Financial Aid for Medical School

Financial Aid forMedical School

Accepted Students Day

April 12th, 2014

Jan Price

Director of Financial Aid –

Carolinas Campus

Costs at VCOM

Financial aid options and why loans are good, realistic options

Budget planning and repayment options that are manageable

Agenda

Costs At VCOM

VCOM Tuition $40,600 Federal Student Loan Fees $ 1,669 Living and Other Educational Expenses $31,171

(see expense estimates below) Total Cost of Attendance $73,440

SUPPLIES AND EQUIPMENT $4,594HOUSING $7,576UTILITIES $3,028MEALS $3,861

TRANSPORTATIONAND TRAVEL $6,828MEDICAL EXPENSES $2,137PERSONAL EXPENSES $3,147

Financial Aid Options

Scholarships VCOM’s website: http://www.vcom.vt.edu/financial/

Service Contracts National Health Service Corps (NHSC) Scholarship Program Military Health Professions Scholarship Program (HPSP)

Students Loans Unsubsidized Stafford Graduate PLUS Private

Applying For Loans

2014-2015 VCOM Financial Aid Applicationhttp://www.vcom.vt.edu/financial/

2014-2015 Free Application for Federal Student Aid (FAFSA)

http://www.fafsa.govLoan applications

Loan Eligibility

1. Cost of Attendance -Scholarships and Service Contracts =

Unsubsidized Stafford Loan

2. Cost of Attendance -Scholarships and Service Contracts -

Unsubsidized Stafford Loan =Graduate PLUS or Private loan

Unsubsidized Stafford LoansFixed interest rate set June 1st

1.072% origination fee Interest starts accruing right awayNo credit check, but cannot be in default on

any student loanMaximum amount of $47,167 (12 months)$44,944 maximum for OMS1 (11 month

academic year here at VCOM)

Graduate PLUS and Private LoansGraduate PLUS loan

Fixed interest rate 4.288% origination fee Interest starts accruing right away

Private (Alternative) loan Variable of fixed interest rate, based on your credit score and the market rate Interest starts accruing right away

Maximum amount for either loan isCost of Attendance minus other aid

Loan Applications

Processed through the Direct Lending system Unsubsidized Direct Loan and Graduate PLUS

loans only require an Award Letter response and do not require a separate application

Private loans require an Award Letter response and also 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

Borrowing Responsibly

Unsubsidized Stafford – 5.41% fixed (currently) Graduate PLUS – 6.41% fixed (currently)

Year 1 Year 2 Year 3 Year 4 Total

Annual Unsubsidized Limits

$44,944 $4444,9 $42,722 $42,722 $175,332

Graduate PLUS $28,496 $26,906 $30,402 $28,846 $114,650

Maximum Stafford & Graduate PLUS

$73,440 $71,850 $73,124 $71,568 $289,982

The approximate cost of your education:

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 inGraduate PLUS

These examples assume immediate repayment (25 years) after six-month grace period

Principalbalance

Balance at graduation (after interest capitalization)

Total loan costbased on a 25-year

repayment term

Borrower 1: Max. Unsubsidized & Grad PLUS

$290,000 $327,963 $731,833

Borrower 2: Less $5,000 of Grad PLUS & Unsub $270,000 $305,078 $677,023

Difference $20,000 $22,885 $64,840

The Long-Term Cost

Breakdown

Principal balance

Difference $20,000

Yearly $5,000

Weekly $96.15

Daily Cost $13.69

So …

If you can adjust your expenses by less than $14 a day for the next four years,

you could save yourself $55,000!

Determine Your IncomeEmployment

Personal savings

Family support

Financial aid funds

Identify Your Expenses

Fixed Expenses:

Tuition and feesRentChild careTaxes Insurance premiums

Identify Your Expenses

Variable Expenses:

UtilitiesFoodClothingTransportationOther living expenses

Cost of a Daily Latte

Daily $4Weekly $20Monthly $87Annually $1,040Cost over 4 years $4,160

Repayment over25 years at 6.41% $11,400

Loan Repayment

Repayment Plan LengthNormal = 10 yearsExtended = up to 25 years

Repayment Plan TypeStandard – fixed, equal monthly payments Income-Based –monthly payments go up and

down with your income

Loan Repayment

Postponement Options

Defermentsex. – In-School Deferment

Forbearancesex. – Residency Forbearance

Default

Any time you miss a payment for more than 270 days

Possible consequences: Referred to a collection agency Reported to the national credit bureaus Loss of federal financial aid eligibility Garnished wages Intercepted tax refunds Suspended or revoked professional license

Early Repayment

No early repayment penalties of any kindWithin 120 days of disbursement, loan fees

and accrued interest are negatedExtra payments go to accrued interest first,

then to principal

Death, or Total and Permanent DisabilityDischarge

Costs at VCOM

Financial aid options and why loans are good, realistic options

Budget planning and repayment options that are manageable

Review

Questions?

Jan Price

jprice@carolinas.vcom.edu

(864) 327-9836