student loan repayment manual table of contents - Tufts University

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Federal Health Professions Loan Programs30Health Professions Loan Program (HPSL) & Loans for Disadvantaged Students (LDS)Loan Amount:Interest Rate:Grace Periods:Repayment Length:Amount varies5% - interest free during in-school, grace period and deferment periodsOne year (one allowed immediately following graduation/withdrawal)10 years exclusive of deferment periodsRepayment Schedules Available: Standard or Graduated (Note: Graduated schedules available toqualified borrowers and approved by the Tufts St udent Loan Office.)Deferments:Active duty in the uniformed services (maximum 3 years)Peace Corps volunteer (maximum 3 years)Advanced professional training such as General Practice Residency (Unlimited)Leave of absence to pursue related educational activity (maximum 2 years)Training fellowship, training programs and related educational activities for graduates of healthprofessions schools (maximum 2 years)Deferments are granted only after the end of the grace period. There is no additional grace period allowedafter a deferment period unless the student enrolls full-time in another health professions school that beginsbefore the grace period expires.
Private Educational Loans31The use of private education loans has greatly diminished since the Federal Grad PLUS Loan programbecame available. Additionally the financial crisis caused credit markets to tighten their standards wherelenders found it necessary to increase their credit standards making it difficult to gain loan approval. Useof private education loans at TUSDM is now largely limited to foreign students.The terms of private education loan were usually adjusted annually by lenders. Therefore, the terms ofprivate education loans borrowed by TUSDM students are going to be specific to the year, if not the date,the loan was borrowed or disbursed. This makes it rather impossible for the Financial Aid Office toprovide specific repayment information on private education loans to borrowers and, in fact, we are notrequired to provide exit counseling on these types of education loans.In general terms, private education loans, include Residency, Relocation and Board Exam loans, willnormally have a grace period between 6-9 months after graduation. These loans tend to offer lengthyrepayment schedules and some may have deferment options for students continuing in post-graduateprograms and residencies. Private education loans have interest rates based on LIBOR or Prime Ratewhich were adjusted every quarter or even monthly with no interest rate cap. Any borrower benefits alender might provide are going to be specific to the date the loan was borrowed. There are usually nopenalties for early repayment of the loan. If a borrower is experiencing financial difficulty they have beenable to request forbearance time however some lenders may need to adjust that policy going forward due tonew banking regulations.During the exit counseling session, students will receive a Student Loan Directory which includes contactinformation for private education loan lenders/loan servicers most used by TUSDM students. TheFinancial Aid Office STRONGLY encourages private education loan borrowers to contact their privateeducation loan lender(s) to review the terms of their loans. Some key areas of discussion are as follows:Updating borrower contact informationConfirmation of date of graduationConfirm principal and interest outstandingInterest capitalization policy/when interest is due to capitalizeLength of Grace Period and Repayment PeriodRepayment schedule optionsCurrent interest rate and how rate is determined (if you have multiple loans through the same lenderask if the rates are all the same)Deferment optionsForbearanceBilling and payment informationElectronic access to borrower account informationBorrower benefits offered by lenderCo-signer information/co-signer release optionDeath and disability policyIt’s important to remember that private loans are not bound by the same set of federal regulatoryrequirements as, of course, federal student loans are. In addition, private education loan lenders may notupdate your enrollment status information using the National Student Loan Clearinghouse information thatyour federal loan servicers utilize, which means you may need to provide written verification that you’reenrolled in school or you are participating in an internship or residency program.
Page 1: 2012STUDENT LOAN REPAYMENT MANUALTA
Page 4 and 5: STUDENT LOAN EXIT COUNSELING SESSIO
Page 6 and 7: Financial Aid Exit Counseling Forma
Page 8 and 9: 4) We realize that parts of the gro
Page 10 and 11: DEFINITIONS AND TERMINOLOGY10Oftent
Page 12 and 13: Loans may accrue and capitalize int
Page 14 and 15: seek an Economic Hardship Deferment
Page 16 and 17: considered taxable income during th
Page 18 and 19: Borrower Benefits/Interest Rate Red
Page 20 and 21: Student Loan Lending Relationships2
Page 22 and 23: Tufts University - Student Financia
Page 24 and 25: Income-Contingent (25 years; paymen
Page 26 and 27: Federal Perkins Loan26Loan Amount:I
Page 28 and 29: University Loans (Tufts Loan Progra
Page 32 and 33: Private education loans can’t be
Page 34 and 35: Federal Consolidation Loan Interest
Page 36 and 37: 36half-time. The same is true for s
Page 38 and 39: Planning a Student Loan Repayment S
Page 40 and 41: Helpful Hints for Loan Deferment Pr
Page 42 and 43: Tufts University’s Loan Repayment
Page 60 and 61: LOAN FACTOR TABLE60The Interest Con

student loan repayment manual table of contents - Tufts University

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