Presented by:

Michael Fuller—First Marbleheadwww.fmd.com

Sonja McMullen—Sallie Maewww.salliemae.com

Joe Statuto—Wells Fargo Bankwww.wellsfargo.com/student Billye Jean Stroud—Discover

www.discoverstudentloans.com

This presentation may highlight specific loan information from our four institutions and is in no way encompassing of all private loan

programs in the industry. For specific details on other loan programs, please visit with

your other lender partners.

The role of the Financial Aid Administrator has always been to assist students (and their families) in financing their higher education dreams.

Today more than ever, students continue to depend on their college Financial Aid Administrator to provide unbiased advice and direction in finding available college financing options.

Financial Aid Administrators are in the best position to provide available financing options to families, giving them the opportunity to choose the solution that best fits their particular needs.

These changes will be effective July 1, 2012Parents will be responsible for the full 4% origination fee on all Direct PLUS LoansGraduate students will be responsible for the full 4% origination fee on all Direct Graduate PLUS Loans

Prior to July 1, 2012, Grad PLUS borrowers have access to a 1.5% fee rebate making the fee 2.5% for many students.

Graduate students will no longer have access to Federal Direct Subsidized Stafford Loans

All Federal Stafford Loans will be unsubsidized meaning that the student will be responsible for the interest that accrues during the in-school, grace, and deferment periods.

4

When taking out a student loan, students and families should carefully compare all their options, including both federal and private student loans.

•Undergraduate Student Options: Parent borrows a Direct PLUS Loan For Parents on behalf of a

student Borrow/Cosign for a Private Student Loan

•Graduate/Professional Student Options: Borrow a Direct PLUS Loan for Graduate and Professional Degree

Students Borrow a Private Student Loan

*Some Private Lenders offer a cosigner release program.

Parents Excellent credit looking to finance the education of

their child Do not want to be the borrower Do not wish to complete the FAFSA

Graduate Students Economy has increased demand for advanced

degrees Enrolled in programs that lead to placement and

higher income potential

Who can apply for this loan?

Who is responsible for this loan?

Parent PLUS Grad PLUS Private Loan

Parent Graduate/Professional

Student

Student Borrower or Student with Parent, Relative, Other Sponsor as

Cosigner if required

Parent PLUS Grad PLUS Private Loan

Parent Graduate/Professional

Student

Student and Cosigner

Enrollment Requirement:

Program Eligibility:

FAFSA Requirement:

Parent PLUS Grad PLUS Private Loan

At Least Half Time At Least Half Time Varies by Lender

Parent PLUS Grad PLUS Private Loan

Yes Yes Varies by Lender

Parent PLUS Grad PLUS Private Loan

Degree Seeking Degree Seeking Varies by Lender

Fees:

Reductions and Discounts

Parent PLUS Grad PLUS Private Loan

4% Origination Fee 4% Origination Fee Varies by Lender

Parent PLUS Grad PLUS Private Loan

0.25% Auto Debit Only

0.25% Auto Debit Only

Varies by Lender

Fixed

Variable

Parent PLUS Grad PLUS Private Loan

7.90% 7.90% Varies by Lender3.25% to 13.99%

Parent PLUS Grad PLUS Private Loan

Not Available Not Available Varies by Lender2.25% to 11.25%

www.myFICO.com

• 19.6% of the population has a credit score of 750-799

• 18.1% of the population has a credit score of 800-850

Borrowers or cosigners with the above credit scores may qualify for a private student loan that’s priced more favorably than a Direct PLUS loan.

Deferment:

Repayment Term:

Parent PLUS Grad PLUS Private Loan

Immediate repayment after

final disbursement;

may request in-school forbearance

Immediate repayment after

final disbursement;

may request in-school forbearance

Most programs offer deferred

payments while in school with an

additional grace period

Parent PLUS Grad PLUS Private Loan

10 Years 10 Years Varies by Lender

Cosigner Release:

Loan Forgiveness:

Parent PLUS Grad PLUS Private Loan

No No Varies by Lender

Parent PLUS Grad PLUS Private Loan

Yes Yes Varies by Lender

Does this loan help build the student’s credit history?

Parent PLUS Grad PLUS Private Loan

No Yes Yes

Who services the loan?

Parent PLUS Grad PLUS Private Loan

U.S. Dept. of Education contracted servicers

U.S. Dept. of Education contracted servicers

Lender

Consider adding comparison wording to your school’s website or award letter to inform families that they have a choice in this important financial decision. There is no down side to shopping around. Applying for a private student loan does not

impact eligibility for a Direct PLUS Loan

Applying for multiple credit-based student loans (rate shopping) in a 30-day window is treated as one inquiry when determining a credit score*

*Source: myFICO.com

If your school does offer students and families a lender list, make sure the information is up to date and links are accurate

Prepare yourself and staff to discuss options for families that include Private and Direct PLUS loan programs

Understand the different loan programs Understand the factors of the total loan cost

The mission of our office is to provide students and families with information and resources that will allow for a better understanding of how current financial decisions will impact future financial well-being. Our goal is to help families understand their choices, minimize student loan debt and maximize scholarship opportunities.

Students and their families have choices when it comes to college financing. Every family is unique and no one solution is right for everyone. Review your options, run the numbers, evaluate your current financial situation and make the decision that’s right for you.

For some students there will be a financial gap between their student budget and the maximum they can receive from the Federal Stafford loans.  As a result, the student and family would need to apply for an additional, credit-based, loan in the form of a Direct Parent PLUS loan or a private student loan.

The University of Mississippi

University of Maine

Drexel University

Stanford Graduate School of Business

University of Minnesota

Texas Christian University