Loan Counseling

2015-2016
Double-Check Your Packets
Packet Materials
Student Keeps
›  Repayment
Calculator Chart
›  Repayment
Brochures
›  Blue “Loan
Booklet”
›  1 Copy of
“Disbursements
Page”
›  Copy of
PowerPoint
Student Signs/Submits
›  Loan Survey
›  1 Copy of
“Disbursements
Page”
www.studentloans.gov
Keep Your Loan Papers
›  Keep
copies of all your loan papers in a
safe place.
›  Many people will keep with their tax
records.
https://studentaid.ed.gov/
types/loans/subsidizedunsubsidized
Direct Loan
Federal money lent to students to help cover the
cost of higher education. It is a type of financial aid
that will eventually need to be repaid.
Lender
The financial institution which provides loans (Dept.
of Ed).
Pages 2-3
Servicer
A company that handles the billing and other
services on your federal student loan.
Current Servicers
› 
› 
› 
› 
› 
› 
› 
› 
› 
› 
› 
Aspire Resources Inc. http://www.aspireresourcesinc.com/borrowers/billing-andpayment-options/ways-to-pay/default.aspx
CornerStone - https://www.mycornerstoneloan.org/payments.aspx
ESA/Edfinancial http://www.edfinancial.com/helpcenter/makingpayments/
waystopay
FedLoan Servicing (PHEAA) http://www.myfedloan.org/make-a-payment/index.shtml
Granite State – CSMR http://www.gsmr.org/mng_paymentoptions.asp
Great Lakes Educational Services Inc. https://www.mygreatlakes.org/educate/knowledge-center/waysto-make-a-payment.html
MOHELA https://www.mohela.com/DL/FAQs/faqs-making-payments.aspx
Navient (formerly Sallie Mae) https://www.navient.com/loan-customers/
Nelnet - http://www.nelnet.com/How-To-Make-A-Payment/
OSLA Servicing http://www.osla.org/DL/AccountAccessDLRedirect.aspx?I=2
VSAC Federal Loans http://vsacfl.org/wps/wcm/connect/Direct/VSAC/VSAC+Federal
+Loan+Borrower+Portal/Make+A+Payment/Ways+To+Pay/
Page 31
National Student Loan
Data System
›  You
can find information about all of your
Direct Loans by accessing the
Department’s National Student Loan Data
System at www.nslds.ed.gov or by calling
1-800-999-8219.
›  You
will need your Federal Student Aid
PIN / FSA ID to access NSLDS.
Page1 of Loan Request Form
Entrance
Counseling
Master Promissory
Note (MPN)
Loan Request
Form
Verification
FAFSA
• www.fafsa.gov
• DSLCC Priority
Deadline is March 1
• If selected, do as soon
as possible
• www.dslcc.edu
• www.studentloans.gov
• www.studentloans.gov
In-Person
Counseling/Group
Session
DSLCC Yearly Loan Steps
FAFSA
›  Can
file as early as
January 1
(www.fafsa.gov)
›  Best to do by
March 1
Verification
›  Not
everyone
selected
›  If selected,
respond to letter
ASAP
DSLCC Yearly Loan Steps
Master Promissory
Note
Loan Request Form
›  Can
be printed:
http://
www.dslcc.edu/
admissions_aid/
financial-aid/
financial-aid-forms/
› 
› 
› 
› 
› 
The MPN is a legal document you
sign promising to repay your loan(s)
and all accrued interest.
Contains Terms & Conditions
The MPN is found online at
https://studentloans.gov
Completed MPNs are available
online for up to 10 years.
There is one MPN for Subsidized
Loans and Unsubsidized Loans and
a separate MPN for Direct PLUS
Loans (for parent who is taking out
a loan for a student).
DSLCC Yearly Loan Steps
Online Entrance
Counseling
›  Completed
at:
www.studentloans.
gov
In-Person Loan
Counseling
›  Thanks
for coming!
›  PowerPoint available
for printing on the
DSLCC Financial Aid
webpage
Page 7
Half-Time Enrollment
›  You
must be enrolled and actively
attending 6 credit hours (half time) or
more to receive a Direct Loan.
›  Withdrawals
›  This
›  You
will count against you.
applies to summer loans too.
do not have to enroll part-time in the
summer in order to defer loan repayment
IF you plan to come back and enroll at
least part-time in the fall.
http://www.dslcc.edu/studentservices/
financialaid/sap_policy.shtml
Satisfactory Academic
Progress
›  Must
maintain in order to receive financial aid
›  Must pass at least 67% of all classes
›  Must maintain required GPA (depends on
amount of credits taken)
›  Must complete program within adequate
timeframe (150%) – RN Students more
susceptible
›  Policy available at:
http://www.dslcc.edu/admissions_aid/
financial-aid/satisfactory-academic-progress/
http://www.dslcc.edu/
studentservices/financialaid/
dslcc_policy.shtml
Return to Title IV (R2T4)
›  If
a student leaves the institution before
completing a term, the financial aid
office recalculates eligibility for Title IV
funds.
›  Recalculation is based on the
percentage of aid earned.
›  Student may need to return loan money if
he/she withdraws or stops attending.
Page 3 and MPN
Loan Fees
›  The
government charges a loan fee (also
called an origination fee) on all loans.
›  The
loan fee is a percentage of the amount
you receive and is subtracted from each loan
disbursement.
(Usually a small amount)
›  The
specific loan fee that you are charged
will be included in a disclosure statement
after the first disbursement of your loan.
https://studentaid.ed.gov/types
Use of Your Loan Money
›  You
may use your loan money only to pay for
authorized educational expenses at the
school that certified your loan eligibility.
›  Authorized educational expenses include:
v 
v 
v 
v 
v 
v 
›  If
Tuition
Books
Supplies
Transportation
Computer Expenses
Loan Fees
you have any extra money left over after
paying for educational expenses, deposit the
money into a savings account or make
interest payments.
Page 21
Never borrow more
than you can afford to
repay
•  Apply for as many
scholarships as
possible and accept
grants
(Money that does not
have to be paid back.)
•  Maximize your income
and minimize your
expenses
•  Decline loans if you do
not need them
•  Strategize – consider
major/goals
• 
Borrow Wisely
Pages 2-3
Accrue
The accumulation of interest on an unpaid loan
over time.
Interest rate × current principal balance ÷ number of
days in the year = daily interest*
Capitalization
The process of accruing interest that has been
accrued to the principal/original amount of the loan.
(Daily interest x number of days until your payment)
+ principal loan balance = loan balance after
interest capitalization*
*https://studentaid.ed.gov/sa/types/loans/interestrates
Pages 13-15
You Must Repay
Your Loans
› 
You must repay the full
amount of your loans
with interest
even if:
› 
› 
› 
You do not complete
your program of study.
You cannot find
employment.
If you do not pay the
interest as it is
charged on either
type of loan, direct
loans will capitalize
on the unpaid
principal amount of
your loan.
This can substantially increase the
total amount you repay over the life
of your loan.
Pages 2-3
Grace Period
A six month period that begins the day after you
graduate from your program or drop below 6
credits. This time should be used to prepare for
repayment of your loan(s).
Page 4
Subsidized
• Students take
out for
themselves
• Students repay
Direct Plus
• Parents take
out for students
• Parents repay
Unsubsidized
• Students take
out for
themselves
• Students repay
Pages 4-5
Subsidized Loan
› 
Based on financial need
› 
Must be enrolled and actively attending 6 or more credit hours
(at least half time)
› 
Interest will not accrue, and you do not have to make
payments if enrolled at least half time.
› 
No credit check required
› 
6-month grace period after you drop below half time
(no payment/interest does not accrue)
› 
Interest Rate of 4.29% for Loans first disbursed on or after
7/1/15 and before 7/1/16*
* http://studentaid.gov
Pages 8-11
Subsidized Direct Loan Limits
Limits Direct Subsidized Loan eligibility for first-time
borrowers* effective July 1, 2013.
›  First-time borrowers* are no longer eligible for
Direct Subsidized Loans once the borrower has
received sub loans for a period of 150% of the
length of the program of study
›  Maximum Eligibility Period examples:
› 
1-yr cert. = 1.5 yrs of sub loan eligibility
2-yr degree = 3 yrs of sub loan eligibility
4-yr degree = 6 yrs of sub loan eligibility
*also includes borrowers who have paid off previous
loans
Pages 8-11
Subsidized Direct Loan Limits…
(continued)
Loss of Interest Subsidy
▪ The student who is subject to the 150% limit can lose
interest subsidy on all outstanding subsidized loans if:
›  There
is no remaining eligibility period;
›  The student did not complete the program; and
›  The student continues enrollment.
▪ A loan which loses its subsidy is still a subsidized loan.
▪ A student may at some later point regain sub
eligibility (e.g. by enrolling in a longer program), but a
lost subsidy on a prior loan can never be regained.
Pages 8-11
Subsidized Direct Loan
Limits…(continued)
›  If
subsidized eligibility is lost, the borrower is
still eligible for Direct Unsubsidized loans.
›  If a student moves from a longer program
of study (e.g. 2 yr. degree such as General
Studies) to a shorter program of study
(e.g. 1 yr. cert. such as Advanced
Healthcare), a loss of subsidy can occur.
Maximum
Eligibility
Period
All
Subsidized
Usage
Periods
Remaining
Eligibility
Period
Pages 8-11
Subsidized Direct Loan
Limits…(continued)
›  E.g.
– Jane Doe has completed 1 year of classes and is
enrolled in General Studies. She took out a Subsidized
Direct loan. She decides to be an LPN instead.
1.5 yrs. of
sub loan
eligibility
(to complete
1 yr. cert.)
›  Jane
1 yr. of
subsidy used
(time from
General
Studies)
.5 yr.
Subsidy
Remaining
has one semester to complete the LPN Program
before losing her subsidy.
Pages 4-5
Unsubsidized Loan
› 
Not based on financial need
› 
Must be enrolled and actively attending 6 or more credit hours
(at least half time)
› 
Interest accrues at all times
› 
No payments are required while enrolled half time
› 
No credit check required
› 
6-month grace period after you drop below half time
(no payment/interest does accrue)
› 
Interest Rate of 4.29% for Loans first disbursed on or after 7/1/15
and before 7/1/16*
* http://studentaid.gov
Pages 4-5
Direct Parent Plus Loans
›  For
parents of dependent students
›  Student must be enrolled and actively
attending 6 or more credits (at least half time)
›  Credit check required; if you have bad credit
or no credit history, you can obtain a cosigner
›  If parent denied, student will receive
independent loan amount
›  Interest accrues at all times
›  Repayment begins 60 days after the final loan
is disbursed, but you may defer repayment
while enrolled in at least 6 credit hours
›  Interest Rate of 6.84%
›  Student apply for subsidized or unsubsidized
loan first
Page 5
Factors Affecting Loan
Amounts/Types
The actual loan amount you are eligible to
receive is determined by various factors such
as:
v 
Cost of attendance
v 
Dependency status
v 
Academic level
v 
Expected Family Contribution (EFC)
v 
Your remaining eligibility under the annual and
aggregate loan limits
Page 6
Annual Loan Limits
Annual Loan Limits for Direct Subsidized & Direct Unsubsidized
Loans
Dependent
Students
(Except for students whose
parents cannot borrow
PLUS loans)
Independent
Students
(And dependent students
whose parents cannot
borrow PLUS loans)
Freshman in program $5,500
of study
$9,500
Sophomore in
program of study
$10,500
$6,500
Page 6
Aggregate Loan
Limits
Aggregate Loan Limits for
Direct Subsidized Loans & Unsubsidized Loans
Dependent Undergraduate
$31,000
Independent Undergraduate
$57,500
(except for students whose parents cannot
borrow PLUS loans)
(and for dependent students whose parents
cannot borrow PLUS loans)
www.dslcc.edu
How to Verify/View Your Loan
Amount(s)
1. 
2. 
3. 
4. 
5. 
6. 
7. 
Go to www.dslcc.edu.
Click “MyDabney.”
Log in.
Click “Student Information System.”
Click “Student Center.”
Click “Financial Aid.”
Click “2016.”
Pages 2-3
Disburse
The beginning process of crediting your loan to your
account to pay off any school charges. At this
point, the DSLCC Office of Financial Aid is releasing
funds to the DSLCC Business Office.
Process
The DSLCC Business Office has applied your Direct
Loan funds toward your charges. At this point,
refunds will display in your Account Activity page.
Pages 2-3
Refunds
The remaining balance after school charges have
been applied (Tuition, Books, etc.) / Direct Loan has
been processed.
•  Total Financial Aid Award(s) – Charges = Refund
•  Not everyone will get a refund.
•  Late-starting class = Late refund
www.dslcc.edu
How To Check Your Refund
Status
Log Into Student
Information System (SIS)
›  Go
to
www.dslcc.edu.
›  Click “MyDabney.”
›  Click “SIS.”
›  Click “Student
Center.”
›  Click “Account
Inquiry.”
Please Note:
Refund checks will not
post until they have
been disbursed and
processed by the
Business Office.
›  Once the funds post,
your refund check
should arrive within
7-14 business days.
›  Make sure your address
is up to date in SIS – this
is the address that your
check or prepaid card
would be mailed to.
› 
Page 8
How Your Loans Will Be Issued
›  You
are able to receive half of your loan
eligibility in the fall and the other half in the
spring.
› 
(If you don’t use all of your loan eligibility, you can use it in the summer
semester. It works the same as the Pell Grant.)
›  Once
the loan is disbursed, it pays for tuition,
books etc., FIRST. Then, if there is any money
left over, it will be sent to you in the form of a
refund check.
›  If you get a refund for a subsidized loan AND
a refund for an unsubsidized loan, they may
be sent as separate checks.
›  You will receive an email when your loan is
disbursed.
http://www.dslcc.edu/
studentservices/financialaid/
disbursement.shtm
How to View Disbursement
Dates
›  Go
to
www.dslcc.edu.
›  Click “Admissions &
Aid.”
›  Click “Financial
Aid.”
›  Click
“Disbursement
Dates.”
http://www.dslcc.edu/
studentservices/financialaid/
disbursement.shtm
Refund Check Timeframe
Hint, hint… This doesn’t
just happen with loans.
This happens with all
other types of financial
aid.
Richmond & USPS
(7-14 Business Days)
Business Office (1-2
Business Days)
Financial Aid (1-5
Business Days)
-Mails refund
checks.
-Will post to
“Account Inquiry”
at this point.
-Applies funds to college account to
pay for your charges.
-Forwards your information to
Richmond.
-Verifies your award(s)
-Verifies your attendance
-Verifies level of enrollment
-Forwards your information to the college’s Business Office
Make sure your address in SIS is correct if you plan to receive a check!
http://www.dslcc.edu/
studentservices/financialaid/
refund2card.shtml
Refund 2 Card Timeframe
Hint, hint… This doesn’t
just happen with loans.
This happens with all
other types of financial
aid.
Refund Issued (2-3
Business Days)
Business Office
(1-2 Business Days)
Financial Aid (1-5
Business Days)
-Refunds applied
to prepaid cards
and checking/
savings accounts.
-Will post to
“Account Inquiry”
at this point.
-Applies funds to college account to
pay for your charges.
-Forwards your information to
Richmond.
-Verifies your award(s)
-Verifies your attendance
-Verifies level of enrollment
-Forwards your information to the college’s Business Office
Make sure your address in SIS is correct if you plan to receive a card!
Page 19
Changes You Must Report
It is your responsibility to contact your Direct
Loan servicer if you:
•  Stop attending school or drop below
half-time enrollment
•  Graduate
•  Fail to enroll at least half-time for the
loan period certified by your school
•  Transfer to another school
•  Change your name, address, phone
number or email address
Page 7
If You Drop Below Half-Time
Enrollment
v 
v 
v 
The six-month grace period will
begin.
Talk to the servicer if you go into
repayment.
Complete Exit Counseling
(www.studentloans.gov or
www.nslds.ed.gov)
Pages 13-17
Repayment
›  Yes! You must repay the full amount of each Direct Loan you
› 
› 
› 
› 
receive, plus interest.
Your Direct Loan servicer will notify you of the date your first
payment is due and send you statements telling you how much
interest has accrued on your loans and your options for paying
that interest.
The repayment period for each Direct PLUS Loan that you
receive begins 60 days after the final loan disbursement is
made. There is no grace period for Direct PLUS Loans. However,
repayment may be deferred if you, the parent, or the student is
enrolled at least half time.
You must make payments on your loan even if you do not
receive a bill or repayment notice.
You may prepay all or any part of the unpaid balance on your
loans at any time.
Page 14 & 16
Standard
Repayment Plan
›  Fixed
monthly payments
must be paid in full within 10 years from
the date the loans entered repayment
›  Loan
(not including periods of deferment or forbearance)
›  Payments
must be at least $50 a month and
will be more, if necessary, to repay the loans
in the required time period
›  Contact your loan servicer for options about
changing your repayment plan
›  https://studentaid.ed.gov/sa/repay-loans
Page 26
Consolidation
›  Applies
to multiple federal education loans
›  Simplifies
repayment (one monthly payment)
›  Check
out the advantages and
disadvantages
›  To
learn more, visit
http://loanconsolidation.ed.gov
Page 18
Interest Rate Reduction for
Automatic Withdrawal of
Payments
› 
Your bank will automatically deduct your monthly
payment from your checking/savings account
and send it to your loan servicer.
› 
If you opt in for Automatic Withdrawals, it ensures
that your payments will be made on time and you
will receive an interest rate reduction of 0.25%.
› 
Your Direct Loan servicer will include information
about the Automatic Withdrawal option
Page in
15 your
first bill.
Page 18
Up-Front Interest Rebate
›  You
may receive an up-front interest
rebate on your loan.
›  The
rebate is equal to a percentage of
the loan amount that you borrow.
›  In
order to receive the rebate, you must
make all of your first 12 required monthly
payments on time.
Page 19 and 2-3
Trouble Making Payments
›  Contact
your Direct Loan Servicer ASAP to
discuss options, such as:
• 
Changing repayment plans
• 
Deferment – payments postponed and
interest does not accrue
• 
Forbearance – payments postponed
but interest accrues for up to 12 months
Pages 19-20
Trouble Making Payments…
(continued)
›  If
your monthly payment is not received:
Your loan becomes delinquent
›  Late fees may be added
›  Delinquency will be reported to one or more
national consumer agencies (credit bureaus)
› 
›  If
you stop making payments and don’t get a
deferment or forbearance, your loan will go
into default, which has serious consequences.
Pages 19-20
Consequences If You Default
›  Default
occurs when you are 270 days past
due (delinquent) in making a payment on
your loan(s). The consequences of default
can be severe.
L  The entire unpaid balance of your loan
and accrued interest becomes due and
payable immediately.
L  You lose eligibility for deferment.
L  You lose eligibility for additional federal
student financial aid.
L  Your account is assigned to a collection
agency.
L  The default will be reported as delinquent
to credit bureaus, ultimately damaging
your credit rating.
Pages 19-20
Consequences If You Default…
(Continued)
L 
L 
L 
L 
The federal government can take all or
part of your federal tax refund.
Late fees, additional interest, court costs,
collection fees, attorney’s fees, and other
costs incurred in collecting your loan will
increase your loan debt.
Your employer (at the request of the
federal government) can garnish part of
your wages and send them to the federal
government.
The federal government can take legal
action against you.
Pages 27-28
Conditions for
Cancelling All or Part of
Your Loan
› 
Teacher Loan Forgiveness
› 
› 
Public Service Loan Forgiveness
› 
› 
Teach in a low-income school district
Employed in certain public service jobs
School-related discharges
In certain cases, you may be able to have all or part
of your loan cancelled because:
› 
› 
› 
Your school closed before you completed your program.
Identity theft
You withdrew from school but the school didn’t pay a
refund that it owed
Pages 27-28
Conditions for Cancelling
All or Part of Your Loan…
Continued
›  Disability,
bankruptcy, or death-related
discharges
› 
› 
› 
Totally and permanently disabled
Bankruptcy (if repaying the loan causes
undue hardship)
Documentation of your death
Page 29
Borrower’s Rights and
Responsibilities
›  If
you have questions about the
borrower’s rights and responsibilities or the
terms and conditions of your loan(s), you
may contact Applicant Services.
› 
U.S. Department of Education
Attn: COD Applicant Services
P.O. Box 9002
Niagara Falls, NY 14302
1-800-557-7394
Email: codsupport@acs-inc.com
www.dslcc.edu
How to Check Your Student
Email
1. 
2. 
3. 
4. 
Go to www.dslcc.edu
Click “MyDabney.”
Log in.
Click your email address (ends with
@email.vccs.edu)
Be sure to check constantly!!!
finaid@dslcc.edu
Picture References
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