1. 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

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

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

4. Sample Financial Aid Award Letter

5. 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) 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.

6. 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

7. 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

8. 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, $22,228

9. 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% -

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

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

19. 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

20. 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

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

23. 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

24. 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

25. 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

26. 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

28. 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.

29. Thank you for attending!
Lawson Roberts, ,
Abera Metaferia, ,
Marti Trujillo, ,
1265 Welch Road, MSOB Suite 100, Stanford, CA