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Student Loan Survivor

Student Loan Survivor. Welcome to the Jungle. Be A Survivor. Survivor Map. Terms Research Start Early Know the Loans Know the Procedures Follow-Up. Indexes Prime LIBOR Interest Rates Fixed vs. Variable Margins Maximum/Ceiling Rate Minimum/Floor Rate.

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Student Loan Survivor

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  1. Student Loan Survivor Welcome to the Jungle

  2. Be A Survivor

  3. Survivor Map • Terms • Research • Start Early • Know the Loans • Know the Procedures • Follow-Up

  4. Indexes Prime LIBOR Interest Rates Fixed vs. Variable Margins Maximum/Ceiling Rate Minimum/Floor Rate Capitalizing/Compounding Interest Origination Fees Service Fees Prepayment Penalties Deferred Payments Terms for Survival

  5. Your Survival Guide • Federal Student Aid • www.fafsa.ed.gov • Utah Higher Education Assistance Authority • www.uheaa.org • Private Student Loans • Internet • Talk to the Financial Aid Office at the college • Ask your Financial Institution

  6. When do I start? • As early as February 1st • High School Students • Start in the Spring of your Senior year • Parents need to have taxes completed • College Students • Each year after taxes are done

  7. FAQ’s for FAFSA • What is the Free Application for Federal Student Aid (FAFSA)?The FAFSA is used to apply for federal student aid such as grants, work-study, and loans. You may also use the FAFSA to apply for most state and some private aid. • How much financial aid am I eligible to receive?Your eligibility for aid depends on your Expected Family Contribution (EFC), your year in school, your enrollment status, and the cost of attendance at the school you will be attending. Your school’s financial aid office will tell you how much you can receive.

  8. Types of Federal Student Aid • Federal Pell Grant • Does not have to be repaid • Pell Grants are awarded usually only to undergraduate students who have not earned a bachelor's or a professional degree • Federal Stafford Loan (Subsidized Loan) • Based on financial need • Government pays interest while in school • Deferred until 6 months after graduation, withdrawal, or drop below less than half time. • Federal Unsubsidized Loans • Not based on financial need • Student is required to pay interest on loan • Deferred until 6 months after graduation, withdrawal, or drop below less than half time.

  9. Documents to Begin FAFSA • Social Security Number (yours and parents) • Driver’s license • W-2’s and any other income statements from the current year • Your (and your spouse´s, if you are married) last years Federal Income Tax Return. • IRS 1040, 1040A, 1040 EZ • Your Parents´ last years Federal Income Tax return (if you are a dependent student) • Your current bank statements • PIN Number

  10. Now You are Ready to Begin Your Tour of the Federal Aid Jungle Start your tour at www.fafsa.ed.gov

  11. What Happens Now? • In 2 to 4 weeks you’ll receive a Student Aid Report (SAR). • Check the SAR carefully. Your SAR will summarize the data you report on your FAFSA. • Keep a copy of your SAR. • View your Expected Family Contribution (EFC). If your FAFSA information is complete, an EFC will appear in the upper right corner of your SAR. Your EFC is based on the financial information you provide on the FAFSA. • Check with your school. Your school will use your EFC to award your financial aid. • You will receive an Awards Letter from your Financial Aid Office. • Select a lender • Complete your Master Promissory Note and loan counseling (if applicable) • Funds will be disbursed to your school

  12. Example of Awards Letter

  13. Don’t Get Caught off Guard by the Jungle

  14. Lions in the Jungle • Watch out for Lions: • Origination Fees • Servicing Fees • Interest Rates • Capitalizing or Compounding Interest • Prepayment Penalties • Deferred Payments vs. Interest-Only Payments

  15. Questions for Survival? • Do you charge origination and/or servicing fees? If so, what are the amounts? • What is the interest rate? Variable or Fixed? If variable, how often does it change? What is the minimum and maximum rate? • Are the payments deferred? If yes, is my interest going to be compounded or capitalized? • Are there any prepayment penalties? • Can I make payments on my loan?

  16. Survivor Map to Alternative Lending • Application Turnaround Time • Documents you need to provide • Income verification • References • School verification • Paperwork to sign • How is the loan disbursed?

  17. Running Towards the Finish Line • Terms & Conditions • Payment Options • Repayment

  18. CONGRATULATIONS! You Finished Your Student Loan Survivor Race!

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