apta – endorsed consolidation loan program

8/13/2019 APTA Endorsed Consolidation Loan Program

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Consolidation LoanProgram

APTA Endorsed

Education LoanProgram


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APTA Endorsed

APTA has carefully selected

Education Association Services (EAS)Group, LLC and American Student LoanConsolidation Corporation (ASLCC) asthe exclusive providerfor the APTAEndorsed Education Consolidation Loan

Program


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EAS Group, LLC

Education Association Services (EAS) Group,LLC is dedicated to Making Paying for Higher

Education and Beyond Understandable andAffordable.

EAS provides endorsed value propositionededucation financing products and servicesspecifically developed to compliment and assist

association members, higher educationinstitutions, students and families achieve theirgoals.


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ASLCC

American Student Loan ConsolidationCorporation (ASLCC) is the nation'spreeminent company specializing in

Education Consolidation Loans. Workingwith the country's largest guarantors andlenders, ASLCC staff and management

are thoroughly trained to ensure thatformer borrowers make informeddecisions and obtain the best plan fortheir needs.


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Background

EAS and ASLCC have helped thousandsof former student and parent borrowerssave money on their education loans

while making the process of repaymenteasier. EAS and ASLCC hasconsolidated over $100 million in student

loans and is the exclusive loanconsolidation source for over 20professional association, colleges anduniversities and organizations.


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Why Are ConsolidationLoans Important?

Student indebtedness levels are increasingalong with the cost of education

Coupled with a reluctant economy and job

stagnation education debt with traditional10-year repayment terms are rendering collegegraduates financially impaired.

Interest rates on Federal Stafford Loans are

decreasing thus creating an affordablemanageable money management solution

Consolidation Loans are an attractive option to

lock in the lowest ever interest rates effectiveJuly 1, 2003


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What Is a FederalConsolidation Loan?

A Federal Consolidation Loancombines two or more existingstudent loans into a new loan with alower payment and an extendedrepayment period.


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FFELP loans (Stafford, PLUS, SLS)

Direct loans (Stafford, PLUS)

FDLP loans (Stafford, PLUS)

Perkins Loans

FISL loans

Health Education Assistance Loans (HEAL)

Health Professional Student Loans (HPSL)

Nursing School Loans (NSL)

If a borrower is unsure of their loan history, all they need to do iscontact our Consolidation Loan Counselors and they will access thisinformation for them, confirm their eligibility, and answer allquestions so an informed decision can be made.

*Notealternative loans are not eligible for consolidation

Which Loans Are Eligible forConsolidation?


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Sample Repayment Terms

Total StudentLoan Debt Maximum Term

$ 7,500 - $ 9,999 12 years

$10,000 - $19,999 15 years

$20,000 - $39,999 20 years

$40,000 - $59,999 25 years$60,000 or more 30 years


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How Is The Interest RateCalculated?

*Calculate the weighted average of theinterest rates of the loans consolidated andthen round up to the nearest 1/8 of 1.00%

*Interest Rate Cap of 8.25%


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What Is A Weighted Averageand How Is It Determined???

Example:Outstanding loan balances of$3500 (7%)$3200 (5%)$5500 (9%) = $12,200

Step 1

Multiply the outstanding balance of each loan bythe interest rate:$3500 x .07 = $245$3200 x .05 = $160

$5500 x .09 = $495


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Example

Example:Outstanding loan balances of$3500 (7%)$3200 (5%)

$5500 (9%) = $12,200Step 2

Add the results of all calculations made under Step 1

$245 + $160 + $495 = $900

Divide this sum by the total outstanding balance

$900 $12200 = .07377 or 7.377%


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Example

Example:Outstanding loan balances of$3500 (7%)$3200 (5%)$5500 (9%) = $12,200

Step 2

Round the result of Step 2 up to the nearesteighth of one percent, not to exceed 8.25%

7.377% is rounded up to 7.5%


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Repayment Options

Repayment Options

Level:Fixed monthly payment over the

life of the loan.Graduated:Monthly payments start low

and gradually increase at

specified levels.


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Repayment Options

LoanAmount

CurrentPayments

Level Graduated(1stTwoYears)

Months

$20,000 $198 $116 $60 240$40,000 $396 $201 $119 300

$60,000 $594 $207 $179 360

$80,000 $792 $360 $238 360

$100,000 $989 $450 $289 350

K Q ti B


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Key Questions BorrowersShould Ask

Why should I consolidate?

When should I consolidate?

Who can consolidate?

How do I apply?


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Why Should I Consolidate?

Reduce monthly payment by as much as 50%or more

Simplify student loan repayment by replacingvariable federal education loans with a singlef ixed interest rateloan with a single monthlypayment.

Fixed interest rates from approximately 2.875to 4.25% for the life of the loan (if you have notpreviously consolidated any of your loans)

No fees or charges to consolidate No credit check or income verification

No prepayment penalty

Wh Sh ld Y


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When Should YouConsolidate?

When in grace period or in repayment.When interest rates are low.Borrowers submitting a consolidation

application during their grace period, theinterest rate of the Consolidation Loan willbe based on the relatively lower graceperiod interest rate reported by the loanholder.


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Who Should Consolidate?

Borrowers who are having trouble makingpayments

Borrowers who have irregular monthlyincomes

Borrowers who need to allocate funds to otherworthy expenses such as child care expenses

Borrowers who need to pay off higher interestrate consumer debt

Borrowers who wish to begin a savings planfor a home, car, retirement or familyassistance.


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Who Should Consolidate?

Borrowers whose education loan paymentsexceed 8 - 10% of their gross monthlyincome.

Annual Monthly Maximum StudentIncome Income Loan Payment

8% 10%$ 30,000 $2,500 $200 $250

$ 50,000 $4,167 $333 $417$ 75,000 $6,250 $500 $625$100,000 $8,333 $667 $833


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Summary:

The Advantages of Consolidation

Extended repayment periodLower monthly paymentsNo fee to consolidateNo penalty for prepayment

Locked-in interest rateEligible for death claim


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Applying for Consolidation:

Regulation 682.102(d)states that a borrower

who has all of their loans with a single holdermust seek consolidation from that holder. If theholder declines to make a consolidation loan, orrefuses to offer a loan with income-sensitive

repayment, the borrower may seek consolidationelsewhere.

The Single Lender Rule


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Completing the Application Be informed. Consult with one of our

professional Counselors first!

The APTA Consolidation Loan applicationsare available online, in paper format, andover the phone. Once the lender receives thecompleted application, the lender contacts

any and all holder of the loans. After the lender reviews the loans, the

borrower verifies and approves the loan. The loan is then funded.


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A Timeline Consolidation typically takes 4 - 8

weeks to complete. The repayment period usually begins 30

days after the loan is disbursed. First payment is usually due within 60

days of disbursement. Borrowers must continue to make

payments on all loans being

consolidated.


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Repayment Tips:

Borrowers can prepay at any timewithout penalty.

Interest is deductible, but tax rulesare complex consult a taxprofessional. You can also go to:

http://ftp.fedworld.gov/pub/irs-pdf/p970.pdf(this site is also complex).
http://ftp.fedworld.gov/pub/irs-pdf/p970.pdfhttp://ftp.fedworld.gov/pub/irs-pdf/p970.pdfhttp://ftp.fedworld.gov/pub/irs-pdf/p970.pdfhttp://ftp.fedworld.gov/pub/irs-pdf/p970.pdfhttp://ftp.fedworld.gov/pub/irs-pdf/p970.pdf


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Repayment Tips:

Deferment and forbearanceoptions are available - theborrower should call if they have

trouble making payments

The loan is discharged if the

borrower becomes completely andpermanently disabled or dies

What If a Borrower


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What If a BorrowerDefaults?

The borrower could incur collectioncosts and legal expenses

The borrowers credit history will be

tarnished The borrowers wages will be garnished The borrowers federal tax refund will be

withheld The borrower may be subject to state-

imposed penalties or restrictions.

H t A l f APTA


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How to Apply for an APTA Endorsed Consolidation Loan?

Call ASLCC consolidation counselingcenter toll-free number at800-741- 4704 Monday through Friday8 A.M.9 p.M. EST and Saturday10 A.M.5 p.M. EST

Be sure to reference APTA.

Log on to our website athttp://easnetwork.Com/asso/apta/

apta – endorsed consolidation loan program

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