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University of Mississippi Medical Center M3 Financial Aid Update. Financial Aid Updates. Disbursement Dates. 1 st Disb - June 3rd 2 nd Disb - January 2nd * Make sure you have determined your budget prior to accepting your Financial Aid. M3 Cost of Attendance .
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University of Mississippi Medical Center M3 Financial Aid Update
Financial Aid Updates Disbursement Dates • 1stDisb- June 3rd • 2ndDisb- January 2nd • * Make sure you have determined your budget prior to accepting your Financial Aid.
88% of class report having educational debt 62% of class report debt $150,000 or higher Class of 2012 Indebtedness • Source: AAMC 2012 Graduate Questionnaire (GQ)
The FIRST Stop… Medloans® Organizer and Calculator • www.aamc.org/FIRST
A contract with the lender Has a multi-loan feature Carefully read before signing • Rights and responsibilities MasterPromissoryNote
Rights include the ability to: Rights and Responsibilities • Prepay any federal loan without penalty • Request a shorter repayment schedule • Change repayment plans • Request a deferment or forbearance • Review your promissory note for all rights
Rights and Responsibilities Responsibilities include: Make on time loan payments • Make payments despite receipt of bill • Notify the lender of changes in contact info • Attend an Exit Counseling session • Review your promissory note for all responsibilities
Finding Your Federal Loans • To access, provide: • - SSN • - Date of Birth • - First 2 lettersof last name • FAFSA PIN (www.pin.ed.gov) www.nslds.ed.gov
Finding Other Loans • To access, provide: • Name • Address • - Date of Birth • - SSN www.annualcreditreport.com
Capitalization Addition of unpaid interest to the principal $185,029 $162,000 $23,029 Larger Principal + Interest Principal =
Debt Management Tip Pay the interest on unsubsidized loans PRIOR to capitalization
Grace Periods • Grace A period when payments are not required Occurs automatically Subsidized loans are interest free during grace Unsubsidized loans continue to accrue interest Availability and duration is based on loan type
Direct PLUS loans Enters repayment upon full disbursement In-school deferment will post-pone payments Interest begins accruing upon disbursement Interest accrues continuously Maximum interest rate is 7.9% NOTICE: Repayment Begins
Options During Residency • During residency, there are two choices: Make Payments Select a Repayment Plan Postpone Payments Deferment Forbearance
Options During Residency Deferment A period when payments are not required Must apply and qualify Interest does not accrue on subsidized loans Unsubsidized loans continue to accrue interest NOTE: For more details on deferment or to request a deferment, contact your servicer
Options During Residency Forbearance A period when payments are not required Must request from the servicer Interest accrues on all loans Many types (administrative, discretionary, mandatory) • NOTE: For more details on forbearance or to request a forbearance, contact your servicer
Options During Residency $2,130/mo Determines the payment amount & interest cost $1,280/mo $1,050/mo $ 630/mo $ 400/mo
Repayment Plans Estimated Monthly Payment Amounts
Have a Spending Plan • A Spending Plan in 1-2-3 • Put it in writing • Review periodically to identify leaks • Make necessary adjustments “Live like a student while you are a student…”
Have a Spending Plan www.aamc.org/FIRST
The Basics of Budgeting Refer to page 33 Your Total Income Your Total Expenses = Your Discretionary Income
Spending Wants: Leaks • Small amounts add up over time • It may not look like much in the short term $5 gourmet coffee X 25 weekdays/mo $125 per month
Spending Wants: Leaks • Small amounts add up over time • It may not look like much in the short term $125 in coffee per mo. X 10 months $1250 per year
Spending Wants: Leaks • Small amounts add up over time • It may not look like much in the short term But it adds up over time Total Cost of Starbucks: $5,000
Spending Alternatives • Pay attention to the small stuff… • Commit to review your budget regularly $8 coffee beans per week X 4 bags per month $32 per month
Spending Alternatives • Pay attention to the small stuff… • Commit to review your budget regularly $32 per month X 10 months $320 per year
Spending Alternatives • Pay attention to the small stuff… • Commit to review your budget regularly Total Cost of coffee beans: $1,280
Spending Alternatives • Pay attention to the small stuff… • Commit to review your budget regularly Savings $3,720
A FICO Score is Based On… Type of credit Payment history New credit 10% 10% 35% 15% 30% Length of history Amount Owed
How to Improve Your Score • During medical school, be sure to: Pay bills on time Pay down debt on lines of credit Apply for credit sparingly
Check your Credit Report www.annualcreditreport.com
REMINDERS • Financial Aid Wellness Day • Coming in February • Make sure to be watching your email