Download Loan Repayment/Liquidation and Freshman Orientation

Ninth Annual Financial Literacy Leadership Conference
Society For Financial Education and Professional
Development
Strategies for Students: Loan Repayment/Liquidation
and Freshmen Orientation
October 17, 2016
Joel V. Harrell Ed.D.
Special Advisor to Chief Customer Experience Officer
U.S. Department of Education
Federal Student Aid
Atlanta, GA
U.S. Department of Education
Income Driven Repayment Plan:
A repayment plan that sets your
monthly student loan payment at an
amount that is intended to be
affordable based on your income and
family size.
2
Four Plans
• Revised
Pay as you earn Repayment
Plan (Repaye Plan)
• Pay as you earn Repayment Plan
(Paye Plan)
• Income Based Repayment Plan (IBR)
• Income Contingent Repayment Plan
(ICR)
Revised Pay as You Earn
Repayment Plan (Repaye Plan)
Payment Amount: Generally ten percent of your
discretionary income.
Repayment Period:
20 Years if all loans were for undergraduate study
25 Years if all loans were for graduate or professional school
Eligible Loans: Direct Sub and Unsubsidized, Direct Plus
to graduate or professional student, Direct Consolidation for
any loans not made to parents.
Pay as you earn repayment plan
(Repay Plan)
•
Payment Amount: Generally ten percent of your
discretionary income but never more than the 10
standard repayment amount/
•
Payment Period: 20 Years
• Who is eligible: The payment you would be required
to make under the PAYE or IBR must be less than what
you would repay under Standard Repayment.
•
Eligible Loans: Subsidized and Unsub loans from the
former FFEL Program if they are consolidated
Pay as you Earn Repayment Plan
•
Eligible Loans Continued: FFEL Plus
loans to graduate or professional students
• FFEL Consolidation Loans that did not
repay and FFEL Plus Loan to Parents
• Federal Perkins Loans
Income Based Repayment Plan
(IBR)
•
Payment Amount: Generally 10 percent of your
discretionary income if you are a new borrower
on or after July 1, 2014 but never more than the
10 standard repayment plan.
• Generally 15 percent of your discretionary
income if you are not a new borrower on or after
July 1, 2104 but never more than the 10 standard
repayment plan
Income Based Repayment Plan
•
Payment Period: 20 years if you are a new
borrower on or after July 1, 2014.
• 25 years if you are not a new borrower on or after
July 1, 2014.
• Eligible Loans: Direct Subsidized, Direct
Unsubsidized, Direct Plus to graduate or
professional students, Direct Consolidation that
did not repay any Direct Plus to parents.
Income Contingent Payment Plan
(ICR)
•
Payment Period: 25 years
• Who is eligible: Direct Subsidized and
Unsubsidized loans, Direct Plus loans made to
graduate or professional students, Direct Plus
loans to parents if consolidated, Direct
Consolidation loans that did not repay any loans
made to parents, Direct consolidation loans that
repaid Plus loans made to parents.
Income Contingent Repayment Plan
•
Payment Amount: Lesser of the following;
20 percent of your discretionary income
Or
what you would pay on repayment plan with
a fixed payment over the course of 12 years
adjusted according to your income
Repayment Plans
•
Resources
StudentAid.gov/IDR-Information
StudentLoans.gov-Application
StudentAid.gov/repayment-estimatorCalculator
StudentLoans.gov/repayment-five steps
to a student loan solution
CONTACT INFORMATION
Joel V. Harrell, Ed.D.
Special Advisor to Chief Customer
Experience Officer
Sam Nunn Federal Center
61 Forsyth Street
Atlanta, GA 30303
(404)974-9307
[email protected]