Financial Aid Entrance Counseling Session Abera Metaferia, Financial Aid Advisor Lawson Roberts, Financial Aid Analyst Martha C. Trujillo, MPA, Financial Aid Director Wednesday, September 13, 2017 M112, 5:00 -6:30 pm

Agenda Your Financial Aid Award Loans & Loan Repayment Timelines Your University Bill Budgeting

Know your Financial Aid Financial Wellness Manage Your Cash Know your Financial Aid Borrow Wisely

Sample Financial Aid Award Letter

Sample Award Letter Comments Award reflects an on-campus budget and there quarters enrollment. You are eligible for $20,250 under the Middle Income Assistance Program (MIAP); please have your parent(s) email us if the they are willing to match this amount. Stanford University (SU) Grant is calculated and based, in part, on your sibling(s) attending college at least half-time and is reviewed annually. Verification of your sibling(s) enrollment will be requested later in the year. If you fail to provide this information, you may lose SU Grant eligibility. Maximum Unsubsidized loan has been awarded. Please contact our office if you wish to reduce or decline.

Maximum Grant and Loan Limits Stanford Grant: Full Tuition $18,743 & LEADER Supplement Maximum Grant $13,500 per quarter Middle Income Assistance Grant: $6,750 per quarter Stanford University Loan (0%): $2,000 per quarter Federal Unsubsidized Loan: $40,500 per year (3 quarters) Federal Grad PLUS: Up to cost of education minus other financial aid

Stanford Institutional Grant Named Funds (Goodrich Scholarship, Kaiser Scholarship, etc.) Repayment is not required You may be required to write a thank you letter to the donors and attend the annual donor dinner Funds are applied directly to your account; excess funds may be refunded to you for living expenses

Other Sources of School-Based Financial Support Med Scholars Research Fellowship May apply for up to 5 full-time quarters (500%) May be done in increments of 25% only Compensation: 100% $12,500 ($3,747 Tuition, $8,753 Stipend) 75% $9,375 50% $6,250 25% $3,125 Teaching and Research Assistantships Employment based Pays a tuition credit (TAL) and salary Paid quarterly from 10% to 50% effort; Payment range from $4,445 - $22,228

Loan Type Comparisons Interest Rate Deferment Forbearance Consolidation Federal Direct Unsubsidized $40,500 per year 5.31 no yes Grad PLUS-depends on unmet need 6.31 Stanford University (Lowy, Korn-Newburg, etc.) $6,000 per year 0% -

Loans How Are Education Loans Different From Other Loans? No measurement of ability to pay (collateral, income) Credit check required for Grad PLUS Delayed repayment options No repayment while in-school Flexible repayment options Temporary postponement Deferment & forbearance Loan forgiveness options

Your Rights & Responsibilities Know who you borrowed from and who to pay back Know the type of loans borrowed Understand the total cost Understand postponement options Know your repayment options Understand Loan Forgiveness Program options Keep documentation on your loans Loans should support modest lifestyle www.aamc.org/first

Your Rights & Responsibilities Your loans must be repaid even if you: Never graduate Do not get your desired residency Never use the information you learned Don't like the quality of education received Loans must be repaid with agreed upon terms: Interest rate Repayment periods & options Loan postponement options

Temporary Postponement of Payments In School Deferment Grace Period Direct Stafford (Unsubsidized and Grad PLUS) Loans – 6 months Stanford University Loans - 6 months Forbearance A formal agreement between you and the lender to suspend, reduce payments Interest accrues during forbearance Residency Deferment- Applies to Stanford University Loans only

Standard 10-Year Repayment Monthly payments are a fixed amount Minimum monthly payments of $50 Highest monthly payment of all plans Loans will be repaid in the shortest time Minimizes interest paid

Graduated Repayment Monthly payments start low Increase every two years (as income increases) Begins with lower monthly payments, but still possible to pay off loans in 10 years Graduated Extended Repayment plan also available Repay loans in 30 years

Extended Repayment Monthly payments are fixed amount Monthly payments are lower May take up to 25 years to repay Maximum interest paid under this plan

Income Based Repayment (IBR) & Pay As You Earn (PAYE & REPAYE) Monthly payment is calculated based on income and family size Smallest monthly payment Includes a limited subsidized interest benefit If your payments don't cover the interest that accrues, the government waives the unpaid interest

IBR Sample AGI $50,000 Total Student Loans $170,870 Interest Rate 5.31% Family Size 1 Monthly Payment $350 - $400

Loan Repayment Sample Scenarios Payment Plan Standard Graduated Extended Loan Balance $150,000 Loan Balance at Repayment $170,870 Interest Rate 5.41% Loan Term 10 years 25 years Monthly Payment $1,846 $1,096* (years 1 & 2) $1,040 # of Payments 120 300 Total Interest Paid $50,743 $63,929 $141,167 Total Repaid $221,613 $234,799 $312,037

Helpful Hints to Minimize Loan Debt Be Proactive, look for opportunities Explore scholarship opportunities Community organizations, church, employers, private companies Use your skills – earn extra money Live frugally Explore simple ways to save money

Your Student Bill “It’s all Latin to me!”

Disbursement Requirements Complete mandatory loan documents Federal Direct Stafford and Grad PLIS loans Master Promissory Notes and Entrance Counseling Stanford University Loans Promissory Notes and Self-Certification Forms Register for Classes Minimum of 9 units per quarter 1st quarter, 1st year; Maximum of 45 units Maximum of 35 units for all other quarters Enroll before Deadline – Avoid late fees for “Late Study List” Clear any “Holds” on your Account Make Satisfactory Academic Progress (SAP) Must be making progress toward the MD degree

2016-17 Dates and Deadlines Bill Notification Disbursement Date Refund Date Bill Due Date 08/22/2017 9/19/2017 9/21/2016 10/15/2016 11/22/2016 1/2/2017 1/4/2017 1/15/2017 02/22/2017 3/26/2017 3/29/2017 4/15/2017 05/23/2017 6/19/2017 6/21/2017 7/14/2017

Have a Financial Plan Budgeting Set goals Put in writing Estimate your total costs Organize your resources Determine shortfalls If needed, go on a spending diet

Why Do You Need a Budget? You live on a fixed income Funds are disbursed quarterly, but you may have monthly, weekly and daily expenses Avoid spending more than you should Reduce unnecessary debt

The AAMC's FIRST (Financial Information, Resources, Services, and Tools) program provides free resources to help you make wise financial decisions. Whether you’re thinking about how to afford medical school, applying for student loans, or determining your loan repayment options, you’ll find unbiased, reliable guidance from FIRST. https://students-residents.aamc.org/financial-aid/

Thank you for attending! Lawson Roberts, 650-723-6958, lawsonr@stanford.edu Abera Metaferia, 650-724-3181, abera.metaferia@stanford.edu Marti Trujillo, 650-723-6954, mtrujill@stanford.edu 1265 Welch Road, MSOB Suite 100, Stanford, CA 94035-5404 md_financial_aid@stanford.edu