PowerPoint Presentation

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Managing Student Loan Repayment for Graduating Seniors

Your Moderator Today

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Stephanie Wells,

Associate Director of College Planning

Stephanie joined MEFA in 2001 and has 25 years of experience in the higher education financing industry. As Director of Community Outreach she is responsible for working with colleges, high schools, and community-based organizations to further MEFA's public mission of educating and supporting families on the college enrollment and financing process.

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About MEFA

Not-for-profit state authority created in 1982 helping families plan, save, and pay for college

Keeping you on track with FREE college planning: ? Visit : Information, tools, & resources ? Call us: (800) 449-MEFA with any questions ? Email us: collegeplanning@ ? Follow us: Facebook, Twitter, & LinkedIn ? Get our emails: Sign up on ? Attend a seminar: Details at events ? Attend a webinar: Register at events

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Agenda

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? First Steps in Student Loan Repayment ? Importance of Good Credit ? Federal Loans ? Private Loans ? Forgiveness Options ? Avoiding and Recovering from Delinquency and Default ? Education Loan Consolidation and Refinancing ? Resources

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First Steps

Start Developing These Habits

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? Minimize your debt ? Live like a student ? Don't overspend ? Stay organized and keep good financial records ? Beware of ATM overuse ? Avoid retail therapy ? Be realistic about how much money you'll earnafter graduation

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Create Your Post-Graduation Budget

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? Identify all sources of income ? Identify all bills, including your monthly

student loan payments ? Use simple spreadsheets and/or online

budgeting tools ? Distinguishbetween needs and wants ? Revise as needed

Make a List of All of Your Student Loans

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? You may have federal & private ? Review all student loan paperwork you

have received ? Make a note of when repayment begins ? Talk to your financial aid office for a list of

your private loans ? Use to find your federal

loans

Importance of Good Credit

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? Paying back your loans on time affects your credit ? Your credit can determine your interest rate when you borrow for future purchases ? Landlords and rental companies may check your credit ? A bad credit decision stays with you for a long time

How To Maintain Good Credit Pay your bills on time Avoid default on your loans Review your credit report annually for accuracy

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Student Loans- What Happens Next

Contact from Loan Servicer

? Company that collects your loan repayments.

? For Federal Direct Loans, one of nine companies*

? For Private Loans, it will vary ? Create online account ? Download app if available

Depending on Loan, you may have a Grace Period

? Set period of time after you graduate, leave school, or drop below half-time enrollment before you must begin repayment on your loan.

? Direct Federal Loans- 6 month grace period after graduation

? Perkins Loan- 9 month grace period (might not be applicable to you)

? Private/Alternative loans- vary by lender (you might already be in repayment)

? Institutional Loans- vary by institution

? Once/if you consolidate or refinance, you will lose any remaining grace period.

* https ://studentaid.sa/repay-loans/understand/servicers

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Begin Repayment on your student loans

? Repayment rate will vary depending on the repayment plan you choose.

? May be paying back multiple servicers (especially if you borrowed federal and private).

? No prepayment penalties ? Can overpay or pay it off at any

time (and save money along the way)!

How Much Do I Owe: Your Federal Student Loan History 11

Federal Student Aid (studentaid.)

Is a centralized national database Stores information on your federal grants and loans (no private loan info) Displays your current enrollment status

Log in and view your federal aid details

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Federal Loans

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You May Have Borrowed These Federal Loans

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? Direct Subsidized Loan ? Direct Unsubsidized Loan ? Perkins Loan

General Loan Repayment

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? Know your grace period ? Pay on time! ? Pay off your debt with the highest interest rate first ? Understand your options for repayment ? Simplify the payment process ? use automatic debit ? Contact your loan servicer immediately if you cannot pay ? Ask for help if needed

You Have Federal Loan Repayment Options

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? Standard repayment is 10 years ? Extending repayment to a longer term results in:

a lower monthly payment a potentially higher overall cost ? Get help determining a repayment plan at: myDirectLoan/repayOptions.action

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