Financial Aid for Medical School

Transcription

1 Financial Aid for Medical School May 2, 2015 Monique Cosby and Daniel Hewitt Directors of Financial Aid Auburn and Virginia Campuses

2 Agenda Costs at VCOM Financial aid options and why loans are good, realistic options Budget planning and repayment options that are manageable

3 Costs At VCOM VCOM Tuition $42,500 Federal Student Loan Fees $ 1,746 Living and Other Educational Expenses $30,251 (see expense estimates below) Total Cost of Attendance $74,497 SUPPLIES AND EQUIPMENT $4,594 HOUSING $7,480 UTILITIES $3,707 MEALS $5,005 TRANSPORTATION AND TRAVEL $7,246 MEDICAL & PERSONAL EXPENSES $2,219

4 Financial Aid Options Scholarships VCOM s website: Service Contracts National Health Service Corps (NHSC) Scholarship Program Military Health Professions Scholarship Program (HPSP) State agencies and individual hospitals Students Loans Federal Direct Unsubsidized Graduate PLUS Private

5 Applying For Loans Free Application for Federal Student Aid (FAFSA) VCOM Financial Aid Application Loan applications

6 Loan Eligibility 1. Cost of Attendance - Scholarships and Service Contracts = Direct Unsubsidized Loan 2. Cost of Attendance - Scholarships and Service Contracts - Direct Unsubsidized Loan = Graduate PLUS or Private loan

7 Direct Unsubsidized Loans Fixed interest rate, set June 1 st 1.073% origination fee Interest starts accruing right away No credit check, but cannot be in default on any student loan Maximum amount of $47,197 (12-month calendar) $44,944 maximum for OMS1 (11 month calendar)

8 Graduate PLUS and Private Loans Graduate PLUS loan Fixed interest rate 4.292% origination fee Interest starts accruing right away Private (Alternative) loan Variable or fixed interest rate Rates based on your credit score and the market rate Interest starts accruing right away Maximum amount for either loan is Cost of Attendance minus other aid

9 Loan Applications For Direct Unsubsidized and Graduate PLUS loans: 1. only require an Award Letter response For Private loans: 1. require an Award Letter response, and 2. require a separate application with a lender All loan types require Promissory Notes (MPNs) through the Direct Loans website or through the lender s website

10 Borrowing Responsibly The approximate cost of your education: Year 1 Year 2 Year 3 Year 4 Total Annual Unsubsidized Limits $44,944 $44,944 $42,722 $42,722 $175,332 Graduate PLUS $29,553 $30,466 $31,704 $29,641 $121,364 Maximum Unsubsidized & Graduate PLUS 74,497 $75,410 $74,426 $72,363 $296,696 Direct Unsubsidized Loan 6.21% fixed (currently) Graduate PLUS 7.21% fixed (currently)

11 The Long-Term Cost Borrower 1 is financing to maximum Unsubsidized Stafford loan limits and supplementing with Graduate PLUS Borrower 2 is financing as above, minus $5,000 each year in Graduate PLUS Borrower 1: Maximum Unsubsidized & Grad PLUS Borrower 2: Less $5,000 of Unsubsidized & Grad PLUS Principal Balance Balance at graduation (after interest capitalization) Total loan cost based on a 25-year repayment term $290,000 $327,963 $731,833 $270,000 $305,078 $677,023 Difference These examples assume a 3-yr $20,000 residency and 25-yr $22,885 repayment $54,810

12 Breakdown Principal balance Difference $20,000 Yearly $5,000 Weekly $96.15 Daily Cost $13.69 If you adjust your expenses by less than $14 a day for the next four years, you could save yourself $55,000!

13 Determine Your Income Employment Personal savings Family support Financial aid funds

14 Identify Your Expenses Fixed Expenses: Tuition and fees Rent Child care Taxes Insurance premiums

15 Identify Your Expenses Variable Expenses: Utilities Food Clothing Transportation Other living expenses

16 Cost of a Daily Latte Daily $4 Weekly $20 Monthly $87 Annually $1,040 Cost over 4 years $4,160 Repayment over 25 years at 7.21% $11,400

17 Loan Repayment Repayment Plan Length Normal = 10 years Extended = up to 25 years Repayment Plan Type Standard fixed, equal monthly payments Income-Based monthly payments go up and down with your income

18 Loan Repayment Postponement Options Deferments ex. In-School Deferment Forbearances ex. Residency Forbearance

19 Early Repayment No early repayment penalties of any kind Within 120 days of disbursement, loan fees and accrued interest are negated Extra payments go to accrued interest first, then to principal Discharge Death, or Total and Permanent Disability

20 Review Costs at VCOM Financial aid options and why loans are good, realistic options Budget planning and repayment options that are manageable

21 Questions? Monique Cosby Daniel Hewitt