financial intelligence

interest

a loan expense charged for the use of borrowed money. Interest is paid by a borrower to a lender. The expense is calculated as a percentage of the unpaid principal amount of the loan

Direct Unsubsidized Loans

available for undergraduate, graduate, and professional students which offers a low, fixed interest rate and flexible repayment terms. Interest is usually charged on Direct Unsubsidized Loans during all periods, but the government pays your interest on Direct Unsubsidized Loans during certain periods of repayment under the Revised Pay As You Earn Repayment Plan (REPAYE), and during periods of deferment for cancer treatment.

amount of interest

calculated by dividing the interest rate on your loan (as a decimal) by the number of days in a year, and then multiplying that by the outstanding principal balance (debt)

principal

refers to the amount of money you borrowed, on which interest is paid

when do you start paying back loans

six months after graduation

interest

the faster i pay off my debt, the less ________ i pay overall

Current Loan Fee

4.228%

Amount to Borrow Annually

$6,737

Third Year & Beyond (for each year)

$7,500 (not more than $5,500 can be subsidized)

no more than 8%

What percentage of your gross salary does the Consumer Financial Protection Bureau suggest your student loan payment be in order to be affordable and limit your risk of delinquency and default?

standard repayment plan

Which repayment plan will you be placed on automatically unless you change it by contacting your servicer?

loan servicer

Who do you contact if you have questions about repayment plans?

school financial aid office

Who do you contact if you've already accepted more loan money than you need?

Total Debt at Graduation by Program

$26,946

most i can borrow

$27,000

Aggregate Limit*

$31,000** (not more than $23,000 can be subsidized)

Estimated Cost of Attendance Per Year

$32,196

First Year Total

$5,500 (not more than $3,500 can be subsidized)

Second Year Total

$6,500 (not more than $4,500 can be subsidized)

what increases your total loan balances?

Both interest accrual and interest capitalization

Who should you contact if you have trouble making payments once you leave school?

loan servicer

What document explains your rights and responsibilities as a federal student loan borrower?

master promissory note

interest

money you pay to have access to borrowing money

what will happen if you do not pay interest when it is due

will be capitalized at the end of your six-month grace period (for Direct Unsubsidized Loans) or at the end of your six-month post-enrollment deferment (for Direct PLUS Loans).

traditional repayment plan

your required monthly payment amount is based on the loan amount that you owe, the interest rate on your loans, and the length of the repayment period.

income-driven repayment plan

your required monthly payment amount is based on your income and family size.

Which loan type provides interest subsidy, meaning Department of Education (ED) pays your interest while you're in school, during your grace period, and during deferment?

subsized loans

loan

the estimated cost of attendance exceeds the funds you have available to pay for school, must file for. the money you borrow and must repay with interest over a period of time.

Direct Subsidized Loans

A federal student loan for which a borrower isn't generally responsible for paying the interest while in an in-school, grace, or deferment period. If you are a first-time borrower on or after July 1, 2013, there is a limit on the period of time for which you can receive Direct Subsidized Loans, and under some conditions you may become responsible for paying all the interest that accrues on your Direct Subsidized Loans.

loan fees

A fee charged for each loan you receive that is a percentage of the total loan amount you are borrowing (gross amount). The loan fee reduces the amount you receive (net amount). You must repay the gross amount.

loan servicer

Who do you contact when it's time to enroll in a repayment plan?

Eligibility

Can only be used for a dependent undergraduate student, can borrow up to the student's cost of attendance, minus other aid the student receives, Must not have an adverse credit history; a credit check will be conducted

who do you contact if you have already accepted more loan money than you need?

your school financial aid office

Consolidate Your Loans

If you have multiple student loans, you may be able to combine them into a Direct Consolidation Loan with a fixed interest rate based on the average of the interest rates on the loans being consolidated. Once the loan consolidation is complete, you will have a single monthly payment on the new Direct Consolidation Loan instead of multiple monthly payments on the loans you consolidated.