Financial Aid Nights — Financial aid nights provide students and their families with a better understanding of the financial aid process, and as a result, help to ease the anxiety of applying for financial aid. Topics covered include the Free Application for Federal Student Aid (FAFSA), grants, student loans and scholarships. For more information about financial aid nights scheduled in your area contact us.

Montana Students Save —This program is an Individual Development Account (IDA) — or matched savings program — helping qualified students and their families save for postsecondary education. Program participants will earn a 6-to-1 match on savings up to $500 ($6 will be matched for every $1 they save). This provides them a total of $3,500 towards their education. The Montana Students Save program is a project of Student Assistance Foundation, the U.S. Department of Health and Human Services Assets for Independence and Montana’s credit unions.

To qualify, students must:

• Meet income requirements.
• Plan to pursue their postsecondary education in Montana.
  (For more details on eligibility see application form.)

In addition, students are asked to commit to:

• Make monthly deposits of at least $20 and save for at least 6 months.
• Participate in personal finance/money management training and career and postsecondary planning.
• Maintain regular contact with program representative.

For more information, check out our Frequently Asked Questions document.

Apply now!

For more information contact Karen at Karen@mcun.org

Rural Montana Saves — This program is an Individual Development Account (IDA) — or matched savings program — that helps qualified individuals and their families save for postsecondary education or job training. Program participants earn a 3-to-1 match on savings up to $400. ($3 will be matched for every $1 they save) This provides participants with a total of $1,200 to help pay for their education. The Rural Montana Saves program is a project of Rural Employment Opportunities, Montana's Credit Unions, Montana State Extension Service and Student Assistance Foundation.

To qualify, individuals must:

• Meet income requirements.
• Be between 16 and 19 years of age, or over the age of 18 with at least one minor child living in his/her household.
• Live in one of Montana's participating rural counties.
  (For more details on eligibility see the Frequently Asked Questions.)

In addition, individuals are asked to:

• Make a minimum of six monthly, or bi-weekly, savings deposits of at least $20.
• Participate in personal finance/money management training and career and postsecondary planning.
• Maintain regular contact with program representative.

For more information, check out our Frequently Asked Questions.

Apply now!

For more information, contact Rural Employment Opportunities at (800) 546-1140 or rmsinfo@reomontana.org.

• Hope and Lifetime Learning Tax Credits — Education tax credits to help offset the costs of higher education by reducing the amount of income tax. Please refer to the IRS site for details.
• American Opportunity Tax Credit — A modification of the Hope Credit that expands the number of parents and students eligible and the amount of tax credit that can be claimed. This tax credit will be available starting with the tax year 2009.
• Deductions for Education Expenses — Families can deduct qualified tuition and related expenses from their taxable income. This deduction follows the same guidelines as those for the Hope and Lifetime Learning credits. However, taxpayers may not claim both the deduction and one of the tax credits for the same expenses.
• Student Loan Interest Deduction — Taxpayers can deduct from their taxable income up to $2,500 in interest paid on student loans each year for the life of the loans. This deduction has income limitations.
• For more information on these programs, students and their families should contact their tax advisors or visit www.irs.gov/publications/p970/index.html.

Educational IRAs (Section 529 Savings Plans) — These are state-sponsored college savings plans, the earnings of which are free of federal income tax if the money is later used to pay qualified college expenses. For more information, visit montana.collegesavings.org.

TANF Education Assistance — Individuals who are both students and parents may be eligible for cash aid and help with childcare, transportation and job or training expenses through Temporary Assistance to Needy Families (TANF). For more information, students should contact the welfare office in their community.

Veterans’ Benefits — The Montgomery GI Bill provides educational benefits for participating individuals who served on active duty, Selected Reserve and National Guard. Service members have 10 years from their last separation from service to use all of their benefits through the GI Bill. For more information, go to www.gibill.va.gov.

Vocational Rehabilitation and Students with Disabilities — Students with disabilities who meet the academic qualifications for college should apply for admission and, if necessary, financial aid. Students who fit this category should work with their financial aid officers when they apply for admission, making sure that the officer fully understands their particular needs. For more information, students should contact the disabled students’ office at their school, national or local organizations serving their particular disability, or the local office of their state’s vocational-rehabilitation agency.

Student Assistance Foundation advises students to follow these steps to keep their debt under control, while they are in school and after graduation:

• Get organized. Students should set up separate files for their bank statements, credit card bills, phone bills, gas and electric bills, insurance payments, financial aid papers, loan documents and correspondence from their financial aid administrators. Keep all financial records in a safe place.
• Create a spending plan and stick to it. Students should begin this process by setting up a financial planning worksheet. They should record their income and expenses in a notebook for about a month to get a better understanding of their spending habits.
• Borrow smart. If it appears a student will need to borrow to pay for college, he/she should calculate how much they can afford to repay by looking at their monthly payments, expenses and what they can expect to earn after graduation. It’s imperative to set borrowing limits.
• Start saving. While the prospect of saving may seem impossible to students, even putting away $20 a month will start a habit that will last for a lifetime, and provide a cushion for unexpected expenses.
• Students should pay as they go. While putting off student loan interest payments may be tempting, the cost will be larger in the long run.
• Don’t graduate with sticker shock. Students should keep track of how much they borrow and how much they owe, including interest costs and fees.
• Take advantage of federal tax breaks. Students may be able to deduct up to $2,500 in student loan interest paid each year on their federal tax return. In addition, they should find out if they or their families qualify for a Hope of Lifetime Learning tax credit.
• Be thrifty. Students should live within their means. That means eating out less, living with roommates, clipping coupons and whatever else will help cut costs.
• Avoid using credit cards. It’s easy to get into trouble by using credit cards. Low interest rates tend to jump drastically after introductory rates expire and various fees can be devastating. Students should never let themselves get to where they can’t pay off the balance on their credit cards within a month.
• Attend entrance and exit counseling sessions to make sure you understand how student aid works, and what the requirements are for repayment.

• Federal Teacher Loan Forgiveness Program — Certain teachers qualify for up to $17,500 in loan forgiveness under this program. For more information regarding qualifications, go to http://www.studentaid.ed.gov
• Federal Health Care Worker Loan Forgiveness Programs — The U.S. Department of Public Health and Human Services administers several loan programs for undergraduate students, and in some circumstances, will forgive loans. Visit www.bhpr.hrsa.gov/dsa for more information.
• Public Service Loan Forgiveness — The College Cost Reduction and Access Act of 2007 established a new public service loan forgiveness program. This program discharges any remaining debt after 10 years of full-time employment in public service. The borrower must have made 120 payments as part of the Direct Loan program in order to obtain this benefit. Only payments made on or after October 1, 2007 count toward the required 120 monthly payments. (Borrowers may consolidate into Direct Lending in order to qualify for this loan forgiveness program starting July 1, 2008.) Contact your lender for more information.
• Quality Educator Loan Assistance Program (Montana only) — The Montana legislature has authorized a Quality Educator Loan Assistance Program for K-12 educators and licensed professionals.
  The program provides for the direct repayment of educational loans. The total loan repayment assistance may not exceed $3,000 per year for up to four years. The Legislative appropriation of $350,000 in FY2008 will allow for 100-120 educators to receive repayment. Qualified applicants will be ranked based on a scoring system that takes into account the impacted schools and academic areas.
  To qualify for loan assistance an educator must be:
  • A full-time educator holding a valid educator license or a licensed professional providing services to students in a school district, an education cooperative, the Montana School for the Deaf and Blind, the Montana Youth Challenge Program or a state youth correctional facility.
  • Teaching in an impacted school. These schools tend to be rural and isolated, have a higher percentage of economically disadvantaged students, and/or have greater challenges in closing the achievement gap. A list of qualifying schools is available at Impacted Schools_CQESRpt.pdf
  • Teaching in an impacted academic area. These areas are Music, Mathematics, Special Education, Science, Speech/Language Pathologist, World Languages, School Counselor, Library/ Media, and Business. Applications and instructions are available online at http://www.mgslp.org and must be received at the Montana Guaranteed Student Loan Program, 2500 Broadway, Helena, MT 59601 no later than May 31, 2008.
• Questions regarding the program and application process may be directed to Montana Guaranteed Student Loan Program at (800) 537-7508.

Repayment Information:
A student loan is a debt owed for education and should be treated as any other kind of debt such as a loan to buy a car or a house. As with any debt, the borrower is responsible for repaying the loan in full even if he or she did not complete school, cannot get a job, or feels he or she did not receive the education or other services purchased.

Repayment Options:

• Standard Repayment Plan — This repayment term allows borrowers to make the same payment every month for the entire life of the loan.
• Graduated Repayment Plan — This repayment option has a tiered effect which allows borrowers to make lower payments (interest only) for the first two years, increasing to interest plus principal over the next three years. The remaining five years of the loan will be placed on a standard repayment plan.
• Income Based Repayment Plan — This schedule allows you to repay your loans based on a specific payment amount calculated annually using your Adjusted Gross Income (AGI) and family size. After 25 years of these payments any balance remaining may be eligible for loan forgiveness (other certain requirements must also be met).
• Income-Sensitive Repayment Plan — This repayment option can lower payments based on the borrower’s income, but will never drop below monthly interest accrual.
• Extended Repayment Plan — Extended repayment requires a principal balance totaling at least $30,000. With this option, a borrower’s repayment period can be extended up to 25 years and may be set up as either standard or graduated repayment.

Managing Student Loan Debt:
To repay student loans successfully, borrowers need to manage their finances. Planning for repayment in advance, allows borrowers to reap big benefits in terms of future financial freedom and present peace of mind. Help is available for setting up budgets and repayment options at any of Student Assistance Foundation’s campus outreach offices.
Tips for Managing Student Loan Debt:

• Borrow only what is necessary.
• Pay the accrued interest on Federal Unsubsidized Stafford Loans before the end of the grace period.
• Make on-time payments every month during repayment.
• Borrowers should contact their lender or servicer as soon as they know they will have trouble making a payment. Other options such as deferments or forbearances may be available.

Notice: Repayment calculations are estimates only… Your actual loan payments and interest charges may vary!

Repayment Schedule

Level/Extended — This schedule allows you to repay your loan in equal monthly payments over a certain number of years.

Income Based — This schedule allows you to repay your loans based on a specific payment amount calculated annually using your Adjusted Gross Income (AGI) and family size. After 25 years of these payments any balance remaining may be eligible for loan forgiveness (other certain requirements must also be met).

Income Sensitive — For Borrowers who meet income qualifications, this schedule allows you to extend your repayment terms in one year increments with a payment of the greater of interest only or your preferred payment amount. If you meet income qualifications, this plan may be renewed up to five times.

Graduated — This schedule begins with lower payments that gradually increase over the life of the loan.

Comparison — Compares Level, Income Sensitive, and Graduated schedules.

Other Calculators

Prepayment — Estimate how much you can save in interest by increasing your monthly payment. Your payback will be accelerated in the process.

Debt Calculator — Select a career from the list provided and the length of schooling required to determine the average amount of debt.

Budget Calculator — Calculate your total monthly expenses to show exactly where you spend your money.

Instructions

• Download Adobe Acrobat Reader.
• Need assistance? Call us at (800) 852-2761 ext. 6657 or e-mail us.

Direct Payment Authorization

Request form authorizing direct payment (automatic monthly payment) to be implemented for your student loan payment at SAF.

Economic Hardship Deferment

Deferment request for the qualified borrower who has been granted this deferment by the William D. Ford Direct Loan Program. Borrower is receiving federal or state public assistance, is serving as a Peace Corps volunteer, or meets specific, low-income qualifications. (Available to a borrower who has an outstanding balance and all loan(s) were made on or after July 1, 1993.)

Education Related Deferment

Deferment request for borrowers who are engaged in a graduate fellowship, rehabilitation training, or internship/residency program, or are teaching in a designated teacher shortage area.

Income-Based Repayment Application

Application for Income-Based Repayment Plan for Stafford, Grad PLUS and certain consolidation loans. Not available for Parent PLUS loans or consolidation loans containing Parent PLUS loans.

Income-Based Repayment Alternative Income Verification

Verification of alternative income for borrowers applying for Income-Based Repayment Plans. Used by borrowers whose income has changed, or whose income is not reflected correctly on their latest IRS filing. This form is also used by borrowers who have no income.

Income-Sensitive Repayment

Form for qualified borrowers to request a reduced payment schedule which is interest only, or the payment amount they request - the greater of the two.

Information Release Authorization

Form for a borrower to authorize SAF to release loan information to a third-party.

In-School Deferment

Deferment request for qualified borrowers who have returned to school on at least a half-time basis.

Loan Discharge Application: False Certification (Ability to Benefit)

Loan Forgiveness Application for forgiving a borrower's loan based upon a false certification of the borrower's ability to receive benefits to attend college because he/she doesn't have a GED or high school diploma.

Loan Discharge Application: False Certification (Disqualifying Status)

Loan Forgiveness Application for forgiving a borrower's loan based on the borrower's disqualifying condition(s) for the degree.

Loan Discharge Application: False Certification (Unauthorized Signature/Unauthorized Payment)

Loan Forgiveness Application for forgiving a borrower's loan based upon endorsement or certification of the promissory note, disbursement, or application by an unauthorized person.

Loan Discharge Application: School Closure

Loan Forgiveness Application for forgiving a borrower's loan based upon a school closure that prevents the borrower from completing his/her degree or program.

Loan Discharge Application: Unpaid Refund

Loan Forgiveness Application for forgiving the borrower's loan because the borrower's school did not provide the correct refund to the borrower's lender.

Military Deferment

Deferment request for the qualified borrower who is in the Federal Family Education Loan, Direct or Federal Perkins loan programs and is called to active duty during a war or other military operation or national emergency. The deferment covers all periods of active duty service beginning on or after Oct. 1, 2007.

Parental Leave/Working Mother Deferment

Deferment request for mothers who have an outstanding balance on a loan made between July 1, 1987 and July 1, 1993 and who meet specific qualifications regarding pregnancy, child care, school enrollment, and employment.

Parent PLUS Borrower Deferment

Parent PLUS loans disbursed after July 1, 2008: Deferment request based on the dependent student's in-school status;
Parent PLUS loans disbursed after July 1, 1993 and before July 1, 2008: Do not qualify for deferment based on dependent student's enrollment status;
Parent PLUS loans disbursed before July 1, 1993: Deferment request based on the dependent student's in-school status.

Public Service Deferment

Deferment request for the qualified borrower who is on active duty in the Armed Forces or National Oceanic and Atmospheric Administration, is an officer of the Public Health Service, is serving in the Peace Corps, or is a paid volunteer in the Action Programs or for a tax-exempt organization. (Available for a borrower who has an outstanding balance on a loan made prior to July 1, 1993.)

Repayment Table

Chart listing helpful information about payment amount, monthly interest, and interest paid for sample and maximum rates for various loan amounts.

Student Loan Borrower's Rights and Responsibilities

Descriptions of the rights and responsibilities of student loan borrowers.

Teacher Loan Forgiveness Application

Loan forgiveness application for borrowers who have been employed for five consecutive years as a full-time teacher in a qualifying school. This program is available only to borrowers with no outstanding balance on either Federal Family Education Loan Program or Direct loans on Oct. 1, 1998.

Teacher Loan Forgiveness Forbearance

Forbearance request for borrowers who are eligible for the Teacher Loan Forgiveness program and whose entire outstanding balance will be forgiven at the end of their fifth year of teaching in a qualifying school.

Temporary Total Disability Deferment

Deferment request for the qualified borrower who is, or whose spouse or dependent is, temporarily totally disabled. (Available only to a borrower who has an outstanding balance on a loan made prior to July 1, 1993.)

Total and Permanent Disability

Loan discharge application for borrowers who are unable to repay their Federal Family Loan Program student loans due to total and permanent disability (as defined by the U.S. Department of Education).

Unemployment Deferment

Deferment request for the qualified borrower who is unemployed, but seeking work in any field.