Category Archives: Loan Information

NOVA Partners with Inceptia for Default Prevention

You’re not alone when it comes to student loans. NOVA has partnered with Inceptia, a division of National Student Loan Program (NSLP), to provide you with FREE assistance on your Federal student loan obligations to ensure successful, and comfortable, loan repayment. Inceptia’s friendly customer representatives may reach out to you if your loan(s) become delinquent.

Inceptia is not a collection agency. We’ve partnered with them to help you explore a wide variety of possibilities such as alternative repayment plans, deferment, consolidation, discharge, forgiveness, and forbearance options. Inceptia will stay in touch with you via phone calls, letters, and/or emails to help you find answers to your questions and solutions to your issues.

When it’s time to start repaying your student loans, don’t get stressed. If you’re confused about repayment plans or feel your loans are too impossible to tackle, we’ve got the money knowledge and resources to help. Inceptia may contact you with information about loan repayment options. Until then, get some loan knowledge from the Knowl at MoneyKnowl.org.

Paying for College Workshop

Want to potentially win $100 and learn more about paying for college and managing your finances?  Then join us on Wednesday, December 9, 2015 from 6:00pm – 7:00pm in CT230 at the Annandale Campus for the “Financial Literacy: Paying for College” workshop.  We’ll discuss ways to finance your education including grants, scholarships, work-study, student loans, and the payment plan.

During the second half of the workshop, participants will be given the chance to create a CashCourse account at www.cashcourse.org and complete the “Be Credit Savvy” module to learn more about credit cards, credit scores, and credit reports.  By successfully completing the “Be Credit Savvy” module, students will be entered into NOVA’s CashCourse drawings for $100 grants and $100 bookstore gift cards.  Complete CashCourse Contest rules are on NOVA’s Financial Literacy Blog at http://blogs.nvcc.edu/financial-literacy/.

Default Prevention and Responsible Borrowing

Approximately 13.7% of NOVA students borrowed a student loan in 2014-2015 to help finance their educational expenses according to data compiled by NOVA’s Office of Institutional Research.  While this is a relatively low percentage of the student population, the college is committed to encouraging responsible borrowing and reducing the number of students who default on their loans.

By partnering with Inceptia, we have assisted over 1,300 former NOVA students in getting all of their delinquent student loans back into good standing within the last four months.  The efforts of the Default Prevention Committee have also helped reduce the college’s Cohort Default Rate (CDR) from 13.6% in FY2011 to 12.0% in FY2012 (the two most recent periods for which data is available).  This indicates a reduction in the percentage of NOVA borrowers defaulting on their student loans within three years after entering repayment.

Per federal regulations, students must complete the Master Promissory Note (MPN) and Entrance Counseling at www.studentloans.gov before receiving a Federal Direct Stafford Loan, and they must complete Exit Counseling upon leaving school.  Borrowers are also encouraged to use NOVA’s Loan Planning Form to review their loan histories, determine the impact of additional borrowing, and to start planning how they will repay their student loans.

How to Handle Direct Loan Deferments

The National Student Clearinghouse has learned that a number of Direct Loan recipients, who are currently enrolled, have been contacted by their lenders regarding repayment of their loans. Please instruct your students to request a deferment form from their lender and return the completed form to your school.

The completed deferment form must include the following information:

  1. Student’s full name
  2. Student’s Social Security number
  3. Date of birth
  4. Student’s signature
  5. Your school code
  6. Loan holder or servicer’s address
    This is in the form’s lender section, which is typically found on page 2.

Please forward all completed deferment forms to the Clearinghouse and include a cover sheet containing your school’s full name, school code, branch code, and the academic term in question.

Deferments must be mailed. They CANNOT be faxed because most lenders require the original form and signature.

IMPORTANT: If a student has more than one loan holder, he or she must complete a separate deferment form for each lender/servicer.

Please mail your cover sheet and deferment form(s) to the Clearinghouse at:

National Student Clearinghouse
2300 Dulles Station Blvd, Suite 300
Herndon, VA 20171

The Clearinghouse will complete the deferment forms we receive from you using the enrollment information provided by your school for the term in question.

If you have any questions, please contact your Clearinghouse regional director or service@studentclearinghouse.org.

 

 

Be Proactive with Your Student Loans: Prepare for Repayment

NOVA Financial Aid wants to ensure that you know how to find the status of your student loans and the contact information for your loan servicer(s) in case you have questions about loan repayment.

If you have not already done so, it is important to prepare to repay your student loans. Check with your loan servicer if you aren’t sure how or when to make a payment. You are responsible for staying in touch with your servicer and making your payments, even if you do not receive a bill. Many borrowers choose to have their loan servicers electronically debit loan payments from their banks each month in order to help prevent missing payments and becoming delinquent on student loans.

If you ever have difficulty making a loan payment, you should contact your loan servicer before the payment is late. You might qualify for deferment, forbearance, or a different repayment plan that can temporarily postpone or reduce the amount that you must pay. In order to see what options are available for your situation, you would need to call your loan servicer.

You may look up the contact information for your loan servicer by logging into your “My Federal Student Aid” portal at www.studentaid.gov. Click on the log in button in the upper right corner at www.studentaid. gov and enter your information to log in. If you do not know your 4-digit financial aid PIN, you may click on the “Forgot your PIN” link to request a duplicate PIN. Once you log in, scroll down to view your federal student loan history. Click on each of your loans to view the contact information for your current servicer. Different loans could have different servicers, especially Perkins loans. You should call your loan servicer today if you have any questions about repaying your student loans, including any options that may be available for you.

More information is available at www.studentaid.gov > Repay Loans.

Check out this short video for more information: http://cheapscholar.org/2013/11/26/student-loan-repayment-101-video/

Visualize the Direct Subsidized 150% Loan Limit

The 150% Direct Subsidized Loan Limit can be confusing to students who don’t live, eat, and breath student loans (like some of us in financial aid. We want to make the limit change understandable for students who could be impacted. What better way to explain than with a visual that details:

  • Who is impacted by the limit and what that means
  • Which loans are included in the legislation
  • How and when the subsidy will change

Click this link to check out the graphic: NS015_150_Subsidy_Limit

Check out this info-graphic on 5-Loan-infographic to manage your loans.

 

Information provided by: NorthStar Education Services| www,nseds.com

 

GREENBACK Newsletter (August_2014)

Check out the latest issue of The Financial Aid GREENBACK, our quarterly Financial Aid newsletter. This issue we give you additional information on the 150% loan eligibility guidelines, the Financial Aid Pending (FAP) process and fall bookstore purchase authorization e-form. This newsletter is designed to help students and staff members stay up-to-date on the latest and greatest in the world of financial aid.

 

Time Limitation on Direct Subsidized Loan Eligibility for First-Time Borrowers on or after July 1, 2013

Maximum eligibility period to receive Direct Subsidized Loans

(This article was originally published on StudentLoans.gov as part of Direct Loan Entrance counseling.)

There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your “maximum eligibility period”. You can usually find the published length of any program of study in your school’s catalog.

For example, if you are enrolled in a 4-year bachelor’s degree program, the maximum period for which you can receive Direct Subsidized Loans is 6 years (150% of 4 years = 6 years). If you are enrolled in a 2-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is 3 years (150% of 2 years = 3 years).

Your maximum eligibility period is based on the published length of your current program. This means that your maximum eligibility period can change if you change programs. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count against your new maximum eligibility period.

Example 1: You are enrolled in a two-year undergraduate program. You then enroll in a four-year undergraduate program. When you change programs, your maximum eligibility changes from three years to six years.

You received Direct Subsidized Loans for only one year while enrolled in the two-year program. When you enroll in the four-year program, you are eligible to receive five more years of Direct Subsidized Loans.

Example 2: You are enrolled in a four- year undergraduate program. You then enroll in a two-year undergraduate program. When you change programs, your maximum eligibility changes from six years to three years.

You received Direct Subsidized Loans for two years while enrolled in the four- year program. When you enroll in the two-year program, you are eligible to receive one more year of Direct Subsidized Loans.

Example 3: You are enrolled in a four-year undergraduate program. You then enroll in a different four- year undergraduate program. Because both programs are the same length, your maximum eligibility does not change when you change programs-it remains six years.

You received Direct Subsidized Loans for three years while enrolled in the first four- year programs. When you enroll in the second four- year program, you are still eligible to receive three more ears of Direct Subsidized Loans.

Periods that count against your maximum eligibility period

The periods of time that count against your maximum eligibility period are periods of enrollment (also known as “loan periods”) for which you received Direct Subsidized Loans.

For example, if you are a full-time student and you receive a Direct Subsidized Loan that covers the fall and spring semesters (a full academic year), this will count as one year against your maximum eligibility period.

If you receive a Direct Subsidized Loan for a period of enrollment that is shorter than a full academic year, the period that counts against your maximum usage period will generally be reduced accordingly.

For example, if you are a full-time student and you receive a Direct Subsidized Loan that covers the fall semester but not the spring semester, this will count as one-half of a year against your maximum eligibility period.

With one exception, the amount of a Direct Subsidized Loan you receive for a period of enrollment does not affect how much of your maximum eligibility period you have used. That is, even if you receive a Direct Subsidized Loan in an amount that is less than the full annual loan limit, that lesser amount does not reduce the amount of your maximum eligibility period you have used. The one exception applies if you receive the full annual loan limit for a loan period that does not cover the whole academic year.

For example, if you receive a Direct Subsidized Loan that covers only the fall semester and not the spring semester, and the loan amount you receive is equal to the full annual loan limit for your grade level, this counts as one full year against your maximum eligibility period.

Effect of borrowing while enrolled part-time

If you receive a Direct Subsidized Loan when you are enrolled less than full-time, the period that is counted against your maximum eligibility period will be reduced.

For example, if you are enrolled half-time and receive a Direct Subsidized Loan for a period of enrollment that covers a full academic year, this will count as only one-half of a year against your maximum eligibility period.

Loss of eligibility for additional Direct Subsidized Loans and becoming responsible for paying interest on Direct Subsidized Loans

After you have received Direct Subsidized Loans for your maximum eligibility period, you are no longer eligible to receive additional Direct Subsidized Loans. However, you may continue to receive Direct Unsubsidized Loans.

In addition, if you continue to be enrolled in any undergraduate program after you have received Direct Subsidized Loans for your maximum eligibility period, we will no longer (with certain exceptions) pay the interest that accrues on your Direct Subsidized Loans for periods when we would normally have done so. After you lose eligibility, whether you become responsible for the interest that accrues on your Direct Subsidized Loan depends only on your enrollment, not applying for, requesting, or receiving federal financial aid.

Remember, your maximum eligibility period can change if you enroll in a different program. So, if you received Direct Subsidized Loans for your maximum eligibility period for one program and then enroll in a longer program, you will not become responsible for interest that accrues on your Direct Subsidized Loans.

Direct_Subsidized_Loans_and_ Direct_Subsidized_Loans_Charts

(This chart was originally published on StudentLoans.gov as part of Direct Loan Entrance counseling.)

The above chart summarizes the periods when we normally pay the interest on your Direct Subsidized Loans, and an explanation of what happens after you become responsible for the interest.

If you meet any of the “yes” conditions indicated on the chart, you will become responsible for the interest that accrues on your Direct Subsidized Loans on and after the date of your enrollment, during periods when we would have normally paid the interest for you.

Example: If you are enrolled in a four- year undergraduate program and receive Direct Subsidized Loans for six years, you are no longer eligible to receive Direct Subsidized Loans.

Whether you become responsible for interest on your Direct Subsided Loans depends on what you do next:

1. If you complete the program in 6 years and do not enroll for a 7th year, the Federal government will continue to pay the interest that accrues on your Direct Subsidized Loans as described in the chart below. Even if you eventually enroll in another program, because you completed the program before enrolling for a 7th year, the Federal government will continue to pay your interest as described in the chart below.

2. If you continue to be enrolled in the program for a 7th year, then on the date you enroll for the 7th year you will become responsible for paying all interest that accrues on your Direct Subsidized Loans from that point forward.

3. If you do not complete the program, but transfer to another undergraduate program that is four year or less (that has a maximum eligibility period of 6 years or less), then you will become responsible for interest, starting with the interest that accrues on the date that you enroll in the other program.

Regaining eligibility for Direct Subsidized Loans

If you become ineligible for Direct Subsidized Loans because you have received Direct Subsidized Loans for your maximum eligibility period, you may again become eligible to receive Direct Subsidized Loans if you enroll in a new program that is longer than your previous program.

If you regain eligibility to receive additional Direct Subsidized Loans because you enrolled in a program that is longer than your prior program and you previously became responsible for paying all of the interest that accrues on your Direct Subsidized Loans, we will pay the interest that accrues on your new loans during the periods described in the chart above. However, you will continue to be responsible for paying all of the interest that accrues on the previous Direct Subsidized Loans that you received.

Navigate the 150% Loan Limit Rule with these Five Key Take-A-Ways

NOVA financial aid understands that policy changes such as the 150% time limit rule regarding federal Direct Subsidized loans can be confusing for students and can cause additional counseling inquiries and work for your financial aid office. We’re here to help with key policy take-aways and resources.
As of July 1st, 2013, any first-time borrower, (which is defined as someone who has no outstanding balance on any FFELP or Direct loan when receiving a Direct loan on or after July 1, 2013), will only be able to obtain federal Direct Subsidized loans for a maximum of 150% of the published program length in which they are enrolled. Additionally, under some circumstances, the subsidized loans that had been borrowed up to the 150% point will lose further government subsidy, meaning interest will begin to become the student’s responsibility if the student does not graduate by the 150% point (and continues to be enrolled in the same or a shorter undergraduate program). From that point forward, these subsidized loans will become unsubsidized loans.
Here are five key take-aways to keep in mind regarding the 150% Rule:
Students may receive Direct Subsidized loans for no more than 150% of the length of the current academic program. For example, a student enrolled in a two-year program will have three years’ worth of subsidized loan eligibility, and a student enrolled in a four-year program will have six years’ worth of subsidized loan eligibility.
Once a student reaches the 150% mark in a particular program, future subsidized loan eligibility in that program will end. The student may, however, be eligible for unsubsidized loans.
A student who reaches the 150% limitation will have the interest subsidy end for all outstanding subsidized loans if the student does not graduate and continues to be enrolled in the same or a shorter undergraduate program. Repayment does not begin, but like unsubsidized loans, the student (rather than the government) would become responsible for interest that accrues from this point forward.
Unlike other measures in determining continued aid eligibility, this provision is not affected by the total dollar amount borrowed. Any and all periods of subsidized loan borrowing will count against the 150% time limit, in most instances, prorated for less than full-time enrollment.
This policy is in addition to, and not in place of, the lifetime aggregate loan limits that are currently in place.