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SFS is growing and we have a few new financial aid counselors in the office! Please meet Anthony Crowe – he started just a few months ago:

Q: What is your name, title, and your caseload alpha-split?

A: My name is Anthony Crowe, I am  Financial Aid Counselor for undergraduate students with last names Rel – Sik.

Q: Where were you employed or what did you do before being hired at Northeastern?

A: I previously worked as an instructor with B.E.L.L. and Assistant Director of Project D.E.E.P., both nonprofit programs working to extend educational opportunities to inner city youth. I have also previously worked as a consultant for Vanguard Education Consulting and Yale University.

Q: Why did you choose Northeastern as a place that you wanted to work and how do you feel about your position since you have been working here?

A: I love working at Northeastern. Recently a member of senior leadership said to a group of us that the greatest capital we have at Northeastern is human capital – our people and our ideas. I believe that’s true and it’s my favorite part of working here. I am on a team with tremendously talented people, working with a diverse population of students. As far as my position here, I think we do a lot of things students don’t realize and don’t see, and similarly some students are shocked to find things we don’t handle. I am personally satisfied with my work because I’m able to be a part of some small change in a few students’ lives and that might just be the student who starts the next Microsoft or cures cancer, and I’m pleased just to be involved at all.

Q: Tell us a little about yourself or what you may do outside your job here at NU.  Do you have a favorite hobby or favorite past time?

A: I have a baby at home and another one on the way so I spend a lot of my time now making strange sounds and reading books about Thomas the tank engine. But I am otherwise pretty interested in music – I toured and recorded with a few bands in my undergraduate days – and I enjoy spending time outdoors, reading, rock climbing, travelling and the occasional video game. As some of my coworkers know, I’m also an avid cook and I make my own organic jams and jellies.

Q: What profession other than your own would you like to attempt?

A: I would like to work in public service as an elected official or a senior advisor. I have a background in government and a personal interest in economics so I think I could do well with those careers.

Q: What profession would you not like to do?

A: The only thing I can think of that I would not like to do would probably be being on reality television. I value my privacy and I don’t really enjoy that kind of programming so… I don’t think I would want to be involved in that.

Q: What are your favorite and least favorite words? 

A: I have had a fascination with language for many years so there are several words that I really love. I actually really enjoy words in other languages that don’t have direct equivalents in English. Here are some of my favorites: honne (本音) and tatemae (建前) are Japanese words for complimentary concepts – the former being the person’s true character, feelings and desires, while the latter is the what is expected by society and what most other people see you as. Another great one is sgrìob, a Scottish Gaelic word for the itch above your upper lip when you take a sip of whisky.

There aren’t many words I strongly dislike but I’ve never been a fan of business jargon like “metrics” even though we sometimes use these words at Northeastern. I think it’s a bit pompous to use “vis-à-vis” in regular conversation. I’m kind of a foodie, so I tend to dislike when people describe something as “tasty” because that doesn’t really tell me anything at all. It’s saying something that really says nothing.

Q: If you could meet just one person that you have always wanted to, living or dead, who would that person be?

A: There are a number of people I would love to meet, but I suppose if I had to choose one it might be Ralph Waldo Emerson. I think we’re simpatico, and I’d be interested in his thoughts on reconciling culture and civilization with the beauty and simplicity of nature. In 1844, Emerson wrote, “I wish to have rural strength and religion for my children… and I wish city facility and polish. I find with chagrin that I cannot have both.” That has always resonated with me.

 

Federal Stafford Loan Repayment Options – Pay As Your Earn Repayment

Just a reminder, this is the fifth blog in the series focusing on Stafford Loan Repayment. Last week we discussed the Income-Based Repayment. This week we will talk about the Pay as Your Earn Repayment, which is very similar to last week’s topic.

Borrowers who took out loans after 2008 and have a financial hardship are eligible to apply for this repayment plan. The monthly payments will be based on 10% of the borrower’s discretionary income, which is the difference between the borrower’s adjusted gross income and 150% of the federal poverty guideline. Similarly to the Income-Based Repayment, the typical monthly payments will be lower than with the Standard Repayment, and will not exceed the amount that a person would pay if they had chosen the Standard Repayment plan. After 20 years in repayment, any remaining principal or interest will be forgiven (borrowers may have to pay income taxes on that amount). Again, similarly to the Income-Based Repayment, borrowers who work in public service may qualify for loan forgiveness after 10 years.

Loan Amount Interest Rate Number of Payments Amount Each Month Total Repaid Amount
$25,000 6.8% Up to 300 Will vary depending on income level Will vary depending on repayment and possible forgiveness

The advantages and disadvantages of this repayment option are similar to the ones outlined in the Income-Based Repayment blog.

For more information, please visit http://studentaid.ed.gov/repay-loans/understand/plans or contact your financial aid counselor.

If you want to know more about financial aid, personal financial matters, scholarships and loans, receive updates and reminders about your bills and deadlines, ask questions, and engage in conversation with our office – follow us on Facebook!

We are continuing with our weekly blogs about Stafford Loan Repayment. Fourth up, we have Income-Based Repayment. This repayment option is available to borrowers who took out loans prior to 2008 and face serious financial hardships.

With this plan, the borrower can make monthly payments that are 15% of his/her discretionary income, which is the difference between the borrower’s adjusted gross income and 150% of the federal poverty guideline. With this plan, the typical monthly payments will be lower than with the Standard Repayment, and will not exceed the amount that a person would pay if they had chosen the Standard Repayment plan.

After 25 years in repayment, any remaining principal or interest will be forgiven. However, the borrower may have to pay income tax on any amount that is forgiven. With Income-Based Repayment, borrowers who work in public service may qualify for loan forgiveness after 10 years.

Loan Amount

Interest Rate

Number of Payments

Amount Each Month

Total Repaid Amount

$25,000

6.8%

Up to 300

Will vary depending on income level

Will vary depending on repayment and possible forgiveness

The advantages of Income-Based Repayment are that borrowers will have smaller payments if their incomes are low, and some of the loan maybe forgiven after 25 years of repayment. However, the disadvantage of this repayment option is that borrowers will keep accruing interest because they are making smaller monthly payments. In addition, they will have to submit yearly documentation regarding income and family size to demonstrate their continued eligibility for this repayment plan. And finally, the borrowers will have to pay taxes on the loan amount that may be forgiven after 25 years.

For more information, please visit http://studentaid.ed.gov/repay-loans/understand/plans or contact your financial aid counselor.

If you want to know more about financial aid, personal financial matters, scholarships and loans, receive updates and reminders about your bills and deadlines, ask questions, and engage in conversation with our office – follow us on Facebook!

In the third installment of our series of blogs discussing Stafford Loan Repayment, we will focus on the Extended Repayment plan. This option is available to Stafford Loan borrowers whose total loan balance is higher than $30,000. With this plan, the borrowers will pay off their Stafford Loan debt in 25 years by making either fixed or graduated payments throughout their repayment period. This is what the repayment may look like with fixed monthly payment amounts:

Loan Amount Interest Rate Number of Payments Amount Each Month Total Repaid Amount
$45,000 6.8% 300 $312.33 $93,699.73

Alternatively, an Extended Repayment plan with graduated monthly payments would looks like this:

Loan Amount Interest Rate Number of Payments Amount Each Month Total Repaid Amount
$45,000 6.8% 300 $258.93-$435.36 $100,910.03

The clear advantage of this repayment plan is the fact that borrowers who have higher loan debt can take longer time to repay their loans by extending the repayment period from 10 to 25 years. This also lowers monthly payments, whether they choose a fixed or a graduated plan. However, a disadvantage to this repayment plan is that throughout the repayment cycle, the borrowers will end up paying a lot more in interest due to the extended repayment time.

For more information, please visit http://studentaid.ed.gov/repay-loans/understand/plans or contact your financial aid counselor.

If you want to know more about financial aid, personal financial matters, scholarships and loans, receive updates and reminders about your bills and deadlines, ask questions, and engage in conversation with our office – follow us on Facebook!

This blog is the second one in our series focusing on the Stafford Loan repayment options. This week, let’s discuss the Graduated Repayment plan. It is currently available to all Federal Stafford loan borrowers. With this plan, the borrower will fully repay the loan in 10 years with monthly payments that will start low and then increase every two years.

Loan Amount Interest Rate Number of Payments Amount Each Month Total Repaid Amount
$25,000 6.8% 120 $197.54-$431.55 $36,388.89

Similarly to the Standard Repayment option, the borrowers will pay off their loans in 10 years, which is faster than with most other repayment plans. In addition, their payments will start lower, so they may be a little more affordable to those borrowers whose jobs out of college are not very high paying. With that being said, over time, these borrowers will end up paying more in interest (this is due to lower initial payments) than they would have if they had chosen the Standard Repayment plan. It is important to keep in mind that eventually the borrowers will have to make substantially higher payments to make up for the smaller amounts they paid in the beginning of their repayment period.

For more information, please visit http://studentaid.ed.gov/repay-loans/understand/plans or contact your financial aid counselor.

If you want to know more about financial aid, personal financial matters, scholarships and loans, receive updates and reminders about your bills and deadlines, ask questions, and engage in conversation with our office – follow us on Facebook!

As we get closer to graduation, the topic of student loan repayment gets more and more relevant. Today, we are starting a series of blogs about Federal Stafford Loan repayment options. Please follow along, as new blogs will be posted every week.

First up, let’s look at the Standard Repayment option. This is a 10 year repayment plan that is currently available to all Federal Stafford Loan borrowers. The minimum payment on this plan is $50, and it goes up from there depending on the total amount of the loan. By choosing this plan, the borrower will repay the entire amount of the loan in 10 years by making the same fixed-amount payments every month.

Loan Amount Interest Rate Number of Payments Amount Each Month Total Repaid Amount
$25,000 6.8% 120 $287.70 $34,524.10

If the borrower decides to keep the loan for the entire repayment period, this is the most cost-efficient pay-back option. The reason is because with Standard Repayment, the borrower will pay back his/her sooner than with most other options, therefore saving money on interest which can result from longer repayment plans. At the same time, it is important to mention that there is no penalty for early repayment. This means that if the borrower chooses to make larger monthly payments or to put down a lump sum of money toward the repayment plan, he/she will also be saving on interest and will not incur any penalties for doing so.

On the flip side, the disadvantage of this repayment option is the fact that borrowers who start off their careers in low paying jobs do not have the flexibility of lower payments and may find it difficult to make payments every month.

For more information, please visit http://studentaid.ed.gov/repay-loans/understand/plans or contact your financial aid counselor.

If you want to know more about financial aid, personal financial matters, scholarships and loans, receive updates and reminders about your bills and deadlines, ask questions, and engage in conversation with our office – follow us on Facebook!

Have you ever wondered why you don’t always get the same amount of Stafford loans each year? Or how much you’re actually eligible to receive? Hopefully today we can clear up the mystery of the Stafford loan.

The Federal government puts a cap on the amount of Stafford loans a student can take out each academic year. These caps are based on your year in school and whether or not you are an independent or dependent student.

Year in school

Dependent undergrad

Independent undergrad

Freshmen

$5,500

(up to $3,500 subsidized)

$9,500

(up to $3,500 subsidized)

Sophomore

$6,500

(up to $4,500 subsidized)

$10,500

(up to $4,500 subsidized)

Junior and Above

$7,500

(up to $5,500 subsidized)

$12,500

(up to $5,500 subsidized)

At some points in your educational career at Northeastern you may be unsure which exact year you are in. Just because you’ve been here for three years doesn’t necessarily mean you’re a junior. So, here is a little tip for you: in order to be considered a sophomore, you must have earned at least 32 credits. To be a third year, you have to have at least 64 credits under your belt.

Besides having yearly eligibility limits, Federal government has set up aggregate limits as well. All dependent undergraduate students can borrow up to $31,000 in Stafford loans with no more than $23,000 being subsidized. Independent undergraduate students can borrow $57,500 with the same subsidized limit. What does this mean to you? Well, if you are going into your fifth year at Northeastern University and have borrowed the maximum loans allowed in all the previous years, you will most likely only be eligible for about $4,000  in your last year because you approached your aggregate (or lifetime) limit. Also, you need to remember that your cost of attendance and your financial need will play a role in how much in subsidized loan funding you can receive in one year.

If you are a graduate student, or plan to attend graduate school in the future, the limits are a little different. All graduate students are eligible for $20,500/year in an unsubsidized Stafford loan and have a lifetime limit of $138,500 (this includes your undergraduate loans as well).

If you want to look up your current loan amounts to see where you stand and how much eligibility you have left, you can go to www.nslds.ed.gov. If you have any additional questions, please feel free to contact your financial aid counselor!

If you want to know more about financial aid, personal financial matters, scholarships and loans, receive updates and reminders about your bills and deadlines, ask questions, and engage in conversation with our office – follow us on Facebook!

 

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