student loan resources kristin herndon associate director – operations central michigan university

Student Loan ResourcesKRISTIN HERNDON

ASSOCIATE DIRECTOR – OPERATIONS

CENTRAL MICHIGAN UNIVERSITY

What will we cover?StudentAid.gov & NSLDS User InterfaceLoan Counseling ToolsRepayment Estimator Tool

StudentAid.gov

Why is Loan Counseling Important?

•What is the average student loan default rate?•What is the current federal student loan debt overall?•Financial literacy is key to successful repayment

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Benefits of Expanded Loan Counseling

Provides broader financial literacy information to borrowers with personalized, visual, and interactive content

Enhanced borrower information for a more informed financial decision

Centralization of counseling reduces borrower confusion and provides a consistent experience

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Counseling in StudentLoans.gov

All counseling is now available in Spanish

Added emphasis on exhausting federal student loans first, before private loans

Clear steps borrowers can take to control their disbursements

More information on interest, especially capitalized interest

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StudentLoans.gov – pre/post sign-in

Without logging in user can complete a “demo session” of any of entrance, financial awareness, or exit counseling

• No NSLDS information will be populated• No schools will be notified• No completion documentation produced

Once logged in users can complete counseling sessions with current loan data provided, they can view completed counseling sessions, or they can send counseling results to additional schools

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StudentLoans.gov – Welcome Page

Once logged in users can view completed counseling sessions -or-

begin a new session.

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Projected Loan Balance Calculator

Added to Understand Your Loans – Entrance, Financial Awareness and Exit Counseling.

Available via a link under “Additional Loans” section.

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Understand Your Loans - SULA

Subsidized Loan Limitation (150% or SULA) added to Entrance, Financial Awareness and Exit Counseling modules.

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Understand Your Loans

Topics:

•Loan Topics

•Things You Need to Know

•Free Money First

•Types of Federal Student Loans

•Loan Limits

•SULA information now added

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Understand Your Loans

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Manage Your Spending

In Entrance and Financial Awareness counseling modules

•Budgeting while still enrolled and attending classes

•“College Navigator” school cost data pulled from IPEDS

•Benefits of controlling day-to-day expenses and incurring minimal debt

•How loans are disbursed

•Paying accruing interest will lessen borrowing costs

•Tips to help manage debt

•Federal loans first emphasized

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Plan to RepayEntrance, Financial Awareness and Exit counseling

•Compare estimated monthly repayment amounts based on loan debt and repayment plan selection

•Evaluate student loan debt burden based on estimated income

•Estimate initial monthly payments for income-driven repayment plans

•Calculate savings by paying extra, making automated payments, and paying interest during periods of deferment and forbearance

•Facts about entering and navigating repayment: grace period, first payment due date, contacting the loan servicer

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Plan to Repay – Monthly Payments

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Plan to Repay – Payments and Plans

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Plan to Repay – Income-driven

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Avoid DefaultEntrance, Financial Awareness, and Exit Counseling

•Limiting borrowing

•Completing the program and graduating

•Keeping in touch with the loan servicer and paying on time

•Trouble making payments◦ Deferment and forbearance◦ Changing repayment plan

•Loan forgiveness, cancellation, discharge

•Consequences of delinquency, default

•Retaining loan records and resolving disputes

•Loan consolidation

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Avoid Default

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Make Finances a PriorityEntrance, Financial Awareness, and Exit counseling

•Plan for the future, save, spend wisely

•Taxes and impact on income◦ Gross to net comparisons

•Educational tax incentives◦ Tax deductions and tax credits

•Trouble making payments◦ Deferment and forbearance

•Credit scores and credit basics

•Credit cards and other borrowing and time calculated to pay off balances

•Identity theft and protecting credit and identity

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Make Finances a Priority

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Entrance Counseling - Expenses

IPEDS data pulled via College Navigator and applied to the “Manage Your Spending” screen.

Step 1 and Step 2 tabs must be completed to continue.

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Entrance Counseling - Expenses

Step 2 allows entry of expected assistance for the upcoming award year.

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Entrance Counseling - Summary

Entrance Counseling

Summary Screen

Summary Tools allow e-mailing, posting to social media, exporting to Excel, and printing.

Links to FSA videos also.

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DEMO