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Federal Student Loan WorkshopNew Student Orientation 2015
Enrollment Services Student Support Center103 Wilder Tower
Memphis, TN 38152
Student Financial Aid OfficePhone: (901) 678-4825
Fax: (901) 678-3590Website: www.memphis.edu/financialaid
E-mail: [email protected]
Who Qualifies for Federal Student Loans?
• Student who completes the FAFSA• U.S. citizen or an eligible non-citizen (permanent
resident)• Degree-seeking student• Enrolled in at least half time (6 hours)• Making Satisfactory Academic Progress
Student is the borrower
Parent is the borrower
What You Should Know About Student Loans:They Must Be Paid Back!
Type of Loan
Need Based
RequiredEnrollme
nt
Interest Rate
Interest Accrual
Grace Period
Subsidized Loan
Yes At least six hours
4.29%*Interest free while in school
6 months
Unsubsidized Loan
No At least six hours
4.29%* Not Interest free while in school
6 months
Parent Plus for UG Students*Apply via studentloans.gov and undergo a credit check
NoAt least six
hours 6.84%*
Not Interest free while in school
NA*The parent can
apply for in-school deferment
How Much Can Students Borrow?Dependent Loan Amount
Grade level(earned hours)
Subsidized or Unsubsidized
Additional Unsubsidized
YearlyTotals
Freshman 1-29 hrs 3,500 2,000 5,500
Sophomore 30-59 hrs
4,500 2,000 6,500
Junior 60-89 hrs 5,500 2,000 7,500
Senior 90+ hrs 5,500 2,000 7,500
TOTAL 19,000 8,000 27,000
Lifetime limit: Dependent Student = $31,000
You are responsible for monitoring how much you’ve borrowed. Keep up with your federal loans at the National Student Loan Data System at http://www.nslds.ed.gov
Parent Loan for Undergraduate Students (PLUS)
• Next option if additional funds are needed• Parent is the borrower• Apply on-line at www.studentloans.gov • A credit check is required• If approved, parent must complete a Master
Promissory Note (MPN) at same website• Parent can request in-school deferment
Loan Repayment ExamplesTotal Borrowed $15,000 $40,000
Monthly Payment $173 $460
Total Owed/Paid $20,714 $55,239
This example is based on a standard repayment plan for undergraduate or graduate borrowers at a 6.8% interest rate with 120 monthly payments. (Source: studentaid.ed.gov)
• You are NOT required to take out the maximum amount of loans• Visit www.nslds.ed.gov to monitor your loans• Stafford loans have variable interest rates, but they are capped at 8.25%
(changes every July 1st)
Budget Example #1(Off-Campus Student)
Semester Estimate
Costs AwardsTuition $4,482 HOPE $1,750Dining Dollars$ 300 Pell Grant $2,887
Loan $2,750Total $4,782 Total $7,387
Balance Refunded: $2,605(Do you need the loan? What about a reduced amount?)
Budget Example #2(On-Campus Student)
Semester Estimate
Costs AwardsTuition $4,482 HOPE $1,750Dining Dollars $ 300 Pell Grant $2,887Room/Board $4,000 Loan $2,750Total: $8,782 Total: $7,387
Balance Owed: $1,395(Consider the Installment Payment Plan; otherwise, next option is the
PLUS)
Next Steps?
• Work on a budget. – Do you really need a loan and/or a PLUS?– Is the Installment Payment Plan an option? Check Bursar’s Office
website for details.
• Review loan amounts on your myMemphis account;
accept amount needed.
• Complete the Master Promissory Note (MPN) and the
Entrance Counseling at www.studentloans.gov.
• Sign up for eRefunds (under TigerXpress) if you expect a
refund. (The Bursar’s Office is responsible for eRefunds.)
Checking for Red Flags on myMemphisFinancial Aid RequirementsRed flag – incomplete
Green check mark – item received/completed
Financial Aid Awards
Click Financial Aid Awards Link
Proxy Access
• Students can log in to myMemphis to give parent/guardian authorization to see selected Financial Aid information
• Proxy will be emailed to set up access• Student will confirm what they want
Proxy to be able to view