Академический Документы
Профессиональный Документы
Культура Документы
$10B
$1B
$100B
$100,000,000,000
BY LAW, THE U.S. DEPARTMENT OF
EDUCATION
CONSIDERS
A
BORROWER TO BE IN DEFAULT WHEN
HE
FAILS
TO
MAKE
ON-TIME
REPAYMENT OF HIS LOANS FOR NINE
CONSECUTIVE MONTHS. IN 2014 Q3,
$98.1B IN STUDENT LOANS WERE IN
DEFAULT.
Stafford Loans
Most Common
Perkins Loans
PLUS Loans
Private Loans
Subsidized
vs.
Unsubsidized
No payments
until after
graduation
No interest on
loans while in
school
Reserved for
students with
financial hardship
Limitations on
amount
Perkins Loans
PLUS Loans
Private Loans
Repayment Plans
Standard Plan
Fixed | 10 years
Graduated Plan
Lower-Higher | 10 years
Extended Plan
Income-Based Plan
15% discretionary | 25
years
years
Meet Michael
Borrower Michael
Employment status Human Resource
Manager
Income $89,000
Loan debt $62,000 federal
Which repayment option should Michael consider?
$85,619
Graduated repayment
$90,244
Extended repayment
$129,097
Extended graduated
repayment
$139,031
$89,007
Staying on Track
Setting
Lender(s) Limits Budgeting
Manage
Salary
Lifestyle
Banking
Organize
Tracking
NSLDS
Select
Pay
Adjust
12-24
Months
Celebrate!
More than
the
minimum
Repayment Process
Apply
Wait
Work
Employment
Repayment source for loans
Repa
y
Repayment Plan
Student responsible for repaying
Repayment Lifecycle
Working the
Celebrate!
Contact lender(s)
Change your
name
Consequences of Defaulting
Garnishment of up to 15% of wages and Social
Security benefits
Income tax refunds may be intercepted (offset)
Collection charges of up to 25% deducted from
each payment, slowing repayment trajectory
Restriction on renewing professional licenses
The default will prevent you from getting credit
cards, auto loans and mortgages and may make it
harder to rent an apartment or get a job
You will be ineligible for more federal student aid
Loan rehabilitation.
Loan Rehabilitation
Rehabilitation is a one-time opportunity to remove a
federal student loan default from your credit history
and to regain student aid eligibility.
Regain eligibility for federal student aid after making
6 consecutive full and voluntary on-time payments
After making 9 of 10 consecutive on-time payments,
you can apply to have the loan rehabilitated and the
default can be removed from your credit history
Call the US Department of Education's Default
Resolution Group at 1-800-621-3115 or TTY 1-877825-9923 for more information.
Online
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