University of Central Florida College of Medicine

1. University of Central Florida College of Medicine Student Financial Services Ruthanne Madsen, EdD, MBA 407.266.1381 Lisa Minnick 407.266.1383 medfinaid@mail.ucf.edu

2. How may we assist you?Objectives for today’s presentation • Review Financial Assistance Programs • Understanding your Billing Statement • Deferment, Disbursement, Direct Deposit • Address Financial Needs • Financial Counseling • Professional development opportunities • Q&A • Questions and Prizes

3. Types of Financial Assistance

4. Gift Aid Institutional Scholarship UCFCOM Need-Based Grant • If you maintain satisfactory academic progress, you will retain aid each year. Please see Student Handbook for more information. • Scholarships are renewable for up to 4 years. • UCFCOM Need-Based Grant requires the filing of the FAFSA every year, and financial need has to be determined. • Must not be in default on any federal loans or owe a refund on any federal grants

5. Federal Student Loans Federal Stafford Loans 6.8% fixed with .5% origination fee • Subsidized Stafford Loan –Maximum $8,500/year • Unsubsidized Stafford Loan (interest accrues while enrolled) • Combined Sub & Unsub 11-12 Annual Maximum $42,722* • Aggregate Lifetime Maximum: $224,000 • NSLDS (National Student Loan Database System) www.nslds.ed.gov *Maximum for 11-12. Length of Academic Year Affects Eligibility Federal GradPLUS Loan 7.9% fixed with 2.5% origination fee • Requires Credit Check • Maximum: Cost of Attendance – Financial Aid Awarded • No Aggregate Lifetime Maximum

6. Federal Student Loans • If you have previous loans, your full-time enrollment will be submitted to the Clearinghouse automatically so you will remain in deferment • No need to consolidate loans now since you will not go into repayment until after graduation from medical school • Avoid private educational loans, if possible

7. Outside, Private Scholarships • You must inform us of any outside scholarships, so we can include the award in your financial aid package • Complete the Outside Scholarship form found on our website Veterans Benefits • Student Financial Services does not have access to records • Appointment can be scheduled with representative (here at Lake Nona) • All VA questions should be directed to: • Jim Middlekauff, Director of Veteran Services at UCF • 407.823.2392 • jmiddlek@mail.ucf.edu

8. Billing Statement • Tuition and Fees • Half in August/Half in January • Short Term Advance will appear as a charge (along with $5 fee) • Anticipated Aid – sum of all financial aid • Half in August/Half in January

9. Deferment – Disbursement - Direct deposit Ready to go 3D?

10. Deferment • You can postpone payment of tuition and fees up to the amount of your Anticipated Aid • Tuition & Fees minus Anticipated Aid = Amount Due Example 1: Tuition and Fees $26,503.86 -Anticipated Aid $27,000.00 Amount Due Now 0.00 Example 2: Tuition and Fees $12,496.10 -Anticipated Aid $ 3,000.00 Amount Due Now 9,496.10

11. Disbursement of AidDirect Deposit of Refund • Institutional policy states that student must be enrolled at least 7 days before funds can be disbursed (orientation does not count). • Once student’s enrollment has been verified, funds will be disbursed on August 15th. • Any overage/refund due to loan funds will be directly deposited into student’s account within 3 business days. • Sign up for Direct Deposit on student portal

12. Financial Needs • If you are receiving a refund in August from loan funds- it must last for 5 months until January disbursement - January 9, 2012 • Running short on funds • Apply for or increase Stafford Loan • Apply for or increase GradPLUS Loan • Budget/Spend less • Unexpected expenses or emergencies • Short Term Advance

13. American Medical Association (AMA) Insurance Payments • Disability Insurance IF utilizing the recommended AMA ($52.25 includes 5% discount). Disability Insurance is Required • Life and Accidental Death & Dismemberment Insurance ($41.72 includes 5% discount) - (optional) Make checks payable to UCF

14. Out of State Students • The State of Florida recently clarified the regulations regarding residency which will make it EXTREMELY DIFFICULT for any out of state student to become a Florida resident while enrolled as a student at UCF. Must be in the state for non-educational purposes.

15. Financial Counseling • Student Loan Repayment • Money Management • Credit

16. Student Loan Repayment Options Basic Repayment Plans • 10 Years - Standard • Federal Consolidation Loan • Simplifies loan repayment by combining several types of federal education loans into one new loan. • Monthly payment is usually lower • Amount of time to repay may be extended up to 30 years • Results in more manageable debt and less prone to default

17. Student Loan Repayment Options Income-Based Repayment (IBR) • Reduces Monthly Payment Based on Income/Family Size • 15% of the Difference Between the Borrower’s AGI and 150% of Poverty Line • Payment might be $650/month rather than $2000/month, depending on AGI, Family Size, Total Indebtedness • Pros: • Lower Monthly Payments • 25-Year Cancellation (repay under IBR plan for 25 and remaining balance is canceled)/10-Year Public Service Loan Forgiveness (will elaborate on next screen) • Cons: • You Pay More Interest (The faster you repay loans, the less interest you pay.) • You Must Submit Annual Documentation

18. Student Loan Repayment Options Public Service Program discharges any remaining debt after 10 years of full-time employment in public service. Borrower must have made 120 payments as part of the Direct Loan Program. • What is forgiven? After 120 monthly payments, the remaining interest and principal are forgiven • Borrower must be employed full-time in a public service job for each of the 120 monthly payments • Department of Education determines if borrower qualifies-must work for non-profit entity. • Eligible loans-Stafford and GradPLUS (Perkins Loan if consolidated into a Direct Consolidation Loan)

19. Money Management 10 Financial Tips 1. Limit your use of credit cards, save them for emergencies 2. Get in the habit of saving even if you can only save $5 a month 3. Budget your money just as carefully as you budget your time; put yourself on a monthly budget and stick to it Interactive Budget Sheet Available on our website 4. Keep records of your purchases/debt 5. Don’t buy on impulse 6. Spend time studying instead of shopping 7. Limit or give up bad habits 8. Buy machine washable clothes 9. Bring your lunch/coffee instead of purchasing 10. Pay your bills on time

20. Your Credit ReportEssential for the Health of Your Financial Plan • Free Annual Credit Report at www.annualcreditreport.com • Three Credit Bureaus: • Experian • Equifax • TransUnion • Charge to receive FICO Score (typically $7.95 for each bureau) • Credit Report-Historical summary of financial payment activity. Includes: Mortgages; Rent Payments; Car Payments; Utilities; Revolving Credit; Student Loans; Credit Cards; Library Fines; Parking tickets, Any Contractual Obligation • Credit Report-Lists Current Balances on All Outstanding Debts; Amount of Available Credit; Bankruptcies, Lines, Judgments; Inquires about Credit; Public Record Information

21. What is a FICO Credit Score? • FICO = Fair Isaac Corporation (company that specializes in predictive analytics) • A multi-variate, multi-equation model which calculates a number based on your personal credit Behavior • Credit “Grade” : • How well you handle money • Likelihood you will repay a loan • FICO score is calculated based on several factors and is in “real time”-reported to bureaus on a monthly basis by creditors

22. Factors Influencing Your Credit Score Types of credit used Payment history New credit 10% 10% 35% 15% 30% Length of credit history Amounts owed (debt-to-credit limit) Source: www.myfico.com

23. 2009 U.S. FICO Score Ranges

24. Credit Score Makes a Difference Example of Interest Affecting Price • Score of 720-850 - 4.6% Interest Rate • Score of 560-619 – 7.422% Interest Rate 30 Year Mortgage; $300,000 Home Value; $250,000 Loan • Score of 720-850 - $1594.11/month; Total Interest = $208,359.10 • Score of 560-619 - $2047.20/month; Total Interest = $369,701.44 Difference of $161,342.34

25. Know what you owe and live within your means Use credit wisely & check your credit report annually Pay your bills on time Guard against identity theft Keep credit card balances less than 50% of available credit Know a scam when you see one Pay more than the minimum payment required Managing Your Credit

26. Professional Development Opportunities You choose! Ideas: • Home purchase • Credit, what it means to you and how to improve it • Identity Theft • Investments/Personal Finance/Wealth Management

27. At your service! • Things you should do right now: • Follow-up with Student Financial Services • Complete and submit outstanding items • Think about questions that you may have. Each student will meet with us for 15 minutes. • Call or email us should you have any questions or issues that arise

28. Additional Resources • NSLDS (National Student Loan Database System) • www.nslds.ed.gov • AAMC FIRST for Medical Education (Financial Information, Resources, Services, and Tools) • www.aamc.org • UCF College of Medicine Web Site • www.med.ucf.edu

29. Please remember… • No problem is too small • No question is silly We are here to assist you!

30. Questions?