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FINANCING YOUR MEDICAL EDUCATION. TOPICS. THE FINANCIAL AID PROCESS MEDICAL SCHOOL COSTS & BUDGET DETERMINING FINANCIAL AID AWARDS CATEGORIES OF FINANCIAL AID MEDICAL SCHOOL DEBT THE IMPORTANCE OF CREDIT RATING QUESTIONS. FINANCIAL AID APPLICATION PROCESS. O - PowerPoint PPT Presentation
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TOPICSTHE FINANCIAL AID PROCESSMEDICAL SCHOOL COSTS & BUDGETDETERMINING FINANCIAL AID
AWARDS CATEGORIES OF FINANCIAL AIDMEDICAL SCHOOL DEBTTHE IMPORTANCE OF CREDIT RATINGQUESTIONS
FINANCIAL AID APPLICATION PROCESS
OC EXPLORE THE FINANCIAL AID APPLICATION PROCEDURES AND
DEADLINES
TO OBTAIN INSTITUTIONAL APPLICATION FORMS
BE BEGIN RESEARCHING THE WEB FOR SCHOLARSHIPS
R
JANU FILL OUT THE FAFSA ON THE WEB
ARY
M OBTAIN ESTIMATES OF FINANCIAL AID OFFERS FROM ALL SCHOOLS
A Y MAKE A DECISION AS TO WHICH MEDICAL SCHOOL YOU WANT TO
ATTEND
UCSD MEDICAL SCHOOL 2010-11 BUDGET
DESCRIPTIONDESCRIPTION FIRST YEAR FIRST YEAR
BOOKSBOOKS $1,184$1,184
RENT/UTILITIES RENT/UTILITIES ($891/MO)($891/MO)
$8,465$8,465
FOOD FOOD
($352/MO)($352/MO)$3,344$3,344
MISC./PERSONAL MISC./PERSONAL ($348/MO)($348/MO)
$3,306$3,306
TRANSPORTATION TRANSPORTATION ($312/MO)($312/MO)
$2,964$2,964
EQUIPMENT BAGEQUIPMENT BAG $1,263$1,263
MICROSCOPEMICROSCOPE $150$150
REGISTRATION FEESREGISTRATION FEES $29,989.50$29,989.50
TOTALTOTAL $50,666$50,666
PUBLIC VS. PRIVATE MEDICAL SCHOOL COSTS
PUBLICPUBLIC PRIVATEPRIVATE UCSDUCSD
$28,685$28,685 $46,899$46,899 $29,990$29,990
National Average for 2010-11 according to the AAMCTuition and Fees only
FINANCIAL AID AWARDS60% OF THE ENTIRE CLASS WILL
RECEIVE SCHOOL BASED FINANCIAL AID PACKAGE.
THE NEEDIEST SCHOOL PACKAGE FOR 2010-11 IS $34,463 (First Year Class)
($22,525 GRANT & $11,938 SCHOOL LOAN)THE LOWEST NEED SCHOOL-BASED
PACKAGE FOR 2010-11 IS $30,863 ($12,845 GRANT AND $18,018 LOAN) (First Year Class)
HOW YOUR AWARDS ARE DETERMINED2010-11
SINGLE STUDENTSPARENTS’ CONTRIBUTION
NEED CATEGORY
STUDENT IS SINGLE & PARENT’S STUDENT IS SINGLE & PARENT’SCONTRIBUTION IS >= $27,743 CONTRIBUTION IS < $27,743
NEED CATEGORY 1 NEED CATEGORY 2 -- 5
STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR FEDERAL STAFFORD LOAN INSTITUTIONAL GRANTS &ONLY LOANS
WHY USE PARENTS’ INCOME AND ASSET INFO?
1. STUDENTS FROM LOW-INCOME BACKGROUNDS USUALLY ENTER MEDICAL SCHOOL WITH A SUBSTANTIALLY HIGHER DEBT THAN STUDENTS FROM MORE AFFLUENT FAMILIES.
2. IN GENERAL, STUDENTS FROM AFFLUENT BACKGROUNDS ARE ABLE TO CALL ON THEIR PARENTS FOR FINANCIAL HELP, WHEREAS STUDENTS FROM LOWER INCOME FAMILIES DO NOT HAVE ACCESS TO THIS RESOURCE.
3. IF LIMITED SCHOOL-BASED FUNDS WERE DISTRIBUTED EVENLY AMONG ALL STUDENTS IN THE SCHOOL, REGARDLESS OF PARENT INCOME, THE AMOUNT OF GRANT AND LOW-INTEREST LOAN MONEY AVAILABLE TO EACH STUDENT WOULD BE SUBSTANTIALLY REDUCED.
HOW YOUR AWARDS ARE DETERMINED2010-11
MARRIED STUDENTS WITHOUT CHILDREN
SPOUSE’S NET MONTHLY INCOME
NEED CATEGORY
STUDENT IS MARRIED & SPOUSE’S STUDENT IS MARRIED, SPOUSE’S NET INCOME IS > $2,238/MONTH NET INCOME < $2,238/MONTH
NEED CATEGORY 1 NEED CATEGORY 2
STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR FEDERAL STAFFORD LOANS INSTITUTIONAL GRANTS &ONLY LOANS
FINANCIAL AWARD SAMPLESingle student without children
EFC = $2310 (Estimated Family/Parent Contribution)
Need Category 5 eligible for school aid $22,525– School Grant $ 11,938 – School Loan
TOTAL $34,463Budget $50,666Student Contribution - $ 1,000Financial Need $49,666School Aid - $34,463Unmet Need $15,203
Federal Loans $8,500 Subsidized Direct Loan ($8500 max)$6,703 Unsubsidized Direct Loan ($32,000
max)Unmet Need $0
FINANCIAL AWARD SAMPLESingle student without children
EFC = $27,800 (Estimated Family/Parent Contribution)
Need Category 1 Not Eligible for School Aid $0
Budget $50,666Student Contribution - $1000Financial Need $49,666School Aid - $0Unmet Need $49,666Federal Loans - $8,500 Subsidized Direct Loan
- $32,000 Unsubsidized Direct LoanUnmet Need $9,166 Graduate PLUS Loan
CATEGORIES OF FINANCIAL AIDINSTITUTIONAL AID
BASED ON STUDENT’S & PARENTS’ INCOME AND ASSETS INCLUDES GRANTS, SCHOLARSHIPS, FELLOWSHIPS AND
LOANS
OUTSIDE GRANTS AND SCHOLARSHIPS USUALLY RESTRICTIVE IN NATURE BASED ON FACTORS SUCH AS THE AREA OF RESIDENCE,
ETHNICITY, RELIGIOUS AFFILIATION, ETC. EXAMPLES: NATIONAL MEDICAL FELLOWSHIPS, BECA
SCHOLARSHIP, NATIONAL HISPANIC SCHOLARSHIP, THE CHINESE AMERICAN MEDICAL SOCIETY SCHOLARSHIP
CATEGORIES OF FINANCIAL AIDOUTSIDE LOANS
FEDERAL LOANS (SUBSIDIZED, UNSUBSIDIZED AND GRADUATE PLUS LOANS ) HAVE BETTER TERMS THAN PRIVATE/ALTERNATIVE LOANS INTEREST RATE 6.8% FOR DIRECT LOAN; 7.9% FOR GRAD
PLUS DIRECT LOAN DOES NOT REQUIRE CREDIT CHECK
PRIVATE LOANS (THROUGH OUTSIDE LENDERS) ALTERNATIVE LOANS - REQUIRE CREDIT CHECK OTHER OUTSIDE AGENCY LOANS - MAY OR MAY NOT
REQURE CREDIT CHECKS CANNOT BE CONSOLIDATED WITH YOUR FEDERAL LOANS
CATEGORIES OF FINANCIAL AIDSERVICE OBLIGATION PROGRAMS
REQUIRE A COMMITMENT TO PRACTICE IN A PARTICULAR FIELD OF MEDICINE OR IN A SPECIFIC GEOGRAPHIC LOCATION
HAVE STIFF PENALTIES FOR DEFAULTING ON THE SERVICE COMMITMENT
EXAMPLES: ARMED FORCES SCHOLARSHIP PROGRAMS, THE NATIONAL HEALTH SERVICE CORPS AND THE PRIMARY CARE LOAN
LOAN REPAYMENT PROGRAMS PROVIDE BACK-END HELP AFTER GRADUATION FROM MED
SCHOOL BY REPAYING ALL OR A PORTION OF A STUDENT’S OUTSTANDING EDUCATIONAL DEBT
MOST ARE TIED TO PRACTICING IN A PARTICULAR AREA OF MEDICINE OR SPECIFIED GEOGRAPHIC LOCATION
EXAMPLES: NATIONAL HEALTH SERVICE CORPS LOAN REPAYMENT PROGRAM, THE CALIFORNIA STATE LOAN REPAYMENT PROGRAM, ETC.
MEDICAL SCHOOL DEBTAVERAGE ALL AVERAGE ALL SCHOOLSSCHOOLS $157,944$157,944
AVERAGE PUBLIC AVERAGE PUBLIC SCHOOLSSCHOOLS $148,222$148,222
AVERAGE PRIVATE AVERAGE PRIVATE SCHOOLSSCHOOLS $172,422$172,422
AVERAGE UCSDAVERAGE UCSD $106,953$106,953*ACCORDING TO THE AAMC FOR 2010**INCLUDES PRE-MATRICULATION DEBT
ESTIMATE OF REPAYMENTREPAYMENREPAYMENT PERIODT PERIOD
INTEREST ONLY INTEREST ONLY PAYMENTS PAYMENTS
DURING DURING RESIDENCYRESIDENCY
TOTAL PAID TOTAL PAID IN IN
REPAYMENREPAYMENTT
TOTAL TOTAL PAID PAID
OVERALLOVERALL
MONTHLY MONTHLY PAYMENT PAYMENT
IN IN REPAYMENREPAYMEN
TT
10 YEARS10 YEARSPAYMENT PAYMENT BEGINS AFTER BEGINS AFTER GRADUATIONGRADUATION
$172,621$172,621 $172,621$172,621 $1,439$1,439
15 YEARS15 YEARS $34,000 OR $34,000 OR $708/MO$708/MO $199,729$199,729 $233,728$233,728 $1,110$1,110
25 YEARS25 YEARS $34,000 OR $34,000 OR $708/MO$708/MO $260,277$260,277 $294,277$294,277 $868$868
LOAN AMOUNT OF $125,000 AT 6.8% INTEREST RATE
CAN I AFFORD THE MONTHLY PAYMENT ON MY SALARY ?
AVERAGE ANNUAL SALARY OF FAMILY PRACTITIONER
GROSS MONTHLY PAY FORA SALARY OF $150,000/YEAR
MONTHLY LOAN PAYMENTBASED ON 10-15% OF SALARY
$150,000
$12,500/MO
$1250- $1875/MO
THE IMPORTANCE OF CREDIT RATING
THE GRAD PLUS LOAN PROGRAM REQUIRES A CREDIT CHECK
A GRAD PLUS APPLICANT IS CONSIDERED TO HAVE ADVERSE CREDIT IF: APPLICANT IS 90 DAYS OR MORE DELINQUENT ON
THE PAYMENT OF ANY DEBT APPLICANT HAD ANY DEBT DISCHARGED IN
BANKRUPTSY ANY TIME IN THE LAST FIVE YEARS THE APPLICANT HAS BEEN THE SUBJECT OF A
DEFAULT DETERMINATION ON ANY DEBT, FORECLOSURE, A TAX LIEN, A REPOSSESSION, A WAGE GARNISHMENT, OR A WRITE-OFF OF A TITLE IV DEBT ANY TIME DURING THE LAST FIVE YEARS
WHAT’S A GOOD CREDIT SCORE?800 + EXCELLENT750-799 VERY GOOD TO
EXCELLENT700-749 GOOD TO VERY GOOD650-699 FAIR TO GOOD600-649 POOR TO FAIRBELOW 600 VERY POOR TO POOR
HOW TO MAINTAIN GOOD CREDIT?
RETIRE CREDIT CARD DEBT BEFORE ENTERING MEDICAL SCHOOL
OBTAIN A COPY OF YOUR CREDIT REPORT AND CLEAN UP ANY NEGATIVE CREDIT THAT YOU CAN
DON’T BORROW MORE THAN YOU NEED
ALWAYS KNOW EXACTLY HOW YOU WILL REPAY THE DEBT AND HOW IT WILL AFFECT YOUR MONTHLY BUDGET
WHAT TO DO IF DENIED?OBTAIN AND REVIEW CREDIT REPORT
USED IN DECISION PROCESS BY LENDER
CORRECT ANY ERRORS CONTAINED IN REPORT
APPEAL CREDIT DECISION, IF APPROPRIATE
CONSIDER CO-SIGNER AS OPTION, IF AVAILABLE
QUESTIONS???
Contact theContact theFinancial Aid OfficeFinancial Aid Office