Financial Aid for Medical School March 8th, 2014 Daniel Hewitt Director of Financial Aid – Virginia Campus

Costs at VCOM Financial aid options and why loans are good, realistic options Budget planning and repayment options that are manageable Agenda

Costs At VCOM VCOM Tuition$40,600 Federal Student Loan Fees*$ 1,669 Living and Other Educational Expenses$31,171 (see expense estimates below) Total Cost of Attendance$73,440 SUPPLIES AND EQUIPMENT $ 4,594 HOUSING AND UTILITIES $10,604 MEALS $ 3,861 TRANSPORTATION AND TRAVEL $6,828 MEDICAL AND PERSONAL EXPENSES $5,284 * Federal student loan fees are included only if federal student loans are used.

Financial Aid Options Scholarships  VCOM’s website: Service Contracts  National Health Service Corps (NHSC) Scholarship Program  Military Health Professions Scholarship Program (HPSP)  State agencies and individual hospitals Students Loans  Unsubsidized Stafford  Graduate PLUS  Private

Applying For Loans Free Application for Federal Student Aid (FAFSA) VCOM Financial Aid Application Loan applications

Loan Eligibility 1.Cost of Attendance - Scholarships and Service Contracts = Unsubsidized Stafford Loan 2.Cost of Attendance - Scholarships and Service Contracts - Unsubsidized Stafford Loan = Graduate PLUS or Private loan

Unsubsidized Stafford Loans Fixed interest rate, set June 1 st 1.072% origination fee Interest starts accruing right away No credit check, but cannot be in default on any student loan Maximum amount of $47,197 (12-month calendar)  $44,944 maximum for OMS1 (11 month calendar)

Graduate PLUS and Private Loans Graduate PLUS loan  Fixed interest rate  4.288% origination fee  Interest starts accruing right away Private (Alternative) loan  Variable or fixed interest rate Rates based on your credit score and the market rate  Interest starts accruing right away Maximum amount for either loan is Cost of Attendance minus other aid

Loan Applications For Unsubsidized Stafford and Graduate PLUS loans: 1.only require an Award Letter response For Private loans: 1.require an Award Letter response, and 2.require a separate application with a lender All loan types require Promissory Notes (MPNs) through the Direct Loans website or through the lender’s website

Borrowing Responsibly Unsubsidized Stafford – 5.41% fixed (currently) Graduate PLUS – 6.41% fixed (currently) Year 1Year 2Year 3Year 4Total Annual Unsubsidized Limits $44,944 $42,722 $175,332 Graduate PLUS$28,496$26,906$30,402$28,846$114,650 Maximum Stafford & Graduate PLUS $73,440$71,850$73,124$71,568$289,982 The approximate cost of your education:

Borrower 1 is financing to maximum Unsubsidized Stafford loan limits and supplementing with Graduate PLUS Borrower 2 is financing as above, minus $5,000 each year in Graduate PLUS These examples assume a 3-yr residency and 25-yr repayment Principal Balance Balance at graduation (after interest capitalization) Total loan cost based on a 25-year repayment term Borrower 1: Maximum Unsubsidized & Grad PLUS $290,000$327,963$731,833 Borrower 2: Less $5,000 of Unsubsidized & Grad PLUS $270,000$305,078$677,023 Difference$20,000$22,885$54,810 The Long-Term Cost

Breakdown Principal balance Difference$20,000 Yearly$5,000 Weekly$96.15 Daily Cost$13.69 If you adjust your expenses by less than $14 a day for the next four years, you could save yourself $55,000!

Determine Your Income Employment Personal savings Family support Financial aid funds

Identify Your Expenses Fixed Expenses: Tuition and fees Rent Child care Taxes Insurance premiums

Identify Your Expenses Variable Expenses: Utilities Food Clothing Transportation Other living expenses

Cost of a Daily Latte Daily $4 Weekly $20 Monthly$87 Annually$1,040 Cost over 4 years$4,160 Repayment over 25 years at 6.41%$11,400

Loan Repayment Repayment Plan Length  Normal = 10 years  Extended = up to 25 years Repayment Plan Type  Standard – fixed, equal monthly payments  Income-Based – monthly payments go up and down with your income

Loan Repayment Postponement Options  Deferments ex. – In-School Deferment  Forbearances ex. – Residency Forbearance

Early Repayment No early repayment penalties of any kind Within 120 days of disbursement, loan fees and accrued interest are negated Extra payments go to accrued interest first, then to principal Death, or Total and Permanent Disability Discharge

Costs at VCOM Financial aid options and why loans are good, realistic options Budget planning and repayment options that are manageable Review

Questions? Daniel HewittEloise Turner (540) (540)