2012-2013: tuition in-state: $15,318 out-of-state: $30,636 fees and technology surcharge: $4,294...

Financial Aid PresentationBefore You Begin…

Office of Admissions & Financial AidNIU Law

June 11, 2012

How Much?2012-2013 Tuition and Fees

• 2012-2013:• Tuition

• In-state: $15,318• Out-of-state: $30,636

• Fees and Technology Surcharge: $4,294• Room & Board: $12,256• Books: $1,600• Insurance: $976• Personal Expenses

• In-State: $2,856• Out-of-State: $3,062

• Travel Expense: $700• One Year Total

• In-state: $38,000• Out-of-state: $53,524

How Much?Three years..

• Three year Total: • In-state: $38,000*3= $114,000• Out-of-state: $53,524*3= $160,572• These numbers are estimates. The tuition and fees

number will climb slightly each year. • Things to consider:

•Most 1Ls pay “full freight.”•Many 2Ls/3Ls have GA/RA positions and/or will participate in a writing competition. •The average NIU Law student still graduates with 50-60% the debt load of the average national law student.

An Overview

• Applying For Financial Aid• FAFSA• Your Law School Loans• Accepting Your Awards• MPNs/Entrance

Counseling• Paying Your Bill• Receiving Your Refund

• Yearly Tasks• Apply For Aid• MPNs/Entrance

Counseling

• Paying Back Your Loans• Overview• Consolidation Loans• Payment Plans• Deferment/Forbearance• Consequences • Cancellation/Forgiveness• Public Service Loan

Forgiveness

Step 1: FAFSA

• Fill out the Free Application for Federal Student Aid at www.fafsa.ed.gov.

• You will need a Federal PIN to complete this crucial step. You may obtain a pin at www.pin.ed.gov.

• Have your tax returns ready. • You don’t need your parents’ information!

Because you are a law student, you are considered to be independent, regardless of your age.

Step 2: Log In

• Review the instructions in the email you received regarding your myNIU account.

• Log into myNIU to view your financial aid awards. • myNIU is the portal through which you handle

all of your bursar and financial aid transactions throughout your time at NIU.

Step 3: Accept or Decline Awards

• Accept or decline your Graduate PLUS Loans and your Stafford Loans.


• How much can you borrow each year?•You are guaranteed up to $20,500 a year in Stafford Loans.•The interest rate for these loans is 6.8 percent annually, with a 1 percent loan fee deducted at disbursement. •There is a lifetime limit of $138,000, so be aware if you have already taken out Stafford Loans.

• You can take the remaining amount, up to your total loan eligibility, in Graduate PLUS loans.•Being able to take Graduate PLUS loans is contingent on not having adverse credit. •The interest rate is 7.9 percent, and a 4 percent loan fee is deducted at disbursement.


• What is the “cost of attendance/student loan eligibility?”• The cost of attendance is a rate set by the

school that takes into consideration everything you will need to live for 9 months.


• How much can you take out?• For in-state students, the cost of attendance

in 2012-2013 is $38,000.• For out-of-state students, that cost of

attendance in 2012-2013 is $53,524.


• How much should you take out?• Consider the following factors:• Tuition and fees• Interest rates• Cost of living • Your lifestyle

Factor 1: NIU Law Tuition & Fees

• For the 2012-2013 academic year, NIU Law’s tuition and fees are:• In-state: $19,666• Out-of-state: $34,930

• This amount does not cover room and board, books, insurance, or personal expenses.

Factor 2: Interest Rates

• Stafford Loan Interest Rates: 6.8% APR• Graduate PLUS Loan Interest Rates: 7.9% APR• Private Loans: varied based on your credit

score and on the loan company• You want to maximize your Stafford Loans,

unless you can get a lower interest rate from a private lender, which is VERY unlikely.

Factor 3: Cost of Living

• According to hotpads.com, the average cost of a one bedroom in DeKalb is $598 a month.

• Gasoline prices are quite a bit lower than in Chicago and neighboring counties.

• There are a number of low-cost grocery stores in DeKalb, and there are a number of inexpensive restaurants, drycleaners, etc.

• It’s a college town, so there are always great deals on amenities!

Factor 4: Your Personal Expenses

• Consider your lifestyle and what you can reasonably expect to spend on rent, utilities, food, entertainment, etc.

• Consider the cost of traveling home for vacation, etc.

• Consider the price of any new items you might need for law school (e.g. an interview suit, a new laptop).

All the Factors: A Few Helpful Hints

• Maximize your Stafford Loans first. They have the lowest interest rates!

• Try and minimize your living expenses.• Consider finding a roommate. • We have extra roommate request forms!

• You may reduce or increase the amount you take out before your loans disburse each semester. • You simply need to contact the NIU Student

Financial Aid Office (SFAO): email is fine!

Step 4: MPNs and Entrance Counseling

• You must fill out Master Promissory Notes for both your Stafford Loans and your Graduate PLUS loans.• Those MPNs can be found on the NIU SFAO

website. • Do NOT attempt to get the MPN from the

government website: NIU uses its own.

Step 4: MPNs and Entrance Counseling

• You must complete entrance counseling for Graduate PLUS loans and for Stafford Loans.• That entrance counseling can be done

through the NIU SFAO website.

Step 4: Paying Your Bill

• After you accept or decline your award, your account will say “Pending Financial Aid.”

• You will be responsible for paying your bill at the beginning of each semester.

• When we register you for your Fall 2012 classes in August, the Bursar will generate a bill for you.

Step 4: Paying Your Bill

• If you have accepted your financial aid award (i.e. your account says “Pending Financial Aid,”) the Bursar will automatically pay for your fall tuition and fees with your student loans.

Step 5: Receiving Your Refund

• If you borrow more than the cost of tuition, you will receive a refund.

• Set up direct depositing to avoid waiting for a check!• You may do this online, by picking up a form

in our office, or by heading up to the SFAO, Room 245 of this building.

• You will receive your refund each semester within the first several weeks of classes (the first week of September/the first week of February)

Other Notes

• Because you will not receive a refund until after classes have begun, have some money set aside for expenses during your first month of school.

• After you receive your NIU OneCard (your student ID) during Orientation, you may go to the University Bookstore and can charge books to your student account. Don’t try to do to this before Orientation!

Other Notes

• The “cost of attendance” is not intended to cover the summer months, so plan accordingly.

• You will have the opportunity to apply for separate bar exam loans during your third year. These loans are privately administered and can have high interest rates.

• You may think about using some of your loan eligibility to set aside money for the bar exam.

Other Notes

• Scholarships and veterans benefits sometimes take longer to post to your NIU account.

• For information about scholarship posting timelines, contact our office.

• For information about veterans benefits, contact Military Student Services.• 815-753-0691• [email protected]

Every Year

• You will go through the same financial aid process each year.

• Although most students pay the full tuition amounts their first years, consider the following possibilities your second and third years:• Graduate and Research Assistantships• Writing Competitions• Roommates• Part-time employment

Repaying Your Loans

•It may seem like a long way off, but you may want to think about repayment options. •Save these slides for future reference!

Repaying Your Loans: When Loans are Due

•Stafford Loans•Payments begin following a six-month grace period

•Grad PLUS Loans •No grace period. Loan repayment begins immediately upon graduation.

• Previously consolidated loans•Payments begin immediately upon graduation.

•Bar exam loans• There is usually a six-month grace period, but check with your lender.

Repaying Your Loans: Consolidation!

•You can consolidate all of your federal loans to have one monthly payment and a choice of payment plans. • Option 1:

• Standard Repayment Plan• Fixed monthly payment > $50• 10 years• Lowest total interest paid due to shortest

repayment period


• Option 2:• Extended Repayment Plan• Federal Loan debt > $30,000• 25 years• Payments may be fixed or graduated• Smaller payments• More interest paid


• Option 3:• Graduated Repayment Plan• Lower initial payments that get higher every

two years• 10 years• Makes payments affordable as you make

more income


• Option 4:• Income Contingent Repayment Plan• Monthly payments that are based on your

annual income, your Federal loan balance, and your family size.• 25 years• Recalculated every year


• Option 5:• Income Based Repayment Plan

• Bases your monthly payment on your yearly income: you must have a partial financial hardship

• Caps the monthly payments at 15 percent of your discretionary income

• 25 years


• http://loanconsolidation.ed.gov/index.html• https://www.dl.ed.gov/borrower/BorrowerWelcom

ePage.jsp• http://www.nslds.ed.gov• http://www.lsac.org (Future JD Students/Financing

Your Education)

http://loanconsolidation.ed.gov/index.html

https://www.dl.ed.gov/borrower/BorrowerWelcomePage.jsp

https://www.dl.ed.gov/borrower/BorrowerWelcomePage.jsp

http://www.nslds.ed.gov/

http://www.lsac.org/

If You Can’t Pay..

• You should apply for deferment or forbearance.• Your payment schedule will remain in effect.• Apply at least 30 days before you want the

deferment or forbearance to start.• Avoid delinquency and default.• Deferments and forbearances do not appear on

your credit report and can help you maintain a good credit score.


• Deferment• Postpones payment• Interest accrues• Types• In-school• Graduate Fellowship• Rehabilitation Training• Unemployment• Economic Hardship


• Forbearance• Postpones payments for a predetermined

length• Applies to loans not eligible for deferment• Only payment of principle is deferred• Interest accrues• Interest is capitalized


• Borrowers who do not make payments for 270 days are in default. Defaulting has severe and long-lasting consequences. • The Department of Education may demand

immediate total repayment. • The Department of Education will collect your debt

and will demand collection costs. • Your credit rating may be severely affected. • You will become ineligible for Title IV student aid. • You will become ineligible for deferments.• The IRS will withhold your Federal income tax

refunds. • Your wages may be garnished.

Cancellation/Forgiveness

• Teacher Service• Public Service• School-related Discharges

• Closed School• False Certification because of identity theft• Unpaid Refund after withdrawal

• Disability, Bankruptcy, or Death• Total and Permanent Disability (determination by a

physician)• Inclusion of loan in bankruptcy (requires proof that

repaying loan would cause undue hardship, which is very difficult)

• Death of student


• Congress created the Public Service Loan Forgiveness Program through the College Cost Reduction and Access Act of 2007 (CCRAA).

• Purpose• To encourage individuals to enter and continue

to work full-time in public service jobs.


• Must be employed by a qualifying public service employer;

• Must make payments on eligible loans; and • Must make 120 qualifying payments.• You must certify all of those payments.

• There is ample information on the types of qualifying employers, loans, and payments: visit http://studentaid.ed.gov/PORTALSWebApp/students/english/PSF.jsp for more information.

http://studentaid.ed.gov/PORTALSWebApp/students/english/PSF.jsp

http://studentaid.ed.gov/PORTALSWebApp/students/english/PSF.jsp

Take a Deep Breath

• You shouldn’t spend too much time worrying about your repayment plan right now: we just want to alert you about options and consequences.

• There will be information sessions throughout law school about various repayment topics, and you will complete exit counseling before graduation.

• However, you can spend time thinking about how you can minimize your cost of education right now.

• “Live like a student now, or you will live like a student later…”

For Further Information

•See your “Common Contacts” handout for information about important contacts.

QUESTIONS??

2012-2013: tuition in-state: $15,318 out-of-state: $30,636 fees and technology surcharge: $4,294...

Documents

stafford loans

lifestyle slide

graduate plus loans

private loans

law school loans

percent loan fee

loan company

year total