Living on a Financial Aid Budget Make Your Financial Aid Last Sara Honeck, Director of Student Financial Aid Living on a Financial Aid Budget

Overview Cost of Attendance Budgets Creating a Spending Plan Goals Income Expenses Tracking Spending Tips for Making Financial Aid Last Helpful Websites and Worksheets

Creating a Spending Plan Motivation/Goals Fewer Loans to Pay Back Develop Good Habits Save for Events/Travel/Periods of Non Enrollment Less Stress in Life…. Less Debt = More Freedom

Medical Student – First Year

Graduate Student – Full Time

Undergraduate Student – Full Time

Creating a Spending Plan Expenses Fixed Rent Car Payments Budget Billing Variable Food Clothing Entertainment Intermittent Gifts Car Maintenance

Creating a Spending Plan Income Financial Aid Loans Scholarships Tuition Assistance Family Employment/Other

Financial Aid Living Expenses $2,240/month Only for months enrolled Financial aid is not awarded up to this amount – you must request more if you need it

Creating a Spending Plan Tracking Spending Debit Card Online resources (use caution) Mobile Devices Notebook

Financial Aid Example (First Year Medical) Income Annual Awards Fall Disbursement Unsubsidized Direct Loan $ 20,500 $ 10,141 Unsubsidized MED DL $ 22,222 $ 10,993 Scholarship $ 1,000 TOTAL $ 43,722 $ 22,134 School Expenses Annual Estimates Fall Estimates Tuition/Fees $ 35,538 $ 17,769 Books/Supplies $ 1,200 $ 600 Total $ 36,738 $ 18,369 In this example, the student will have $3,765 each semester to use for living expenses.

Financial Aid Literacy Tools Budget Spreadsheets

The Cost of a Grad PLUS Loan Amount Borrowed Interest Rate Annual Cost Years in School Total Cost $ 10,000 6.31% $ 631 4 $ 2,524 3 $ 1,893 2 $ 1,262 1 $ 631 $ 40,000 $ 6,310 Total Grad PLUS Loan debt at graduation - $46,310

Tips for Stretching Financial Aid Reduce Spending “Small” Stuff: Eat at home Walk, Bike, or Carpool Buy Clothing on Sale, clothing exchanges Free events – Student Life “Big” Stuff: Cancel Cable (Pay to watch online) Find Cheaper Auto Insurance Get a Roommate!! Reduce Temptation

Tips for Stretching Financial Aid Simplify Money Management Deposit Funds into Savings, “pay yourself monthly” Setup Automatic Transfers Setup Online Bill-Pay Cash Only Envelope System Freezer System Coupons or generic Check about transfer/hidden fees

Helpful Websites & Worksheets www.kumc.edu/student-services/student- financial-aid.html Financial Literacy - KUMC Money ents www.aamc.org/services/first www.nslds.ed.gov