Funding Your Dental Education

Transcription

1 Funding Your Dental Education Prepared by Liz Holm Office of Student Finance UPlan

2 Four key points: 1) You can borrow enough in loans to cover the cost of attending dental school (live like a student!) 2) Expect to graduate with a fair amount of loan debt 3) According to the American Dental Education Association, the average loan debt for 2013 dental graduates from public universities was about $210,000 4) Loan debt varies considerably between individual students

3 For general information, visit the One Stop home page

4 One Stop Home Page, cont. Contains much helpful information: Registration, financial aid, deadline dates Forms online Grades, transcripts, degree planning Respond to your efaan Monitor your bill and any holds on your record Direct deposit sign-up very important! Parent/guest access

5 The Financial Aid Process Six Steps FAFSA Packaging efaan Promissory notes/ entrance counseling Disbursement Refunds

6 1 st Step: Complete a FAFSA FREE Application for Federal Student Aid U of M Twin Cities federal school code is Each year, apply in early spring (starting after January 1) prior to fall semester enrollment Name must exactly match name on SSN card Complete tax return first; use IRS data retrieval tool Must be U.S. citizen or eligible non-citizen to receive federal aid UPlan

7 2 nd Step - Packaging Packaging first occurs mid-july for students with complete records Complete record = FAFSA data received, no holds, etc. Packaging done weekly thereafter Primary form of funding is through federal loans See your department or college for other types of aid (non-resident tuition waivers, scholarships, fellowships, etc.) Keep FAFSA PIN# - it will be needed later to sign MPN for federal loans

8 3 rd Step - efaan (electronic Financial Aid Award Notification) After packaging, you will be notified of efaan via communication to your U of M account Respond to your loan offers via your efaan ( financial aid status link on One Stop home page) Accept, reduce, or decline loan offers by responding to efaan first plan your budget carefully Report any scholarships, tuition benefits, nonresident tuition waivers, military service contracts, etc., in self-reported awards section on efaan

9 4 th Step - Promissory Notes and Entrance Counseling After accepting loans on efaan at One Stop link, must sign electronic master promissory note (MPN) for federal loans Use FAFSA PIN# to sign MPN for federal loans Separate MPNs required for federal unsubsidized and federal Grad PLUS loans if borrowing both loans MPN good for 10 years if enrolled continuously Complete Entrance Counseling link on One Stop takes you to StudentLoans.gov UPlan

10 5 th Step - Disbursement First disbursement date occurs within 10 days prior to start of fall semester ( early August for D1 and end of August for D2, D3, D4) Fall disbursement occurs twice weekly thereafter Fall half of loan disburses into your fall account; is first applied to fall tuition and fees FAWA choice on efaan allows loans to pay other charges in student account (books, library fines, etc.) Spring half of loans disburse into your spring account, starting no sooner than 10 days prior to start of spring semester (mid-january) Spring disbursement occurs twice weekly thereafter

11 6 th Step - Refund check Your refund (or credit balance) is the surplus money after aid has paid tuition and fees; this is returned to student for living expenses The University no longer issues refund checks; refunds are sent electronically to bank account Everyone must set up direct deposit! (via link on One Stop home page) If aid does not cover that semester s charges in your student account, remaining amount owing must be paid by due date -

12 Cost of Attendance (COA) COA set each year at the end of June; six components. Fall/spring semester amounts: Tuition and fees ($17914 resident/ $30952 non-resident) Room and Board ($5463) Books and Supplies ($2000) Transportation ($500) Personal and Miscellaneous ($1000) Loan fees, weighted average ($225) All aid scholarships, loans, tuition waivers, employer reimbursements, military funding, etc., must fit within COA ($54204 res/ $80280 non-res for fall/spring period) Budget carefully; COA adjustments allowed only in certain circumstances

13 COA, continued New in The cost of University health insurance no longer included in standard budget This can be appealed if student is charged for U health insurance Submit COA Appeal, click on forms online link on One Stop home page. Check the Tuition and Fees box Amount allowed for Books &Supplies reduced; submit COA appeal if your costs exceed $2000 per semester ($1500 summer)

14 Loan Types and Amounts Federal Unsubsidized 6.21% interest, 1.072% origination fee Annual maximum $40500 (fall/spring) and $20250 summer Lifetime unsubsidized loan aggregate $ (includes undergraduate borrowing) Federal Graduate PLUS 7.21% interest, 4.288% origination fee No annual or lifetime loan limit, Grad Plus loans do not count toward unsubsidized aggregate Student is borrower, Grad Plus must fit within COA UPlan

15 Graduate PLUS Eligibility Borrower must not have adverse credit history Per federal regulation, adverse credit history = being 90 days or more delinquent on debt, or credit report that shows default, discharge, foreclosure, repossession, tax lien, wage garnishment, etc. Grad PLUS loans do not use debt-to-income ratio or FICO score, unlike private loans Annual Credit Report Request Service: (Trans Union, Experian, Equifax) Review your credit history for accuracy and correct any errors BEFORE you need a loan If Grad Plus loan denied, student can request an endorser (cosigner) UPlan

16 Health Professions Loan Need-based loan, intended for lower-income families Must include parent data on FAFSA to be considered Complete taxes before filing FAFSA ( will file status on FAFSA excluded from HPL review list) Complete FAFSA early, best if we receive your FAFSA data by mid-may Health Professions Loan amount and availability varies from year-to-year (limited fund) Requires full-time enrollment

17 Health Professions Loan, cont. One-year grace period Five percent interest Ten-year repayment period Payments made to University (Student Account Assistance office) Health Professions Loan can be consolidated with other federal loans

18 Loan Repayment Varies with type of loan Utilize repayment calculators: StudentLoan.gov, Direct Loan, and ADEA websites Health Professions Loan payments made to U of M Student Account Assistance office Unsubsidized and Grad Plus loan payments made to your federal loan servicer Unsubsidized and Grad Plus can pay quarterly interest while in school, or postpone paying interest until you enter Principal repayment starts 6 months after graduation, leaving school, or dropping to less than half-time enrollment Previous undergrad borrowing? Repayment may begin sooner

19 Federal repayment plans Several to choose from: Standard, Extended, Graduated, Income Contingent, Income-Based, Pay As You Earn, Income Sensitive Choice depends on income, career plans Your loan servicer will determine if you qualify for an income-based repayment plan Public Service Loan Forgiveness program allows for cancellation of loan after 120 on-time qualifying loan payments Must be employed full-time by federal, state, local agency, or non-profit organization for PSLF

20 Federal versus Private Loans Federal loans generally more favorable, even though some private loans may have lower interest rates Private lender often requires co-signer or high FICO score to get lower private loan rates; rates also could be variable not fixed Federal loans offer several repayment options and Public Service Loan Forgiveness. See StudentLoans.gov for more information and repayment calculators -

21 StudentLoans.gov become familiar with this website

22 and this website

23 and this website

24 How Much Loan Money to Accept? Live frugally and budget carefully Money management tips on One Stop: ex.html If you take too much loan money, loans can be reduced and excess returned to Dept of Ed for you Send Liz request in writing from your U of M account please include student ID number! If you take too little loan money we can offer additional loan (within reason limited number of loan item types)

25 Monitor your loan debt Check your borrowing at NSLDS (National Student Loan Data System - (access with your FAFSA PIN#) Federal Direct Loan info: (use FAFSA PIN#) Direct loan servicing: Request PIN#: NSLDS shows only federal sub, unsub, Grad Plus, Parent Plus, and Perkins loans. Does not list private, HPL or University loans

26 Finding Answers Walk-in: Room Moos Tower: Wednesdays 11:30 to 1:30. Contact Liz to arrange appointment at Fraser Office. - One Stop can answer many questions: Phone: or In-person: STSS, West Bank Skyway, or Coffey Hall (St Paul) onestop@umn.edu Or contact Liz or holmx029@umn.edu

27 Thank you and best wishes! UPlan