Managing your Educational Investment

2014 - 2015

Minimize Debt: It’s not too early to start!

• Pay off all consumer debt before starting school.

• Don’t take on any new consumerdebt while in school.

• Borrow only what is absolutelynecessary in student loan funds.

Review Student LoanBorrowing History

• KNOW WHAT YOU OWE!• Review your borrowing history at:

www.nslds.ed.gov – the National Student Loan Data System (NSLDS)

• For students enrolled in health profession programs there is an aggregate loan limit of $224,000.

Maintain Good Credit

• Use the website: www.annualcreditreport.com – the ONLY free site required by Congress.

• Review all three national credit reporting agencies each year. Equifax, Experian, and Trans Union all are available.

• You may want to purchase your FICO (Fair Issac Corporation) score which includes data from all 3 credit bureaus: www.myfico.com. (This is not a free service.)

• Credit Karma: www.creditkarma.com Free service. Approximate credit score – within 20 or so points.

Establish a Budget

• Develop a budget to accommodate weekly,monthly, quarterly, and annual expenses.

• Evaluate budget for items that can be reduced oreliminated.

• Monthly payments for prior student loans will bedeferred while in school.

• Financial aid will only cover the student’s own basic expenses while in school (not spouse and children).

Components of a BudgetFor Dental School

Direct costs• Tuition and fees• Books and suppliesIndirect costs• Housing• Food• Utilities• Transportation• Personal• Loan fees

Estimated Cost of Attendance Definition

Standard Cost of Attendance (COA) is the total aid a student may receive in all types of financial assistance (grants,scholarships, loans, etc.).Students may request a personal costof attendance review if the student has somebasic expenses above the standard allowances.

Cost of Attendance School of Dental Medicine, 2014-15

Fall 2014

Spring 2015

Summer 2015 Total

Tuition and fees $8,903 $8,903 $8,902 $26,708Books and supplies $5,910 $2,011 $2,011 $9,932Insurance $743 $743 $1,486Educational Cost $38,126

Housing and food $5,685 $5,685 $5,684 $17,054Personal $980 $980 $979 $2,939Transportation $905 $905 $906 $2,716Loan fees (variable) $269 $269 $270 $808Living Expenses $23,517

Cost of Attendance, 2014-2015 $61,643

Sources of Funding forDental School

• Stafford loans: Direct• Institutional Scholarships/Grants• Military scholarships• Privately funded scholarships• Graduate PLUS loan• Alternative loans

Federal Financial Aid

• Apply by filing the 2014-2015 FAFSA• Early deadline to ensure funds will

be available on time to use toward Fallbill is February 14, 2014.

• FAFSA website: www.fafsa.ed.gov• ECU school code: 002923• Maximum Stafford loan amount for a Dental

student is $47167 (for 12 month enrollment)

Federal Direct Stafford Loan Interest Rate

• Interest rate of 5.41% as of 7/1/13 for any new graduate loans. *

• Unsubsidized Stafford Loans accrue interest while in school.

• Pay quarterly unsubsidized interest statements for long term cost savings.

• *Interest rates are revised on July 1st each year

Scholarship Opportunities

• SoDM Website - Scholarships & Loans • American Dental Education Association

www.adea.org• College Foundation

www.cfnc.org• Military scholarships

www.navy.comwww.goarmy.comwww.airforce.com

Forgivable Education Loan for Service

• The Forgivable Education Loan for Service (FELS) was established by the North Carolina General Assembly in 2011 and the first loans available for the 2012-13 academic year. The loan provides financial assistance to qualified students who are committed to working in North Carolina in fields designated as critical employment shortage areas.

A recipient must meet the following eligibility criteria to be considered for FELS:• Be a legal North Carolina resident and NC resident for tuition purposes• At the time of application, present a cumulative minimum grade point average (GPA) of:

– 3.20 for students pursuing a graduate or professional degree• Register with the Selective Service System, if required;• Recipients must not be in default, or does not owe a refund, under any federal or State loan or grant program• Maintain Satisfactory Academic Progress according to the enrolling policy of the institution.• Be willing to work in NC in a designated critical employment area.

• Annual Loan Amount for Dental Students is: $14,000

• Maximum Aggregate Loan Limits: Dental Students $56,000

• For additional information go to: WWW.CFNC.ORG/FELS

Alternative Loans

• Access alternative lender websites through links at: www.ecu.edu/financial

• Evaluate terms and conditions of loan products to make best decision.

• Higher interest rates than federal loans; borrow as little as possible.

• You may borrow up to your remaining COA after taking into consideration federal loans, scholarships, and any other resources.

• Alternative loans should be last resort of funding!

Loan Payments After Graduation• Example based on Stafford loan aggregate of

$189,125 and monthly payment at fixed interest rate of 5.41%:– Standard 10 year repayment = $2,043.14– Extended 25 year repayment = $1,150.12

• Repayment amounts assume student is fully paying quarterly interest statements on unsubsidized loan while in school.

• Loan calculator: http://www.mappingyourfuture.org/paying/standardcalculator.htm

Interest Accrued on Loans

• Example based on Stafford Loan amount of $43,000 at 5.41% interest rate:– $6.37/day (+/-)– $197/month (+/-)– $2,325/year (+/-)

• Capitalized Interest at end of deferment/grace period – added to the principal loan amount.

Loan Consolidation• Consolidation loan allows borrower to combine

one or more federal education loans into a new loan that has the following advantages:– Lower fixed interest rate– One lender/one monthly payment – Flexible repayment options– Reduced monthly payments

• Frequently Asked Questions about loanConsolidation: www.loanconsolidation.ed.gov

In Conclusion…

If you live like a dentist while you’re a student, expect to live like a dental student when you become a dentist!

ECU Student Financial Aid

• Main Number (252) 328-6610• Address: Mail Stop 510 Old Cafeteria Complex Greenville, NC 27858• Email: faques@ecu.edu

Always state “Dental Student” in subject line.

• Fax: 252-328-4347