SoFi - Financing Your Graduate School Education - SoFi and Ivy Exec Webinar

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Still evaluating student loan options? Hear from a student loan expert with over 20 years of experience working for student lenders, credit unions, and the financial aid office.
SoFi's student loan expert Walter Balmas will:

- Explain the student loan process and timeline.
- Introduce SoFi's alumni-funded student loan solution
- Open to Q&A on SoFi's origination and servicing process

About the Presenter:
Walter Balmas has over 20 years of experience in student loan program management, having most recently created student loan programs for a dozen non-profit credit unions. Prior to this, Mr. Balmas was Senior Vice President of Origination at MRU ("MyRichUncle"). His career includes stints as the Director of Loan Operations at ALL Student Loan Corporation (ALLSLC), once the largest non-profit student loan issuer in California.

Mr. Balmas has a BA from the University of Southern California.

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  • Warning to all! Ivy Exec is a scam. They charge your credit card without letting you know. They are scammers from Eastern Europe who have multiple complaints against them on Better Bussiness Bureau, Yelp and Complaint Board. Read this again: They will charge you hundreds of dollars without any prior notification. Never give them your credit card information for any reason. It will end up someplace in Balkans and you will never get your money back. They steal job leads from other recruiters and disguise them as their own. Then they tell you that you have been 'selected' to view ELITE jobs, and the only way to join their site is to get verified via a credit card. Then, a month later they charge your credit card without telling you. A bunch of job seekers have been scammed by these Serbian criminals and many of them are joining together to file a lawsuit against Ivy Exec. I repeat, DO NOT trust them with your information! They will take your money without telling you. Please warn others!
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SoFi - Financing Your Graduate School Education - SoFi and Ivy Exec Webinar

  1. 1. Information presented is current as of 09/06/2012Financing Your MBA Education with SoFiWalter Balmas – Vice President, SOFI LENDING CORPThe information contained in this presentation provides general information about SoFi’s loan programs. The presentation is notmeant to be comprehensive and should serve only as general, background information for further investigation and study related tothe subject matter and the specific factual circumstances being considered or evaluated. Nothing in this presentation constitutes oris designed to constitute legal advice. Want more info? Go to www.sofi .com 1
  2. 2. Financing Your MBA Education with SoFiThe information contained in this presentation provides general information about SoFi’s loan programs. The presentation is notmeant to be comprehensive and should serve only as general, background information for further investigation and studyrelated to the subject matter and the specific factual circumstances being considered or evaluated. Nothing in this presentationconstitutes or is designed to constitute legal advice. Overall Cost of Attendance at Top MBA Programs School Total MBA Cost Two-Year Tuition Percent Getting Aid Amount of Aid/Loans 1. Columbia $168,307 $106,416 55% $115,716 2. Pennsylvania (Wharton) $168,000 $108,018 76% Not Available 3. Stanford $166,812 $106,236 75% $115,954 4. Chicago (Booth) $165,190 $101,800 Not Available Not Available 5. Dartmouth (Tuck) $162,750 $101,400 80% $90,150 6. MIT (Sloan) $160,378 $100,706 71% $130,418 7. Harvard $158,800 $97,200 63% $113,038 8. New York (Stern) $157,622 $94,572 Not Available $114,628 9. Northwestern (Kellogg) $156,990 $102,990 66% $111,782 10. Yale School of Mgt. $151,982 $99,800 70% $87,182 11. Carnegie Mellon $149,400 $105,000 81% $88,240 12. UCLA (Anderson) $147,278 $97,854 80% $85,744 13. Berkeley (Haas) $144,746 $95,274 68% $67,052 14. Cornell (Johnson) $142,404 $98,544 70% $87,182 15. Virginia (Darden) $142,000 $99,000 80% $110,160 16. Michigan (Ross) $141,210 $107,600 72% $107,228 17. Duke (Fuqua) $137,744 $95,920 81% Not Available 18. UNC (Kenan-Flagler) $136,860 $93,176 73% $87,924 19. Emory (Goizueta) $130,280 $84,800 85% $90,534 20. Texas-Austin (McCombs) $127,144 $90,256 75% $97,740 Want more info? Go to www.sofi .com 2
  3. 3. Financing Your MBA Education with SoFi• An analysis by website, Poets & Quants, • There are eight U.S. schools where the that takes into account the opportunity cost of getting an MBA now exceeds costs of quitting a job to attend graduate $300,000. They include: school for two years, has concluded the following: (John A. Byrne, Poets & Quants,  Stanford ($351,662) 11/17/2011)  Harvard ($348,800)  Wharton ($326,400)• THE TOTAL COST OF AN MBA DEGREE NOW EXCEEDS $300,000 AT EIGHT U.S.  Columbia ($322,590) SCHOOLS  Dartmouth ($316,200)  Chicago ($315,608)  MIT ($313,264)  Northwestern ($310,378) Want more info? Go to www.sofi .com 3
  4. 4. Financing Your MBA Education with SoFi• What is a Financial Aid Package? • It is an aggregation of free and/or low cost financing options offered to you by your school as determined by a federally- regulated need analysis formula applied to the income data you provided when you completed the Free Application for Federal Student Aid (“FAFSA”) • It is always recommended that you start your hunt for financing by completing the FAFSA even if you think you made too much money or will not qualify. Most sources of free or low cost financing whether a government entity or a private foundation will require confirmation that you did so before releasing their money to you. Want more info? Go to www.sofi .com 4
  5. 5. Financing Your MBA Education with SoFi• What is in a Financial Aid Package for most MBA Student? Want more info? Go to www.sofi .com 5
  6. 6. Financing Your MBA Education with SoFi• SCHOLARSHIPS • Primarily merit-based • Some need-based • Private Foundations • Governmental Entities • Individuals • Free Money • Competitive • If you’re offered one, take it Want more info? Go to www.sofi .com 6
  7. 7. Financing Your MBA Education with SoFi• GRANTS • Primarily need-based • Some merit-based • Some Work Study • Governmental Entities • Private Foundations • Individuals • Free Money • Income-contingent • If you’re offered one, take it Want more info? Go to www.sofi .com 7
  8. 8. Financing Your MBA Education with SoFi• LOANS • Federal Perkins • Federal Direct Unsubsidized • Federal Graduate PLUS • Private Education Loans • U S Department of Education • Private Lenders • NOT Free Money • If you’re offered one, shop carefully and compare Want more info? Go to www.sofi .com 8
  9. 9. Financing Your MBA Education with SoFi• COMPARING LOANS Information current as of 09/06/2012 Federal Perkins Federal Direct Federal Direct SoFi Unsubsidized Graduate PLUS • 5.00% fixed • 6.80% fixed • 7.90% fixed • 6.49% fixed • 0% fee • 1% fee • 4% fee • 0% fee • Interest-free • Interest accrues • Interest accrues • Interest accrues while in-school while in school while in school while in school • 9 month grace & capitalizes at & capitalizes at & capitalizes at period repayment repayment repayment • 10 yrs. to repay • 6-month grace • 6-month grace • 6-month grace period period period • 10-25 yrs. to • 10-25 yrs. to • 15 yrs. to repay repay (30 repay (30 through Direct through Direct Consolidation) Consolidation) Want more info? Go to www.sofi .com 9
  10. 10. What are the differences between federal and private loans?The following differences are replicated verbatim from a chart created by Federal Student Aid,An Office of the U.S. Department of Education at http://studentaid.ed.gov/node/52My comments to it are highlighted accordingly• Federal Student Loans • Private Student Loans• You will not have to start repaying • Many private student loans require your federal student loans until you payments while you are still in graduate, leave school, or change school. your enrollment status to less than half-time. SoFi offers the following repayment options while in school with additional borrower benefits: 1. Fully Deferred (6.49%) 2. Interest Only Payments (.25% IRR w/ ACH = 6.24%) 3. Immediate Repay (.25% IRR w/ ACH = 6.24%) 4. Upon graduating and entering repayment, you get an additional benefit (.50% IRR w/ ACH = 5.99%) Want more info? Go to www.sofi .com 10
  11. 11. What are the differences between federal and private loans?The following differences are replicated verbatim from a chart created by Federal Student Aid,An Office of the U.S. Department of Education at http://studentaid.ed.gov/node/52My comments to it are highlighted accordingly• Federal Student Loans • Private Student Loans• The interest rate is fixed and is often • Private student loans can have lower than private loans—and much variable interest rates, some greater lower than some credit card interest than 18%. A variable rate may rates. View the current interest rates substantially increase the total on federal student loans. amount you repay. SoFi offers a FIXED interest rate too: 1. Fully Deferred (6.49%) 2. Interest Only Payments (.25% IRR w/ ACH = 6.24%) 3. Immediate Repay (.25% IRR w/ ACH = 6.24%) 4. Upon graduating and entering repayment, you get an additional benefit (.50% IRR w/ ACH = 5.99%) Want more info? Go to www.sofi .com 11
  12. 12. What are the differences between federal and private loans?The following differences are replicated verbatim from a chart created by Federal Student Aid,An Office of the U.S. Department of Education at http://studentaid.ed.gov/node/52My comments to it are highlighted accordingly• Federal Student Loans • Private Student Loans• Undergraduate students with • Private student loans are not financial need will likely qualify for a subsidized. No one pays the interest subsidized loan where the on your loan but you. government pays the interest while you are in school on at least a half- time basis. Graduate Students are not eligible for the Federal Direct Subsidized Loan. The Federal Direct Unsubsidized Loan accrues interest (at 6.80%), and the Federal Direct Graduate PLUS accrues interest (at 7.90%) just like a SoFi Private Loan (at 6.49%) that you are responsible for paying. Want more info? Go to www.sofi .com 12
  13. 13. What are the differences between federal and private loans?The following differences are replicated verbatim from a chart created by Federal Student Aid,An Office of the U.S. Department of Education at http://studentaid.ed.gov/node/52My comments to it are highlighted accordingly• Federal Student Loans • Private Student Loans• You don’t need to get a credit check • Private student loans may require an for most federal student loans established credit record. The cost of (except for PLUS loans). Federal a private student loan will depend on student loans can help you establish your credit score and other factors. a good credit record. SoFi’s applicants, at minimum, must meet the following eligibility criteria: 1. Attending an eligible institution & program 2. U.S. Citizen or Permanent Resident 3. No adverse credit history SoFi does not practice tiered-based pricing, we have one rate (6.49%). Good repayment behavior across all your debts, your credit longevity and utilization rates and the types of debt you carry determine the health of your credit record. Want more info? Go to www.sofi .com 13
  14. 14. What are the differences between federal and private loans?The following differences are replicated verbatim from a chart created by Federal Student Aid,An Office of the U.S. Department of Education at http://studentaid.ed.gov/node/52My comments to it are highlighted accordingly• Federal Student Loans • Private Student Loans• You won’t need a cosigner to get a • You may need a cosigner. federal student loan in most cases. SoFi does not require a co-signer. You pass our eligibility criteria, you get a loan. Otherwise, you are declined. Want more info? Go to www.sofi .com 14
  15. 15. What are the differences between federal and private loans?The following differences are replicated verbatim from a chart created by Federal Student Aid,An Office of the U.S. Department of Education at http://studentaid.ed.gov/node/52My comments to it are highlighted accordingly• Federal Student Loans • Private Student Loans• Interest may be tax deductible. • Interest may not be tax deductible. SoFi’s private loan meets the IRS definition of a student loan. Your ability to deduct your student loan interest is dependent on legislated income thresholds. Please consult with your tax adviser as they are best equipped to counsel you on your particular situation. Want more info? Go to www.sofi .com 15
  16. 16. What are the differences between federal and private loans?The following differences are replicated verbatim from a chart created by Federal Student Aid,An Office of the U.S. Department of Education at http://studentaid.ed.gov/node/52My comments to it are highlighted accordingly• Federal Student Loans • Private Student Loans• Loans can be consolidated into a • Private student loans cannot be Direct Consolidation Loan. Learn consolidated into a Direct about your consolidation options. Consolidation Loan. SoFi borrowers are eligible to refinance all their student loans they took out while in school (SoFi-issued or otherwise, Federal or Private) under the SoFi ReFi Private Consolidation Loan Product upon completing their studies. Our current ReFi Private Consolidation Loan Product has a fixed rate of 6.24% (5.99% w/ auto-pay). Want more info? Go to www.sofi .com 16
  17. 17. What are the differences between federal and private loans?The following differences are replicated verbatim from a chart created by Federal Student Aid,An Office of the U.S. Department of Education at http://studentaid.ed.gov/node/52My comments to it are highlighted accordingly• Federal Student Loans • Private Student Loans• If you are having trouble repaying • Private student loans may not offer your loan, you may be able to forbearance or deferment options. temporarily postpone or lower your payments. SoFi offers deferment and forbearance options aligned with most of the conditions the government issues such deferments and forbearances. We will work with our borrowers who experience temporary financial hardship. Want more info? Go to www.sofi .com 17
  18. 18. What are the differences between federal and private loans?The following differences are replicated verbatim from a chart created by Federal Student Aid,An Office of the U.S. Department of Education at http://studentaid.ed.gov/node/52My comments to it are highlighted accordingly• Federal Student Loans • Private Student Loans• There are several repayment plans, • You should check with your lender to including an option to tie your find out about your repayment monthly payment to your income. options. SoFi borrowers may request the following non-standard repayment options while in repayment: 1. Graduated Repayment 2. Income Based Repayment (“IBR”) if borrower meets the federal requirements for such (i.e. personal hardship test) Want more info? Go to www.sofi .com 18
  19. 19. What are the differences between federal and private loans?The following differences are replicated verbatim from a chart created by Federal Student Aid,An Office of the U.S. Department of Education at http://studentaid.ed.gov/node/52My comments to it are highlighted accordingly• Federal Student Loans • Private Student Loans • You need to make sure there are no• There is no prepayment penalty fee. prepayment penalty fees. SoFi loans do not have a prepayment penalty. Want more info? Go to www.sofi .com 19
  20. 20. What are the differences between federal and private loans?The following differences are replicated verbatim from a chart created by Federal Student Aid,An Office of the U.S. Department of Education at http://studentaid.ed.gov/node/52My comments to it are highlighted accordingly• Federal Student Loans • Private Student Loans• You may be eligible to have some • It is unlikely that your lender will portion of your loans forgiven if you offer a loan forgiveness program. work in public service. Learn about our loan forgiveness programs. SoFi loans do not qualify for the government-sponsored loan forgiveness programs, however SoFi offers community-based loan forgiveness where borrowers can make their case to the alumni and borrower community for such dispensation. Want more info? Go to www.sofi .com 20
  21. 21. What are the differences between federal and private loans?The following differences are replicated verbatim from a chart created by Federal Student Aid,An Office of the U.S. Department of Education at http://studentaid.ed.gov/node/52My comments to it are highlighted accordingly• Federal Student Loans • Private Student Loans• Free help is available at 1-800-4-FED- • The Consumer Financial Protection AID and on our websites. Bureaus private student loan ombudsman may be able to assist you if you have concerns about your private student loan. For additional information about SoFi’s loan products, please call us at 1-866-357-6342. Want more info? Go to www.sofi .com 21
  22. 22. Social Finance – Alumni-Funded Student Loan Solution• Social Finance (SoFi) – A Different Kind of Loan • SoFi connects students and alumni through a dedicated lending pool and an original social community approach where students, alumni and schools all benefit. Alumni earn a compelling double bottom line return, students receive a lower loan rate than their private or federal options, and both sides benefit from the connections formed. Want more info? Go to www.sofi .com 22
  23. 23. Social Finance – Alumni-Funded Student Loan Solution• One more look Information current as of 09/06/2012 Want more info? Go to www.sofi .com 23
  24. 24. Social Finance – Alumni-Funded Student Loan Solution• One more look Information current as of 09/06/2012 Want more info? Go to www.sofi .com 24

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