $1,750 $1000 $1,750 $3,000 Sophomore $2,250 $1000 $2,250 $3,000 *You may request any amount but may not exceed the above maximum limits* Amount Requested $ / PER SEMESTER for Signature Loan Period: Budget: $ Financial Aid Office Use ONLY Fall ONLY Spring ONLY Fall AND Spring Date Requested D I SAP Status -EFC Sub: -Pell Grant Unsub: -WIG Grade Level: First-Time Borrower: Y or N -WIA You accept or decline loans by clicking these boxes. If you want to decrease the amount, you click accept and the amount under the offered tab will allow you to type into it. When you are done, click submit. -Pathways Loan Worksheet: -TAA Contacts List: -Rehab Entrance Loan Counseling: -Other Master Promissory Note: -Net Available Date Entered in POISE:
NSLDS www.nslds.ed.gov View information about every loan you have ever had, including: Lender/Servicer contact information Amount of loan Amount of interest accrued to date When you received this loan KNOW WHO YOU OWE AND HOW MUCH and WHERE ARE YOU GOING???
NSLDS Click on the numbers beside each loan to view Loan Details. This is also one of the pages you will need to print out for your homework.
NSLDS Here you can see details about your loan, including contact information for your Lender. It is very important to know who you owe and how much!
Common Servicers Phone: 800-722-1300 Website: http://www.navient.com. Get your student account set up with your servicer NOW!!
Entrance Counseling www.studentloans.gov log in, then click Complete Entrance Counseling A requirement for student loans Explains: borrower responsibilities interest rates grace periods when to pay how much you ll pay how/why to go into deferment or forbearance what happens if you don t pay (default) Takes about 30-45 minutes Log in with your name, SSN, DOB, and PIN from FAFSA
Master Promissory Notes www.studentloans.gov log in, then click Complete Master Promissory Note A legal document! When you sign it, you promise to repay your loan(s) and any accrued interest and fees. It includes the terms and conditions of your loan. It is required! Can complete online.
Borrower Responsibilities It is your responsibility to contact your loan servicer and your school if you: Change your name, address, or phone number Stop attending school or drop below half-time enrollment Graduate Fail to enroll at the school that determined you were eligible to receive your loan Do not enroll at least half time for the loan period certified by your school Transfer to another school You must complete exit counseling before you withdraw, graduate, or drop below half-time attendance (regardless if you plan to transfer to another school), regulations require that you complete an exit counseling session. When BRTC contacts you to do this, DO NOT IGNORE it. Also, if you transfer to another school, you may have to redo the counseling for each school. The counseling session provides information about how to manage your student loans after college. KNOW WHO YOU OWE AND HOW MUCH and Where you are going??
Grace Period Begins when you graduate, withdraw, or drop to less than half-time status You only get one, and it only lasts 6 months. You will receive your repayment obligation, which includes: Date payments are to begin (Payment is expected even if you do not receive a payment booklet or monthly statement.) Monthly payment amount Repayment terms Current principal balance Interest rate
Things That Affect Eligibility for Financial Aid at BRTC Completed Financial Aid file- do the FAFSA www.fafsa.ed.gov Submitting ALL required documents to BRTC Financial Aid Office. Financial Aid Office will notify you by mail of missing documents and then you must remember to submit them to us. This may be veiwed on Campus Connect under the Review Aid option. Previous attendance at other institutions- Must have ALL official transcripts from previously attended schools before Financial Aid awards will be approved Satisfactory Academic Progress-(SAP) -- maintaining a 2.00 term & cumulative GA and completing required minimum amount of courses each term Maximum eligibility limits for Pell and Loans on the Loan Application
SAP-REVIEW AND CHANGES Must be enrolled in an approved degree or certificate program. Must be enrolled in a minimum of six (6) credit hours per semester for loan eligibility. Minimum Cumulative GPA is 2.00. Maximum Hours Example: Associate of Arts Degree AAS Registered Nursing AAS Business Technology Required Allowed Attempted Hrs 60 credit ours 90 hours 69 credit hours 104 hours 60 hours 90 hours Must complete your program in the 150% timeframe allowed for Financial Aid
SAP-REVIEW AND CHANGES Must maintain and complete the semester with the following number of credit hours: On 11 th day of enrollment 12 or more 9 6-8 5 Must Complete 1-5 All attempted To view the entire SAP policy, see packet provided or see our website. Final grades for a semester of 0.00 GPA either by ALL F s or All F s & W s are a SUSPENSION status An option to APPEAL the Suspension is available ONLY IF extenuating circumstances have occurred. Must fully document the circumstance for the committee to consider for approval. APPEAL applications are available on BRTC website or in the Financial Aid Office.
Budget Allocation of Awards Cost of Attendance Budget determines your loan amount available. Your TOTAL aid package may not exceed your cost of attendance. Example: $6, 800 budget for each semester - Fall/Spring - 2, 865 Pell for full time status/semester - if qualified for maximum Pell award/amt could be less - 1,000 AR Challenge Scholarship each term - 2,250 Sub loan each term (sophomore level loan) - 685 Unsub loan each term $ 0 need remaining Any scholarships or other aid received will cause your loan to be reduced!
PELL Lifetime Limits Federal guideline-600% Pell allowed 6 years of full-time Pell For years 2009-10 & 2010-2011, the regs were different for Summer Pell you may have used extra those years Review your Pell used on www.nslds.ed.gov Do not take unnecessary classes (like let s take this one so I can get full Pell) and Conserve your Pell refunds (FREE MONEY) SAVE it for Bachelor s program, if able. Use your Pell refund wisely! Loan lifetime limits are coming in the future!!
150% Time Limit on Subsidized Loans You have LIFETIME Limit on borrowing Subsidized Loans! Maximum eligibility period to receive Direct Subsidized Loans There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your maximum eligibility period. You can usually find the published length of any program of study in your school s catalog. For example, if you are enrolled in a 4-year bachelor s degree program, the maximum period for which you can receive Direct Subsidized Loans is 6 years (150% of 4 years = 6 years). If you are enrolled in a 2-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is 3 years (150% of 2 years = 3 years). Your maximum eligibility period is based on the published length of your current program. This means that your maximum eligibility period can change if you change programs. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count against your new maximum eligibility period.
150% Time Limit on Subsidized Loans (continued) Periods that count against your maximum eligibility period The periods of time that count against your maximum eligibility period are periods of enrollment (also known as loan periods ) for which you received Direct Subsidized Loans. For example, if you are a full-time student and you receive a Direct Subsidized Loan that covers the fall and spring semesters (a full academic year), this will count as one year against your maximum eligibility period. If you receive a Direct Subsidized Loan for a period of enrollment that is shorter than a full academic year, the period that counts against your maximum usage period will generally be reduced accordingly. For example, if you are a full-time student and you receive a Direct Subsidized Loan that covers the fall semester but not the spring semester, this will count as one-half of a year against your maximum eligibility period. With one exception, the amount of a Direct Subsidized Loan you receive for a period of enrollment does not affect how much of your maximum eligibility period you have used. That is, even if you receive a Direct Subsidized Loan in an amount that is less than the full annual loan limit, that lesser amount does not reduce the amount of your maximum eligibility period you have used. The one exception applies if you receive the full annual loan limit for a loan period that does not cover the whole academic year. In that case, the loan will count as one year against your maximum eligibility period regardless of your enrollment status (half-time, three-quarter time, or full-time).
150% Time Limit on Subsidized Loans (continued) Regaining eligibility for Direct Subsidized Loans If you become ineligible for Direct Subsidized Loans because you have received Direct Subsidized Loans for your maximum eligibility period, you may again become eligible to receive Direct Subsidized Loans if you enroll in a new program that is longer than your previous program. If you regain eligibility to receive additional Direct Subsidized Loans because you enrolled a program that is longer than your prior program and you previously became responsible for paying all of the interest that accrues on your Direct Subsidized Loans, we will pay the interest that accrues on your new loans..
Multiple Disbursements ALL student loans will be made in multiple disbursements each semester - 2 equal disb s for Fall 2 equal disb s for Spring 2 equal disb s for Summer (1 in Summer I /1 in Summer II) *** Disbursement Date Schedules are always posted on the FA page of BRTC website *** Will not get full amount all at once. Loans and Pell are based on ATTENDANCE. If you do not attend, you will not earn the funds. If you take the funds and did not earn them.you will owe a bill with BRTC and/or the Federal Government.
Repaying Your Loans 1 1 The estimated payments were calculated using a fixed interest rate of 6.80%. 2 This repayment plan is available only to borrowers who have an outstanding balance on Direct Loan Program loans that exceeds $30,000, and who had no outstanding balance on a Direct Loan Program loan as of October 7, 1998 or on the date they obtained a Direct Loan Program loan on or after October 7, 1998. 3 These amounts are fixed, rounded to the nearest dollar, and calculated based on a 25-year repayment term. 4 This is your beginning payment, which may increase during your 10-year repayment term. 5 Assumes a 5% annual income growth (Census Bureau). 6 The estimated payments were calculated using the formula requirements in effect during 2006. 7 HOH is Head of Household; assumes a family size of two. You can also estimate what your monthly loan payments will be after you graduate by using our repayment calculator. https://studentloans.gov/mydirectloan/viewsamplepaymentstable.action
Student Loan Repayment Income-Based Repayment (IBR)---A repayment plan available to a borrower who has partial financial hardship. The IBR monthly payment amount is determined by income, family size, and applicable loan debt and may be adjusted annually depending on these factors. Income-Sensitive Repayment---Payments are based on a percentage of your gross monthly income but must cover the interest that accrues each month. Income-Contingent Repayment (ICR)---Eligibility is based on income (or combined income with spouse, if married), family size, and total federal Direct Loan debt. Pay As You Earn- Generally 10 percent of your discretionary income, but never more than the 10-year Standard Repayment Plan amount Loan Consolidation Reduce your monthly payments by extending your repayment period. Combine all of you student loans with various lenders into one monthly payment. Benefit from a fixed interest rate. Do your homework to determine what repayment option is most beneficial for you! Go to www.studentloans.gov and click Complete IBR/Pay as you earn/icr
Student Loan Forgiveness Loan Forgiveness Programs Loan forgiveness programs promote employment in certain fields by forgiving part or all of you loan debts, provided you fulfill certain work-related requirements. Federal Loan Forgiveness Programs Teacher Loan Forgiveness Program 5 years - $5,000 or $17,500 Public Service Loan Forgiveness Program 10 years remaining principal & interest Federal Employee Student Loan Minimum 3 years required service up to $10,000 annually up to $60,000 maximum State loan forgiveness programs vary. Please check with the individual state. *** For Arkansas residents, you may go to ADHE.edu and inquire the detail of a loan forgiveness program.
WHAT IS DELINQUENCY?? Delinquency Failing to make your scheduled monthly loan payments will negatively affect your credit. Late payments stay on your credit history for 7 years. Your lender, loan servicer, and school will begin contacting you via letters and phone calls, which will continue until you resolve the delinquency. KNOW WHO YOU OWE AND HOW MUCH and WHERE ARE YOU GOING???
WHAT IS DEFAULT??? Default If a loan remains delinquent, you will default. If you default, the entire unpaid balance and any accrued collection fees on the applicable loans will become immediately due and payable. Consequences of default may include any or all of the following: Damage to your credit rating Garnishment of your wages Legal action against you Collection charges (including attorney fees) being assessed against you Loss of deferment eligibility Loss of your professional license An increase in the interest rate on your loan Withholding of your federal and state income tax refunds Loss of eligibility for state and federal financial aid Loss of other state or federal payments
Can t make your payment? If you're having trouble making payments on your loans, contact your loan servicer or your school loan advisors (Drew Garland, BRTC Default Prevention Specialist) as soon as possible to discuss options that may help you. Options include: Changing repayment plans Deferment, if you meet certain requirements (for example, if you are unable to find fulltime employment, or are experiencing an economic hardship). A deferment allows you to temporarily stop making payments on your loan. Forbearance, if you don't meet the eligibility requirements for a deferment but are temporarily unable to make your loan payments. Forbearance allows you to temporarily stop making payments on your loan, temporarily make smaller payments, or extend the time for making payments. If you stop making payments and don't get a deferment or forbearance, your loan could go into default, which has serious consequences! You must be aware that a deferment or forbearance is for a limited time, and it must be renewed if eligible.
Deferment Criteria Types of Deferment Length of Deferment In-School Graduate Fellowship Rehabilitation Training Program Unemployment Economic Hardship Military No time limit No time limit No time limit Up to 36 months Up to 36 months No time limit
Forbearance Criteria Discretionary Forbearance Mandatory Forbearance For discretionary forbearances, your lender decides whether to grant forbearance or not. You can request a discretionary forbearance for the following reasons: Financial hardship Illness in a medical or dental internship or residency program & meet requirements Total owed is 20% or more of your total monthly gross income National service position which you received a national service award Teaching service that qualifies for teacher loan forgiveness Qualify for partial payment under U.S Department of Defense SLRP National Guard but not activated by governor, but not eligible for a military deferment
Financial Literacy Come to the financial aid office for additional information on Pell and Loans. Prepare yourself for repayment! Start making a habit of good finances now by making better financial decisions regarding your student loans. Set a budget and stick to it. Plan your educational goals and be looking at what your total student loans may be when completed. Do not get loans just to support you and your family! KNOW WHAT YOU ARE DOING HERE AND PLANS FOR FUTURE KNOW WHO YOU OWE AND HOW MUCH!! www.nslds.ed.gov
Resources www.nslds.ed.gov www.direct.ed.gov www.studentloans.gov www.npcc.edu/financialaid/fa_conditions.htm http://www.consumerfinance.gov/payingforcollege/costcomp arison/ http://www2.ed.gov/offices/osfap/directloan/budgetcalc/ budget.html http://studentaid.ed.gov/portalswebapp/students/englis h/ibrplan.jsp https://studentloans.gov/mydirectloan/viewsamplepaymen tstable.action www.discoverar.net
Questions about your LOANS? Drew Garland Default Prevention Specialist Pocahontas Campus drew.garland@blackrivertech.edu (870) 248-4000, Ext. 4022 For For other Financial Aid questions, contact the BRTC Financial Aid Office @ (870) 248-4000. Misty Bradley Misty.Bradley@blackrivertech.edu Ashley Conrey Ashley.Conrey@blackrivertech.edu Brandi Chester Brandic@blackrivertech.edu R E M E M B E R : Y O U A R E O U R S T U D E N T E V E N I F Y O U G O T O A N O T H E R S C H O O L O R S T O P A T T E N D I N G. W E A R E H E R E T O H E L P Y O U!