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Financial Aid for Medical School. March 8th, 2014 Daniel Hewitt Director of Financial Aid – Virginia Campus. Agenda. Costs at VCOM Financial aid options and why loans are good, realistic options Budget planning and repayment options that are manageable. Costs At VCOM.
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Financial Aid forMedical School March 8th, 2014 Daniel Hewitt Director of Financial Aid – Virginia Campus
Agenda • Costs at VCOM • Financial aid options and why loans are good, realistic options • Budget planning and repayment options that are manageable
Costs At VCOM • VCOM Tuition $40,600 • Federal Student Loan Fees* $ 1,669 • Living and Other Educational Expenses $31,171 (see expense estimates below) • Total Cost of Attendance $73,440 • SUPPLIES AND • EQUIPMENT $ 4,594 • HOUSING AND • UTILITIES $10,604 • MEALS $ 3,861 • TRANSPORTATION • AND TRAVEL $6,828 • MEDICAL AND • PERSONAL EXPENSES $5,284 * Federal student loan fees are included only if federal student loans are used.
Financial Aid Options • Scholarships • VCOM’s website: http://www.vcom.vt.edu/financial/ • Service Contracts • National Health Service Corps (NHSC) Scholarship Program • Military Health Professions Scholarship Program (HPSP) • State agencies and individual hospitals • Students Loans • Unsubsidized Stafford • Graduate PLUS • Private
Applying For Loans • 2014-2015 Free Application for Federal Student Aid (FAFSA) http://www.fafsa.ed.gov • 2014-2015 VCOM Financial Aid Application http://www.vcom.vt.edu/2018/ • Loan applications
Loan Eligibility • Cost of Attendance - Scholarships and Service Contracts = Unsubsidized Stafford Loan • Cost of Attendance - Scholarships and Service Contracts - Unsubsidized Stafford Loan = Graduate PLUS or Private loan
Unsubsidized Stafford Loans • Fixed interest rate, set June 1st • 1.072% origination fee • Interest starts accruing right away • No credit check, but cannot be in default on any student loan • Maximum amount of $47,197 (12-month calendar) • $44,944 maximum for OMS1 (11 month calendar)
Graduate PLUS and Private Loans • Graduate PLUS loan • Fixed interest rate • 4.288% origination fee • Interest starts accruing right away • Private (Alternative) loan • Variable or fixed interest rate • Rates based on your credit score and the market rate • Interest starts accruing right away • Maximum amount for either loan is Cost of Attendance minus other aid
Loan Applications • For Unsubsidized Stafford and Graduate PLUS loans: • only require an Award Letter response • For Private loans: • require an Award Letter response, and • require a separate application with a lender • All loan types require Promissory Notes (MPNs) through the Direct Loans website or through the lender’s website
Borrowing Responsibly The approximate cost of your education: • Unsubsidized Stafford – 5.41% fixed (currently) • Graduate PLUS – 6.41% fixed(currently)
The Long-Term Cost • Borrower 1 is financing to maximum Unsubsidized Stafford loan limits and supplementing with Graduate PLUS • Borrower 2 is financing as above, minus $5,000 each year in Graduate PLUS • These examples assume a 3-yr residency and 25-yr repayment
Breakdown If you adjust your expenses by less than $14 a day for the next four years, you could save yourself $55,000!
Determine Your Income • Employment • Personal savings • Family support • Financial aid funds
Identify Your Expenses Fixed Expenses: • Tuition and fees • Rent • Child care • Taxes • Insurance premiums
Identify Your Expenses Variable Expenses: • Utilities • Food • Clothing • Transportation • Other living expenses
Cost of a Daily Latte Daily $4 Weekly $20 Monthly $87 Annually $1,040 Cost over 4 years $4,160 Repayment over 25 years at 6.41%$11,400
Loan Repayment • Repayment Plan Length • Normal = 10 years • Extended = up to 25 years • Repayment Plan Type • Standard – fixed, equal monthly payments • Income-Based – monthly payments go up and down with your income
Loan Repayment • Postponement Options • Deferments ex. – In-School Deferment • Forbearances ex. – Residency Forbearance
Early Repayment • No early repayment penalties of any kind • Within 120 days of disbursement, loan fees and accrued interest are negated • Extra payments go to accrued interest first, then to principal • Death, or Total and Permanent Disability Discharge
Review • Costs at VCOM • Financial aid options and why loans are good, realistic options • Budget planning and repayment options that are manageable
Questions? Daniel Hewitt Eloise Turner dhewitt@vcom.vt.edueturner@vcom.vt.edu (540) 231-6021 (540) 231-5923