UNTHSC Financial Literacy Suite

Financial
Literacy Suite
Loans
Repayment
Consolidation
Budgeting
Contact
Information
Deferment

What is Your Current Level of Loan Indebtedness?
How do I Repay my Direct Loan?
What are Income-Driven Repayment Plans?
What if I Cannot Repay my Loan?
What is Loan Consolidation?
How Does my Cost of Attendance Impact by Borrowing?
Contact Information

What is Your
Current Level of
Loan
Indebtedness?

Goal
• Students will be able to acquire their
current level of federal loan indebtedness.
You will be able to:
Acquire your current federal loan indebtedness
Identify your servicer (or servicers) of each of your loans
Annually monitor your borrowing by logging into
NSLDS.ed.gov
Use your total current loan debt to estimate payments
required when you go into loan repayment

Do you know how much you owe
in federal loans?
• Visit www.nslds.ed.gov to log into your federal records
• Click Financial Aid Review

Logging into NSLDS
• The next screen requests that you accept or decline the
privacy notice. Choose accept to proceed to the login
screen.

Logging into NSLDS (cont.)
• You can now log in with your FSA ID
• Choose the Log In tab if you have your FSA ID
• If you do not have an FSA ID, create one

Logging into NSLDS (cont.)
• Click on the blue # to drill down and see the detail of
each loan OR
• Click MyStudentData download for a text file output

Please click the page below to complete an
evaluation for this session. Thank you!

Goal
• Students will be aware of the federal loan
repayment options. You will be able to:
Locate federal repayment options
Identify the different repayment options
Discriminate between all of the repayment
options
Compare the variables of each of the plans
Evaluate the programs

You know what you owe, what
do you do now?
• Go to the Department of Education at https://studentaid.ed.gov
• Choose “How to Repay Your Loans”

Studentaid.ed.gov
• Tons of information at your finger tips!

Studentaid.ed.gov (cont.)
• Click on the “Finding the Right Repayment Plan” option

Studentaid.ed.gov (cont.)
• Click the link on the
site to view all plans
• Click on the income-
driven link to view
those plans
• Choose Estimate
Your Payments to
use the calculator

Let’s Estimate Your Payment!
• The estimator will redirect you to studentloans.gov
• You can log in with your FSA ID to use real data or
proceed and plug in your own numbers

Repayment Estimator
• To proceed without logging in…
• Click the + sign to add loans or use average balances

Repayment Estimator (cont.)
• Add all of your loans. First click on the black
down arrow to choose type of loan.

• Choose the type and then enter the balance and interest
rate for that loan. Click Add. It will look like this.

• Next, use the black down arrow to choose
your tax filing status. Single is the default.

• Final steps, input your AGI, family size, and state.
• Click calculate results

Repayment Estimator -The
results!

Additional Repayment Estimator
Results!
$100,000 Unsubsidized loan total at 5.5% interest rate

Important Notes!
• The estimator is just that, an ESTIMATE of what
your payments might be.
• You should contact your servicer to discuss your
actual account
• Repayment plans are determined by federal
regulation, therefore they can change. What is
available today may not be available when you
graduate.

The Repayment Plans (cont.)
• Repayment plans are divided into the following categories:
• Standard Repayment
• The default plan
• Fixed payment amount
• Up to 10 years to repay the loan
• All borrowers are eligible
• You will pay the least amount of interest over the life of the loan with
this plan
• Graduated Repayment
• Payments start lower and then increase, usually every 2 years
• All borrowers are eligible
• You will pay more interest than with the Standard Plan

The Repayment Plans (cont.)
• Repayment plans are divided into the following categories:
• Extended Repayment
• Payments may be fixed or graduated
• For Direct Loan borrowers, must owe more than $30,000 to qualify
• Payments will be lower than with Standard or Graduated, but you will
pay more interest over the life of the loan
• Income-Driven Repayment Plans
• Currently, 4 different plans
• Up to 20 or 25 years to repay the loan
• All borrowers are NOT eligible
• Payments may be lower, but you will pay more interest than with the
Standard Plan

Income-Driven Plans
• The Department of Education uses a percentage of your
discretionary income to determine repayment amounts
• What IS discretionary income (per the Department of Ed.)?
• For Income-Based Repayment, Pay As You Earn, and loan rehabilitation,
discretionary income is the difference between your income and 150 percent of the
poverty guideline for your family size and state of residence.
• For Income-Contingent Repayment, discretionary income is the difference
between your income and 100 percent of the poverty guideline for your family size
and state of residence.
• The poverty guidelines are maintained by the U.S. Department of Health and
Human Services and are available at www.aspe.hhs.gov/poverty.
• Income Driven Repayment Plans Q&A

Discretionary Income Example
• For a family of 2, 150% of
the poverty guideline would
be $16,020 x 1.5 =
$24,030.
• If you make $45,000 a
year, your discretionary
income would be
• 45,000 – 24,030 = $20,970
• Your payment would be
roughly
• 20,970 x .10 (10%) =
$2,097
• $2,097 / 12 = $174.75

Income-Driven Plans
• Revised Pay As You Earn (REPAYE)
• Payments will be 10% of discretionary income. Based on income
and family size.
• Payments recalculated each year
• Payments may be higher than with the Standard Plan
• If married, spouse income and loans will be considered
• Remaining balance after 20 (UNDG) or 25 (GRAD) years will be
forgiven (this may be TAXED!)
• Interest benefit – If your determined payment does not cover the
interest amount that you are being charged each month, the
government will pay ½ of the difference on Unsubsidized Loans.

Income-Driven Plans (cont.)
• Pay As You Earn (PAYE)
• Payments will be 10% of discretionary income. Based on income and
family size.
• If married, spouse income and loans will be considered ONLY if
taxes filed jointly
• Remaining balance after 20 years will be forgiven (this may be
TAXED!)
• MUST be a new borrower after Oct 1, 2007 AND must have received
a Direct Loan disbursement on or after Oct 1, 2011.
• Must have high debt to income ratio
• Monthly payment will NEVER be more than the Standard Plan

• Income-Based Repayment (IBR)
• Payments will be 10% for new borrowers (no outstanding Direct
Loan balance prior to July 1, 2014)
• Payments will be 15% for those who are not new borrowers
• Based on income and family size.
• If married, spouse income and loans will be considered
• Borrower must have high debt to income ratio
• Monthly payment will NEVER be more than the standard plan
• Remaining balance after 20 or 25 years will be forgiven (this may be
TAXED!)

• Income-Contingent Repayment (ICR)
• Payments will be 20% of discretionary income OR the amount you
would pay on a repayment plan with a fixed payment over 12
years, adjusted to your income (whichever is less)
• Based on income and family size.
• If married, spouse income and loans will be considered ONLY if
taxes filed jointly
• Any borrower with qualifying loan types is eligible
• Monthly payment may be more than the standard plan
• Remaining balance after 25 years will be forgiven (this may be
TAXED!)

The Repayment Plans
• Click here for a link
to all of the
repayment plans
• Scroll down to see
the “Overview of
Direct Loan and
FFEL Repayment
Plans”

The Repayment Plans
• Sample chart from
Department of
Education Income-
Driven Repayment
Plans for Federal
Student Loans
Handout
Income-
Driven
Plans

Remember…
• Make sure your contact information is up to date with
your servicers and the Department of Education
• Annually review the data for accuracy
• Upon graduation, contact your servicer to sign up for
the best plan for you
• If at ANY time you are having trouble making a
payment, contact your servicer immediately! Non-
payments, even for very valid reasons, will impact
your credit score and your current options for
repayment.

A Very Important Note…
• There are 3rd party organizations that will offer to “help” you if you
are having trouble paying your loan.
• They present themselves as debt relief
• They present themselves as approved DOE organizations
• They will charge you a fee to “help” you
• BE WARY!! You should ALWAYS contact your servicer if you
are having trouble
As noted by John Wasik in his Forbes article titled The Single-Worst College Loan
Repayment Move from February 27, 2016, “The bottom line is don’t pay middlemen to
find aid or negotiate loan repayments. You’ll be throwing your money away.”

Loan Deferment
and Forbearance

Goal #1
• Students will be aware of the options available to
them if they cannot make their required loan
payments. You will be able to:
Locate federal options for postponing payments
Identify the different non-repayment options
Discriminate between the non-repayment options
Compare the variables of each option
Evaluate the programs

Goal #2
• Students will be able to evaluate the non-repayment
options for their own personal situation. You will be able
to:
Identify the non-repayment options you qualify for
Determine what non-repayment option will work for
your personal situation
Students will choose to contact your servicer (or
servicers) immediately if you cannot make your loan
payments
Students will identify the negative impacts of
choosing not to repay your loan

Why should you care if you miss
a loan payment?
• Your loan becomes delinquent the first day after
you miss a payment.
• If you are receiving any type of benefits, such as a
reduced interest rate for having funds withdrawn from
your bank account, the servicer can return your interest
rate to the full amount, retroactively.
• Your loan goes into DEFAULT after 270 days of a
missed payment.

Why should you care if you miss
a loan payment? (cont.)
• Both Delinquency and Default statuses may impact
your ability to:
• Rent an apartment or buy a house
• Get insurance
• Obtain a cell phone plan
• Obtain a job
**Anything you want to accomplish that requires a credit check could
be impacted negatively by not making your loan payments on time.

Full Consequences of Default
• For the full list, view the Department of Education’s site
• You lose eligibility for deferment, forbearance, and repayment
plans
• You lose eligibility for federal student aid
• Your loan account is assigned to a collection agency
• Your credit rating will be damaged
• Federal and state tax refunds may be withheld
• You may experience wage garnishment
• The loan holder can take legal action against you
• It will take years to reestablish your credit and recover from
default

What if you can’t make your
payments?
• First, immediately contact the servicer(s) of any
and all of your loans.
• Contact them BEFORE your payment is late!!!!!!!
• If you don’t know who your servicer is, log in to the
National Student Loan Data System to view your loans.
Click here to view that process if you are not familiar
with how to log into www.nslds.ed.gov.
• Second, review the servicer’s website(s) to
determine if there are specific forms that need to
be completed.

What if you can’t make your
payments?
• You have options!!!!!
• Federal regulations allow for non-payment periods
• Deferment options – Periods of no payment required,
with no interest charges for subsidized loans
• Forbearance options – Periods of no payment required,
but interest will accrue on all types
• In certain circumstances, usually due to disability or death,
you may request that your loan be discharged.
• Discharge means to release the borrower from the
obligation of repaying the loan

Just a note…
• Everything discussed in this presentation can be reviewed
and investigated on the federal website.
• Go to the Department of Education at
https://studentaid.ed.gov
• Hover over the down arrow to the right of How to Repay
Your Loans. Choose Deferment and Forbearance

www.studentaid.ed.gov
• On their
website,
these are
links to the
categories
displayed

Deferment
• Deferment is officially defined as a period during
which repayment of the principal and interest of
your loan is temporarily delayed.
• If you have a Direct Subsidized Stafford or Perkins Loan,
the government may pay the interest during the
deferment period
• For all Unsubsidized Loans, interest will accrue during
the deferment period
• Even though payments are not required, paying the interest on a
monthly or quarterly basis will prevent capitalization at a later
date

Deferment Categories
• This chart is taken
from the federal
website.
• Note that you must
meet specific criteria
• Contact your servicer
to see if you qualify,
especially for the
Economic Hardship

Deferment (cont.)
• Deferments are not automatic. You must contact your
servicer.
• For the in-school deferment, your school’s Registrar’s Office
will need to certify your enrollment. Contact your servicer to
determine if they have a specific form or process.
• All deferment requests go through your servicer. If you
have more than one servicer, you will have to complete the
process separately for each one.
• Verify that your deferment has been granted and your
status updated online BEFORE you stop making payments!

Forbearance
• Forbearance is when you don’t qualify for a deferment, but
you cannot repay your loan. Your servicer normally has the
OPTION of granting you a forbearance so that you may
either stop making payments or make reduced monthly
payments for up to 12 months.
• For all loans, interest will accrue during the forbearance
period
• Even though payments are not required, paying the
interest on a monthly or quarterly basis will prevent
capitalization at a later date

Forbearance (cont.)
• Two Types of Forbearance
• Discretionary – The servicer may choose to grant or not
• Financial Hardship
• Illness
• Mandatory – If you meet the eligibility criteria and complete the proper
paperwork, the servicer must grant the forbearance request (partial list below)
• Medical internship or residency program that meets specific criteria
• Total amount of your monthly payment for all student loans is 20% or
more of your total monthly gross income (additional conditions apply)
• You qualify for partial repayment of your loans under the U.S. Department
of Defense Student Loan Repayment Program
• You are a member of the National Guard and have been activated by a
governor, but are not eligible for a military deferment

Forbearance (cont.)
• Forbearances are not automatic. You must contact your
servicer.
• Different documentation is required based on the category
you are requesting.
• All forbearance requests go through your servicer. If you
have more than one servicer, you will have to complete the
process separately for each one.
• Verify that your forbearance has been granted and your
status updated online BEFORE you stop making payments!

How to avoid default
• Contact your servicer immediately if you believe you won’t be
able to make a payment on time.
• Know the legal requirements of your loan (see your promissory
note)
• Keep good records!
• Know what you owe
• Know who your servicer is (sometimes you have more than
one!)
• Know when your payments are due and keep a record of
payments
• Track your loans online (use nslds.ed.gov)
• Only borrow what you need

What if I end up in default?
• Contact the agency that is contacting you. It will
most likely be a collection agency, so contacting
your servicer at this point will be useless.
• Explain your situation
• Ask them what options are available to you to get out of
default
• Ask them to work with you
• Always stay in touch with your servicer or collection
agency

Contact Information
UNTHSC Financial Aid Office
817-735-2505
finaid@unthsc.edu
Department of Education
1-800-4FED-AID /
(1-800-433-3243)
To email: https://studentaidhelp.ed.gov/app/ask
Online chat also available at the link above
Contact Your Servicer Directly for help with your account

Goal
• Students will be aware of the federal loan
consolidation options. You will be able to:
Locate federal consolidation options
Identify the different repayment options for
consolidation
Identify the benefits of loan consolidation
Evaluate federal loan consolidation

Should I Consolidate?
• Very personal decision – not right for everyone
• Consolidation simplifies loan repayment by centralizing your
payment each month
• May have lower monthly payments
• Will provide fixed interest on all loans
• May pay more interest over the life of the loan
• May take 30 years to pay off loan
• May LOSE borrower benefits on current loans, such as interest
rate discounts, principal rebates, or cancellation benefits
• You cannot undo consolidated loans once complete
• May be better to keep current loans and apply for income driven
repayment plan, deferment, or forbearance

Loan Consolidation (cont.)
• Must be out of school to consolidate.
• The interest rate will be fixed for the life of the loan. The
fixed rate is based on the weighted average of the interest
rates on the loans being consolidated, rounded up to the
nearest 1/8th of 1%. There is no cap on the interest rate.
• Federal Consolidation Loans qualify for almost all of the
repayment plans, and at least two of the income driven
repayment plans. Review the chart at the Department of
Education’s website.
• https://studentaid.ed.gov/sa/repay-loans/understand/plans

Contact Information
817-735-2505
1-800-4FED-AID /
(1-800-433-3243)
Contact Your Servicer Directly for help with your account
Back to Main Menu

Choose Your Program
TCOM PA DPT

TCOM Cost of
Attendance and
Disbursement
Schedule

Goal
• Students will learn how their financial aid cost of
attendance (COA) is determined each year. You
will be able to:
Identify the COA Components
Discriminate between the fixed and variable COA
Components
Analyze your personal finances and borrow only what
is necessary
Students will choose to reduce spending where
possible

Cost of Attendance Components
• Paid to the school
• Actual cost will be fixedTuition and Fees
• Paid to the school or outside source
• Actual cost will vary depending on where you purchase items, what classes you
take, and how many classes you take
Books & Supplies
• Paid to an outside source
• Actual cost varies depending on living choicesRoom and Board
• Paid to outside sources
• Actual cost varies depending on personal choicesTransportation
• Paid to outside sources
• Actual cost varies depending on personal choicePersonal & Misc.

16-17 Budget for TCOM Year 1
TCOM 1 Resident TCOM 1 Non-Resident
Tuition (RESIDENT) $13,079.00 Tuition (NON-RESIDENT) $28,767.00
Fees $5,990.00 Fees $5,990.00
Federal Loan Fees $480.00 Federal Loan Fees $480.00
Books & Supplies $4,024.00 Books & Supplies $4,024.00
Room & Board $16,588.00 Room & Board $16,588.00
Transportation $3,908.00 Transportation $3,908.00
Health Insurance $2,196.00 Health Insurance $2,196.00
Personal $3,532.00 Personal $3,532.00
TOTAL RESIDENT $49,796.00 TOTAL Non-RESIDENT $65,484.00

16-17 Budget for All Years
SAMPLE FIGURES YEAR 1 YEAR 2 YEAR 3 YEAR 4
TX Resident $49,840 $45,340 $51,384 $45,220
Non-Resident $65,528 $61,028 $67,072 $60,910
Maximum Unsubsidized
Stafford Loan
$44,944 $44,944 $47,167 $44,944
For tuition and fee breakdown by term:
http://web.unthsc.edu/TuitionandFees
Expected Disbursement
dates for Fall / Spring
07/08/16
12/23/16
07/08/16
12/23/16
06/27/16
12/23/16
06/27/16
12/23/16

Creating a Budget
• Click on the interactive budget worksheet to start
your budget!
• Average net income over 12 months
• List all monthly expenses
• Plan ahead for periodic expenses
• Add new categories as life changes
• Adjust to keep positive balance

Contact Information
817-735-2505
1-800-4FED-AID /
(1-800-433-3243)
Back to Main Menu

PA Cost of
Attendance and
Disbursement
Schedule

16-17 Budget for PA Year 1
PA 1 Resident PA 1 Non-Resident
Fees $4,392.00 Fees $4,392.00

SAMPLE FIGURES YEAR 1 YEAR 2 YEAR 3
TX Resident $37,958 $41,575 $42,091
Non-Resident $55,780 $63,907 $63,989
Maximum Unsubsidized Stafford Loan $20,500 $20,500 $20,500
Expected Disbursement dates for
Summer / Fall / Spring
None
07/08/16
12/23/16
05/06/16
07/08/16
12/23/16
05/06/16
07/08/16
12/23/16

DPT Cost of
Attendance and
Disbursement
Schedule

16-17 Budget for DPT Year 1
DPT 1 Resident DPT 1 Non-Resident
Fees $4,660.00 Fees $4,660.00

SAMPLE FIGURES YEAR 1 YEAR 2 YEAR 3
TX Resident $39,924 $41,323 $38,439
Non-Resident $55,020 $56,293 $48,459
Maximum Unsubsidized Stafford Loan $20,500 $20,500 $20,500
Expected Disbursement dates for
Summer / Fall / Spring
None
07/08/16
12/23/16
05/06/16
07/08/16
12/23/16
05/06/16
07/08/16
12/23/16

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