Adam L. is a medical student. This past spring his school tapped into T.H.E.’s borrower education resources. As a result, Adam will save more than $35 ,000 on his education costs by implementing a financially savvy repayment strategy.
What education resources helped Adam save $35,000?
Because the financial aid professionals at his medical school promoted T.H.E.’s borrower education resources, Adam and his classmates had access to:
- One-on-one debt management counseling from our customer service experts
- Customized repayment worksheets and tailored advice from our Electronic Loan Counselor
How did this education affect his choices?
Choosing to act on the borrower education he received, Adam implemented a savvy repayment strategy now even though he won’t enter repayment for another few years. His plan includes:
- Making interest-only payments on his lower-interest rate federal loans
- Making bigger payments on his higher-interest rate private and Grad PLUS loans
What were the financial results of his actions?
By taking these actions, Adam will pay off his higher-interest rate loans more quickly, saving thousands in interest expenses. Once the private loans are paid off, he can dedicate those funds to his lower-rate federal loans. In addition, he’ll be able to pay off all of his loans almost five years ahead of schedule.
As a result, borrower education will save Adam more than $35,000 on the cost of financing his education. As a T.H.E. borrower, he’ll also get an additional monthly payment on each of his loans in the form of the T.H.E. Repayment Bonus —- further increasing the speed with which he pays off his loans. For his balance of $235,616, that’s an extra savings of $51,445, on top of what he’ll save thanks to T.H.E.’s education strategies. Combining education savings with Bonus savings will shave more than $85,000 off the cost of financing over the life of Adam’s loans.
| Adam’s outstanding balance at graduation: | $235,616 | |
| Action Items as a Result of Borrower Education | Borrower Education Savings | Borrower Education Savings, plus T.H.E. Bonus |
| Implemented repayment strategy that lets him pay down higher-rate loans more quickly than the lower-rate loans | $35,271 | $86,716 |