Budgeting and Repaying Student Loans in a PandemicWhat Stimulus and Stagnation Mean for You

American Psychological Association

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apa.org/topics/covid-19

pages.apa.org/staying-on-track

Today’s presenters

Kenneth PolishchukSenior Director, Congressional and Federal RelationsAmerican Psychological Association Alex MacielakManager, Business Development and Partnerships Laurel RoadBobby HoytFreelance Writer and Creator MillennialMoneyMan.com

ModeratorEddy Ameen, PhDAssociate Executive DirectorEarly Career & Graduate Student AffairsAmerican Psychological Association

Kenneth PolishchukSenior DirectorCongressional and Federal RelationsAmerican Psychological Association

Higher Ed Provisions in CARES Act

• Provides $30 billion for an Education Stabilization Fund for costs related to COVID-19, including $14 billion for a higher education emergency relief

• Allows institutions to issue work-study payments to students in the Federal Work Study program who are unable to work due to work-place closures

• Ensures that Pell Grant students are not required to return funding for a term impacted by COVID-19 nor does that term count toward their lifetime Pell eligibility

• Allow for tax deductions for student loan repayments for borrowers receiving repayment assistance from their employer

• Defers all federal student loan payments, including interest, for a period of six months

Timing• Retroactively as of March 13, 2020-

September 30, 2020Loan Types

• Eligible loans; following types of federal student loans held by the Secretary: Direct Loans FFEL Program loans Federal Perkins Loans

• Ineligible: FFEL loans owned by commercial

lenders Some Perkins Loans owned by the

institution attended Private loans

Interest rates• Will be temporarily set at 0% for the

duration of this period

Borrowers can also continue making payments• Payment will be applied to principal once all

interest accrued prior to March 13, 2020 is paid

Defaulted loans• The department is prohibited from garnishing

wages, tax refunds, or Social Security benefits to collect defaulted loans during that period

Restarting repayments• Loan servicer should contact borrowers

sometime in August with a reminder

What does this mean Public Service Loan Forgiveness?

Suspended payments will continue to count toward borrowers’ progress in PSLF and other federal loan forgiveness programs

For borrowers enrolled in income-driven repayment plans• If the deadline for annual recertification of income becomes due during the period of suspended payments, it will automatically extend by six months

Save any and all correspondence

Make sure your contact information is up to date

Check your loan servicers’ website and the ED website on a regular basis

Contact your campus student financial aid office

Direct payments to taxpayers and their families• Single-filers with an adjusted gross income of $75,000 or less will receive $1,200• Married taxpayers filing jointly with an adjusted gross income of $150,000 or less will receive $2,400• The amount of the check will decrease by $5 for every $100 by which the adjusted gross income exceeds the threshold for a taxpayers’ tax filing status

Unemployment• Eligible individuals who are collecting certain unemployment benefits, including regular unemployment compensation, will receive an additional $600 in federal benefits per week for weeks of unemployment ending on or before July 31, 2020

CARES Act: Other Forms of Aid

Next Steps

Phase IV Stimulus Bill

Sens. Warren and Brown have called on banks to also suspend payments on private student loans

Several bills introduced would address student loan and repayments issues associated with COVID

Alex Macielak

ManagerBusiness Development and Partnerships Laurel Road

Student Loan Repayment During Uncertain Times

April 2020

About Laurel Road

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Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees refinance more than $5 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products, personal loans and mortgages that helps simplify lending through technology and personalized service. In April 2019, Laurel Road became part of KeyBank, one of the nation’s largest bank-based financial services companies and Member FDIC.

NMLS # 399797

Alex Macielak manages business development and partnerships for Laurel Road. He has over 8 years of experience in the student loan industry and has helped thousands of borrowers determine their optimal repayment strategy. Alex has a degree in Economics & Finance from Bentley University.

COVID-19 Federal Program ResponseThe finalized stimulus bill passed on Friday, March 27th known as the CARES Act, delays federal student loan payments for six months until September 30, 2020.

Who does this benefit? Anyone with Direct and FFEL Program student loans held by the Department of Education. This is particularly beneficial for those pursuing Public Service Loan Forgiveness, as it means 6 free payments towards your 120 qualifying payments.

For more information visit https://studentaid.gov/announcements-events/coronavirus

COVID-19 FAQ’s

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My state temporarily suspended state debt collections in response to COVID-19. Does this apply to my student loans?Some states have been issuing regulations that halt the collection of debts, including student debts. In many cases these regulations impact past due loans or loans owed directly to the state. However, requirements vary across each state and you should check with your state for specifics. If you have a loan with Laurel Road these regulations do not eliminate the debt. If you are having difficulty repaying your loan due to COVID-19, please contact MOHELA at 1-877-292-6845 to inquire about forbearance and hardship relief.

The federal government passed the CARES Act on Friday, March 27th including provisions to delay student loan payments for 6 months. How does that impact my student loan?The federal COVID-19 response stimulus bill passed on March 27th, known as the CARES Act, delays student loan payments for six months until September 30, 2020. If you have previously refinanced your federal student loan with Laurel Road, you do not qualify for the federal waiver under the CARES Act.If you are an existing Laurel Road customer and are experiencing an impact to your income as a result of COVID-19, you may be eligible for a forbearance or an extension of your existing one.

How is Laurel Road responding to this crisis? For existing customers experiencing an impact to their income as a result of COVID-19, we have simplified our forbearance approval process allowing customers to take advantage of this with just a simple phone call to request it. You can find more information https://www.laurelroad.com/coronavirus-response/

Federal Repayment Options vs Refinancing

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While Federal loan programs include some benefits not available from private lenders, such as Public Service Loan Forgiveness or Income Driven Repayment (IDR) plans, refinancing comes with its own unique benefits. Understanding the similarities and differences between Federal loan programs and loans refinanced through a private lender may help you decide if refinancing is right for you.

Federal Student Loan Laurel Road Refinanced LoanRepayment Terms 10 - 30 Years 5 - 20 Years*Interest Rate Standardized Based on creditworthinessIncome Driven Repayment Public Service Loan Forgiveness Length of Forbearance Up to 36 Months Up to 12 Months

In-school Deferment While enrolled at least half-time as a student

You may be eligible for forbearance

This information is an overview of the various programs. Please consult studentaid.gov/h/manage-loans for details about your federal loans and any benefits being offered. For more information regarding Laurel Road's loan programs and terms visit laurelroad.com/refinance-student-loans/. * Payment example: Borrowers who take out a fixed rate $10,000 loan for 20 years at a rate of 6.90% APR would make monthly payments of $76.93 with a total of $18,463.39 paid over the life of the loan. The APR does not include any discount for making automatic payments from a checking or savings account or any assoctiation member discount. Example APR is offered as of March 31, 2020 and subject to change. The actual rate and payment amount may vary, and is determined by the product, term, loan amount, and your credit qualifications. For more information visit: https://www.laurelroad.com/refinance-student-loans.

Federal Repayment Options vs Refinancing contFederal Student Loan Laurel Road Refinanced Loan

Default Timeline 270 days of missed payments 90 days of missed paymentsCoronavirus Waiver Grace Period 6 Months 6 MonthsDischarged in the event of permanently disability or death

Eligible for Student Loan Interest Tax Deduction

Credit reported as a student loan Interest Capitalization Once Forbearance Ends

This information is an overview of the various programs. Please consult studentaid.gov/h/manage-loans for details about your federal loans and any benefits being offered. For more information regarding Laurel Road's loan programs and terms visit laurelroad.com/refinance-student-loans/. You should consult a tax advisor for eligibility requirements for the Student Loan Interest Tax Deduction.

Student Loan Refinancing with Laurel Road

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APA Members receive a 0.25% rate discount

Borrowers could save thousands when refinancing with Laurel Road1

Up to 1 year of economic forbearance is available at Laurel Road discretion3

Will honor up to 12 months of existing grace periodsNo application fee with no commitment necessaryResidents eligible for fixed low payments during training

1. Savings vary based on rate and term of your existing and refinanced loan(s). Review your loan documentation for total cost of your refinanced loan.2. After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship. During any period of forbearance interest will continue to accrue. At the end of the forbearance period, any unpaid accrued interest will be capitalized and be added to the remaining principle amount of the loan.

Historically Low Interest RatesWith interest rates at historic lows, Laurel Road is able to remain stable with our competitive pricing. In such times, refinancing can be a can be a good option to consider.

10 year treasury rates over the last 30 years

Bobby Hoyt Freelance WriterCreator MillennialMoneyMan.com

Start an emergency budgetWhere is your money going?

• Subscription services- Get rid of weekly pre-made food delivery services, shave clubs, clothing boxes, etc.

• Takeout- Helping out your local economy is great, but you may have to focus on your needs right now.

• Entertainment costs- Cut extra streaming services, take advantage of free streaming concerts, check out what your library offers online, go for a walk in your neighborhood, etc.

• Groceries- Buy generic when possible and make a meal plan. Think about it like this: What’s the bare minimum you can stand to spend at the grocery store?

APA | Budgeting and Repaying Student Loans in a Pandemic: What Stimulus and Stagnation Mean for You

Contact your mortgage company or landlordKnow your options for housing relief

Pick up the phone and call. Ask questions like:● What options or payment plans are available at this time?● Can you defer payments for me? (important to note that deferral is not forgiveness, would eventually have to pay back sum plus the interest accrual)● For renters, you could ask if there is an option to pay what you can

Resources:https://millennialmoneyman.com/laid-off-or-furloughed-what-to-do/https://millennialmoneyman.com/trouble-paying-bills/

APA | Budgeting and Repaying Student Loans in a Pandemic: What Stimulus and Stagnation Mean for You

Contact credit card companiesReduce your credit card burden

Pick up the phone and call. Relief is being offered on a case by case basis.● American Express is waiving interest and late payment fees for eligible personal and business cards.● Bank of America has an online request form for payment deferrals.● Chase is helping its customers by waiving fees and extending payment due dates.● Citi customers can ask about temporarily pausing minimum payments or extending your line of credit.● Capital One has an assistance program to waive interest and fees.● Discover can help with payment timing, late payments, and fees.

APA | Budgeting and Repaying Student Loans in a Pandemic: What Stimulus and Stagnation Mean for You

Transfer your balance to a 0% interest cardReduce your credit card burden

Pick up the phone and call. Relief is being offered on a case by case basis.● Look for a card that offers 0% interest for a longer period.● Do the math to make sure the balance transfer card won’t cost you more — some cards have high transfer fees and interest rates that can negate the short-term benefit of 0% interest.● Know that you’ll need to make the minimum payment each month to qualify for 0% interest.● Make sure you understand the rules of your cardholder agreement. Specifically look at how you’ll lose the 0% interest period, like late payments, bouncing a check, exceeding your credit limit, etc.● You will have better options with a high credit score.

APA | Budgeting and Repaying Student Loans in a Pandemic: What Stimulus and Stagnation Mean for You

Get a side hustle Increase your income

Here are some of the best ways to increase your income:● Sell your stuff online● Run Facebook ads for small businesses● Work as a proofreader● Drive for Instacart● Deliver for DoorDash● Teach English online with VIPKid

Resources:https://millennialmoneyman.com/best-side-hustles-from-home/https://millennialmoneyman.com/side-hustle/

APA | Budgeting and Repaying Student Loans in a Pandemic: What Stimulus and Stagnation Mean for You

Audience QuestionsSend an email to bobby@millennialmoneyman.com and

we’ll point you in the right direction!

Join the M$M Community on Facebook: Facebook.com/groups/millennialmoneyman

APA | How to Crush Your Student Loan Debt

Questions& Answers