WELCOME 2015 Future Impact Program A Financial Program for Fourth Year IUSM Medical Students March 7, 2015

IUSM Class of 2014 Indebtedness 253 out of 304 borrowed or 83% of the Class. Borrowed a total of $44,681,097. (Average: $176,605) Accrued approximately $4,401,429 based on an average accrual interest of $17,396 per borrower over 4 years of medical school borrowing.

IUSM Class of 2015 Indebtedness 274 out of 323 borrowed or 85% of the Class. Borrowed a total of $50,248,799. (Average: $183,389.78) Accrued interest of approximately $5,018,537 (as of January 16 th ) based on an average of $18,315 per borrower over 4 years of medical school.

You Get Paid Approximately $53,513 annually. Gross monthly $4, Tax Withholdings = $ Federal, $ SS or FICA, $64.66 Medicare, Indiana $ After Taxes monthly, using Indiana as an example. $3, Resource -

Sample Mortgage Letter

Not Pay Pay Medical Residency Forbearance PAYE IBR Extended Repayment Two Options During Residency

Grace

Medical Residency Forbearance Postpone payments in annual increments Interest accrues on all loans Continuous periods avoids capitalization* Request next increment 30-days before it is needed NOTE: For more details, or to request a deferment or forbearance, contact your servicer. Postponement Options

Standard Payment Partial Financial Hardship (PFH) PAYE or IBR Payment PAYE or IBR Payment $2,290 / mo * $420 (IBR)* or $280 (PAYE)* $420 (IBR)* or $280 (PAYE)* > Must have PFH for first year in IBR or PAYE Can remain in IBR or PAYE in subsequent years, even without a PFH Must submit annual documentation Max payment is the Standard amount Must have PFH for first year in IBR or PAYE Can remain in IBR or PAYE in subsequent years, even without a PFH Must submit annual documentation Max payment is the Standard amount Pay As You Earn & IBR

Income-Based Repayment Benefits Partial interest subsidy during the first 3 years on Subsidized Loans Unpaid interest does not capitalize when: Annual paperwork is filed on time Borrower demonstrates a PFH (Debt > than income) Possible Loan forgiveness after 25 years Payment based on ((AGI – 150%) X 15%) / 12 Income as reported to the IRS. Annual renewal requires both AGI and family size verification.

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PAYE Eligibility No outstanding loans on October 1, 2007 (or paid-off all outstanding loans before receiving a new loan on or after 10/1/07) Received a Direct Loan disbursement on/after October 1, 2011 Additional requirements for PAYE AND

Pay As You Earn (PAYE) Benefits Must not have borrowed prior to Unpaid interest does not capitalize when: Annual paperwork is filed on-time Borrower demonstrates a PFH Possible Loan forgiveness after 20 years Payment based on ((AGI – 150%) X 10%) / 12 Income as reported to the IRS. Annual renewal requires both AGI and family size verification.

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Determine Amount by Calculating 15% (IBR) or 10% (Pay As You Earn) of income that exceeds 150% of the poverty line for a borrower’s family size Online Calculators aamc.org/FIRST studentloans.gov IBR and Pay As You Earn

Eligible Loans Qualifying Payments Qualifying Work Public Service Loan Forgiveness + + Loan Forgiveness

Terms and Conditions What is considered Public Service? Non-profit, tax exempt, 501[c](3) organizations Federal, State or Local Government Military Service Public Schools and Colleges

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Other Alternatives to Debt Repayment Army National Guard Medical Opportunities Army Reserve Incentive Program (STRAP) Army Active Duty Incentive Program (FAP) Other military Programs (Navy, Air Force)