OU-HCOM FINANCIAL AID Info about Loans OU-HCOM FINANCIAL AID Info about Loans Marie Barone Michelle Kittle.

OU-HCOMOU-HCOMFINANCIAL AIDFINANCIAL AID

Info about Loans Info about Loans

Marie BaroneMichelle Kittle

What is a Financial Aid Package?

- A collection of financial resources available to the student to help pay for the costs associated with attendance at school.

-Resources may include student loans, scholarships, stipends, etc.

Main Factors in Determining your aid packages:

-The Educational Budget –

set by OU-HCOM

-Stafford & other Loan Limits –

set by federal regulations

***PROJECTED***

Student Educational BudgetYear 1 2012-13 = $59,521

What is included?Tuition & fees ($32,011) *

Books & Equipment ($7,548) * Room & Board-10 months ($12,992) *

Transportation ($3,110) * Personal ($3,860) *

Out of State Charge $13,274 *

What is not included in a student budget:

Car Payments Expenses outside of school year –

summer 2012 and summer 2013 Past consumer debt

(car payments, house payments, etc.) Credit Card Debt Moving Expenses Expenses for family members other than

the student

Loans Available

-Federal Direct Stafford Loans

-Federal Direct Grad PLUS Loans

Stafford Loans Stafford Unsubsidized Loan - $42,722

Fixed (interest accrues at disbursement) Interest = 6.8%

Does not consider credit history

Total loan amount is divided and disbursed by the # of terms the student is enrolled in an academic year.

This loan is the basis of most student aid packages.

Origination Fees for the Stafford Loans for 2012-13

Stafford Loans: 1% origination fee which is subtracted from the loan money you receive

Sample: $1,000(principal) - $10(origination fee) = $990

Stafford Loan Limit IssuesStafford Loan Limit Issues

Annual Stafford Loan Amounts: -Year 1 = $42,722 Year 1 Year 2 = $40,500 Year 3 = $47,167 Year 4 = $47,167

Aggregate Stafford Loan Limits (over lifetime as a borrower)

$224,000

Annual Stafford loan limits Annual Stafford loan limits

In-state calculation

Cost of attendance $59,521*$59,521*

Stafford Loan limit $42,722

Remaining need: $16,799

(aka annual shortfall)

Out of state calculation

Cost of attendance $72,795*$72,795*

Stafford Loan limit $42,722

Remaining need: $30,073

(aka annual shortfall)

*estimated costs

Graduate PLUS loanGraduate PLUS loan Federally funded loan with a fixed rate of 7.9%

Credit-based loan – cannot have any negative credit within the past 24 months of application - students can be denied – can use a co-signer

No annual or aggregate limit

Note – has separate promissory note with 90 day credit limit - we will process Graduate Plus loans the first week of classes

Origination Fees on Grad Origination Fees on Grad PLUS loans for 2011-13PLUS loans for 2011-13

Grad PLUS Loans: 4% origination fee

Sample: $1,000(principal) - $40(fee) = $960

Help??? Help??? How do I figure out how much How do I figure out how much

loan money I need?loan money I need?

Where do I start with figuring Where do I start with figuring out a budget?out a budget?

One SuggestionOne Suggestion

Start with annual Stafford loan limits and subtract fixed costs

$42,295 = Max Stafford (minus fees – estimate)

-$32,011 = Projected tuition & Fees (estimate only)

-$1,412 = Health Insurance (last year’s amount – this will change)

$8,872 = money for all other expenses

Divide by 10 months = $887/per month

QuestionsQuestions