Notes

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What are Student Loans?

The concept of a loan is pretty straightforward: first you borrow money, and then you repay it. There are several types of student loans: Federal, State and Private. Before you borrow, it's important to understand all the terms associated with a loan:


Principal: The original amount you borrow is known as the "principal" of the loan. But the amount you must repay is more than the original principal that you borrow because the lender charges you for the use of the money.


Interest: The additional charge on your loan is known as interest. Interest accrues on the principal balance of your loan. In addition, lenders may charge fees for the use of the money.


Fees: Lenders often charge fees when you borrow money.


Co-signer: A person who agrees to be jointly responsible for repaying a loan along with the borrower. A creditworthy co-signer often enables a borrower lacking sufficient credit history to qualify for a loan. The addition of a co-signer on a loan may result in better loan terms (e.g., lower interest rate or lower fees). The co-signer is equally responsible for the debt as long as it is outstanding, unless he or she is formally released from the obligation during repayment. A co-signer is not required for Federal loans, but is usually required for
other types

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STUDENT LOAN CONSOLIDATION REPAYMENT OPTIONS

? Standard Repayment
? Graduated Repayment
? Income-Based Repayment
? Income Contingent Repayment

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STANDARD REPAYMENT OPTION

With the standard plan, you'll pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50, and you'll have up to 10 years to repay your loans. The standard plan is good for you if you can handle higher monthly payments because you'll repay your loans more quickly. Your monthly payment under the standard plan may be higher than it would be under the other plans because your loans will be repaid in the shortest time.

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GRADUATED REPAYMENT OPTION

If borrower’s income is low now, but expect it to increase steadily over
time, this plan may be right for them.

? Monthly payments start out low and increase every two years by 4.25%,
? Monthly payments are made for a period of between 10 and 30 years for Direct
Consolidation Loans and FFEL Consolidation Loans,
? Monthly payments will never be less than the amount of interest that accrues
between your payments, and
? Monthly payments won’t be more than three times greater than any other payment.
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IBR : Income-Based Repayment

?Available under both FFEL and Direct
Loan Programs.

? Monthly IBR payment is determined
based only on borrower’s income &
family size.

? Govt. pays the remaining unpaid
accrued interest on their subsidized
loans for up to 3 consecutive years
from the date they begin repaying
under IBR.


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ICR : Income Contingent Repayment

This plan gives you the flexibility to meet your Direct Loan obligations without causing undue financial hardship. Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse's income if you're married), family size, and the total amount of your Direct Loans. Under the ICR plan you will pay each month the lesser of:
o The amount you would pay if you repaid your loan in 12 years multiplied by an income
percentage factor that varies with your annual income, or 20% of your monthly discretionary income*.
If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year. However, capitalization will not exceed 10 percent of the original amount you owed when you entered repayment. Interest will continue to accumulate but will no longer be capitalized. The maximum repayment period is 25 years. If you haven't fully repaid your loans after 25 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged.

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Total and Permanent Disability (TPD) Discharge

A TPD discharge relieves customers from having to repay a loan on the basis of their total and
permanent disability. Before their federal student loans can be
discharged, they must provide information to the U.S. Department of
Education (ED) to show that they are totally and permanently disabled.
ED will evaluate the information and determine if they qualify for a TPD
discharge.

Customers can show that they are totally and permanently disabled in
one of the following three ways:

1) If they are a veteran, they can submit documentation from the U.S.
Department of Veterans Affairs (VA) showing that the VA has
determined that they are unemployable due to a service-connected
disability
2) If they are receiving Social Security Disability Insurance (SSDI) or
Supplemental Security Income (SSI) benefits, they can submit a
Social Security Administration (SSA) notice of award for SSDI or SSI
benefits stating that their next scheduled disability review will be
within five to seven years from the date of their most recent SSA
disability determination

3) Customers can submit certification from a physician that they are
totally and permanently disabled. Their physician must certify that
they are unable to engage in any substantial gainful activity by reason
of a medically determinable physical or mental impairment that

? Can be expected to result in death,
? Has lasted for a continuous period of not less than 60 months,
? or
? Can be expected to last for a continuous period of not less than 60
months.

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Discharge in Bankruptcy

This is not an automatic process, customers must prove to the
bankruptcy court that repaying their student loan would cause undue
hardship

? If they file Chapter 7 or Chapter 13 bankruptcy, they may have their
loan discharged in bankruptcy only if the bankruptcy court finds that
repayment would impose undue hardship on them and their
dependents. This must be decided in an adversary proceeding in
bankruptcy court. Their creditors may be present to challenge the
request. The court uses this three-part test to determine hardship:

? If they are forced to repay the loan, they would not be able to
maintain a minimal standard of living.

? There is evidence that this hardship will continue for a significant
portion of the loan repayment period.

? Customers made good-faith efforts to repay the loan before filing
bankruptcy (usually this means they have been in repayment for a
minimum of five years).

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Death Discharge

? In the event of death of the borrower, federal student loans will be
discharged. If customer is a parent PLUS loan borrower, then the loan
may be discharged if he/she dies, or if the student on whose behalf
customer obtained the loan dies.

The loan will be discharged if a family member or other representative
provides a certified copy of the death certificate to the school (for a
Federal Perkins Loan) or to the loan servicer (for a Direct Loan
or FFEL Program loan)

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PUBLIC SERVICE LOAN FORGIVENESS

? The PSLF Program is intended to encourage individuals to enter and
continue to work full-time in public service jobs.

? You must make 120 on-time, full, scheduled, monthly payments on
your Direct Loans. Only payments made after October 1, 2007 qualify.

? On-time payments are those that are received by your federal loan
servicer no later than 15 days after the scheduled payment due date.

? You must make those payments under IBR or ICR.

? When you make each of those payments, you must be working fulltime (at least 30 hours a week)at a qualifying public service organization.

? Qualifying employment is any employment with a federal, state, or
local government agency, entity, or organization or a not-for-profit
organization that has been designated as tax-exempt by the Internal
Revenue Service (IRS) under Section 501(c)(3) of the Internal
Revenue Code (IRC)

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Discretionary Income

For Income-Based Repayment, discretionary income is the difference
between borrowers income and 150 percent of the poverty guideline for
their family size and state of residence.

For Income-Contingent Repayment, discretionary income is the
difference between borrowers income and 100 percent of the poverty
guideline for their family size and state of residence

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Loan Rehabilitation

The process of bringing a loan out of default and removing the default
notation from a borrower's credit report. To rehabilitate a Direct or a
FFEL Loan, the borrower must make at least 9 full payments of an
agreed amount within 20 days of their monthly due dates over a 10-
month period. To rehabilitate a Perkins Loan, a borrower must make
nine on-time, consecutive monthly payments of an agreed-upon
amount. Rehabilitation terms and conditions vary for other loan types
and can be obtained directly from loan holders

When in default, to rehabilitate your
Direct Loan or FFEL Program loan,
borrowers and DOE must agree on a
reasonable and affordable payment
plan.

Once the rehab is completed the
borrowers will be eligible for
consolidation and automatically
enrolled

Collection costs may be added to
their principal balance, increasing the
total amount they owe. Delinquencies
reported before the loan defaulted will
not be removed from their credit
report

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Principal

The total sum of money borrowed plus any interest that has been
capitalized.

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Tax Offset / Tax Withheld

A debt collection tool that allows the government to seize income tax
refunds from individuals who owe the federal government to help repay
the outstanding debt. This tool may be used for federal student loans
borrowers who are in default.




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WHAT DO YOU WANT? / IS THIS A SALES CALL

We need to draw your attention to the crisis an average American faces trying to pay off loans taken for a decent education as compared to maintaining a decent lifestyle today without taking a negative hit on their credit scores. We would need to check if you qualify for lower repayments or forgiveness on your student loans. GET BACK TO THE SCRIPT….

IF THERE IS A COST, I AM NOT INTERESTED

We completely respect that decision, however (Customers name) a few minutes spent with me today would open up a completely new avenue to the way you manage your loans and qualify you for lower repayments that suit your lifestyle based on your income rather than a promissory amount committed to years back. It’s a WIN WIN situation…GET BACK TO THE SCRIPT…

I DON’T HAVE TIME…. / I DON’T WANT TO TALK TO YOU

I completely understand that TIME is always a concern, however it is CRITICAL that we spend just a few minutes reviewing your repayment options and working out a plan to fit your spending patterns and get you up to speed on easy monthly payments.

I DON’T TRUST YOU/ YOU ARE A SCAM

I totally respect the fact and treat this as an opportunity to reintroduce myself and the very purpose of the call. We are calling on behalf of Swift Solutions, as we understand the hardships the average American faces paying off their student loans as well as keep a healthy CREDIT SCORE. We would NOT ONLY help you consolidate your monthly payments to suit your Income, cutting them in almost half but go that extra mile to check if you qualify for a PARTIAL OR COMPLETE FORGIVENESS on the same.

I DON’T DO BUSINESS OVER THE PHONE

That’s great (Customers Name). As fact of the matter is neither do we. The phone is just a medium to get our voice across. All that we discuss is not only being recorded, but would also be DOCUMENTED in black and white and mailed to you. Only after you have gone through the same, signed and returned it to us would we be able to go ahead and HELP you get the payments reduced. So as I was saying…. GET BACK TO THE SCRIPT…


WHERE DID YOU GET MY DETAILS…? HOW DO YOU KNOW I HAVE A LOAN/ WHO AUTHORIZED YOU TO CALL ME

(Customers Name) This call goes out to every American who is facing a debt crisis paying back their Student Loans. Recent study has shown that 2 out of every 3 Americans are paying higher interests rates than the national average to repay loans as well as struggling with higher payments than their current earnings. GET BACK TO THE SCRIPT…


I DON’T NEED A LOAN
And we would always hope that it remains that way. In fact we have called you to help you CONSOLIDATE your current loans to repay them as per your earnings, keeping a healthy credit score and also maintain a decent lifestyle. This call goes out to every American who is facing a debt crisis paying back their Student Loans. Recent study has shown that 2 out of every 3 Americans are paying higher interests rates than the national average to repay loans as well as struggling with higher payments than their current earnings. GET BACK TO THE SCRIPT…