[Natfinwellness] Loan Debt Letters

[Chris Conway]

A good source for students is ED's Repayment Estimator (https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action) where they can estimate payments under all possible repayment plans.

Another option is to provide a rough estimate, with a link to the estimator or calculator.  The rule of thumb we use is based on today's interest rates: For every $1,000 you borrow, your standard payment would be approximately $10. If you borrow $26,000, your standard payment would then be about $260. You just need to be clear that it's an approximate amount.

It will be interesting to see if adding the payment to your letter reduces borrowing- keep us posted, and good luck! -Chris


From: Natfinwellness [mailto:natfinwellness-bounces+chris.conway=apollo.edu at lists.osu.edu] On Behalf Of Nicole Solomon
Sent: Tuesday, February 23, 2016 4:31 PM
To: natfinwellness at lists.osu.edu
Subject: [Natfinwellness] Loan Debt Letters

Hello all -

I hope everyone is doing well.  I have a question, and I'm hoping someone can help.

Prior to award letters going out to returning students, we send an "indebtedness" letter to let them know how much they have borrowed in federal loans at this point to make students think about their debt right before they accept loans for the upcoming aid year.  Last year this had an average impact of 10% - 13% on their borrowing for the following aid year.

We would like to include an estimated monthly repayment for their loans on this letter, but we are not sure where to get that information or how to calculate it.  Does anyone do something similar and include an estimated monthly payment tailored to the students' debt?  If so, do you include Perkins loan debt as well?

Any help you all can provide will be greatly appreciated.  Thank you in advance!

Sincerely,

Nicole

Nicole Solomon
Assistant Director of Outreach and Communication
WVU Financial Aid Office
Phone: 304-293-5242
Fax: 304-293-4890
http://financialaid.wvu.edu/
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