student loan repayment manual table of contents - Tufts University

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LOAN FACTOR TABLE60The Interest Conversion Factor Table is extremely useful in determining Monthly payments of yourFederal Stafford (6.8%), Grad PLUS (8.5%), Direct Grad PLUS (7.9%) PERKINS (5%), HPSL/LDS (5%),and TUFTS LOANS (7% or 8%).INTEREST CONVERSION FACTOR TABLE120-month payout of principal & interestInterest Payment/Month Interest Payment/MonthRate per $1000 Rate per $10002.0 $ 9.201 8.0 $ 12.1332.5 9.427 8.5 12.4003.0 9.656 9.0 12.6683.5 9.889 9.5 13.2154.0 10.125 10.0 13.4944.5 10.364 10.5 13.7755.0 10.607 11.5 14.1175.5 10.853 12.0 14.3476.0 11.102 12.5 14.6386.5 11.335 13.0 14.9317.0 11.611 13.5 15.2277.5 11.870 14.0 15.527To calculate monthly loan repayment amounts for a loan with a 10 year repayment period, use thefollowing system: For a loan principal of $10,500 at 9% interest, move the decimal point in the loanamount 3 places to the left to adjust for thousands. Thus, $10,500 becomes 10.5, Find 9.0 in thePayment/Monthly column, multiply 10.5 x 12.688, the resulting number is the amount to be paid for 120months.
ACCRUED INTEREST TABLE61The purpose of this chart is to help you estimate the amount of interest that would accrue on your loanevery month so that you can estimate how much would be added to your loan’s principal if you and yourlender agree to capitalize interest.ApproximateMonthly Accrued InterestIf Interest Rate Is:Principal 6.0% 7.0% 8.0% 9.0% 10.0% 11.0%$ 500 $2.50 $2.92 $3.33 $3.75 $4.17 $4.581,000 5.00 5.83 6.67 7.50 8.33 9.171,500 7.50 8.75 10.00 11.25 12.50 13.752,000 10.00 11.67 13.33 15.00 16.67 18.332,500 12.50 14.58 16.67 18.75 20.83 22.923,000 15.00 17.50 20.00 22.50 25.00 27.503,500 17.50 20.42 23.33 26.25 29.17 32.084,000 20.00 23.33 26.67 30.00 33.33 36.674,500 22.50 26.25 30.00 33.75 37.50 41.255,000 25.00 29.17 33.33 37.50 41.67 45.835,500 27.50 32.08 36.67 41.25 45.83 50.426,000 30.00 35.00 40.00 45.00 50.00 55.006,500 32.50 37.92 43.33 48.75 54.17 59.587,000 35.00 40.83 46.67 52.50 58.33 64.177,500 37.50 43.75 50.00 56.25 62.50 68.75The advantage of capitalizing interest is that you would not be required to make interest payments duringany in-school, grace or deferment period. The disadvantage would be that you would pay more in interestcharges over the life of your loan because your interest charges will be added to your principal balance.Your monthly repayment amount will be higher if you choose to capitalize.For example, if you owe $500 in principal at an interest rate of 6.0 percent, then approximately $2.50 ininterest would accrue on your loan every month. If you and your lender agree to capitalization on aquarterly basis (every three months), approximately $7.50 would be added to your $500 principal balance.As a result, at the end of one quarter you would owe, and interest would accrue on, $507.50 in principal.Or, if you owe $4,000 in principal at an interest rate of 11.0 percent, then approximately $36.37 in interestwould accrue on your loan every month. If you and your lender had agreed to capitalize interest on aquarterly basis (every three months), approximately $110.01 would be added to your $4000 principalbalance. As a result, at the end of one quarter, you would owe, and interest would accrue on $4,110.01 inprincipal.Contact your lender if you have questions or need more information.
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 30 and 31: Federal Health Professions Loan Pro
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

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