In this issue:
-
Loan repayment options
-
Policy of the month discussion at August RAC meeting
-
FERPA expert to speak at the next UMACRAO conference
-
Workshop on semester reminders
Loan repayment options
Student
loans are an important source of financial aid,
making higher education more accessible. Unlike grants and
scholarships, loans
are not "free money." They come with a degree of responsibility and
they must be repaid.
However,
there are options to help borrowers manage their
repayment obligations. Students and their families may choose from
several
repayment plans designed to accommodate their needs.
Standard.
The
typical plan for Direct
Loans (subsidized, unsubsidized, PLUS and Grad PLUS) calls for
fixed
monthly payments over a term of 10 years. The minimum amount is $50 a
month,
though it may be higher depending on the loan balance. The payment
amount
remains the same for the life of the loan.
Extended.
This
plan may help in the event of sticker shock. Borrowers may stretch the
term out
to 30 years to shrink the monthly amount due. However, extra time means
added
interest—sometimes dramatically increasing the total money repaid.
Graduated.
Concerned about fitting the first payments into your budget? Try this
one for smaller
payments at the beginning, as low as $25 or the current month's
interest. Every
two years, the monthly amount grows, presumably as your income
might—especially
helpful for newly exited students seeking employment.
Income-contingent. Public service is an important
calling that often pays lower wages. This plan was designed to keep
education
debt from becoming a barrier to serving the greater good. Students in a
variety
of public careers can have their payment amount pegged to their income.
After
25 years, whatever debt remains is forgiven. (Available for Direct
Loans only,
although federally guaranteed lenders may offer a similar income-sensitive
repayment plan.)
Income-based. This new plan enacted July 1 goes a step beyond the
income-contingent plan. Payment amounts are capped as a percentage of
discretionary income and the total balance owed isn't even factored in.
Plus,
the debt may be forgiven sooner—for some, after only 10 years of
payments.
Students
may choose among any of the plans above but for
parent borrowers, only standard, extended, and graduated plans are
available.
Notice
that convenience comes at a price. Borrowers
should consider these options carefully before selecting repayment
terms. All
federal education loans allow prepayment without penalty.
For more information about student loans, visit http://www.onestop.umn.edu/finances/financial_aid/loans/index.html.
Policy of the month discussion at August RAC meeting
The next meeting of the Registrar's Advisory Committee (RAC) will take place Monday, August 3, from 9 a.m. to noon in 130 Murphy Hall. August's "policy of the month" discussion will center around the "Make-up work for legitimate absences" policy <http://www.policy.umn.edu/groups/senate/documents/policy/makeupwork_pol.cfm>. The purpose of this discussion is to explore and discuss this policy's application across colleges and campuses.
An update from the Office of Classroom Management's scheduling unit will also be covered, as well as a financial aid update for advisers to support their work with students. Please contact Ingrid Nuttall at ingridn@umn.edu with questions.
FERPA expert to speak at the next UMACRAO conference
LeRoy Rooker, longtime director of the Family Policy Compliance Office in U.S. Department of Education, will be a featured speaker at the next Upper Midwest Association of Collegiate Registrars and Admissions Officers (UMACRAO). Mr. Rooker, now a consultant, was responsible for administering the Family Educational Rights and Privacy Act (FERPA) and will be conducting a FERPA session at the conference. Mr. Rooker brings a wealth of knowledge and experience to his presentation. Attendees are guaranteed to leave knowing more than when they arrived; Mr. Rooker's presentation will have ample time for questions and answers.
The 2009 UMACRAO conference will be held in Fargo, ND, October 28-30 at the Holiday Inn. Registrar and admissions representatives from over 100 institutions of higher education from Minnesota, Iowa, North Dakota, and South Dakota come together to share best practices, network, and connect with colleagues from near and far. More information, including session information, will be available late this summer.
Workshop on semester reminders
Mark your calendar for Tuesday, August 18, at 11 am and join the Student Records Training Team in B20 Fraser for a workshop on semester reminders. This includes items such as waitlisting/registration, the readmit process and dates, and other topics related to the start of the semester.
Questions? Contact the Student Records Training Team at srhelp@umn.edu or 612-625-2803./p>