1. FINANCIAL AID WORKSHOP 2015
MONEY MATTERS –WHAT YOU DON’T
KNOW CAN HURT YOU…
Presented by:
BRIAN PHILLIP, MANAGER
FINANCIAL AID SERVICES-MIAMI CAMPUS
NOVA SOUTHEASTERN UNIVERSITY
1

3. Telephone (954) 262-3380 Toll Free 800-806-3680 Email: finaid@nsu.nova.edu
.

4. MONEY MATTERS – 2013-14
NSU Offices Represented

5. REPAYING YOUR LOANS
• Get all the information you
need to manage repayment
of your federal student loans.
• Remember, your federal student
loans are real loans and must be
repaid.
• NSLDS – WWW.NSLDS.ED.GOV
• In order to access your
federal student loans
information you will need your
NEW FSA ID (USERNAME, and
PASSWORD).
• NSLDS will show you a list of all
loans received, principle
balance, interest accrued,
servicers(s) and lender
information for all of your
Direct Federal Student Loan(s)
received at no cost to you.
QUICK LINKS or website(s)
Exit Financial Aid Work-shop Info…

6.  You need to make payments to
your loan servicer(s). Each
servicer has its own payment
process, so check with your
servicer if you aren’t sure how or
when to make a payment even
though you have not received a
bill.
 The U.S Department of Education
uses several loan services to
handle the billing and other
services for your Direct Student
loans and for the loans originally
made under Federal Family
Education Loan Programs but not
owned by the ED.
Making Payments to Your
Assigned Loan Servicer(s)
Direct Loan Consolidation may be a
smart thing to do when you graduate to
make one payment for all of your loans.

7. Types of Student Loans
Direct
Un-Sub
Stafford
Loans
(Grad)
5.84%
fixed
interest
rate
6month
grace
period
As of
7/2015
Direct
Grad Plus
Loans
6.84%
Fixed
Interest
Rate
As of
7/2015
Perkins
Loans
5% Fixed
Interest
Rate
The
School is
the
Lender.
9 month
Grace
Period
Private
Loans
Will not be
included in
your NSLDS
Report.
Interest
rate varies
depending
on the
lender.

8. • How much loans did you borrow? What
will your monthly payment be based
on the following two factors below?
• Your Projected Annual Gross Income
• Family Household size
• We are here for you!
• One on One counseling sessions
• Live Workshops
Office of Debt Management
Manageable Debt vs. Unmanageable Debt

10. Need-based Federal Direct
Subsidized Loan
• Aggregate Direct Subsidized
Stafford loan limit is $23,000.00
Undergrad.
• Note: As of July 1 , 2012 Grad
Students are Not eligible for
Subsidized Stafford Loans.
• Grad/ Professional Students
Aggregate Loan Limits
including their all of their
undergraduate loans (DSUB(S)
and/or DUNSUB amounts
borrowed is $138,500.00 MAX
GRAD AGGREGATE LIMIT.
Non-need based Federal Direct
Unsubsidized Loan(s)
• Fixed interest rate (5.84%) Grad
• Must be registered at least half-
time per term for disbursement.
• Amount(s) Awarded varies per
program admitted into NSU.
Non-need Based Federal
Direct Grad Plus Loan(s)
• Fixed interest rate (6.84%) Grad
• Must be registered at least half-
time per term for disbursement(s).
• Amount(s) awarded varies based
of Program Academic Year
Financial Aid Budget at NSU.
Apply on www.studentloans.gov.
Aggregate Federal Stafford Loans

12. Your have a choice of several repayment
plans that are designed to meet your
needs. The amount you pay and the length
of time to repay your loans will vary
depending on the repayment plan you
choose. Work with your servicer to choose
a federal student loan repayment plan
that’s best for you. To make your payments
more affordable, repayment plans give you
more time to repay your loans or can also
be based on your income and family size.
Managing Your Repayment Plans:
• Standard Repayment Plan
• Graduated Repayment Plan
• Extended Repayment Plan
• Income- Based Repayment Plan(IBR)
• Pay as You Earn Repayment Plan
• Income-Contingent Repayment Plan
• Income Sensitive Repayment Plan
Choosing a Loan Repayment Plan:
NSU ON Campus -
Dormitories

13.  Standard Repayment Plan
Payments are a fixed amount of at least $50 per month
Up to 10 years. You will pay less INTEREST for your loan
over time under this plan than you would pay under
other plans.
 Graduated Repayment Plan
Payments are lower at first and then increase, usually every two years.
standard plan. Up to 10 years ( not including periods of deferment or
forbearance). You'll pay more for your loan over time than under the
10-year.
 Extended Repayment Plan
Payments may be fixed or graduated. Up to 25 years. Your monthly
payments would be lower than the 10-year standard plan. You'll pay
more INTEREST on your loan balance(s) over time than under the 10-
year standard plan. If you are a Direct Loan borrower, you must have
more than $30,000 in outstanding Direct Loans. FFEL borrower, you must
have more than $30,000 in outstanding FFEL Program Loans.
Choosing your Repayment Plan

14. If your outstanding Federal Student Loan debt is higher than
your annual income, or if it represents a significant portion
of your annual income, you may want to repay your
federal student loans under an income-driven repayment
plan. Most Federal Student Loan borrowers are eligible for
at least one Income-driven Repayment Plan.
Income-driven repayment plans are designed to make
your student loan debt more manageable by reducing
your monthly payment amount. If you need to make lower
monthly payments, one of the three following income-
driven plans may be right for you:
1. Income-Based Repayment Plan (IBR Plan)
2. Pay As You Earn Repayment Plan (Pay As You Earn Plan)
3. Income-Contingent Repayment Plan (ICR Plan)
Choosing an Income- Driven
Repayment Plan ……

15. If you are seeking Public Service Loan Forgiveness, you should repay your
federal student loans under an income-driven repayment plan.
 Income-Based Repayment Plan (IBR)
Your maximum monthly payments will be 15 percent, (10% for new borrowers), of your
discretionary income, which is the difference between your adjusted gross income and
150% of the poverty guideline amount for your state of Residence and your family size,
divided by 12.
Your payments change as your income changes. Up to 25 years.
You must have a partial financial hardship. Your monthly payments will be lower than
payments under the 10-year standard plan.
You'll pay more for your loan over time than you would under the 10-year standard plan.
If you have not repaid your loan in full after making the equivalent of 25 years of
qualifying monthly payments, any outstanding balance on your loan will be forgiven.
You may have to pay income tax on any amount that is forgiven.
 Pay As You Earn Repayment Plan
Your maximum monthly payments will be 10 percent of discretionary income, the
difference between your adjusted gross income and 150 percent of the poverty
guideline for your family size and state of residence (other conditions apply).
Your payments change as your income changes.
Up to 20 years. You must be a new borrower on or after Oct. 1, 2007,
and must have received a disbursement of a Direct Loan
on or after Oct. 1, 2011. You must have a partial financial hardship.
Your monthly payments will be lower than payments under the 10-year standard.
If you have not repaid your loan in full after you made the equivalent of 20 years of
Choosing Your Repayment Plan
Continues with more details…..

16. PAY AS YOU EARN REPAYMENT
Monthly Payment Chart

17. SAMPLE CALCULATION OF PAYAS YOU EARN
with a Loan Balance of $138,500, making
$56,000 with (3) member in household….
Repayment
Plan
Repayment
Period
Monthly Payment
Initial to Final Amounts
Projected
Loan
Forgiveness
Total
Interest
Paid
Total
Amount
Paid
Standard 120 months $1,594 to $1,594 $0 $52,764 $191,264
Graduated 120 months $919 to $2,758 $0 $67,311 $205,811
Extended
Fixed
300 months $961 to $961 $0 $149,887 $288,387
Extended
Graduated
300 months $785 to $1,373 $0 $173,874 $312,374
Income-
Based
Repayment
(IBR)
300 months $323 to $1,594 $123,541 $234,748 $249,707
IBR for New
Borrowers
240 months $216 to $789 $217,279 $109,581 $109,581
Pay As You
Earn
240 months $216 to $789 $217,279 $109,581 $109,581
Income-

18. Choosing Your Repayment Plan
Continues with details
Income Contingent Repayment Plan
 Payments are calculated each year and are based on your adjusted gross income,
state of resident, family size, and divided by 12.
 Your payments change as your income changes.
 Up to 25 years
 You'll pay more for your loan over time than under the 10-year standard plan.
 If you do not repay your loan after making the equivalent of 25 years of qualifying
monthly payments, the unpaid portion will be forgiven.
 You may have to pay income tax on the amount that is forgiven.
 Income Sensitive Repayment Plan
 Your monthly payment is based on annual income.
 Your payments change as your income changes.
 Up to 10 years
 You'll pay more for your loan over time than you would under the 10-year standard plan.
 Each lender's formula for determining the monthly payment amount under this plan can
vary.

19. Income-Based Payment (IBR)
Monthly Repayment Chart

20. Other Types of Loan
Repayment Option(s)
Federal Direct
Loan
Consolidation
Federal Loan
Forgiveness,
Cancellation
or Discharge
Public Service
Loan
Forgiveness

21. • Consolidating your federal student loans can simplify your
payments, but it also can result in loss of some benefits.
• A Direct Consolidation Loan allows you to consolidate
(combine) multiple federal student loans into one loan. The
result is a single monthly payment instead of multiple
payments.
• There is no application fee to consolidate your federal student
loans into a Direct Consolidation Loan. If you are contacted by
someone offering to consolidate your loans for a fee, you are
not dealing with the U.S. Department of Education’s loan
consolidation servicer. To apply for a Direct Consolidation
Loan, visit the Direct Consolidation Loans website at
www.loanconsolidation.ed.gov.
Consolidating your Federal Direct Student Loan(s)
Federal Direct Loan Consolidation

22. PRO(S)
• Compare your current
monthly payment amount to
what your monthly
consolidation amount would
be.
• Consolidation may lower
your monthly payment by
giving you up to 30 years to
repay your loans.
• You might also have access
to alternative repayment
plans you would not have
had before, and you’d be
able to switch your variable
interest rate loans to a fixed
interest rate.
• You may be able to
consolidate your defaulted
loans.
• However, if you increase the
length of your repayment
period, you’ll also make more
payments for the repayment
period.
• You will also be paying more
interest on your loan in the long
run because you have a longer
repayment period.
• Once your loans are combined
in a consolidation process they
can not be removed because
the loans consolidated are paid
off and no longer exist.
• Private loans are not eligible for
consolidation.
CON(S)
Should I consolidate my loans?

24. Federal Teacher Loan
Forgiveness/Loan Cancellation…
• The Teacher Loan Forgiveness
Program is intended to encourage
individuals to enter and continue in
the teaching profession. Under this
program, if you teach full-time for
five complete and consecutive
academic years in certain
elementary and secondary schools
and educational service agencies
that serve low-income families, and
meet other qualifications, you may
be eligible for forgiveness of up to
a combined total of $17,500 on
your Direct Subsidized and
Unsubsidized Loans and your
Subsidized and Unsubsidized
Federal Stafford Loans. If you have
PLUS loans only, you are not
eligible for this type of forgiveness.
Teacher
Loan
Forgiveness

25. FEDERAL TEACHER LOAN
CANCELLATION…..
Teacher
Loan
Cancellation
You qualify for cancellation
(discharge) of up to 100 percent
of a Federal Perkins Loan if you
have served full-time in a public
or nonprofit elementary or
secondary school system as a
teacher in a school serving
students from low-income
families; or special education
teacher, including teachers of
infants, toddlers, children, or
youth with disabilities; or teacher
in the fields of mathematics,
science, foreign languages, or
bilingual education, or in any
other field of expertise
determined by a state education
agency to have a shortage of
qualified teachers in that state.

26. FEDERAL LOAN DISCHARGE / LOAN
CANCELLATION…..
Total and
Permanent
Disability
(TPG)
Student
Loan
Discharge
A TPD discharge relieves you
from having to repay a William D.
Ford Federal Direct Loan (Direct
Loan) Program loan, Federal
Family Education Loan (FFEL)
Program loan, and/or Federal
Perkins Loan (Perkins Loan)
Program loan or complete a
TEACH Grant service obligation
on the basis of your total and
permanent disability. Before your
federal student loans or TEACH
Grant service obligation can be
discharged, you must provide
information to the U.S.
Department of Education (ED) to
show that you are totally and
permanently disabled. ED will
evaluate the information and
determine if you qualify for a TPD
discharge.

27. FEDERAL LOAN DISCHARGE /
LOAN CANCELLATION…..
Other types
of
Permanent
Student Loan
Discharge(s)
Death Discharge
If you, the borrower, die, then
your federal student loans will be
discharged. If you are a parent
PLUS loan borrower, then the loan
may be discharged if you die, or
if the student on whose behalf you
obtained the loan dies.
The loan will be discharged if a
family member or other
representative provides a
certified copy of the death
certificate to the school (for a
Federal Perkins Loan) or to the
loan servicer (for a Direct Loan or
FFEL Program loan). For more
information, contact your Loan
Servicer.

28. FEDERAL LOAN DISCHARGE /
LOAN CANCELLATION…..
Other types
of
Permanent
Student Loan
Discharge(s)
Discharge in Bankruptcy
This is not an automatic process—you must
prove to the bankruptcy court that repaying
your student loan would cause undue
hardship.
If you file Chapter 7 or Chapter 13
bankruptcy, you may have your loan
discharged in bankruptcy only if the
bankruptcy court finds that repayment
would impose undue hardship on you and
your dependents. This must be decided in
an adversary proceeding in bankruptcy
court. Your creditors may be present to
challenge the request. The court uses this
three-part test to determine hardship:
If you are forced to repay the loan, you
would not be able to maintain a minimal
standard of living.
There is evidence that this hardship will
continue for a significant portion of the loan
repayment period.
You made good-faith efforts to repay the
loan before filing bankruptcy (usually this
means you have been in repayment for a
minimum of five years.

29. FEDERAL LOAN DISCHARGE /
LOAN CANCELLATION…..
Public
Service Loan
Forgiveness
If you are employed in
certain public service jobs
and have made 120
payments on your Direct
Loans (after Oct. 1, 2007), the
remaining balance that you
owe may be forgiven. Only
payments made under
certain repayment plans may
be counted toward the
required 120 payments. You
must not be in default on the
loans that are forgiven. For
more information, go to
Public Servicer Loan
Forgiveness.

30.  To maximize forgiveness under the PSLF Program,
you should repay your loans on the Income-Based
Repayment (IBR) Plan, Pay As You Earn Repayment
Plan, or the Income-Contingent Repayment (ICR)
Plan, which are three types of the repayment plans
that qualify for PSLF.
 Other PSLF-qualifying repayment plans are
the 10-Year Standard Repayment Plan or any other
repayment plan where your monthly payment
amount equals or exceeds what you would pay
under a 10-Year Standard Repayment Plan.
What is the qualifying repayment plan for PSLF Program?
Federal Public Service Loan Forgiveness Program

31. What is the kinds of employment that qualify for PSLF Program?
Federal Public Service Loan Forgiveness Program
 Qualifying employment is any employment with a
federal, state, or local government agency, entity, or
organization or a not-for-profit organization that has
been designated as tax-exempt by the Internal
Revenue Service (IRS) under Section 501(c)(3) of the
Internal Revenue Code (IRC). The type or nature of
employment with the organization does not matter for
PSLF purposes. Additionally, the type of services that
these public service organizations provide does not
matter for PSLF purposes.

32. A private not-for-profit employer that is not a tax-exempt
organization under Section 501(c)(3) of the IRC may be a
qualifying public service organization if it provides certain
specified public services. These services include emergency
management, military service, public safety, or law
enforcement services; public health services; public
education or public library services; school library and other
school-based services; public interest law services; early
childhood education; public service for individuals with
disabilities and the elderly. The organization must not be a
labor union or a partisan political organization.
Federal Public Service Loan Forgiveness Program
What is the kinds of employment that qualify for PSLF Program?

33.  After you make your 120th qualifying payment, you will need to
submit the PSLF application to receive loan forgiveness. The
application is under development and will be available prior to the
date when the first borrowers will be eligible for PSLF Program
forgiveness, in October 2017.
 You must be working for a qualified public service organization at
the time you submit the application for forgiveness and at the time
the remaining balance on your loan is forgiven.
 We look forward to working with you while you learn more about
PSLF and work toward your goal of making 120 qualifying payments.
If you have any more questions, look at the PSLF Fact Sheet and the
PSLF Questions & Answers document or contact your federal loan
servicer. If you don't know the federal loan servicer for your federal
student loans, use NSLDS® to get that information.
Federal Public Service Loan Forgiveness Program
What should I do after I become eligible for PSLF?

34. Office of
Student Financial Assistance

35. • Dept of Education /Sallie Mae – 1800-722-1300
• USA Funds / Sallie Mae – 1-888-272-5543
• Dept of Education / NelNet – 1-888-484-4722
• Dept. of Education / Great Lakes – 1-800-236-4300
• Dept. of Education/ Fed Loan – 1-800-699-2908
• Direct Loan Serving Center -1-800-848-0979
• Florida Dept. of Education – 1-800-366-3475
• ACS – 1-800-835-4611
• Dept. of Education – (PHEAA) -1-800-655-3813
• American Student Assistance 1-800-999-9080
• American Education Service-1-800-233-0577
• Ed Financial Service – 1-800-337-6884
Lenders, Services Contact information

36. ……………..