WEST LAFAYETTE, Ind. — As part of Indiana Money Smart Week, Purdue’s Division of Financial Aid will offer students financial literacy information at various campus locations on Thursday (Oct. 15).

Financial literacy information will be available at Earhart Dining Hall, Ford Dining Hall and Stewart Center in front of the Humanities, Social Science and Education Library from 11:30 a.m. to 1:30 p.m.

Topics will include money management, spending and credit, and student loan debt management. Information also will be shared about “Cash Course,” a financial literacy Web site available at http://www.cashcourse.org/purdue

“In these uncertain economic times, it has become even more important for students to know how to manage their money wisely,” said Joyce Hall, executive director of financial aid. “We want to offer information and resources to encourage sound financial practices.”

This year marks the fourth annual Indiana Money Smart Week, taking place Oct. 10-17. Free classes and activities will be conducted statewide to help consumers better manage their finances. Money Smart Week takes place in Indiana, Illinois, Iowa, Michigan and Wisconsin. These events are sponsored and coordinated in part by the Federal Reserve Bank of Chicago.

For more information, visit http://www.moneysmartweek.org/indiana or call the Money Smart Week Hotline 1-877-MNY-SMRT (1-877-669-7678).

INDIANAPOLIS, Ind. — New changes in the terms of federal student loans will benefit college students and former students who have loans through the Federal Family Education Loan Program.

“Legislation enacted by the U.S. Congress will reduce the cost of borrowing for college and provide relief for federal student loan borrowers whose monthly payments make up a significant portion of their income,” said Gregory A. Ayers, USA Funds senior vice president, policy and administration.

Legislation enacted by the U.S. Congress will reduce the cost of borrowing for college and provide relief for federal student loan borrowers whose monthly payments make up a significant portion of their income.

Among the changes in federal student loan terms effective July 1 are the following items:

Lower interest rates. Interest rates on subsidized Stafford loans to undergraduate students will decline to 5.6 percent, from the current rate of 6 percent, for loans with initial disbursements between July 1, 2009, and June 30, 2010. Rates on all other newly issued Stafford loans will remain at 6.8 percent. These rates are fixed for the term of the loan. In addition, students and former students with Stafford loans issued prior to July 1, 2006, will benefit from a more than 1.7 percentage point reduction in their rates due to declines in prevailing interest rates. These Stafford loans carry variable interest rates that adjust annually on July 1. For example, the interest rate on a Stafford loan first disbursed between July 1, 1998, and June 30, 2006, that is in repayment will decline to 2.48 percent from the current rate of 4.21 percent. Stafford loans are the most common federal student loan type. Subsidized Stafford loans are available to students who demonstrate financial need. The federal government subsidizes the interest on these loans while the student attends college at least half time and for six months after the student leaves college or drops below half-time enrollment.

Reduced loan fees. Upfront borrower fees on Stafford loans will be reduced by 0.5 percentage points. The maximum upfront fee that may be deducted from a student’s Stafford loan funds will decline to 1.5 percent from the current 2 percent, for loans with initial disbursements between July 1, 2009, and June 30, 2010.

New income-based repayment option. Federal student loan borrowers also may qualify to repay their loans under a new income-based option beginning July 1. To qualify, standard loan payments must exceed 15 percent of the former students’ discretionary income, which is defined as the amount by which their adjusted gross income exceeds 1.5 times the federal poverty level for their family size. Borrowers who qualify can limit their payments to 15 percent of their discretionary income. If their payments are less than the interest accruing on the subsidized portion of their loans, the federal government will pay the interest for up to three years. Borrowers repaying under income-based terms also may qualify for forgiveness of any outstanding loan balance that remains after 25 years of repayment, although the amount forgiven will be taxed as income. In addition to income-based repayment, federal student loan borrowers continue to have the option to repay their loans under standard, graduated or income-sensitive repayment plans, as well as an extended repayment option for borrowers with more than $30,000 in student loan debt.

For additional information on student loan interest rates and repayment options, students and former students can visit the Borrowers section of the USA Funds Web site at www.usafunds.org/borrowers.

INDIANAPOLIS, Ind. — USA Funds announces the introduction of USA Funds Grad Guide(SM), its new online loan counseling program for graduate and professional students. USA Funds Grad Guide is designed to address the unique financial issues faced by students pursuing graduate and professional degree programs. The program meets both Stafford and Grad PLUS loan counseling requirements.

USA Funds Grad Guide helps better prepare graduate and professional students to make wise decisions regarding their current education loan debt by providing them with the option to review their total student loan indebtedness to date. The tool displays aggregated student loan information from the Meteor network, allows the student to include information about additional loans, and summarizes Stafford, PLUS and consolidation loan information in one comprehensive view.

USA Funds Grad Guide entrance counseling is the newest component of USA Funds Loan Counselor(R), USA Funds’ suite of counseling services to help student loan borrowers understand their rights and responsibilities and take control of their education debt. USA Funds Grad Guide provides the following features to help students navigate their options, plan a budget and understand the details of credit, including student loans:

• A video adviser to explain big idea concepts for each topic.
• Repayment and consolidation calculators.
• An interactive budget calculator.
• Information about credit scores.
• Details of issues to consider before taking out student loans.

“As part of our commitment to graduate and professional education, we have tailored this counseling program for students pursuing advanced degrees,” said Denise B. Feser, USA Funds senior vice president, customer relations. “USA Funds Grad Guide delivers information relevant to these students who typically incur larger student loan debts to complete their postgraduate studies.”

USA Funds invites campus financial aid professionals to learn more about USA Funds Grad Guide and the other USA Funds Loan Counselor components by visiting the USA Funds booth during the national conference of the National Association of Student Financial Aid Administrators in Orlando, Fla., July 6-9.

Headquartered in Indianapolis, USA Funds is a nonprofit corporation that works to enhance postsecondary education preparedness, access and success by providing and supporting financial and other valued services. During the year ending Sept. 30, 2007, USA Funds guaranteed education loans totaling $25.8 billion for students and parents throughout the nation. USA Funds serves as the designated guarantor of federal education loans in eight states: Arizona, Hawaii and the Pacific Islands, Indiana, Kansas, Maryland, Mississippi, Nevada and Wyoming. USA Funds also invests $16.3 million annually in scholarships and outreach programs that advance its mission of support to higher education. For more information about USA Funds, visit www.usafunds.org

INDIANAPOLIS, Ind. — USA Funds, the nation’s leading education loan guarantor, suggests that college students review a brief checklist before they leave campus to ensure they are financially prepared for the next phase of their lives.

As part of its service to higher education institutions, USA Funds provides a free financial literacy curriculum for college students. More than 500 colleges, universities and career colleges nationwide use the program, USA Funds Life Skills.

The USA Funds Life Skills module “Now That You Are About to Graduate – Taking Control of Your Life” recommends that students prepare for life after college by developing a plan for employment, preparing to live within their means after leaving campus, and understanding their student loan responsibilities and options.

USA Funds suggests graduating college students review the following checklist, which is drawn from the USA Funds Life Skills materials.

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