MONEY MATTER$: STUDENT LOAN DEBT REDUCTION RESOURCES

HMSV B180: Personal & Professional Development – Dr. Thomas, Spring 2015

Disclaimer

Details contained in this presentation are for general information purposes only!

Please consult with the following authorities for clarification about your personal accounts: USCB Financial Aid Office US Department of Education State Taxation Department US Internal Revenue Service Financial Institution (for private student

loans)

Opening thoughts…

Higher education is an investment…

ROI (Return On Investment) depends on you…

Student loan debt is real…

Debt reduction options are available for some student loans…

Top 5 Tips…

1. Don’t ignore your loans!2. Don’t panic.3. Know your loan types.4. KIT with your lender.5. Pick the right repayment

option for you…

Student Loan Forgiveness Programs

Federal Volunteer Programs: AmeriCorps Peace Corps VISTA

Other Federal Programs: Federal Agencies Public Service (PSLF) Teacher* Military*

Public Service Loan Forgiveness (PSLF)

Best & brightest for public service

Eligibility*: FT employment in sector 120 on-time payments

while employed Direct Loan Program only Consolidation is an option Repayment plan type

matters*See disclaimer on slide #2

Qualified Repayment Plans for PSLF

Income-based plans (more paid on interest!): IBR (income-based-repayment,

up to 15% of discretionary income, hardship required, max 25 years)

PAYE (pay-as-you-earn, up to 10% of discretionary income, hardship required, max 20 years)

ICR (income-contingent-repayment, max 25 years)

10 year standard*

Student Loan Forgiveness Programs

Type of Forgiveness, Cancellation, or Discharge

Direct Loans

Federal Family Education Loan (FFEL) Program

Loans

Perkins Loans

Closed School Discharge x x xTotal and Permanent Disability Discharge X X XDeath Discharge X X XDischarge in Bankruptcy (in rare cases) X X X

False Certification of Student Eligibility or Unauthorized Payment Discharge

X X  

Unpaid Refund Discharge X X  Teacher Loan Forgiveness X X  Public Service Loan Forgiveness X    Perkins Loan Cancellation and Discharge (includes Teacher Cancellation)

    X

Other helpful charts…

https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts

Closing thoughts…

What you make does not matter nearly as much as what you spend/save!

Budget Budget. Budget!

Graduate school? Fellowship!! Scholarships! Employer

pay/reimbursement!

Student loans = last, not first option!

Q&A

What about Congress?

T B A

Reference Websites

http://ticas.org/content/posd/top-10-student-loan-tips-recent-graduates

https://studentaid.ed.gov/repay-loans/understand/plans

https://www.nslds.ed.gov/nslds_SA/ https://

studentloans.gov/myDirectLoan/index.action http://www.finaid.org/loans/forgiveness.phtml https://

studentaid.ed.gov/repay-loans/forgiveness-cancellation/public-service

http://www.cnbc.com/id/102569948