Student Loan Consolida/on ANGELA FAGG • RACHAEL MUELLER • SHAWN DEGENER
Loan Consolida/on • Allows borrowers to consolidate/ combine mul/ple federal student loans. • One monthly payment • Best /me to consolidate?
Eligibility • AKer a borrower graduates, leaves school, or drops below half-‐/me enrollment. • Do not need to be employed. • Do not need a cosigner.
Loan Exit Counseling • Completed aKer gradua/on • Provides informa/on to help with handling loans • Rights and responsibili/es as a borrower
Loans that can be Consolidated • Subsidized and Unsubsidized Direct Loans • Federal Family Educa/on Loans (FFEL) Stafford and Plus Loans • Direct Plus Loans, Supplemental Loans for Students (SLS) • Federal Perkins Loans, Federal Nursing Loans, Health Educa/on Loans
Loans that can’t be Consolidated • • • •
Private Educa/on Loans Parent Plus Loans Primary Care Loans Medical Assist Loans
Advantages • Allows more /me for payments. • Depending on total loan amount – $30,000-‐$39,999.99 = 20 years – $40,000-‐$59,999.99 = 25 years – $60,000 and above = 30 years
Advantages • Simplifying finances • Budget friendly repayment op/ons • No penal/es for extra or early payments.
Disadvantages • • • •
Can cause overall payment to be significantly higher. Interest rates can increase. Lose borrowers’ benefits. Once loans are combined they cannot be seperated.
Interest Rates • Average of all interest rates of federal loans – Max is 8.25%
• Congress decides rates • Rates are variable for different loans
Interest Rates • Direct and FFEL subsidized loan – Undergraduate – Graduate
• Direct Plus loans – Parent, Graduate, and Professional Student
• FFEL Plus loans – Parent, Graduate, and Professional Student
How to use the Loan Consolida/on Calculator… • You need these resources: – Federal Direct Consolida/on Loans Online Calculator – Na/onal Student Loans Data System – Interest Rates Table
• Electronic Debit Account
Repayment Op/ons • Standard • Graduated • Income based (effec/ve July 1st)
Resources hjp://studentaid.ed.gov/PORTALSWebApp/students/english/repaying.jsp hjp://www.studentloanconsolidator.com/consolida/on/ hjps://www.dl.ed.gov/borrower/CounselingSessions.do hjp://studentaid.ed.gov/PORTALSWebApp/students/english/ consolida/on.jsp • hjp://www.studentloaninfo.org/IntroLoanConsolida/on/ consolida/onprogram.html • hjp://www.suite101.com/content/student-‐loan-‐consolida/on-‐ informa/on-‐a260650 • hjp://www.studentdoc.com/consolidate-‐federal-‐student-‐loans.html • • • •