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Financial Aid for Medical School

Financial Aid for Medical School. Accepted Students Day April 12th, 2014 Jan Price Director of Financial Aid – Carolinas 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 for Medical School

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  1. Financial Aid forMedical School Accepted Students Day April 12th, 2014 Jan Price Director of Financial Aid – Carolinas Campus

  2. Agenda • Costs at VCOM • Financial aid options and why loans are good, realistic options • Budget planning and repayment options that are manageable

  3. 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 $7,576 UTILITIES $3,028 MEALS $3,861 TRANSPORTATION AND TRAVEL $6,828 MEDICAL EXPENSES $2,137 PERSONAL EXPENSES $3,147

  4. 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) • Students Loans • Unsubsidized Stafford • Graduate PLUS • Private

  5. Applying For Loans • 2014-2015 VCOM Financial Aid Application http://www.vcom.vt.edu/financial/ • 2014-2015 Free Application for Federal Student Aid (FAFSA) http://www.fafsa.gov • Loan applications

  6. 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

  7. 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 $47,167 (12 months) • $44,944 maximum for OMS1 (11 month academic year here at VCOM)

  8. Graduate PLUS and Private Loans • Graduate PLUS loan • Fixed interest rate • 4.288% origination fee • Interest starts accruing right away • Private (Alternative) loan • Variable of fixed interest rate, • 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

  9. Loan Applications • Processed through the Direct Lending system • Unsubsidized Direct Loan and Graduate PLUS loans only require an Award Letter response and do not require a separate application • Private loans require an Award Letter response and also 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

  10. Borrowing Responsibly The approximate cost of your education: • Unsubsidized Stafford – 5.41% fixed (currently) • Graduate PLUS – 6.41% fixed (currently)

  11. 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 immediate repayment (25 years) after six-month grace period

  12. Breakdown

  13. So … If you can adjust your expenses by less than $14a day for the next four years, you could save yourself $55,000!

  14. Determine Your Income • Employment • Personal savings • Family support • Financial aid funds

  15. Identify Your Expenses Fixed Expenses: • Tuition and fees • Rent • Child care • Taxes • Insurance premiums

  16. Identify Your Expenses Variable Expenses: • Utilities • Food • Clothing • Transportation • Other living expenses

  17. 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

  18. 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

  19. Loan Repayment • Postponement Options • Deferments ex. – In-School Deferment • Forbearances ex. – Residency Forbearance

  20. Default • Any time you miss a payment for more than 270 days • Possible consequences: • Referred to a collection agency • Reported to the national credit bureaus • Loss of federal financial aid eligibility • Garnished wages • Intercepted tax refunds • Suspended or revoked professional license

  21. 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

  22. Review • Costs at VCOM • Financial aid options and why loans are good, realistic options • Budget planning and repayment options that are manageable

  23. Questions? Jan Price jprice@carolinas.vcom.edu (864) 327-9836

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