Budgeting & Money Matters Admissions and Enrollment Management Presented by: La Shaundria Thomas Program Manager, Medical Student Financial Services

Welcome Welcome to financial aid disbursements, bill due dates, and budgeting 101

Cost of Attendance Financial Aid Billing Budgeting Tips Agenda The Big Picture: 4-Year Plan Goals Cost of Attendance Financial Aid Loans Billing Payments/Disbursements Due Dates Refunds Budgeting Tips Contact Information Resources Questions and Answers

The 4-Year Plan MS1-MS4 MS3 MS4 Correspondence provided on how to apply for financial aid and budgeting Individual meetings/phone calls Check Facebook and emails periodically for financial tips Learning Community discussions throughout medical school Annually, a budget planning workbook will be provided for all students MS3 During the MS3 meeting, you will be reminded of the residency interview expenses and how to save throughout medical school MS4 Before the mandatory MS4 meeting, students will be sent a checklist of Exit Interview items to complete. Once the checklist is completed, you have the option of making an individual appointment with Medical Student Financial Services Program Manager to discuss in detail During the MS4 year, a speaker from FIRST (AAMC) will present repayment plan options for Federal Student Loans During the MS4 year, a FREE Financial Planner will speak and be available to advise students/graduates throughout residency

Goals: C.E.A.C. Confident and Empowered about money matters Assured you will be able to pay back your student loans We want you to concentrate on your medical school education.

What is Cost of Attendance? The cost of attendance (COA) includes tuition and fees, books and supplies, room and board, transportation, insurance, origination fees, and personal expenses. The university adjusts the COA annually to reflect changes to these costs. The COA for UABSOM for the 2018-2019 academic year is: 1st Year Tuition/ Fees Books/ Supplies Living Expenses Cost of Attendance In-State $31,550 $4,856 $22,655 $59,061 Out-of- State $65,854 $23,421 $94,131

To log in you will need your FSA ID Username and Password Financial Aid It is not too late to apply for federal student aid for the 2018-2019 academic year. Visit: www.fafsa.ed.gov To log in you will need your FSA ID Username and Password

Applying for the Federal Direct Grad PLUS Loan is still an option Need more money? Applying for the Federal Direct Grad PLUS Loan is still an option

Loans: Federal Direct Grad PLUS Apply by visiting www.studentloans.gov Approval of the loan is based on credit. No adverse credit history in addition to other requirements Limit= COA – other aid (including scholarships) Must complete the PLUS Loan Master Promissory Note if approved The interest rate is determined on an annual basis during July of the calendar year. The interest rate currently is 7.6% for the 2018-2019 academic year.

Federal vs Private Loans: Considerations Interest rates Accruals Deferment benefits Death benefits

Loans: Reminder If you borrowed loan previously, be sure to stay in contact with your servicer regarding postponement of payment In-School Deferment Eligibility – must have begun attending school Enrollment Reporting – Registrar Automatically reported every 30-60 days

Tuition assessed twice annually Billing: Tuition Tuition assessed twice annually Fall Semester Spring Semester

Fall 2018: July 23, 2018 Spring 2019: January 14, 2019 Disbursement Dates Fall 2018: July 23, 2018 Spring 2019: January 14, 2019

Fall 2018 tuition is due September 1, 2018 Billing: Due Dates Fall 2018 tuition is due September 1, 2018 Spring 2019 tuition is due January 1, 2019

Billing: Funds in Excess of Tuition Direct Deposit is the fastest way to receive a refund Funds are typically deposited 3-5 business days after financial aid disbursement Sign up for direct deposit by visiting your BlazerNet> My Financial Aid> Direct Deposit> Add/Enroll for Direct Deposit Account Paper checks are mailed within 5 days after financial aid disbursement

Be frugal  Be a penny pincher Budgeting Tips SAVE There are ways to save money during medical school! Direct deposit your entire financial aid disbursement into a Savings Account Transfer money from your Savings account to your Checking Account monthly as if you were receiving a paycheck Know when to expect your disbursements and how much it should total Complete a budget and stick to it Be frugal  Be a penny pincher

Borrow only what is needed AFTER you budget Budgeting Tips Borrow only what is needed AFTER you budget You may borrow up to the COA throughout the academic year Interest accrues from the time the loan is disbursed Visit the AAMC/FIRST for helpful resources Always looks for ways to save Live like a medical student when you are a medical student Live like a resident when you are a resident Do not hesitate to contact Medical Student Financial Services with any questions or concern

Winning at money is 80% behavior and 20% head knowledge. Budgeting Tips Nearly 40% of millennials overspend buying things they can’t afford – on credit cards Winning at money is 80% behavior and 20% head knowledge.

Budgeting Tips: Components of a Monthly Budget

Budgeting Tips: How Much Should I Borrow? Tuition + fees + Budgeted living expenses -Scholarship money -Funds saved for medical school -Support from family Amount you should consider borrowing You can always borrow more later up to the cost of attendance, if needed Spreadsheet is coming!

Budget: Your Monthly Budget-at-Glance TYPICAL MONTHLY BUDGET   Fill in the gray boxes with the your typical monthly expenses and savings to determine your monthly budget. Monthly Expenses Helpful Notes Rent/Mortgage: Keep rent down by living with roommate(s) Renters' Insurance: Be sure to have insurance! Electricity: May or may not be included with rent Gas: Water: Sewage/Trash: Groceries: Eating at home is much cheaper than eating out. Cable/Internet: Include other expenses like Netflix, Hulu Phone: Health Insurance/Co-Pays: Include if you pay for your own health insurance Life Insurance: Credit Card: Car Payment/Note: Car Insurance: Car Expenses (fuel/parking): Clothing/Personal care: Clothing, health and beauty aids, haircuts Entertainment: Funds for going out, spotify, netflix, etc Other: What have we missed? Pet supplies? Total Expenses: $ - Total Approximate Monthly Expenses $ - Amount should populate from above total Savings What do you want to set aside for savings? Total Monthly Budget

Budgeting Tip: How Much Should I Borrow How much should I BORROW in Federal Student Loans? Fill in gray boxes on this sheet. Do NOT make changes to any other cells - there are formalas in the other cells to make the calculations. Are you an Alabama Resident? (In gray box to right, type Y for Yes and N for No)   example: Y What year of school are you? (In gray box to right, type MS1, MS2, MS3 or MS4) please do not include spaces or other characters MS3 Expenses Tuition Tuition based on your state residency and year of medical school should automatically populate. Fees $ - Fees based on your year of medical school should automatically populate. If field to left is blank, make sure you added class year above in cell C6) Personal Living Expenses (From your monthly budget) This amount is your monthly budget x 12 months. Books MS2: USMLE Step 1 $610 included in Cost of Attendance budget MS3: USMLE Step 2 CK and CS $1895 included in Cost of Attendance budget MS4: USMLE Step 2 CS travel to Atlanta $400 included in Cost of Attendance budget MS4: ERAS Fees $1184 included in Cost of Attendance for ERAS/NRMP fees (combined) MS4: NRMP Match Fees MS4: Estimated Travel Costs* No funds are included in Cost of Attendance - see note * below Total Annual Expenses (Tuition, Fees, Living/Other Expenses) Sources of Funds (other than loans) Scholarship Funds Enter all internal and external scholarships you will receive this year. Funds Saved for Medical School Enter your total contributions (saved funds) for this year. Support From Family Enter total contribution your family will provide for this year. If applicable, include spouse income that will be used toward living expenses and/or tution and fees. Total Funds Available from Sources other than Loans Funds Needed from Loans or other Sources Funds needed - before loan origination fees** These are the funds you need to cover your expenses (your expenses minus your sources of funds other than loans). Approximate origination fees See note ** below concerning origination fees. Amount of funds you need to cover including origination fees Maximum amount to borrow (based on Cost of Attendance) You can only receive funds (scholarships and loans combined) up to the total Cost of Attendance. Check the table below to verify that the amount to the left represents your total cost of attendance based on 1) resident or non-resident(NR) and 2) your class year (MS1,2,3,4). Over budget If there is a balance to the left, you are over budget for the max allowed for loans/scholarships. You need to either reduce expenses or find sources of support (family,etc). If you are over budget due to MS4 residency travel, you may be eligible for an increase in cost of attendance. See * below. Amount of unsubsidized loan you may wish to borrow for this academic year Unsub loan have the lower interest rate and origination fees. We recommend you borrow up to the max allowed of unsub loans before borrowing Grad Plus loans. See max amounts for unsub loans in table below. Amount of Grad Plus you may need to borrow to cover budget for this academic year Grad Plus are allowed up to your total Cost of Attendance and require credit checks and/or co-signers.

Want to Schedule an Individual Appointment?

Regarding: Scholarships/Money Matters Contact Information La Shaundria L. Thomas Program Manager Medical Student Financial Services 205-934-2332 medschoolscholarship@uab.edu Regarding: Scholarships/Money Matters

Resources https://studentaid.ed.gov/sa/fafsa#how-fill-out-fafsa https://studentaid.ed.gov/sa/fafsa/filling-out#documents https://fafsa.ed.gov/ http://www.uab.edu/medicine/home/future-students/admissions/tuition-financial-aid-scholarships/school-of-medicine-scholarships http://www.uab.edu/medicine/home/future-students/admissions/tuition-financial-aid-scholarships/external-scholarships https://www.collegedata.com/cs/content/content_payarticle_tmpl.jhtml?articleId=10065 https://www.aamc.org/services/fao-first/445960/first-audience.html https://www.daveramsey.com/blog/cars-wealthy-people-drive https://www.google.com/search?q=saving+money+habits+how+does+the+us+compare&rlz=1C1GGRV_enUS782US782&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjzvom_qu_cAhWKq1MKHXxCBvUQ_AUICigB&biw=1536&bih=760&dpr=1.25#imgrc=miqXjxiXvmqqWM: https://www.creditkarma.com/insights/i/fomo-spending-affects-one-in-four-millennials/ https://quotefancy.com/quote/1377805/Dave-Ramsey-Winning-at-money-is-80-percent-behavior-and-20-percent-head-knowledge-What-to

Questions and Answers

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