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Borrowing Wisely

Borrowing Wisely. September 8, 2010. Borrow Nothing At All. Consider a Service Commitment Military Options National Health Service Corp Loan Repayment/Forgiveness Options State and federal programs database…… www.aamc.orgstloan. Borrow But Have It Forgiven. Eligible Loans

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Borrowing Wisely

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  1. Borrowing Wisely September 8, 2010

  2. Borrow Nothing At All • Consider a Service Commitment • Military Options • National Health Service Corp • Loan Repayment/Forgiveness Options • State and federal programs database…… www.aamc.org\stloan

  3. Borrow But Have It Forgiven Eligible Loans + Qualifying Payments + Qualifying Work ______________________ Public Service Loan Forgiveness

  4. PSLF - Eligible Loans • Any non-defaulted loan made under the Direct Loan Program • Subsidized • Unsubsidized • Graduate PLUS • Consolidated Loans • Perkins loans are NOT eligible* • Private loans are NOTeligible period *could consolidate with Direct Loans to become eligible

  5. PSLF - Qualifying Payments • Make 120 on-time monthly payments in one of the following plans: • Standard • Income Contingent • Income Based (most affordable) • Payments must be made while simultaneously working in Public Service • Does not have to be continuous service

  6. PSLF - Qualifying Work • Employed full-time (30 hours) in a public service job • Non-profit, tax exempt, 501(c)(3) organizations • Government • Military Service • Public Schools and Colleges • Most medical schools and teaching hospitals • Search online: http://www.irs.gov/app/pub-78/ • Can work in more than one job

  7. Borrow the Best Loans First • Borrow all the unsubsidized loans first before borrowing a Graduate PLUS • Borrow the summer unsubsidized loan and save it for the next year (so you may not have to borrow a Grad PLUS) • Interested in Primary Care? Ask about a special loan during your fourth year.

  8. Borrow Only What You Need • Create a spending plan • Track spending for a month or two to figure what you actually need to live on • Borrow in small increments • Tuition plus two months of living expenses • Ask for additional loans later • You can returned unused funds at the end of the semester

  9. Borrow Less • Borrowing $5,000 less per year will….. • Reduce your monthly payment by $400 • Reduce total loan cost by $39,000 • Reduce repayment term by 2 years

  10. $1860 per month $1360 per month (-$500) Incentive drawing! Track your spending this fall, send me your budgets with a few tips on how you SAVED money, and you’ll be entered into a drawing for a $50 gift card! Budgeting Examples

  11. Track Your Borrowing • Use the Medloans Organizer and Calculator http://www.aamc.org/programs/first/ • Organize and keep track of your loans • Develop repayment strategies • Specifically designed for medical students

  12. Resources • FIRST Facts: http://www.aamc.org/programs/first/students/factsheets.htm • Practical Money Skills: http://www.practicalmoneyskills.com/ • You Can Deal With It: http://www.youcandealwithit.com/ • Money Matters – MU Extension: http://missourifamilies.org/money/

  13. Next Up Saving and Investing Office for Financial Success November 10th

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