Q: Should summer loan terms be used when calculating aggregates?
A: Yes! Summer term(s) do count toward aggregate and annual loan limits. Regardless if you use standard academic year (SAY) or borrower based academic year (BBAY) for determining the award cycle, the summer term has to be designated as leading or trailing and is counted towards annual loan limits and aggregate loan limits. Summer cannot be counted as it’s own academic year.
More information is available in the FSA Handbook, Volume 3, Chapter 5.
Many borrowers go through difficult financial times, but federal student loans offer many flexible repayment options. Students who do not utilize these repayment options and ignore their loans during hectic times are more likely to default. Defaulting on a federal loan has serious consequences:
- Borrowers’ credit scores will suffer
- Their loans may be placed with a collection agency
- Their paychecks or federal income tax refunds could be withheld
If borrowers are struggling to make their student loan payments, they should immediately contact their loan servicer and consider these options:
- Switch repayment plans
- Ask for a deferment or forbearance
- Consolidate loans
Read the full article from the Department of Education here: http://www.ed.gov/blog/2014/05/dont-fall-behind-on-your-student-loan-payments/.
As of July 1, 2014, users of FSA Two Factor Authentication (TFA) systems can now contact a TFA-specific support center with their questions. These TFA specialists can field questions regarding token registration, token synchronization, OTP generation when a user’s token is unavailable, token repurposing, and questions about receiving additional tokens or returning tokens.
TFA Support Center Contact Information
800.330.5947, option 2 (TDD/TTY 800.511.5806)
For more information, please see FSA’s original Electronic Announcement: http://ifap.ed.gov/eannouncements/070714NewTFASupportCenter.html.
Name: Mark Hautzinger
Title: Advisor, Nsight Support/School Service Center
Nycci: How long have you been with Nelnet?
Mark: Almost three years.
Nycci: What is your favorite part about the job?
Mark: Helping borrowers who seriously want to deal with their loans, but feel like there is nothing they can do about it because of their current situation. It’s great to hear their relief when they realize there are numerous options available to them that allow them to manage their loans.
Nycci: If you could be anyone besides yourself, who would you be and why?
Mark: Supreme Court Justice Anthony Kennedy, because he is in a position to decide so many of the most important legal and policy questions of our day.
Nycci: If you could visit any place in the world, where would you choose to go and why?
Mark: Tokyo. I’m sort of a geek when it comes to Japanese video games and anime, and I also love the more traditional parts of Japanese culture. Also, it would be fun to see if I could remember any of the Japanese I learned in college ten years ago.
Nycci: Name one of your favorite things about someone in your family.
Mark: I love my two-year-old daughter’s laugh. That can always pick me up regardless of how I feel.
Nycci: What do you feel are some of the biggest challenges that today’s Direct Loan borrowers face?
Mark: The biggest challenge faced by today’s Direct Loan borrower is taking ownership of their loans. Regardless of whether they took only a semester and dropped out or obtained their graduate degree, or they have $500 or six figures worth of debt, they need to feel like they received something of value for their investment and that the debt is legitimate. There are so many options available to borrowers to manage their loans – including income-driven repayment plans – that anyone who makes a sincere effort to manage their loans should find reasonable options that fit their circumstances.
Need: As a school, you are not sure how many of your borrowers are serviced by Nelnet.
Solution: A very quick and easy solution is to run the Core Borrower Level Data Report in Nsight Plus. This report will provide you numerous pieces of useful information, such as:
- The number of borrowers currently serviced by Nelnet for your school code(s)
- Seven different options for delivery of this key report
You have options to choose from when it comes to utilizing the report, including:
- Auto schedule the report to be sent at specific times to one or more people
- Receive the report in multiple formats, including Excel, PDF and comma separated values (CSV)
- Download in Excel to easily manipulate data based off of Cohort Year, Repayment Date, Separation Date, Enrollment Status, Days Past Due, Repayment Plan and numerous other fields
Borrowers can base their payment amounts on how much money they make with income-driven repayment plans. There are three different income-driven repayment plans available for those with federal student loans:
- The Income-Based Repayment Plan
- The Pay As You Earn Repayment Plan
- The Income-Contingent Repayment Plan
How are monthly payments calculated with income-driven repayment plans?
- Depending on the plan, borrowers’ monthly payments could be 10%, 15%, or another percentage of their discretionary income and should be something they can afford.
How does student loan forgiveness work under income-driven repayment plans?
- Income-driven repayment plans have a repayment period, 20 or 25 years. If a borrowers’ loan is not paid off by the end of their repayment period, the remaining balance will be forgiven.
- If borrowers receive loan forgiveness under an income-driven repayment plan, it may be considered taxable income by the Internal Revenue Service.
- In order to be eligible for the Income-Based and Pay As You Earn Repayment plans, borrowers must meet the criteria to see whether they “need” to enter the plan.
- These plans are only available for federal student loans—loans made under the Direct Loan and Federal Family Education Loan Programs, to be specific.
- If a borrower is married, how they file their federal income tax return makes a difference.
How borrowers can apply:
- They can use the Repayment Estimator to figure out their eligibility and payment amount for an income-driven repayment plan.
- If borrowers still have questions, they can call their loan servicer.
- Borrowers can apply online at StudentLoans.gov.
- They should check the box that allows their loan servicer to put them on the income-driven repayment plan with the lowest monthly payment amount.
View the full article here: http://www.ed.gov/blog/2014/05/income-driven-repayment/.