Loan Workshop

1. Loan Workshop APPLIED TECH AUDITORIUM Monday, October 4, 2010 4:00 PM Please be seated. This session will begin shortly.

2. Guilford Technical Community College William D. Ford Federal Direct Loans Loan Entrance Counseling

3. DEFAULT

4. Federal Direct Stafford Loans • Federal Student Loan • Your lender will be the U.S. Department of Education • Half-Time Enrollment Required

5. Repayment Repayment begins 6 months from the date you drop below half time: • Graduate, • Drop below half-time enrollment, or • Withdraw from all classes.

6. Federal Subsidized Stafford Loans Federal Subsidized Stafford loans (Sub) are low-interest, need based, education loans. The Federal Government pays the interest (subsidizes) on this loan during in-school status, grace periods, and authorized deferment periods.

7. Federal Unsubsidized Stafford Loans A borrower unable to qualify for a need-based Stafford loan (Sub) may apply for an Unsubsidized Stafford Loan (UnSub). An UnSub loan doesn’t qualify for the federal interest subsidy, which means the student is responsible for the interest.

8. No Penalty for Pre-Payment

9. Annual Maximum Eligibility Academic Year • First Year Student (32 or less credit hours) • Dependent student: $5,500 (Max $3,500 Sub) • Independent student: $9,500 (Max $3,500 Sub) • Second Year Student (33 or more credit hours) • Dependent student: $6,500 (Max $4,500 Sub) • Independent student: $10,500 (Max $4,500 Sub)

10. Annual Eligibility, Continued New Terms “Cost of Attendance” “Expected Family Contribution” “Need”

11. Cost of Attendance 2010-2011 • Tuition and Fees-$1,542 • Books and Supplies-$1,044 • Travel-$2,943 • Miscellaneous-$4,959 • Room and Board-$7,596 • Total COA-$18,084 (Assumes In-State, Not living with parents.)

12. Expected Family Contribution (EFC) Result of the processing of the Free Application for Federal Student Aid (FAFSA). Found on your Confirmation when submitting, and the Student Aid Report (SAR) (sent to you by the FAFSA Processor). Not literally the amount you will pay, but is part of your need calculation, and the main determinant of your Pell eligibility.

13. Need Calculation COA – EFC = Need Cost of Attendance -Expected Family Contribution -Other aid and resources Remaining Need (Sub Loan Eligibility)

14. Eligibility, Continued Sub Loan Eligibility is the LOWER of: Remaining Need Or Grade Level Eligibility No matter what your grade level or dependency status, you can never receive aid in excess of your Cost of Attendance.

15. Lifetime Maximum Awards • Dependent, undergraduate student Aggregate limit of $31,500, no more than $23,000 of which may be subsidized. • Independent, undergraduate student Aggregate limit of $57,500, no more than $23,000 of which may be subsidized

16. Interest Rate Disbursed between 7-1-10 and 6-30-11 • Subsidized Stafford: 4.5%. • Unsubsidized Stafford: 6.8%

17. Interest Rate Reductions Academic YearInterest Rate 2009-2010 5.6 % 2010-2011 4.5 % 2011-2012 3.4 % (Applies only to Subsidized Stafford Loans. Unsubsidized remains at 6.8 percent.)

18. Reminder-At Least Half Time You must be enrolled in at least six (6) credit hours each semester (including summer if you plan to attend) to be eligible for Stafford Loans. If you fall below six hours after the loan has been certified and before funds are disbursed, the funds must be returned and the loan will be cancelled. You will be responsible for any charges on your account that were not covered by other financial aid.

19. ToDo # 1: On-line Entrance • Use the link on our web page or www.StudentLoans.gov • Information is followed by a 15-question quiz. • You must answer at least 12 correctly to complete the session. • Student Loans advises us when you have successfully completed.

20. ToDo # 2: Master Promissory Note • Web site is www.StudentLoans.gov. • You will need name, address, and telephone number for 2 references. (These aren’t co-signers!) • Sign with your Department of Education PIN number. • You should print a copy for your records.

21. ToDo # 3: Loan Request Form Complete the Loan Request form. Then print, sign, and submit the form to Enrollment Services. • Step 1 • Select loan period. Requested amount MUST be divided into two equal payments period. • Fall/Spring • Spring Only • Spring/Summer • Summer Only

22. Disbursement Info All Stafford loans are required by law to be delivered in two (2) disbursements. The first half at the beginning of the enrollment period; the second disbursement must be beyond the mid point of the enrollment period. Full Year Loan: 1st half at beginning of Fall semester, 2nd half at beginning of Spring semester. Single Semester Loan: 1st half at beginning of the semester, 2nd half at least mid-way through the semester.

23. Exception Are you a first-year student? If yes: Are you a first-time borrower? If yes: First-year student First-time borrower 30 Day Delay (after first day of classes)

24. Loan Request Form-Continued • Step 2 • Choose A or B: • (A) Please certify my loan for the maximum amount I am eligible to receive from the subsidized and unsubsidized loan programs for the academic year. • OR • (B) I am requesting a lesser amount of $____ Subsidized UnSubsidized

25. Loan Request Form-Continued • Step 3: Monthly Budget Calculator • Estimated monthly Income for loan period

26. Loan Request Form-Continued • Step 3: Monthly Budget Calculator • Rent/Mortgage • Home/Cell Phone • Child Care • Monthly Debt Payments (credit cards, etc.) • Other Personal Expenses • Utilities • Food • Transportation • TOTAL MONTHLY EXPENSES

27. Loan Request Form-Continued • Step 3: Monthly Budget Calculator • Results • Subtract monthly expenses from monthly income. • (Should be a negative number)

28. What Happens Next? (1) Once you have met all of the requirements (such as the on-line entrance counseling), the loan officer will certify your loan. You will know when your loan has been certified by checking Web Advisor.

29. What Happens Next? (2) Complete all information requested on your Master Promissory Note (MPN). Sign using your PIN from the Department of Ed. (The same PIN you used to sign your FAFSA.) A delay in completing your MPN means a delay in receiving your funds.

30. What Happens Next? (3) Direct Loans receives your MPN; it is matched with our school certification. This begins the process of disbursing funds. You will receive a Disbursement Notice from Direct Loans.

31. What Happens Next? (4) Funds are received from your lender. GTCC must confirm that you are still eligible for the funds, still attending at least ½ time, and if you have charges that need to be deducted from the funds, etc. Checks are scheduled to be mailed 14 days after the lender disbursement. (Checks are mailed to the permanent address we have for you in our system, so be sure it is correct!)

32. Disbursement Info By law, an origination fee of .5% will be subtracted from each disbursement by the lender. (Total fee: 1.5%) The loan fee will be shown on the disclosure statement that the lender will send to you.

33. SAPSatisfactory Academic Progress To continue receiving financial aid, you must make Satisfactory Academic Progress. There are three components: You must complete 66% of all classes you attempt. You must maintain a cumulative grade point average of 2.0 or better. You must complete your program within 150% of the published time period.

34. Be Sure To… Check your GTCC mailcruiser account frequently. This is the primary way we will communicate with you. Read and understand all paperwork that you receive from GTCC and Direct Loans. If you have questions, call the person that sent you the letter. (Be sure to have the letter in hand when you call!)

35. Reminders Borrow only what you need. This is a loan and must be repaid! Exit Counseling is required.

36. To Find Loan Info on our Web: • Go To www.tinyurl.com/gtccloans • Scroll down to “New GTCC Borrowers.” • You need to complete all four items. (This workshop is item #3.)

37. To Do List • On-Line Entrance Counseling • Master Promissory Note (MPN) • Loan Application and Budget Worksheet