Financing your medical school educationKelly D. LancasterDirector of Student Affairs & Financial AidOffice of Student AffairsBrody School of Medicine

• How much does it cost?

• How will I pay for it?

What questions should I be asking now?

2014-2015 Cost of Attendance

  M1 M2 M3 M4

Tuition & Fees $19,000.00 $19,000.00 $19,000.00 $19,000.00

Laptop $1,200.00 na na na

Books & Supplies $1,363.00 $1,000.00 $1,000.00 $1,000.00

Health Insurance $1,376.00 $1,376.00 $1,376.00 $1,376.00

Rent & utilities $8,748.00 $10,169.00 $11,352.00 $9,697.00

Food/grocery $6,179.00 $7,181.00 $8,016.00 $6,847.00

Transportation $2,466.00 $2,865.00 $3,198.00 $2,945.00

Personal/Misc. $2,471.00 $2,870.00 $3,204.00 $2,737.00

PPD(immunization) na $15.00 $15.00 na

Direct Loan Fee $458.00 $483.00 $512.00 $482.00

Background Check na na $25.00 na

Usmle Step 1 exam na $580.00 na na

Usmle Step 2 exam na na $580.00 $1,230.00Residency Application &

Interviewna na na $2,622.00

TOTAL $43,261.00 $45,539.00 $48,278.00 $47,936.00

The amounts listed below are standard figures used for budgeting purposes for the academic year. Your actual bill will differ from these numbers. Please note that tuition, fees, and health insurance are the only costs billed directly by East Carolina University. The health insurance fee can be waived if a student is covered by another policy.

Estimated student budgets reflect typical modest but adequate expense patterns of BSOM students. While actual expenses will depend on your lifestyle, the estimated costs listed on this page should assist you in planning your own budget.

How will I pay for it all?

• Credit Card?• School Loans?• Personal Loans?• Scholarships?• Family support?

Subsidized Loans (no longer available to graduate/professional students)Have no interest cost while you are in school, in grace, or during an authorized deferment period. Awarded based on financial need.

Unsubsidized LoansThis is a long-term, low-interest student loan provided by the U.S. Department of Education rather than a bank or other financial institution. Interest accrues rom the moment of disbursement and can be awarded to any eligible applicant, and are not based on financial need. Payment on this loan does not begin until 6 months after graduation or if you drop below half time enrollment. Standard repayment period is 10 years, but can be extended.

Interest Rates 2004-05 2005-06 2006-07 2008-13 2014-2015

2.77% var. 4.7% var. 6.5% fixed 6.8% fixed 6.21% fixed

Graduate Plus LoansThis loan is available to a student who has borrowed the maximum in Unsubsidized loan for the academic year. The Graduate Plus Loan is credit based and requires credit approval. Students may borrow up to the Cost of Attendance minus any other financial aid received for that year. The 2014-2015 interest rate is 7.21% FIXED. There is a 4.288% loan processing fee deducted from the original amount accepted. Payment on this loan does not begin until 6 months after graduation or if you drop below half time enrollment. Standard repayment period is 10 years, but can be extended.

Loans

Loan limits for students attending medical school

The amount of loan offered to you will actually be determined by the cost of attendance (COA) set by the school. Award offers will not exceed the COA. However, students who experience a financial hardship due to unforeseen circumstances may request additional aid which will be reviewed on a case by case basis by the Professional Judgment Committee.

The total amount of Subsidized and Unsubsidized Loans you receive in undergraduate, graduate, and medical school (all combined) can not exceed the aggregate loan limit even if you have not completed your education.

Aggregate Loan Limit: $224,000

How is eligibility determined?

• You must first complete the FAFSA• The Financial Aid Office determines your

financial need using the schools Cost of Attendance

Example:

Cost of Attendance minus the expected family contribution

$43,261 Cost of Attendance

$1200.00 Family Contribution

$42,061 Need

Scholarships

• Full tuition Assistance– Brody Scholar (27,500 / 4 yrs)– Fullerton (25,000 / 4 yrs)

• BSOM General Scholarships– Multiple scholarships awarded to those who are in good academic

standing and/or demonstrate financial need. Application is sent directly to students.

• Service Commitment Scholarships– NC Forgivable Education Loans for Service ($14,000/year)– National Health Service Corps– Armed Forces (Army, Navy, Air Force, National Reserves)

• Outside Resources– N.C Community Foundation– Joseph Collins ($10,000)– N.C Minority Medical Grant– AMA– AmeriCorps

Sample Award Letter

Fast Forward to your 4th year

• Assumptions• Do’s and Don’ts• Things I wish I had thought of earlier

The Cost of Applying for a Medical Residency

• Electronic Residency Application Service (ERAS)

• Interview Related Cost– Interview Attire– Travel accommodations (flight, hotel, food, taxi)

• National Resident Matching Program (NRMP)– $60.00

This is a major 4th year expense that most students don’t plan for in advance

• How will I pay for my application to Residency?• What if I have to relocate out of state?• Will I rent or buy?• How much is my salary going to be?• Will my significant other find another job?• When do I start repaying my loans?

Residency / Relocation Loan

• Residency & Relocation loans are available to medical students who are enrolled in their final year of medical school, enrolled at least half time, and will receive their graduate medical degree during this academic school year.

• The student must acknowledge that these funds will only be used to cover the expenses associated with their residency program, including the costs of interviewing for their residency program and the cost of relocating to the area where their residency training will occur.

• Loan eligibility & interest rate is determined by the lender and is based on your credit score.

• Borrowing limits ($1,000-$15,000)

Example: Residency / Relocation Loan

Amount borrowed: $15,000

Repayment begins three years after graduation or six months after leaving school or dropping to less than half-time status

Things I wish I had thought of earlier…

• What if I was denied the Residency / Relocation loan because I had poor credit?

• Do I have other options?

Pay attention to your Credit Score: It matters

Scores range from a low of 300 to a high of 850

You are entitled to receive one free credit report every 12 months. You may also choose to view your credit score for a fee of $7.00

Flash Forward to Graduation & Beyond…

• When do you start repaying loans?• How can I postpone making payments?• Where can I find my loan information?

As medical school gradation nears, most students will have borrowed upwards of $110,000 which doesn’t include those loans still owed from undergraduate &/or graduate school. A typical BSOM student who graduates in 2014, will have a $550.00/month student loan payment (based on the Income Based Repayment plan) which is the lowest monthly repayment plan available.

All those loans you borrow will eventually add up. Don’t borrow carelessly.

Student loan repayment typically begins 6 monthsafter you graduate or drop to less than half-time.Under certain circumstances, you may delay repayment. In these cases, you use your grace deferment & forbearanceoptions, and you will generally use them in that order.

Tip: You can prepay your federal student loans with no penalties.