NEA MB Providing Financial Support: Loan Forgiveness and Financial Planning

1. NEA MB Providing Financial Support: Loan Forgiveness and Financial Planning

2. Brought to you by: NEA Member Benefits www.neamb.com Your union at work for you helping you and your family with a more secure financial situation today and tomorrow.

3. NEA Member Benefits • Go to www.neamb.com and create an account • Text “k12” or “student loan” to 73915 • Name your beneficiary for “free” life insurance • Use your Travel Dollars towards your next vacation • Check out the savings you get on ALL programs • Find more info on Federal Loan Forgiveness Programs and the NEA Loan Forgiveness Navigator by SAVI https://www.neamb.com/

4. Resource www.neamb.com • Click on Student Loans & Loan Forgiveness

5. NEA Student Loan Forgiveness Navigator powered by Savi • On the far left, you will see • No cost analysis of your student loans • One-on-one assistance • Assistance with correctly completing the paperwork • Yearly follow-up to keep you on track • Peace of mind

6. This workshop does not intend to provide borrowers with any financial advice concerning their student loans. While we can provide information, we cannot recommend or suggest courses of action. Borrowers are solely responsible for any determination to enroll in an Income-Driven Repayment plan and/or federal loan forgiveness programs. NEA and its affiliate staff cannot be held liable for borrowers’ decision to enroll or not enroll in federal student loan repayment plans or loan forgiveness programs.

7. FIRST STEP: Apply for your FSA ID

8. WHY? To Obtain Your Loan Info • Go to the National Student Loan Database (NSLDS): nslds.ed.gov • Under the tab, “Log into NSLDS” user your FSA ID to log in. Below is an example of what you will see. Loan Info

10. Loan Info Continued

11. What Federal Programs are we talking about? • Teacher Loan Forgiveness • Teacher Loan Cancellation • Public Service Loan Forgiveness You can apply for all 3 Programs, BUT…it really depends on your specific situation. NEA MB and Savi will help!

12. Teacher Loan Forgiveness Program • General Requirements: • Receive a Stafford Loan through the Federal Family Education Loan (FFEL) Program (now called Direct Loans). • You are a new borrower (You must not have had an outstanding balance on Direct Loans or FFEL Program loans as of 10/1/98, or on the date that you obtained a Direct Loan or FFEL Program loan after 10/1/98). • You have been employed as a teacher (not librarian, counselor etc.) for at least five consecutive years in an elementary or secondary school designated as a low-income school. • You are not in default on the loan for which you are seeking forgiveness • You received the loan for which you are requesting forgiveness before the end of your fifth year of qualifying teaching. • You have not received a benefit for the same teaching service through the AmeriCorps Program. • At least one of your five years of qualifying teaching service must be after the 1997-98 academic year.

13. Teacher Cancellation Low Income Directory Source: https://studentloans.gov/myDirectLoan/tcliDirectorySearch.action

14. Teacher Loan Forgiveness Program; How Much? • You may receive up to $17,500 in loan forgiveness if you are: • “Highly qualified” full-time mathematics or science teacher in a secondary school • “Highly qualified” special education teacher • You may receive up to $5,000 in loan forgiveness if: • Your five years of qualifying teaching service began before October 30,2004 and you were: • A full time elementary teacher who demonstrated knowledge and teaching skills in reading, writing, mathematics, and other areas of the elementary school curriculum • A full time secondary teacher who taught in a subject area relevant to your academic major • Your first five years of qualifying service began on or after October 30, 2004 and you were a “highly qualified” full time elementary or secondary school teacher

15. Teacher Loan CancellationProgramPerkins Loans ONLY • You qualify for cancellation (https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/perkins): • 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. • e.g. School Nurse, Speech Pathologist

16. Teacher Loan Cancellation Program • How do I apply for teacher cancellation? • Request the paperwork from the office that administers the Federal Perkins Loan program at the school that holds your loan • You must also provide any documentation the school requests to show that you qualify for cancellation • Cancellation amounts for years of service • If a borrower is eligible for teacher cancellation under any of the categories listed above, up to 100 percent of the loan may be canceled for teaching service, in the following increments: • 15 percent canceled per year for the first and second years of service, • 20 percent canceled for the third and fourth years, and • 30 percent canceled for the fifth year. • Each amount canceled per year includes the interest that accrued during the year.

17. Public Service Loan Forgiveness (PSLF Program) • The PSLF Program is intended to encourage individuals to enter and continue to work full-time in public service jobs. Under this program, you may qualify for forgiveness of the remaining balance due on your William D. Ford Federal Direct Loan Program loans after you have made 120 qualifying payments on those loans while employed full-time by certain public service employers. • October 2007

18. Public Service Loan Forgiveness ►Steps: 1. Consider Consolidation if not all Direct Loans 2. Enroll in one of the qualifying repayment plan: Income-Based Repayment (IBR) Contingent Repayment Plan (ICR) Pay as You Earn (PAYE) new Pay as You Earn (REPAYE) 3. Complete Employment Certification for Public Service Loan Forgiveness (PSLF) form and submit to Fed Loan 4. Make 120 Qualified Payments 5. File for forgiveness

19. What Loans Qualify? Should I consolidate? • A qualifying loan for PSLF is any nondefaulted loan you received under the William D. Ford Federal Direct Loan (Direct Loan) Program. • Only Direct Loans are eligible for PSLF. If you borrowed before July 1, 2010, some or all of your loans may have been made under an older federal student loan program called the Federal Family Education Loan (FFEL) Program. • FFEL and Perkins Loans do not qualify for PSLF, but they may become eligible if you consolidate them into a Direct Consolidation Loan. Only qualifying payments that you make on the new Direct Consolidation Loan can be counted toward the 120 payments required for PSLF. Any payments you made on the FFEL Program loans or Perkins Loans before you consolidated them don’t count. • If you have both Direct Loans and other types of federal student loans that you want to consolidate to take advantage of PSLF, if you consolidate your existing Direct Loans with the other loans, you will lose credit for any qualifying PSLF payments you made on your Direct Loans before they were consolidated. In this situation, you may want to leave your existing Direct Loans out of the consolidation and consolidate only your other federal student loans.

20. PSLF Employment Requirements Qualifying Employment: • Local, state or federal government departments/organizations • 501(c)(3) non-profit organizations • Other types of not-for-profit organizations if their primary purpose is to provide certain types of qualifying public services Non-Qualifying Employment: • Any private sector company/business or for-profit organization • Partisan political organizations, including labor unions Must work full-time: • PSLF defines FT as at least an annual average of 30 hours per week: • If a borrower is employed at more than one qualifying part-time job, the borrower may meet the full-time requirement if their combined qualifying part-time jobs add up to 30 hours or more. • Employees under contract for at least 8 out of 12 months, borrowers must work at least 30 hours during the contractual period and receive credit by employer for a full year’s worth of employment.

21. What is a Qualifying Payment? Payments must be the following: • Must be made after October 1, 2007 • Must be under a qualifying repayment plan (IBR, ICR, PAYE REPAYE) • Must be for the exact full amount due as shown on your bill (neither under nor over the required amount). • Must be no later than 15 days after your due date • Must submitted while you are employed full-time by a qualifying employer • Must be made only during periods when you are required to make a payment

22. Repayment Estimator Calculator

23. You CAN apply for all 3 Programs, but should you?

24. Resource • www.neamb.com • Register on the site • Log-in • You are logged-in if you see the STATE ASSOCIATION logo and “Hi, YOUR NAME” • www.neamb.com/loanforgiveness

25. Resource • Click on Student Loans & Loan Forgiveness

26. NEA Student Loan Forgiveness Navigator powered by Savi • On the far left, you will see • No cost analysis of your student loans • One-on-one assistance • Assistance with correctly completing the paperwork • Yearly follow-up to keep you on track • Peace of mind

29. NEA Student Loan Forgiveness Navigator powered by Savi • When you begin your no cost analysis, you’ll input your data • Link your loan servicer accounts to Savi algorithms

34. NEA Student Loan Forgiveness Navigator powered by Savi • Two Options: • ESSENTIAL: If you want Savi to complete and process the paperwork, one-on-one assistance, or help going forward, the NEA Member Benefit discount is $29.95, payable by credit card to Savi • DIY: You complete and process the paperwork, access to your Savi account

35. Questions?