1. From the SOM Financial Aid Office…
Congratulations to the
University of Louisville
School of Medicine
Class of 2017!

2. Student Loans and Repayment Strategies
Prepared for the Graduating Class of 2017
Leslie R. Kaelin M.Ed.
UofL School of Medicine
Financial Aid Director
Spring 2017
Disclaimer: All information and estimates are based on AAMC interpretation of federal regulations as of January 2017 and are subject to change. These are estimates only. Students should contact their servicer(s) to discuss exact loan balances and repayment options.

3. Agenda Know Your Loans What Happens After Graduation Repayment Plans
How Repayment Looks in Residency
Other Considerations

4. Free Online Resource (PDF download)
Education Debt Manager (EDM)

5. Know Your Loan Portfolio

6. Median MD School Debt: $190,000
Class of 2016 Indebtedness
Refer to page 3
$200,000
$180,000
PUBLIC
private
Median MD School Debt: $190,000
Source: AAMC 2016 Graduate Questionnaire (GQ)
Got Private Loan Debt?
see page 61
76% of class report having educational debt
47% report debt of $200,000 or higher

7. UofL SOM Debt-Class of 2017 Class of 2017-$195,244
Average TOTAL DEBT (ME & Prior Debt) for 122 graduates
(23 graduates without ME & Prior Debt not included in average)
Class of 2017-$195,244
(Class of 2016 $208,537)
Average MEDICAL SCHOOL DEBT ONLY for 119 graduates
(26 graduates without ME Debt not included in average)
Class of 2017-$185,299
(Class of 2016-$193,968)

8. Master Promissory Note
Refer to page 9
Is a contract with the lender
Has a multi-loan feature
Details terms and conditions
Includes rights & responsibilities

9. Rights and Responsibilities
Refer to page 9
Prepay any federal loan without penalty
Change repayment plans
Rights include...
Request a deferment or forbearance
Request a shorter repayment schedule
Review your promissory note for all rights

10. Rights and Responsibilities
Refer to page 9
Make on time loan payments
Make payments despite non-receipt of bill
Responsibilities include...
Notify the servicer of changes in contact info
Complete exit counseling
Review your promissory note for all responsibilities

11. Student loans must be repaid Manage your debt -don’t let it manage you
A Serious Obligation
Refer to page 9
Student loans must be repaid
Manage your debt -don’t let it manage you

12. Consequences
Refer to page 10
Delinquency
Default

13. Loan Discharge
Refer to page 11

14. Finding Your Federal Loans
Refer to page 6
To access, provide your FSA ID, including :
Username/Password
For questions, visit

15. Subsidized Versus Unsubsidized
Refer to page 12
Subsidized
Unsubsidized
Direct Subsidized
Perkins Loans*
Primary Care Loans
Loans for Disadvantaged Students*
Consolidation Loans (underlyng subsidized loans)
Direct Unsubsidized
Direct PLUS
Private Loans
Consolidation Loans (underlyng subsidized loans)
4444
4444
* subsidy and deferment rights lost during consolidation
© 2017 Association of American Medical Colleges. All rights reserved.

16. Fixed Interest Rates for the Class of 2017
Refer to pages 13-14
5.0%
PERKINS*
6.41%
DIRECT PLUS M1
5.41%
DIRECT UNSUBSIDIZED
6.21%
DIRECT UNSUBSIDIZED
5.0%
PERKINS*
7.21%
DIRECT PLUS M2
5.84%
DIRECT UNSUBSIDIZED
5.0%
PERKINS*
6.84%
DIRECT PLUS M3
5.31%
DIRECT UNSUBSIDIZED
5.0%
PERKINS*
6.31%
DIRECT PLUS M4
* Perkins, PCL and LDS Loans are disbursed at a fixed rate of 5%. All loans shown have a fixed interest rate.

17. Capitalization
Refer to page 15
Addition of unpaid interest to the principal
$219,200
$190,000
9,2,000
$29,200
Larger
Principal
Principal +
Interest =

18. When possible, pay the interest on your loans before they capitalize!
Repayment Tips
Refer to page 15
When sending voluntary payments:
1) Send as a separate payment
- Instruct to APPLY NOW
- Specify the loan to apply it to
(high interest rates are the priority)
2) Verify payment was accurately applied
When possible, pay the interest on your loans before they capitalize!

19. After Graduation

20. GRACE Grace The path for some loans IN-SCHOOL REPAYMENT
Refer to page 16
The path for some loans
IN-SCHOOL
REPAYMENT
GRACE

21. Loan Repayment Timeline
Refer to page 17

22. Request 30-days before needed
Postponement Options
Refer to pages 18-19
Contact the loan servicer to apply
Forbearance
Deferment
Request 30-days before needed
© 2017 Association of American Medical Colleges. All rights reserved.

23. Postponement Options Deferment Subsidized loans are interest free
Refer to page 18
Subsidized loans are interest free
Interest accrues on unsubsidized loans
Contact each loan servicer to apply
Strict requirements to qualify
Deferment
NOTE: For more details, or to request a deferment or forbearance, contact each loan servicer.
© 2017 Association of American Medical Colleges. All rights reserved.

24. Postponement Options Forbearance Interest accrues on all loans
Refer to page 19
Interest accrues on all loans
Interest will capitalize
Contact each loan servicer to apply
Request 30-days before needed
Forbearance
NOTE: For more details, or to request a deferment or forbearance, contact each loan servicer.
© 2017 Association of American Medical Colleges. All rights reserved.

25. Postponement Options Medical Residency Forbearance
Refer to page 19
Medical Residency Forbearance
Postpones payments in annual increments
Capitalization may occur at end of residency (if increments occur back-to-back throughout residency)
An option for medical residents/interns
NOTE: Request increments in a timely manner to avoid unnecessary and additional capitalization.
© 2017 Association of American Medical Colleges. All rights reserved.

26. Repayment Plans

27. Monthly Payment Estimator (charts)
Refer to pages 34-35

28. Managing Loans During Residency
Refer to pages 36-37
Effects on the total repayment costs

29. The lower the monthly payment, the higher the overall cost
Debt Fact
The lower the monthly payment, the higher the overall cost

30. Repayment Plans Traditional Standard $2,410/mo Extended $1,380/mo
Refer to pages 21-22
Traditional
Standard
Extended
Graduated
$2,410/mo
Monthly payments for the entire repayment term are calculated up-front and disclosed to you.
$1,380/mo
$1,060/mo
Based on a 2017 graduate indebtedness of $190,000 with a PGY1 stipend of $54,600 and a family size of one.

31. Repayment Plans Income-Driven $710/mo $460/mo $300/mo $300/mo
Refer to pages 23-28
Income-Driven
Income-Based Repayment (IBR)*
Pay As You Earn (PAYE)
Income-Contingent Repayment (ICR)
Revised Pay As You Earn (REPAYE)
$710/mo
Monthly payments are based on income
and other factors - recalculated annually.
$460/mo
$300/mo
$300/mo
Based on a 2017 graduate indebtedness of $190,000 with a PGY1 stipend of $54,600 and a family size of one.
* New Borrowers on or after July 1, 2014 that select IBR will receive payment amounts equal to that of PAYE.

32. How are these payments possible?
What’s the Catch?
How are these payments possible?

33. Payments: Income-Driven Repayment (IDR)
Refer to pages 23-31
IBR
PAYE
ICR
REPAYE
20%
Different Payment Amounts
15%
10%
LOWEST
LOWEST
10%

34. Payments: Income-Driven Repayment (IDR)
Refer to pages 23-31
IBR
PAYE
ICR
REPAYE
No Max
Different Payment Limits
CAPPED
Max
Max
CAPPED
No Max

35. Terms: Income Driven Repayment (IDR)
Refer to pages 23-31
IBR
PAYE
ICR
REPAYE
25 years
Different Term Lengths
25 years
20 years
LEAST
25 years

36. IDR Plans: Eligibility Requirements
Refer to pages 23-31
EASIEST
IBR
PAYE
ICR
REPAYE
Eligible Loans
Must be a Direct Loan
Eligible Loans
Eligible Loans
EASIEST
Eligible Loans

37. IDR Plans: Eligibility Requirements
Refer to pages 23-31
IBR
PAYE
ICR
REPAYE
Eligible Loans
Must have a Partial Financial Hardship
Show Need
Eligible Loans
Show Need
Eligible Loans
Eligible Loans

38. > Standard Payment $2,410 / mo $460 (IBR) or $300 (PAYE) PAYE or
The Test for a PFH
Refer to page 24
Partial Financial Hardship (PFH)
Standard Payment
$2,410 / mo
$460 (IBR) or
$300 (PAYE)
PAYE or
IBR Payment
>
Must have PFH to enter into IBR or PAYE
Can remain in IBR or PAYE in subsequent years, even without a PFH
Must submit annual documentation
Max payment in IBR or PAYE is the Standard amount (determined when entering the plan)
Based on indebtedness of $190,000 with a PGY1 stipend of $54,600 and a family size of one.

39. IDR Plans: Eligibility Requirements
Refer to pages 23-31
IBR
PAYE
ICR
REPAYE
Eligible Loans
Show Need
Eligible Loans
STRICTEST
Recent Borrower
Show Need
Eligible Loans
Eligible Loans
Must be a “New” borrower

40. “New Borrower” Defined
Refer to page 27
Two Requirements
No outstanding loans on October 1, or paid-off all outstanding loans before receiving a new loan on or after 10/1/07
AND
Received a Direct Loan disbursement
on/after October 1, 2011

41. Develop Your Own “Best” Strategy
It’s not about the best one
It’s about what fits with your life and financial goals

42. Options During Residency

43. Decision Time: 6 Months Post-Graduation
Make Payments
Postpone Payments
PAYE REPAYE IBR
Medical Residency Forbearance
© 2017 Association of American Medical Colleges. All rights reserved.

44. Which Option to Choose?

45. Dr. Internal Medicine (General)
Student Loan Debt: $190,000
Career: Internal Medicine
Residency Length: 3 years
Debt: $190,000
Post-Residency Y-1 Salary:$180,000

46. Total Repayment Amount
Dr. Internal Medicine
Student Loan Debt: $190,000
Repayment Plan
Total Years
Post- Residency Payment (range)
Total Repayment Amount
Forgiven
Lowest Cost
Highest Cost
Pay As You Earn (PAYE) 20
$1,500 – 2,200
$377k
$40k*
Revised PAYE (REPAYE) 21
$395k -- X
Income-Based (IBR) 15
$2,200 – 2,400
$346k
* May be a taxable forgiveness amount

47. Total Repayment Amount
Dr. Internal Medicine
Student Loan Debt: $250,000
Repayment Plan
Total Years
Post- Residency Payment (range)
Total Repayment Amount
Forgiven
Lowest Cost
Highest Cost
Pay As You Earn (PAYE) 20
$1,500 – 2,200
$377k
$256k* X
Revised PAYE (REPAYE) 25
$1,500 – 2,400
$516k
$145k*
Income-Based (IBR)
$2,200 – 3,200
$533k $0
* May be a taxable forgiveness amount

48. Total Repayment Amount
Dr. Internal Medicine
Student Loan Debt: $325,000
Student Loan Debt: $325,000
Repayment Plan
Total Years
Post- Residency Payment (range)
Total Repayment Amount
Forgiven
Lowest Cost
Highest Cost
Pay As You Earn (PAYE) 20
$1,500 – 2,200
$377k
$468k* X
Revised PAYE (REPAYE) 25
$1,500 – 2,400
$516k
$395k*
Income-Based (IBR)
$2,200 – 3,700
$774k
$82k*
* May be a taxable forgiveness amount

49. Dr. ObGyn Career: Obstetrics & Gynecology Residency Length: 4 years
Student Loan Debt: $190,000
Career: Obstetrics & Gynecology
Residency Length: 4 years
Debt: $190,000
Post-Residency Salary:$230,000

50. Total Repayment Amount
Dr. ObGyn
Student Loan Debt: $190,000
Repayment Plan
Total Years
Post- Residency Payment (range)
Total Repayment Amount
Forgiven
Lowest Cost
Highest Cost
Pay As You Earn (PAYE) 18
$2,000 – 2,400
$385k $0 X
Revised PAYE (REPAYE) 17
$2,000 – 2,600
$352k
Income-Based (IBR) 16
$2,400
$363k

51. Total Repayment Amount
Dr. ObGyn
Student Loan Debt: $250,000
Student Loan Debt: $250,000
Repayment Plan
Total Years
Post- Residency Payment (range)
Total Repayment Amount
Forgiven
Lowest Cost
Highest Cost
Pay As You Earn (PAYE) 20
$2,000 – 2,800
$470k
$131k* X
Revised PAYE (REPAYE) 23
$2,000 – 3,000
$557k $0
Income-Based (IBR) 17
$3,000 – 3,200
$497k
* May be a taxable forgiveness amount

52. Total Repayment Amount
Dr. ObGyn
Student Loan Debt: $325,000
Student Loan Debt: $325,000
Repayment Plan
Total Years
Post- Residency Payment (range)
Total Repayment Amount
Forgiven
Lowest Cost
Highest Cost
Pay As You Earn (PAYE) 20
$2,000 – 2,800
$470k
$373k* X
Revised PAYE (REPAYE) 25
$2,000 – 3,200
$652k
$232k*
Income-Based (IBR) 21
$3,000 – 4,200
$745k $0
* May be a taxable forgiveness amount

53. Dr. Cardiology Career: Cardiology Residency Length: 6 years
Student Loan Debt: $190,000
Career: Cardiology
Residency Length: 6 years
Debt: $190,000
Post-Residency Salary:$330,000

54. Total Repayment Amount
Dr. Cardiology
Student Loan Debt: $190,000
Repayment Plan
Total Years
Post- Residency Payment (range)
Total Repayment Amount
Forgiven
Lowest Cost
Highest Cost
Pay As You Earn (PAYE) 20
$2,400
$410k $0 X
Revised PAYE (REPAYE) 14
$3,100 – 3,600
$330k
Income-Based (IBR) 19
$399k

55. Total Repayment Amount
Dr. Cardiology
Student Loan Debt: $250,000
Student Loan Debt: $250,000
Repayment Plan
Total Years
Post- Residency Payment (range)
Total Repayment Amount
Forgiven
Lowest Cost
Highest Cost
Pay As You Earn (PAYE) 20
$3,100 – 3,200
$558k $0 X
Revised PAYE (REPAYE) 18
$3,100 – 3,900
$481k
Income-Based (IBR)
$3,200

56. Total Repayment Amount
Dr. Cardiology
Student Loan Debt: $325,000
Student Loan Debt: $325,000
Repayment Plan
Total Years
Post- Residency Payment (range)
Total Repayment Amount
Forgiven
Lowest Cost
Highest Cost
Pay As You Earn (PAYE) 20
$3,100 – 4,100
$622k
$186k* X
Revised PAYE (REPAYE) 22
$3,100 – 4,300
$719k $0
Income-Based (IBR) 21
$4,200
$760k
* May be a taxable forgiveness amount

57. The FIRST Stop MedLoans® Organizer and Calculator
Refer to page 5
A tool for graduates!!
MedLoans® Organizer and Calculator

58. Other Considerations

59. Loan Forgiveness (PSLF)
Refer to pages 51-52
Eligible Loans +
Qualifying Payments +
Qualifying Work
Public Service Loan Forgiveness

60. Loan Forgiveness (PSLF)
Refer to pages 51-52
Want to know more?

61. Information on other programs:
Repayment Assistance
Information on other programs:
aamc.org/repayasst
AAMC
National Institutes of Health (NIH)
National Health Service Corps (NHSC)
lrp.nih.gov
nhsc.hrsa.gov

62. Reasons to Consolidate
Refer to pages 53-55
Reduce
# of
Servicers
Eligibility
for
PAYE or
REPAYE
Eligibility
for
PSLF
Eligibility
for
IBR

63. Should You Consolidate?
Refer to pages 56-57

64. Should I Refinance? www.aamc.org/first/shouldirefinance
Refer to pages 58-59

65. Taxpayer Relief Act of 1997*
Refer to page 60
Full Deduction
Partial Deduction
NO Deduction
Single
$65,000 or less
$65,001 to $79,999
$80,000 or more
Married filing Jointly
$130,000 or less
$130,001 to $159,999
$160,000 or more
Max student loan interest deduction: $2,500/year
May be eligible: Voluntary payments & capitalization
* Student Loan Interest Deduction for 1/2017

66. The Next Steps
Refer to page 62

67. Support Along The Way feedback.studentaid.ed.gov
aamc.org/advocacy/meded
Financial Aid Office & Residency Programs
MedLoans Organizer & Calculator
aamc.org/medloans
saltmoney.org/AAMC
studentloans.gov
aamc.org/FIRST

68. “An investment in knowledge always pays the best interest”

69. UofL SOM Financial Aid Office
Leslie R. Kaelin, M.Ed.-Financial Aid Director
Cynthia Morse, M.Ed.-Financial Aid Advisor Sr.
University of Louisville School of Medicine
Instructional Bldg. Suite 230
Health Sciences Center
Louisville KY 40292

70. Questions? FIRST@aamc.org
More Information: aamc.org/FIRST Repayment Videos & Webinars: aamc.org/videowebinars