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Renewing Trustees or Presidential Scholarships at Purdue

5 Dec

Trustees Presidential Scholarships.jpg

If you’re one of the lucky Purdue students to receive a Trustees or Presidential Scholarship, the thought of what you need to do to keep your scholarship may have come up. While these awards do renew automatically, there are some criteria you should know to keep your eligibility.

For starters, you need to complete at least one full academic year in the program (major) that you were originally admitted to. If you decide that you want to change majors, you will have to wait until after the spring semester of your first year or your scholarship will be lost

In addition, you need to maintain continuous full-time enrollment each semester (excluding the summer) with 12 or more credits or you will lose your eligibility. If you are taking 12 credits and drop a class to go below, this will put your scholarship in jeopardy.

While taking 12 credits keeps you full time, there is another credit completion mark you must hit. You must have completed a total of 30 credits at the end of your first year, 60 by the end of your second year and 90 by the end of your third year. Important to note is that transfer and AP credits both apply to this 30/60/90 goal as well as the courses you take at Purdue. This can give you a bit of a cushion, especially in your first year, to hit your 30/60/90 benchmarks. If you started at Purdue before Fall 2014, the 30/60/90 rule does not apply to you.

Along with maintaining full-time enrollment, you need to maintain a cumulative3.0 GPA. These grades are checked at the end of each spring semester and if your cumulative GPA is below 3.0 at that time, you will lose it. However, if you have lost it for one year you can regain it at the end of the next spring semester if your cumulative GPA rises above 3.0 again (assuming you meet all the other renewal criteria).

If you made it through your freshman year without transferring and you’re hitting your 30/60/90 goal while keeping your 3.0 cumulative GPA you’re probably well on your way to graduating in four years. Which is good, because the scholarships are good for up to four years (8 semesters) of eligibility. If you take an extra year or semester past that, you won’t have the scholarship to help out.

If you are participating in a Purdue approved co-op or internship that takes you away from Purdue, that semester will not count against your semester usage, credit hour completion totals, or 12+ credit rules. Due to your different pattern of enrollment, you may appeal to use a semester of your award during the summer. Summer appeals should only be used when you will not be on campus a total of eight fall and spring semesters.

Now, if you have been doing your best but fell short of one or more of these requirements, there is the option to appeal if you have extenuating circumstances. Keep in mind that high school was easy and college wasn’t so you got really into Netflix and sleeping instead is not considered an extenuating circumstance.

Looking for renewal information about other Purdue scholarships including the Emerging Leaders, Marquis, Purdue Achievement, Purdue Hispanic, or Purdue Merit Scholarships? Check out this link with details on maintaining those scholarships. You can also find more information on the Trustees and Presidential Scholarships as well as other Freshman Scholarships here.

Loan Repayment Tips In The News

30 Nov

repay-banner

Whether you’re a recent graduate whose loans are just entering repayment or you have been making payments for several years, there is a very real chance that educational loan payments may be causing you a financial hardship. For recent graduates, there is a lot of info covered in federal exit counseling and it would be easy to have missed some of it.

Loan Servicer Navient has put together a list of their Top 10 Things to do Before You Make Your 1st Loan Payment. The key to successfully repaying your loans with any Loan Servicer is understanding your responsibilities as a borrower and the wide range of tools available to help you throughout repayment. Your Loan Servicer doesn’t want you to default and you definitely don’t want to default on your loans either!

While there isn’t much that can be done about the amount you owe since you’ve already borrowed it, you can still choose from several different options for repayment.  The Institute for College Access and Success created a Top 10 Tips for recent graduates, a handy reference for borrowers.

Unless you chose otherwise, you’re probably enrolled in the Standard Repayment Plan which spreads your payments evenly over 10 years. This is both the default plan as well as the most aggressive repayment option available. However, there are several other options a borrower can choose which can limit the repayment per month to 10% of  discretionary income and reduce payments to as little as zero dollars per month (depending on income). For more information, check out Acacia Squire’s piece in NPR about her experiences and what options may be available to you.

 

Choosing the Right Loan Repayment Plan For You

28 Nov

All information on repayment plans is from this article by David Evans, Ph.D.
Additional info added by Casey Doten, Purdue Financial Aid Administrator

There are two main types of repayment plans you can choose from: traditional and income-driven. For borrowers that will qualify for Public Service Loan Forgiveness (PSLF), income-driven plans may be the better option. Income-driven plans will require an annual verification of income. This fact sheet describes each of the repayment plans as well as pros and cons of each. For more information about each of the repayment plans visit the Federal Student Aidwebsite.

Traditional Plansstudent-loan-repayment-plans

Standard Repayment Plan

The Standard Repayment plan consist of equal monthly payments over a 10-year period of time. This repayment plan is good for those who can handle making their monthly payments and make enough money to afford them. This payment plan is best for those who have minimal other debts and start working right out of school.

The Pros: You’ll pay off your loan faster compared to other plans, and pay less interest as a result.

The Cons: Your monthly payments will be higher than those made through other plans.

Graduated Repayment Plan

The Graduated and Extended Repayment plans could be an option for you if your income is low when you graduate but will increase quickly. Under a graduated plan, payments start out low and increase during the repayment period, usually every two years. This is a good plan if you can’t afford your current payments but know you will make more money in the years to come.

The Pros: Your loan is still paid off within 10 years.

The Cons: You’ll pay more interest over the lifetime of your loan compared to the Standard Plan.

Extended Repayment Plan

An Extended Repayment Plan is an option if your loan amount is more than $30,000 and you want to stretch your repayment to 25 years.

The Pros: Smaller monthly payments (since they’re spread out over as many as 25 years) and more time to pay off your loan.

The Cons: You’ll be saddled with payments for a longer period of time as well as pay more interest.

Income-Driven Plans

If you qualify for an Income-Driven plan, these are often the most attractive options if you’re willing to recertify your payment each year (it’s not very difficult). However, some of these are contingent on when you took out loans! If you’re interested in student loan forgiveness*, you’ll need to be enrolled in any one of these plans.

Income Based Repayment Plan

If you’re not making enough money to cover all of your monthly expenses the Income Based Repayment (IBR) Plan would be a good option. There are two separate calculations for IBR which are dependent upon when you took out your student loans.

The Pros: The IBR plan takes into account your annual income as well as your family size. Your payment will be 10% of your discretionary income** if you were a new borrower on or after July 1, 2014. Otherwise it will be 15%. Any outstanding balance on your loan will be forgiven after 20 (for undergraduate loans) or 25 (for graduate loans) years.

The Cons: You will have to pay income taxes on any forgiven debt unless you qualify for PSLF (this is true for all loan forgiveness).

Income Contingent Repayment Plan

If you have a federal Direct Loan (other than a PLUS loan), you could opt for the Income Contingent Repayment (ICR) Plan. Your payments could be as low $5 or even $0.

The Pros: Your monthly payment will be the lesser of 20% of your discretionary income or on a repayment plan with a fixed payment over 12 years. You can have your remaining loan balance forgiven after 25 years of regular payments.

The Cons: You’ll pay more over the lifetime of your loan than you would with a 10-year plan, your payment could be lower than the monthly accrued interest and your loan principal will grow. You will have to pay income taxes on any forgiven debt unless you qualify for PSLF.

Income Sensitive Repayment (ISR) Plan

The Income Sensitive Repayment (ISR) Plan is only available for those with Federal Family Education Loan (FFEL) Program. Payments are based on your annual income, family size, and total loan amount. You would pay the loan off in fifteen years.

The Pros: Each lender has their own calculation, but generally it is between 4% and 25% of your monthly gross income, although your payment must be greater than or equal to the interest that accrues.

The Cons: It’s only available for up to five years. After that time, you must switch to another repayment plan. You must reapply annually, and there’s no guarantee that you’ll have continued enrollment in the plan.

Pay as You Earn Repayment Plan

The Pay as You Earn Repayment (PAYE) Plan is another option for those not able to afford their current monthly payments.

The Pros: The PAYE plan takes into account your annual income as well as your family size. Your payment will be 10% of your discretionary income. Any outstanding balance on your loan will be forgiven after 20 years.

The Cons: PAYE is only eligible to those who were new borrowers on or after October 1, 2007 and must have received a disbursement of a Direct Loan on or after October 1, 2011. You will have to pay income taxes on any forgiven debt unless you qualify for PSLF.

Revised Pay as You Earn Repayment Plan

The Revised Pay as You Earn Repayment (REPAYE) Plan is very similar to PAYE. This plan was created to allow more borrowers the opportunity to have their payments lowered to 10% of discretionary income.

The Pros: Not dependent upon when you took out your student loan, the payment will be 10% of your discretionary income. Any outstanding balance on your loan will be forgiven after 20 (for undergraduate loans) or 25 (for graduate loans) years.

The Cons: If you are married, your spouse’s income will be considered whether taxes are filed jointly or separately. You will have to pay income taxes on any forgiven debt unless you qualify for PSLF.

Summary

Federal student loans offer various ways for repayment. If you are in a situation (like so many others who have taken out student loans) that is not ideal for standard repayment of your loan, consider these options. There is a lot to consider when you are trying to decide which repayment plan to choose. Using the Federal Student Loan Repayment Estimator can help you make your decision by showing you what your payments would be under each of the plans described above.

*A note about loan forgiveness: There are two different kinds of loan forgiveness, Public Service Loan Forgiveness (PSLF) and loan forgiveness from your income-driven repayment plan ending. While both plans require you to be enrolled in an income-driven plan to reap the benefits there are some key differences:
-PSLF requires being employed at a qualifying employer in public service (non-profits, government, etc.) for 10 years/ 120 qualifying payments before forgiveness takes place. Standard forgiveness is after 20 or 25 years depending on your repayment plan.

-Any loan amounts forgiven under PSLF are tax-free, but not under standard forgiveness! So if you still have a balance on your loans after 20 (or 25) years, you will owe taxes on it as if it is income. While it’s still better than paying the amount back, it’s important to know it will have ramifications.

**Discretionary income = Your income – 150% of the poverty level in your state for your family size

Stay Eligible For Your 21st Century Scholarship By Taking Enough Credits!

16 Nov

How Does the PLUS Credit Check Process Work When There Is a Credit Freeze?

14 Nov

The following is from the November 3, 2017 COD Processing Update:

Credit Check Processing for Borrowers who have requested a “Credit Freeze”
As a result of recent data breach events and heightened security concerns, many consumers are understandably taking steps to protect their personally identifiable information (PII). One of those steps may be placing a “credit freeze” on their credit profile at one or more of the credit bureaus, which prevents further credit activity from occurring without additional consent.

Because a credit check is part of the process when a borrower or endorser completes a Direct PLUS Loan Request or an Endorser Addendum on the StudentLoans.gov website, borrowers or endorsers with an active credit freeze may not be able to fully complete either process and may receive an error message when the credit check is run. The borrower or endorser must remove the credit freeze first; this action cannot be done by the school or Federal Student Aid. Note: Federal Student Aid can process an inquiry at two of the three main credit bureaus (currently Equifax and TransUnion). If a borrower or endorser places a credit freeze at only one credit bureau, Federal Student Aid could still receive a credit determination based on information provided by the secondary credit bureau.

Federal Student Aid implemented additional messaging on the StudentLoans.gov website on October 29, 2017. The messaging informs borrowers and endorsers that those who have a credit freeze on their credit profile will need to remove it before completing a Direct PLUS Loan Request or the Endorser Addendum. Federal Student Aid encourages schools working with borrowers and endorsers who may receive an error during the credit check process to ask about a credit freeze as a possible cause for the error.

Schools using the “Quick Credit Check” on the COD Web Site could experience an error or “timeout” response as a result of a borrower’s credit freeze. In some cases, Federal Student Aid will not be able to return a credit check response with the origination record and will reject the record with COD Reject Edit 996 (Invalid Value). Again, when troubleshooting a credit issue with a borrower or endorser, schools may want to see if the credit freeze situation may apply.

If you have additional questions about credit check processing, contact the COD School Relations Center. ”

COD School Relations Center
1.800.848.0978 for Direct Loans
Email CODSupport@ed.gov

Making Your First Student Loan Payment

9 Nov

It’s been six months since you’ve left school and despite not wanting to think about it, the time has finally come to start paying on your loans. Your loan servicer (the company that will collect payment from you) should have contacted you to let you know who they are by now.

1st student loan payment.jpg

If they have not, be sure to log into the National Student Loan Database System (NSLDS) to find out who will be handling your loans. Be sure to let your servicer know how to contact you! If you think you can dodge them, they’ll just keep attempting to reach you at the contact info they have until your loan goes into default. And you don’t want that. You can also check your total federal loan balances on NSLDS to confirm how much you owe in total across all federal student loans.

Now that you know who you have in loan debt, be sure to log in to their website that’s provided on NSLDS to set up an account and see what your loan payments are per month.

Everyone is automatically enrolled in the standard 10-year repayment plan by default, which is actually the most aggressive repayment plan. Other repayment plans that are based off your expendable income might work better for you, especially as you get on your feet professionally.

While making higher payments is always preferable to pay down your loans as fast as possible and with the least amount of interest accrued, that’s not always possible on every budget. Ideally, your student loan payments won’t exceed 20% of your take-home pay. If it does, an income-driven payment plan might be needed to help shift the burden off your shoulders for now.

Once you know what payment plan you’re planning on and how much it’ll cost you monthly, it’s encouraged to sign up for auto-pay, also known as Direct Debit. Why pay your bill automatically when you probably prefer to choose when it comes out? Well, you’ll save 0.25% on your loan interest rate for federal loans.

For the average 2016 graduate with $37,172 in loan debt on the 10-year standard repayment plan this would equal $532 in savings. If you are enrolled in an income-driven repayment plan then you can save $1,252 for the 25 year term.

That’s not a bad trade-off considering you have to make the payments anyway and can choose what day of the month your payments are withdrawn when setting up auto-pay.

Once you’ve done all this, you are good to go! You’ve figured out who you are making payments to, made sure they fit into your budget with the correct payment plan, and can even set up automatic payments in the future so you don’t have to remember every month!

Repayment for May Grads Begins in November

3 Oct

All information on repayment plans is from this article by David Evans, Ph. D.
Additional info added by Casey Doten, Purdue Financial Aid Administrator

Most student loans begin repayment six months after the student leaves school. With November coming up quickly, now is the perfect time to review your repayment options and set up your payment plan before the first payment comes due!

There are two main types of repayment plans you can choose from: traditional and income-driven. For borrowers that will qualify for Public Service Loan Forgiveness (PSLF), income-driven plans may be the better option. Income-driven plans will require an annual verification of income. This fact sheet describes each of the repayment plans as well as pros and cons of each. For more information about each of the repayment plans visit the Federal Student Aid website.

Traditional Plansstudent-loan-repayment-plans

Standard Repayment Plan

The Standard Repayment plan consist of equal monthly payments over a 10-year period of time. This repayment plan is good for those who can handle making their monthly payments and make enough money to afford them. This payment plan is best for those who have minimal other debts and start working right out of school.

The Pros: You’ll pay off your loan faster compared to other plans, and pay less interest as a result.

The Cons: Your monthly payments will be higher than those made through other plans.

Graduated Repayment Plan

The Graduated and Extended Repayment plans could be an option for you if your income is low when you graduate but will increase quickly. Under a graduated plan, payments start out low and increase during the repayment period, usually every two years. This is a good plan if you can’t afford your current payments but know you will make more money in the years to come.

The Pros: Your loan is still paid off within 10 years.

The Cons: You’ll pay more interest over the lifetime of your loan compared to the Standard Plan.

Extended Repayment Plan

An Extended Repayment Plan is an option if your loan amount is more than $30,000 and you want to stretch your repayment to 25 years.

The Pros: Smaller monthly payments (since they’re spread out over as many as 25 years) and more time to pay off your loan.

The Cons: You’ll be saddled with payments for a longer period of time as well as pay more interest.

Income-Driven Plans

If you qualify for an Income-Driven plan, these are often the most attractive options if you’re willing to recertify your payment each year (it’s not very difficult). However, some of these are contingent on when you took out loans! If you’re interested in student loan forgiveness*, you’ll need to be enrolled in any one of these plans.

Income Based Repayment Plan

If you’re not making enough money to cover all of your monthly expenses the Income Based Repayment (IBR) Plan would be a good option. There are two separate calculations for IBR which are dependent upon when you took out your student loans.

The Pros: The IBR plan takes into account your annual income as well as your family size. Your payment will be 10% of your discretionary income** if you were a new borrower on or after July 1, 2014. Otherwise it will be 15%. Any outstanding balance on your loan will be forgiven after 20 (for undergraduate loans) or 25 (for graduate loans) years.

The Cons: You will have to pay income taxes on any forgiven debt unless you qualify for PSLF (this is true for all loan forgiveness).

Income Contingent Repayment Plan

If you have a federal Direct Loan (other than a PLUS loan), you could opt for the Income Contingent Repayment (ICR) Plan. Your payments could be as low $5 or even $0.

The Pros: Your monthly payment will be the lesser of 20% of your discretionary income or on a repayment plan with a fixed payment over 12 years. You can have your remaining loan balance forgiven after 25 years of regular payments.

The Cons: You’ll pay more over the lifetime of your loan than you would with a 10-year plan, your payment could be lower than the monthly accrued interest and your loan principal will grow. You will have to pay income taxes on any forgiven debt unless you qualify for PSLF.

Income Sensitive Repayment (ISR) Plan

The Income Sensitive Repayment (ISR) Plan is only available for those with Federal Family Education Loan (FFEL) Program. Payments are based on your annual income, family size, and total loan amount. You would pay the loan off in fifteen years.

The Pros: Each lender has their own calculation, but generally it is between 4% and 25% of your monthly gross income, although your payment must be greater than or equal to the interest that accrues.

The Cons: It’s only available for up to five years. After that time, you must switch to another repayment plan. You must reapply annually, and there’s no guarantee that you’ll have continued enrollment in the plan.

Pay as You Earn Repayment Plan

The Pay as You Earn Repayment (PAYE) Plan is another option for those not able to afford their current monthly payments.

The Pros: The PAYE plan takes into account your annual income as well as your family size. Your payment will be 10% of your discretionary income. Any outstanding balance on your loan will be forgiven after 20 years.

The Cons: PAYE is only eligible to those who were new borrowers on or after October 1, 2007 and must have received a disbursement of a Direct Loan on or after October 1, 2011. You will have to pay income taxes on any forgiven debt unless you qualify for PSLF.

Revised Pay as You Earn Repayment Plan

The Revised Pay as You Earn Repayment (REPAYE) Plan is very similar to PAYE. This plan was created to allow more borrowers the opportunity to have their payments lowered to 10% of discretionary income.

The Pros: Not dependent upon when you took out your student loan, the payment will be 10% of your discretionary income. Any outstanding balance on your loan will be forgiven after 20 (for undergraduate loans) or 25 (for graduate loans) years.

The Cons: If you are married, your spouse’s income will be considered whether taxes are filed jointly or separately. You will have to pay income taxes on any forgiven debt unless you qualify for PSLF.

Summary

Federal student loans offer various ways for repayment. If you are in a situation (like so many others who have taken out student loans) that is not ideal for standard repayment of your loan, consider these options. There is a lot to consider when you are trying to decide which repayment plan to choose. Using the Federal Student Loan Repayment Estimator can help you make your decision by showing you what your payments would be under each of the plans described above.

*A note about loan forgiveness: There are two different kinds of loan forgiveness, Public Service Loan Forgiveness (PSLF) and loan forgiveness from your income-driven repayment plan ending. While both plans require you to be enrolled in an income-driven plan to reap the benefits there are some key differences:
-PSLF requires being employed at a qualifying employer in public service (non-profits, government, etc.) for 10 years/ 120 qualifying payments before forgiveness takes place. Standard forgiveness is after 20 or 25 years depending on your repayment plan.

-Any loan amounts forgiven under PSLF are tax-free, but not under standard forgiveness! So if you still have a balance on your loans after 20 (or 25) years, you will owe taxes on it as if it is income. While it’s still better than paying the amount back, it’s important to know it will have ramifications.

**Discretionary income = Your income – 150% of the poverty level in your state for your family size

5 Habits of Successful Student Loan Borrowers

7 Sep

In 2015 student loan servicer Navient completed a study to analyze the behaviors of 6.8 million former students who are successfully managing their student loan payments.

They concluded that there are 5 key habits to staying on track to student loan payoff.

Don’t Put It Off5 Habits 22.jpg

Student loans have several options for deferment and forbearance that can be utilized if your circumstances necessitate taking a break from payments. If your situation is difficult they can work with you to help reduce your payments or even put them on pause. However, they recommend not doing so unless it is truly necessary.

By keeping deferments and forbearances to a minimum, you can reduce the total cost of your loan and shorten the total time that you are repaying it!

Borrowers who use less than six months of forbearance are almost twice as likely to successfully repay than those who take longer postponements. If you need it, use it! Just remember that the loan will still be there when the forbearance ends and you’ll need a plan to repay it then!

Stay Connected

Borrowers who track their progress tend to be more successful in repaying their loans. Just by checking in regularly into your online student loan account can help you stay on track of your loans. It makes you more aware of your current balance, allows you to explore and renew payment plans, and gives you valuable tax information in addition to other useful tools they provide.

Also be sure to provide your servicer with up-to-date contact information so that any communication they send you reaches you in a timely manner! You never know when a time-sensitive document may be on its way.

Graduate

Nothing is more important to getting a return on your educational investment than graduating! 

When you’re still in school, maximize your meetings with your advisor and take 15+ credits per semester to graduate on-time! Extra years in college cost over $138,000 in lost wages, retirement savings and your tuition for the same degree.

However, even for those who didn’t graduate with a degree successful repayment can still be within reach. If college is still in your future, come up with a plan on how you will pay for your degree (including all portions of the Cost of Attendance) to help ensure you graduate and prevent any surprises while you’re still in college.

Stick with Repayment

the longer that you can make payments on your student loans, the more likely you are to successfully repay them. Even when times are tough, continuing to make even small payments is an important factor in completing your repayment.

Whether it on the standard repayment plan, or one of the income-driven plans available, even a small percentage of your discretionary income can keep you on-track with your repayment. Missed payments will damage your credit and cost you more over the life of the loan. 

Talk to Your Servicer

Your student loan servicer is there to help answer your questions and get you through your repayment successfully. Borrowers who reach out with their questions tend to be more successful with their repayment.

9 times of 10, Navient finds that when they talk to a federal loan customer they can help them avoid default and enter into an affordable payment plan. 

If you have any concerns about missing payments, details or enrolling in different payment plans, or just general questions about your loans, engage with your servicer!

Source: 5 Habits of Successful Student Loan Borrowers, Navient Solutions, Inc.

The FAFSA Opens Oct 1st!

5 Sep

fafsa
Getting you through FAFSA, one question at a time.FAFSAQs

 

  • Who

    • Who Should File a FAFSA?
      If you are interested in getting any Federal Financial Aid, including federal direct loans, you need to file the FAFSA at www.fafsa.gov/ to become eligible. Federal loans are almost always preferable to private loans. In addition, many colleges’ need-based scholarships rely on FAFSA information to verify that you are eligible. In short, everyone should file the FAFSA – even if you don’t think you’ll qualify for any federal aid.

     

    • Whose Information is Needed to File a FAFSA?
      This answer depends on if you are a dependent student or not. Unsure if you’re Dependent or Independent? Check here. (Note: this is not the same as being independent for tax filing)
      Dependent students: You need tax information for both you AND your parents. If your parents are divorced, you need the information on whoever you receive the most support (51%) from.Independent students: You only need your own information unless you are married. If so, you will need your spouse’s information as well.
  • What

     

     

    • What If Things Change After I File The FAFSA?
      If your family situation has a significant change after you’ve filed your FAFSA, and any time while you’re in school, stop by your Financial Aid office to see if you qualify for a “special circumstance”. These could include job loss, divorce, death of a parent, child birth, or other unexpected situations that impact your financial status.

     

    • What Types of Federal Financial Aid are there?
      There are three main types of financial aid:
      1. Grants & Scholarships— Federal Pell Grants do not have to be repaid and are sometimes referred to as “gift aid”. Grants are similar to scholarships, except that they are often for those who demonstrate financial need, where scholarships can be either merit-based or need-based.
      2. Student Loans — This is the type you hear about most often. Filling out the FAFSA is required to be eligible for Federal Direct loans. Federal loans are almost always preferable to private loans from lending institutions, because they have fixed interest rates and flexible repayment options. Keep in mind that there are limits on how much you can borrow in a year as well as in your lifetime.
      3. Federal Work Study (FWS) — Work Study may provide you with more opportunities to find on-campus jobs. Rather than being given the funds in the beginning of the semester like loans and grants, FWS earnings are distributed to you as part of your paycheck. Tips on finding a job around the Purdue campus and the difference between Work Study and non-Work Study jobs.
  • Where

     

    • Where Do I Get the School Code and FSA ID?
      You’ll need the school code for whatever schools you are interested in applying to. They are available here. Your FSA ID is used to login and electronically sign your FAFSA. Set it up at here. Purdue’s school code is 001825.

     

    • Where Do I Get Help?
      College Goal Sunday will be held on Sunday, November 5th in Indiana and it provides FREE FAFSA filing assistance. It is at Ivy Tech in West Lafayette, but to find a location near you in one of the participating 42 states, go to www.CollegeGoalSundayUsa.org. You can always call the Financial Aid office of your prospective school to ask questions as well.
  • When

    • When Can I start the FAFSA?
      You can begin the FAFSA any time after October 1st of the year before you plan to attend college. So if plan to be in college for the 2018-19 school year, you can start your FAFSA on October 1, 2017. The FAFSA uses the student/parent tax information from the previous year of when you file. If you are filling out for the 2018-19 school year you’ll use your 2016 tax info. Keep in mind that while you use your 2016 tax information, the rest of the questions are meant to reflect your situation the day that you file. You can estimate the required information to beat a college priority filing date, but the info must be corrected after the taxes are complete!

     

    • When is the FAFSA Due?
      If you are a Purdue student, the FAFSA priority filing date is March 1st, so be sure to have it done by then! Other colleges (and states) have their own priority dates. Check for deadlines here.
  • How

    • How Do I Get my Financial Aid?
      Your financial aid is sent directly to your school and they will apply it directly toward your billing and send any excess aid to you to be used for books and other education related expenses. The exception is Work Study which needs to be earned by working, and is paid via a paycheck.

     

    • How Much is the Maximum That Can be Borrowed?
      Most students don’t know this, but there is a maximum amount of Federal Loans you can take out each year. There is also a maximum amount you can take throughout your college career! Check out the chart below for annual and lifetime limits.If you take the maximum amount for four years, there won’t be as much left for a fifth year if needed.

      Plan ahead!

      Remember: Everything you borrow you will have to pay back with interest for the next 10 (or more) years. For every $5,000 you borrow at 6% interest, you pay back $6,661.23 over 10 years ($55.51/ month).

Why

  • Why Should I Do a FAFSA?
    Other than qualifying for grants and Federal Loans? Many state grants and institutional scholarships require FAFSA information submitted. Even if you aren’t sure, it is always worth submitting!

 

    • FAFSA-brw-chart

Releasing Your Cosigner from Private Student Loans

31 Aug

If you have a private student loan through a bank, credit union, or other lender odds are you will be part of the 90% of private student loans that require a cosigner. While the cosigner is meant to be an extra guarantee to the lender that the loan is repaid, it’s fair to assume that you’re no longer a risk for the lender not getting paid back after you’ve graduated, have a steady job, and have been steadily making on-time payments.Cosigner Release

Now that you’re on your feet, it would be nice to be able to release your cosigner from your private student loans. Releasing a cosigner from a student loan means that they are no longer tied to the loan and it won’t appear on any credit checks or leave them on the hook in the event of a catastrophic incident that leaves the student permanently disabled or dead. Not to mention, if your cosigner were to die or declare bankruptcy, it could automatically put your loan into default even if you are on-time with payments.

Remember, removing your cosigner from your loan won’t harm you as the student in any way! The loan will still have the same impact on your credit regardless of whether there is a cosigner or not. So whether your co-signer is a parent, or one of the 30% of cosigners who are a non-parent, releasing them of the liability is something nice you can do for them after they put their neck out for you.

Every lender has different methods to release cosigners, if they do so at all. There are, however, some standard things that most lenders like Sallie Mae or Wells Fargo will review when considering releasing your cosigner.

In addition to having graduated from college and being a US Citizen, they’ll take a look at your employment, income, payment history, credit score, and ability to assume full responsibility for the loan.

Remember that the release isn’t guaranteed, with the Consumer Finance Protection Bureau reporting a high number of rejections from lenders. But the opportunity to relieve you and your cosigner of the potential issues from unfortunate circumstances is worth contacting your lender and filling out some paperwork.

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