financial aid for medical school
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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. - PowerPoint PPT PresentationTRANSCRIPT
Financial Aid forMedical School
Accepted Students Day
April 12th, 2014
Jan Price
Director of Financial Aid –
Carolinas Campus
Costs at VCOM
Financial aid options and why loans are good, realistic options
Budget planning and repayment options that are manageable
Agenda
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 $4,594HOUSING $7,576UTILITIES $3,028MEALS $3,861
TRANSPORTATIONAND TRAVEL $6,828MEDICAL EXPENSES $2,137PERSONAL EXPENSES $3,147
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
Applying For Loans
2014-2015 VCOM Financial Aid Applicationhttp://www.vcom.vt.edu/financial/
2014-2015 Free Application for Federal Student Aid (FAFSA)
http://www.fafsa.govLoan applications
Loan Eligibility
1. Cost of Attendance -Scholarships and Service Contracts =
Unsubsidized Stafford Loan
2. Cost of Attendance -Scholarships and Service Contracts -
Unsubsidized Stafford Loan =Graduate PLUS or Private loan
Unsubsidized Stafford LoansFixed interest rate set June 1st
1.072% origination fee Interest starts accruing right awayNo credit check, but cannot be in default on
any student loanMaximum amount of $47,167 (12 months)$44,944 maximum for OMS1 (11 month
academic year here at VCOM)
Graduate PLUS and Private LoansGraduate 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 isCost of Attendance minus other aid
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
Borrowing Responsibly
Unsubsidized Stafford – 5.41% fixed (currently) Graduate PLUS – 6.41% fixed (currently)
Year 1 Year 2 Year 3 Year 4 Total
Annual Unsubsidized Limits
$44,944 $4444,9 $42,722 $42,722 $175,332
Graduate PLUS $28,496 $26,906 $30,402 $28,846 $114,650
Maximum Stafford & Graduate PLUS
$73,440 $71,850 $73,124 $71,568 $289,982
The approximate cost of your education:
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 inGraduate PLUS
These examples assume immediate repayment (25 years) after six-month grace period
Principalbalance
Balance at graduation (after interest capitalization)
Total loan costbased on a 25-year
repayment term
Borrower 1: Max. Unsubsidized & Grad PLUS
$290,000 $327,963 $731,833
Borrower 2: Less $5,000 of Grad PLUS & Unsub $270,000 $305,078 $677,023
Difference $20,000 $22,885 $64,840
The Long-Term Cost
Breakdown
Principal balance
Difference $20,000
Yearly $5,000
Weekly $96.15
Daily Cost $13.69
So …
If you can adjust your expenses by less than $14 a day for the next four years,
you could save yourself $55,000!
Determine Your IncomeEmployment
Personal savings
Family support
Financial aid funds
Identify Your Expenses
Fixed Expenses:
Tuition and feesRentChild careTaxes Insurance premiums
Identify Your Expenses
Variable Expenses:
UtilitiesFoodClothingTransportationOther living expenses
Cost of a Daily Latte
Daily $4Weekly $20Monthly $87Annually $1,040Cost over 4 years $4,160
Repayment over25 years at 6.41% $11,400
Loan Repayment
Repayment Plan LengthNormal = 10 yearsExtended = up to 25 years
Repayment Plan TypeStandard – fixed, equal monthly payments Income-Based –monthly payments go up and
down with your income
Loan Repayment
Postponement Options
Defermentsex. – In-School Deferment
Forbearancesex. – Residency Forbearance
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
Early Repayment
No early repayment penalties of any kindWithin 120 days of disbursement, loan fees
and accrued interest are negatedExtra payments go to accrued interest first,
then to principal
Death, or Total and Permanent DisabilityDischarge
Costs at VCOM
Financial aid options and why loans are good, realistic options
Budget planning and repayment options that are manageable
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