Wednesday, March 21 st from 6 – 7 PM at Bourne Hall

1. Financial Aid Informational Seminar “What you need to know during the clinical terms” • Clinical Terms • Bridge & Residency/Relocation Loans • Loan Repayment Options • Loan Payment Relief Options Wednesday, March 21st from 6 – 7 PM at Bourne Hall

2. Clinical Terms • Federal Changes • Clinical Start Time Line • Satisfactory Academic Progress (SAP) • Budget • Bridge Time (No rotations) • How time off effects your loan disbursement • Processing of your refund

3. Changes to Federal Loan Benefits Effective July 1, 2012 • Subsidized portion of loan eliminated for graduate level students • Interest will begin to accrue on your new loans as of the disbursement date • Does not impact your existing federal loans • Origination Fees increase to 1% for Stafford loans and 4% for GPLUS

4. Clinical Start Time Line Six Months Student loans are considered to be in a deferred status during this six month period (May 14th – December 12th ) Anytime Student returns to school after December 12, 2012 May 14, 2012 October 1, 2012 December 12, 2012 Students must request an extension to Leave of Absence if student has not begun clinical term 1. Student leaves Grenada to study for USMLE 1: Time line starts Students must have filed for a Leave of Absence if student has not begun clinical term 1 Student will need to contact servicers to have loans returned to be placed back into “in school” deferment status * The Leave of Absence keeps your loans in deferment for up to 6 months Loans will no longer be in deferred status, grace period would have been used up and repayment period begins. Student must contact their servicers to apply for Income based repayment (IBR) * Hope to be participant in National Student Clearinghouse by July 1, 2012- would be able to electronically request deferment

5. Satisfactory Academic Progress (SAP) • Federal regulations require that students who are not in good academic standing are ineligible for federal loans • Not making academic progress means • Do not have a cumulative GPA of at least a 2.00 • Have not been removed from academic probation within one academic year • Do not have a cumulative GPA of at least a 2.50 by the end of Term 5 • Are not meeting the timeline requirements (started clinical training within 3yrs of matriculation)

6. If not meeting SAP

7. Clinical Terms 1 & 2

8. Time off from Rotations – Bridge Time • You must contact your Financial Aid Counselor as taking time off will effect the disbursement of your loans. • Each term is 16 weeks of actual rotations NOT calendar weeks.

9. Time off from Rotations – Bridge Time • Up to 20 weeks of bridge (vacation) time per year. • If you do not schedule another rotation within 30 days of last rotation you must request bridge eligibility or a Leave of Absence. • If you don’t you are considered not enrolled and loans go into grace/repayment • Financial aid may be reduced • Cannot receive more than 1 ALOA in a 12 month period

10. How time off effects your loan disbursement 01-14-2013 * Bridge time does not count towards the 16 weeks of required rotations to complete the term. ** A new clinical term may start in the middle of an ongoing rotation. The start of a new rotation does not mean the start of a new term. In this example student is in currently in Term 1 and would start Term 2 in the middle of his Core Clerkship in Pediatrics.

11. Processing of your Refund • Funds disbursed 10 days prior to start of the term • Refund issued approx. 3 business days after funds are credited to student account • Direct Deposit available for expedient posting of funds to your bank account – instructions available on MY SGU • Refunds are sent to your mailing address unless you have set up direct deposit • Questions regarding refunds, account balance or direct deposit should be addressed to Student Finances. Email: billing@sgu.edu • To change your refund mailing address go to Self Service to Personal Information tab.

12. Student Health Insurance During Clinicals • Processed each year prior to August 1st • If you have your own Health Insurance coverage and want to waive out of school sponsored Student Health • You must waive by August 1st or • You will be automatically enrolled and billed for Plan 1 Monitor your SGU emails for this notification

13. Those annoying email notifications Take the action needed to resolve them! • May need to sign Promissory Notes • May need to provide Student Health Insurance Information • May need to accept loan awards • FAO may need to update our systems

14. Student Self Service View FA Status

15. Student Self Service - Requirements A000111111 Saint George University

16. Bridge & Residency/Relocation Loans • New Bridge Loan • Residency & Relocation Loan details • Loan Repayment Examples

17. NEWBridge Loan

18. Bridge Loan • Borrower must have completed their first two (2) years of medical school at St. George’s University* • Borrower may apply with or without a co-signer • Borrower must be the minimum age of majority based on the state of permanent residence at the time of application • Minimum loan amount = $2,001.00 • Maximum loan amount = $8,000.00 (inclusive of fees netted from loan) • Borrowers and Cosigners must meet minimum FICO score and other credit requirements • Income requirements may apply. • Interest Rate/Fees • Variable Interest Rate, adjusted quarterly • An Origination Fee will apply For additional information or questions, please call: (877) 716-5406 To Apply Go to: www.brazos.us.com/private/stgeorges *The Bank of Lake Mills Medical Bridge Loan Program is not being offered, made or endorsed by St. George’s University. Bank of Lake Mills is not affiliated with St. George’s University.

19. Residency & Relocation Loans • Non-federal loans available to provide funds for graduating medical students who have expenses not covered by federal aid packages, including residency expenses and relocation costs • To be eligible a student must be enrolled at least half time in their final year of study • Your school is generally required to verify attendance – this is verified through the Registrar’s office – contact Carla Gerrard – Ext. 1203 • Funds are disbursed directly to the student • Cannot be consolidated under a federal Consolidation loan • Borrow up to a maximum of $15,000 • Eligibility is based on a credit evaluation – securing a cosigner may increase the likelihood of being approved. Borrower may apply for co-signer release after successful completion of their education& 24 consecutive payments • Deferment during residency – must request from the lender • Link to loans: https://www.salliemae.com/student-loans/global-residency-loan/

20. 1 Rates and fees shown are available for the Residency & Relocation Loan. Interest rates are variable and may increase after consummation. 

21. Loan Repayment Example

22. Loan Repayment Options • Standard • Graduated • Extended • Consolidation • Income Based (IBR) • Repayment Tips

23. Standard Repayment

24. Graduated Repayment

25. Extended Repayment

26. Loan Repayment Examples

27. Consolidation • Combines federal loans into a single loan • Pays existing loans in full and replaces them with a new loan • Acquires a new interest rate • Increases repayment term up to 30 years, depending on your loan balance • Resolves any split servicing issues • Needed for Public Health Forgiveness Program • The Direct Loan Program is the only source for a federal consolidation loan www.loanconsolidation@ed.gov

28. Special Direct Loan Consolidation Who is eligible? • You must have at least one loan held by Department of Education (ED) and at least one lender held Federal Family Education Loan Program (FFELP) loan to qualify • The lender-held FFELP loan cannot be in default • The lender-held FFELP loan must be in its grace period or in repayment status – including delinquency, deferment (ex. Unemployment), or forbearance status. • IN SCHOOL deferment does not qualify • Offer Ends June 30th Benefits • .25% interest rate reduction from the rate as of the date of consolidation • Additional .25% interest rate reduction is auto debit is set up • The program is intended to assist borrowers with loans split among loan servicers by simplifying the repayment process, resulting in one monthly bill and payment.

29. Income Based Repayment (IBR) • New payment plan effective July 1, 2009 • Payments based on income and family size instead of amount borrowed • You can participate if you have partial financial hardship • Must reapply each year and submit tax return for verification • Borrower who files married/joint: consider both spouse’s AGI in determining payment amount • Borrower who files married/separate: consider only the borrower’s AGI and debt in determining payment amount

30. Income Based Repayment (IBR) • Monthly payment is 15% of the difference between your Adjusted Gross Income (AGI) minus 150% of the monthly poverty level in your state of residence applicable to family size • Payment term is 10 years, but repayment period can go up to 25 years • Any remaining balance may be forgiven after 25 years and/or 300 on time payments

31. Benefits of IBR • Subsidized loans are eligible for a subsidy for the first 3 years • your monthly payment amount may not cover all of the interest that accrues on your loans each month. (negative amortization) • The gov’t pays the remaining unpaid accrued interest that is due each month on your subsidized loans for up to three consecutive years • Example: • Borrower has all Subsidized loans • Payment under IBR = $40 • Monthly accrued interest = $75 • DOE will pay: $35 • Visit www.ibrinfo.orgfor a payment calculator

32. Meet Evan – Borrower #2 Evan is single, with no dependents, and resides in FL Family size: 1 AGI: $48,460 Loan Balance: $150,000

33. Is Evan Eligible for IBR? Family Size = 1 $4,038 Monthly * -$1,396 150% of poverty level ** $ 2,642 15% of $2,642 = $396 Standard payment = $1,726 QUALIFIES * Yearly Salary of $48,460 ** Current Poverty level is $11,170 x 150% = $16,755 divide 12 this by $1,396

34. Meet Mary – Borrowe # 4 Mary is married, with no Children, and lives in OH Family size: 2 AGI: $180,000 (Joint Return) Loan Balance: $150,000

35. Is Mary Eligible for IBR? Family Size = 2 $15,000 Monthly -$ 1,891 150% of poverty level * $ 13,109 15% of $13,109 = $1,966 Standard payment = $1,726 DOES NOT QUALIFY AGI of both Mary’s spouse and her own are used for determining their IBR eligibility. Speak with your financial advisor whether file separately will be more advantageous. * Yearly Salary of $180,000 ** Current Poverty level is $15,130 x $150% = $22,695 divide this by 12 month = $1,891.25

36. Sonia – Borrower #3 Family Size = 2 Sonia is single, with one child, and lives in NY Family size: 2 AGI: $48,460 Loan Balance: $150,000

37. Is Sonia Eligible for IBR? Family Size = 2 $4,038 Monthly * -$1,891 150% of poverty level ** $ 2,147 15% of $2,642 = $396 Standard payment = $1,726 QUALIFIES * Yearly Salary of $48,460 ** Current Poverty level is $15,130 x $150% = $22,695 divide this by $1,891

38. Income-Based Repayment (IBR) *The average first-year resident stipend for 2009 was $48,460. This amount will vary by region and specialty. **Difference between AGI and 150% of poverty level

39. PAY AS YOU EARN • On October 25, 2011, the Obama Administration proposed a Pay-As-You-Earn plan that would cap certain student loan borrowers’ loan payments at 10% of their discretionary income. • Under this proposal, borrowers paying under the Pay-As-You-Earn plan would also be eligible to have their remaining loan balance to be forgiven after making 20 years of payments. • Details of the Pay-As-You-Earn plan, including borrower and loan eligibility, will not be finalized until the proposal goes through the negotiated-rulemaking process.

40. Financial Advisors

41. Public Service Loan Forgiveness • Various State and Private Organizations • National Health Service Corp. (NHSC) • National Institute of Health (NIH) Loan Payment Relief Options

42. How does Public Service Loan Forgiveness (PSLF) work? To be eligible for Public Service Loan Forgiveness (PSLF) you must make 120 of the right kind of payments, with the right kind of loan, while working in the right kind of job. The 120 payments do not have to be consecutive.

43. Public Service Loan Forgiveness (PSLF) • 1) The right kind of job. Your job is eligible if you are employed by a nonprofit, tax-exempt 501(c) (3) organization – check with the IRS, employed by Federal, State, Local or Tribal government or serve in the Americorps or Peace Corps. 2) The right kind of loan.Direct Loans (William D. Ford Direct Loan Program). Federal Family Education Loan (FFEL) Program, you can consolidate into a Direct Loanto take advantage of PSLF, even if you have consolidated previously. 3) The right kind of payment. These are payments made under the Income-Based Repayment (IBR), Income-Contingent Repayment (ICR), or Standard 10-Year Repayment plans. PSLF is intended for people who have high debt relative to income and qualify for ICR or IBR for at least part of their careers in public service.  Does your potential residency placement qualify ? The answer may help you decide where you want to do your residency.

44. Loan Repayment/Forgiveness Programs

45. Residency Forebearance • You must request forbearance from the servicer for each of your loans • Interest accrues on ALL loans • Allows borrowers to postpone payment or reduce the payments for a period of time • Servicers are required to grant Mandatory forbearance to residents through the duration of their residency (approved in annual increments). • Credit is not affect adversely

46. Strategic Approach to Managing Medical School Debt Two Medical School Graduates Graduate A retires her debt after the 10 year repayment term, paying a total of $134,766 while Graduate B paid a total of $340,390. Taking a proactive approach to managing student debt saved Graduate A $205,624 in loan repayments relative to Graduate B.

47. National Health Service Corps Loan Repayment Program • Primary care clinicians can receive repayment assistance in return for working in a NHSC-approved HPSA • $60,000 for 2 yrs of service • $170,000 for 5 yrs of service • Continued service beyond 5 years may be possible • http://nhsc.hrsa.gov/loanrepaym

48. National Institute of Health (NIH) • Part of the U.S. Department of Health and Human Services • The primary federal agency for conducting and supporting medical research • Offers five loan repayment programs to attract health professionals to careers in clinical, pediatric, health disparities, or contraception and infertility research • In exchange for a two or three-year commitment to a research career, NIH will repay up to $35,000 per year of your qualified educational debt • Basic eligibility requirements: • Government research funding (federal, state, or local) or domestic nonprofit research funding • Student loan debt equal to at least 20% of annual salary • U.S. citizen • For more information, visit lrp.nih.gov

49. Repayment Tips • Verify your Federal Student loans at www.nslds.ed.gov • Let your lender or servicer know if: • You change your name, address, or telephone number • You want to switch to a different payment plan after repayment begins • You want to change your payment due date because the date assigned doesn’t work for you • You think you’re going to have trouble making your student loan payment

50. Repayment Tips • Sign up to make your monthly payment via automatic debit (ACH) instead of by check • Explore the education tax benefits that are available—visit studentaid.org or irs.gov (search for Publication 970) • The amount of interest that you pay is the lowest under the standard 10-year repayment plan • There is no pre-payment penalty for federal student loans • Choose an alternative plan if you have cash flow problems early on