A complete guide of private student loan counseling for the college graduate! Get the necessary information to pay off your student loans and move forward into the professional world.

1. Private
Student Loan Counseling

2. Overview:
The school determines student’s eligibility based
on Federal Regulations for Perkins, Stafford
and Plus Loans.
Private student loans can be pursued once all
federal options have been exhausted.

3. What is Financial Aid?
Financial Aid is money that is used to pay for
school!
This aid consists of Grants ( need based aid)
Work Study( working to pay directly for school) and Loans .

4. How Does Loan Qualification Work?
Loan Qualification is based on student financial
need- which is determined by an equation
Cost of Attendance – (Expected Family Contribution + Grants and
Scholarships)= Financial Need

5. What Do You Qualify For?
The types of student loans received by students are
often determined by financial need.
Students with large financial need receive Subsidized
Stafford Loans and Perkins Loans. Students with less financial need
will receive Unsubsidized Stafford Loans and Private Loans.

6. What is a Student Loan?
A student loan is considered “self help!”
A student loan is something
you pay back!

7. What Types of Student Loans Are
There?
Perkins Loans
Campus based student loans which are subsidized by the Department of Education.
Awarded in cases of exceptional financial need

8. What Types of Student Loans Are
There?
Direct Stafford Loans
Direct Stafford loans- both subsidized (interest is paid on the borrower's behalf by
the Federal Government) and unsubsidized (interest is the responsibility of the
borrower from the day the funds are issued and will be added to the principal balance
once in repayment, capitalized) come from the Federal Department of Education in the
students name at fixed interest rates.

9. What Types of Student Loans Are
There?
Parent Plus Loan
A federal loan offered in the parent’s name on behalf of the student. It is credit
based (for adverse credit history) and repayment begins immediately.

10. What Types of Student Loans Are
There?
Grad Plus Loan
Graduate student loans offered by the Department of Education at fixed interest
rates. The interest is the responsibility of the borrower from the day the loan is
issued until it is paid in full.

11. What Types of Student Loans Are
There?
Private Loans
Credit based loans offered by private lenders at both variable and fixed
interest rates. The loan is in the student’s name. A cosigner is usually
required.

12. Know What You Owe!
Most students take out loans and forget not only how
much, but who they owe
Students can reduce the cost of borrowing and stay on
top of their student loan balance by making minimal
monthly payments while in school.

13. How Much Will You Actually Owe?
The $5,000 a student has in loan balance at
freshman year will likely increase before
graduation due to interest accrual.
Student Loan Capitalization, is when unpaid interest is added to the
principal balance 6 months after graduation. It leads to a higher
outstanding balance. The average borrower graduating today owes
close to $30,000 on their student loans.

14. What Are Your Loan Repayment
Options?
Deferment
The option to delay payments during school and during repayment. The Federal
Government will pay interest on Subsidized Loans during deferment. The
borrower is responsible for interest on all other loans during deferments.

15. What Are Your Loan Repayment
Options?
Pay As You Earn
For borrowers with partial financial hardship, repayment can be
determined based on monthly income, family size etc. 20 year repayment
plan based on federal criteria

16. What Are Your Loan Repayment
Options?
Income Based Repayment
For borrowers with partial financial hardship, repayment can be
determined based on monthly income, family size etc. 25 year repayment
plan based on federal criteria.

17. What Are Your Loan Repayment
Options?
Forbearance
The ability to delay payments, though interest will still accrue

18. What Are Your Loan Repayment
Options?
Interest Only
Some lenders allow students to just pay interest for a certain amount of
time

19. What Are Your Loan Repayment
Options?
Full Repayment
Full repayment is of the principal and capitalized interest balance.

20. What Are Your Loan Repayment
Options?
Consolidation
Combine all of your loan payments into one with new terms and loan
conditions

21. How Can Employment Impact Loan
Repayment?
Certain career choices have the privilege of
loan forgiveness!
Working with employers such as NPOs or government organizations
can earn a borrower public service loan forgiveness after 10 years!

22. What If You Don’t Pay Your Loans
Back?
Failure to repay student loans leads to
delinquency, and then default on loan
obligations
When an account goes unpaid for 30+ days, it is often considered to be
in delinquency. 90+ days of delinquency often leads to default. Student
loans can not be discharged in bankruptcy, so default can mean
garnishment of wages

23. How Do Student Loan Repayments
Impact Credit?
Most students do not have credit when they
borrow their student loans
Student loans often are an early factor into many
people’s credit scores, so it’s important to start off well!
More info about credit scores

24. What Are Some Recommendations?
• Create a budget- Create a budget for
repayment and stick to it. It’s important to get
off to a strong start after graduation!
• Make In School Payments- Helps student
keep track of student loan balance and build
credit
• Investigate consolidation- Depending on
level of indebtedness or current loan program,
consolidation could serve you well!

25. Connect With Michelle!
Michelle Bowman
Director of School Development
michelle.bowman@lendkey.com
O: 646-843-4433