Congratulations SKMC Class of 2020! From: The Financial Aid Office Team 1
Before we start the presentation….. • Changes to federal loans are happening rapidly, affected by the COVID 19 • Your payments will automatically stop from March 13, 2020, through Sept. 30, 2020. • To provide relief to student loan borrowers during the COVID-19 national emergency, federal student loan borrowers are automatically being placed in an administrative forbearance, which allows you to temporarily stop making your monthly loan payment. This suspension of payments will last until Sept. 30, 2020, but you can still make payments if you choose. • From March 13, 2020, through Sept. 30, 2020, the interest rate is 0% on the following types of federal student loans owned by ED: • Defaulted and nondefaulted Direct Loans • Defaulted and nondefaulted FFEL Program loans • Federal Perkins Loans • Please note that some FFEL Program loans are owned by commercial lenders, and some Perkins Loans are owned by the institution you attended. These loans are not eligible for this benefit at this time. • https://studentaid.gov/announcements-events/coronavirus 2
To Do IF NOT DONE ALREADY complete federally required online EXIT counseling at http://studentaid.gov LATER Survey – we will email you a survey link prior to May 1 FOR THOSE WITH JEFFERSON LOANS Sign online Repayment Schedule – Tuition Office will contact you to complete 3
Exit Interview Goals • BASICS • Rights/responsibilities • servicer requirements • Verifying the accuracy of your debt • STRATEGIES • Repayment Hierarchy & overall strategies • What to do/when to do it • Residency Repayment options • Forbearance or Income Driven Repayment or something else?? • Consolidation • Don’t Default!! 4
Loans to cover 1) Institutional loans • TJU loan • Alumni loan • Perkins loan • PCL • Donor named 2) Federal Direct and FFELP Stafford 3) Federal Direct and FFELP Grad PLUS 4) Private alternative loans 5
University Loans 6
Jefferson is the lender for…. • Institutional loans (e.g., TJU Loans, Alumni Loans, Morgan Loan etc.) • Certain Federal Loans • Federal Perkins • Federal Loans for Disadvantaged Students • Federal Primary Care Loans 8
Loans Parameters – TJU Administered Loans Federal Loans for Federal Primary Loans Administered By TJU University Loans Federal Perkins Disadv. Students Care Loan Lender TJU TJU TJU TJU Servicer Heartland ECSI Heartland ECSI Heartland ECSI Heartland ECSI grace period 12 Months 9 Months 12 months 12 months interest rate in school 0% 0% 0% 0% interest rate in grace period 0% 0% 0% 0% interest rate in repayment 5% 5% 5% 5% Yes - 3 years Yes - 3 years eligible for post graduation Yes - forbearance NO * residency residency postponement? only deferment deferment Interest rate during 5% 5% 0% 0% postponement repayment period 10 Years 10 Years 10 Years 10 Years Can be consolidatated with NO - has service NO YES YES Stafford and Grad PLUS? commitment Eligible for Income Driven NO - unless NO - unless NO NO Repayment? consolidated consolidated Eligible for Public Service Loan NO - unless NO - unless NO NO Forgiveness (PSLF)? consolidated consolidated Cancellation upon Death or YES YES YES YES Permanent Disabilty **exceptions: Wayland, Robt. Wood Johnson, * exceptions: Wayland, Kellogg, Snyder, Sledd Cunnison loan have post graduate training Bacharach, and Robt Wood Johnson have reduced deferment options beyond Grace period interest rates
TJU Loan Repayment Schedule • Tuition Office will send you link to an online Repayment Schedule. • The Repayment Schedule Lists: 1. payment start date 2. monthly payment amount 3. repayment period 4. interest rate 5. amount of interest that will accrue over life of loan 6. total loan cost (interest and principal) 10
Institutional & Institutionally administered Loans Serviced by Heartland ECSI 888.549.3274 https://borrower.ecsi.net/ What Loans are considered to be Jefferson Administered Loans? Contact Heartland ECSI in the following • Federal Perkins Loan ways : Alumni Loan, Simpson Loan, Levi Loan, TJU Loan • etc. Voice: 888-549-3274 Federal PCL and LDS • 412-788-3900 ECSI offers the ability to make payments via several Email: methods. webcservice@ecsi.net - Customer Online Service (Borrower) issues • Direct Payment (future or recurring ACH Payments), webmaster@ecsi.net - Web/Internet • eCheck (single ACH payments drawn today), or related issues Credit Card. • On-Line: Live Customer Service chat **ACH & Credit Card payments can also be made over the phone** ALL INSTITUTIONAL LOANS GET Mail (remember to include the name of your school) REPAID TO THE UNIVERSITY VIA Thomas Jefferson University c/o Educational Computer Systems, HEARTLAND ECSI Inc. PO Box 718 Wexford, PA 15090 11
Login in Screen at ECSI-Heartland School code is 012393 13
Federal Loan Programs 15
Federal Direct Loans/Private “ALP” Loans Parameters Federal Direct Federal Direct Private Alternative Stafford Loan Graduate PLUS Loan Loans Fed. Government/Dept. of Fed. Government/Dept. of Lender - 7/1/10 to present Private Bank Education Education Private lender for Private lender for Lender - prior to 6/30/10 Private Bank Government Government Servicer Differs by Student Differs by Student Differs depending on Bank 6-9 months - check grace period 6 months 0 * Promissory Note eligible for post graduation usually 3 years - check with Forbearance - residency Forbearance - residency postponement? lender repayment period 10 yrs min/25 yrs max 10 yrs min/25 yrs max usually max of 15 years Can be consolidated with Yes Yes NO Stafford and Grad PLUS? Eligible for Income Driven Yes Yes NO Repayment? Eligible for Public Service Yes Yes NO Loan Forgiveness (PSLF)? Cancellation upon Death or Yes Yes NO Permanent Disability
Interest Rates Federal Direct Loans/Private “ALP” Loans Federal Direct Stafford Federal Direct Graduate Federal/Private Loans Loan PLUS Loan Private Alternative Loans fixed at interest rate when fixed at interest rate when prevailing variable rate/no interest rate in school borrowed borrowed ceiling fixed at interest rate when fixed at interest rate when prevailing variable rate/no interest rate in grace period borrowed borrowed ceiling fixed at interest rate when fixed at interest rate when prevailing variable rate/no interest rate in repayment borrowed borrowed ceiling fixed at interest rate when fixed at interest rate when prevailing variable rate/no Interest rate during postponement borrowed borrowed ceiling Interest rates below reflect the "graduate" rate. Interest rates: Undergraduate students have a lower rate. Loans borrowed between 6.08% 7.08% variable/fixed rate 7/1/2019 & 6/30/2020 Loans borrowed between 6.60% 7.60% variable/fixed rate 7/1/2018 & 6/30/2019 Loans borrowed between 6% 7% variable/fixed rate 7/1/2017 & 6/30/2018 Loans borrowed between 5.31% 6.31% variable/fixed rate 7/1/2016 & 6/30/2017 Loans borrowed between 5.84% 6.84% variable/fixed rate 7/1/2015 & 6/30/2016
Know who holds your loans! IMPORTANT • Servicer – Collecting and managing your payments and working with you on repayment plans, deferment, and forbearance 20
Know w Wh What t Se Servi vicer cers Ha Have Y e You our r Loa oans ns - Fi Find Y d Your r Fed eder eral Stude dent t Loans http://studentaid.gov – log in with your FSA id 21
Finding Your Student Loans Federal Student Loans Private Student Loan http://studentaid.gov www.annualcreditreport.com
Private Educational Loans 23
Private Alternative Loans (includes Residency/Relocation loans) • Usually 6 to 9 month grace (interim) period • Most loans borrowed during medical school are deferred for at least 3 years during residency – read promissory note • Double check your private loans from undergrad. They most likely will NOT have a residency postponement period • Interest rate will change as frequent as the index used (indexes include 30 day LIBOR; 91 day LIBOR; PRIME RATE) • there is usually no ceiling on the interest rate. • Repayment is usually on a standard 10 or 15 year basis; Income driven repayment (as with federal loans) plans are not offered • Private loans are not eligible for Public Service Loan Forgiveness (PSLF) 24 • Usually Not cancelled upon death or permanent disability
• Repayment Plans and Strategies 25
Forbearance • What is it? Postponement of your federal loans for a set period of time - usually for 12 months at a time. • Available for duration of residency for Stafford, Grad PLUS and Federal Consolidation Loans • Application required at least annually – most servicers require Housestaff Office to sign a Residency Verification form • Mandatory that servicer grant forbearance for residency… but borrower MUST ask for it/complete annual form • Interest accrues and may capitalize on all loans, subsidized and unsubsidized – confirm with your servicer • Use only after you have exhausted your grace period 26
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