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AGENDA I. FAFSA

II. PELL GRANT

III. LOANS

IV. FORGIVENESS

V. REPAYMENT

FREE APPLICATION FOR FEDERAL STUDENT AID

Used to apply for federal financial aid (grants, work-study, and loans)

Documents needed to apply:

• income tax returns, W-2 forms, and other records of income.

• identification documents (social security cards, drivers licenses).

PELL GRANT

• Does not have to be repaid.

• Can be awarded to students enrolled in a post-baccalaureate teacher certification program.

FEDERAL PERKINS LOAN

• Low-interest (5 percent) loan for students with exceptional financial need.

• Your school is your lender, and the loan is made with government funds.

• Can borrow up to $8,000 per year

DIRECT STAFFORD

Subsidized and Unsubsidized.

BREAKDOWN

SUBSIDIZED UNSUBSIDIZED

for students with financial need do not need to demonstrate financial need

not charged interest while in school interest accrues from the time it’sfirst paid out

MORE DEETS

• Complete the FAFSA and Master Promissory Note (MPN).

• Maximum for graduates is $138,500

• Interest rate is fixed at 6.8%

DIRECT PLUS

• Do not have an adverse credit history.

• Fixed interest rate of 7.9% for Direct PLUS Loans.

MORE DEETS

• Complete the FAFSA and a Direct PLUS Loan Application .

• School must have determined your maximum eligibility for Direct Subsidized and Unsubsidized Stafford Loans.

• Complete a Master Promissory Note (MPN). The MPN is a legal document in which you promise to repay the loan and any accrued interest and fees to the Department.

REPAYMENT

10 to 25 years, depending on which repayment plan you choose.

INCOME-BASED REPAYMENT

A repayment plan for the major types of federal student loans that caps your required monthly payment at an amount intended to be affordable based on your income and family size.

FAST FACTS

• All Stafford, PLUS and Consolidation Loans made under the Direct Loan Program are eligible for repayment.

• If your debt is high relative to your income and family size. Use the U.S. Department of Education’s IBR calculator to estimate whether you would likely qualify for the IBR plan.

PERKINS TEACHER CANCELLATION

Teach full time for 5 consecutive, complete academic years in certain elementary and secondary schools that serve low-income families may be able to forgive up to $17,500 on their Direct Loan program loans.

PERKINS TEACHER CANCELLATION

Cancel up to 100 percent of this loan if you serve full time in a public or nonprofit elementary or secondary school system as a:

• teacher in a school serving students from low-income families; or

• special-education teacher, including teachers of infants, toddlers, children, or youth with disabilities; or

• teacher in mathematics, science, foreign languages, or bilingual education, or in any other field of expertise determined to have a shortage of qualified teachers.

BREAKDOWN

DEFERMENT FORBEARANCE

temporary suspension of payments for specific situations such as reenrollment in

school or economic hardship

temporary postponement or reduction of payments for a period of time due to

financial difficulty.

don’t have to pay interest on subsidized Direct, Stafford, or Perkins Loan.

interest accrues, and you’re responsible for repaying it

DEFAULT:THE CRAPPIEST OF THEM ALL

Failed to make your loan payments as scheduled. Anyone who gave you money can pretty much hunt you down one way or another. Here are some consequences of default:

• You credit rating will be severely harmed.

• You will be ineligible for additional federal student aid if you decide to return to school.

• You can be sued.