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What Will We Be Talking About?

What Will We Be Talking About?. Financial aid overview Cost of education Financial aid Other opportunities with in the university or outside Understanding your loans University bill and disbursement Strategies for minimizing borrowing & money management. Confidentiality.

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What Will We Be Talking About?

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  1. What Will We Be Talking About? • Financial aid overview • Cost of education • Financial aid • Other opportunities with in the university or outside • Understanding your loans • University bill and disbursement • Strategies for minimizing borrowing & money management

  2. Confidentiality • All records and conversation with you and your parents are confidential • No public announcement should be made of amount and type of aid of a particular student

  3. Know your cost of education • What is included and “not included • How much it cost per year • Cost of MD (Four or Five years)

  4. Total cost of education includes • Educational Expenses • Tuition, Books and Supplies, fees • Essential Living Expenses- critical to survival • Food, shelter, clothing, medical insurance,etc. • Important Living Expenses - make life comfortable • Transportation, Other (computer, medical, dental not covered by insurance)

  5. Total cost does not include Stanford Med. Stu. Stanford Med. Stu.

  6. Maximum Financial Aid AvailableIf Eligible • Stanford Grant maximum $10,000 per quarter • Middle Income Assistance Program ($5,000 per quarter) • Federal Perkins Loan maximum $6,000 per year • Federal Subsidized Loan $8,500 per year • Stanford University Loan $2,000 per quarter • Federal Unsubsidized Loan $32,000 • Federal Grad PLUS Up to cost of education minus other financial aid

  7. Stanford Grant • You are not required to repay • Your cooperation is needed and expected to write “thank you” letters to donors • Donors want to hear what you are doing and what your goals are • Directly applied to your bill

  8. Other Sources of Grant Aid • Med. Scholars • Teaching and research assistantships • Other department grants

  9. Other Sources of Grant Aid • Scholarship for Disadvantaged Students • Armed Services Health Professions • National Health Service Corp • Other outside grants • Check our web site • http://med.stanford.edu/md/financial_aid/external_funding.html

  10. Understanding Your Loans • Players in the process • Types of loan programs • Terms and conditions • Repayment options • Monthly loan payments

  11. What you need to know about your loans • Your loans must be repaid even if you: • Never graduate, do not get the residency you wished, 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 Option

  12. How Education Loans Differ from Other Loans (Mortgage, Credit Card) • No measurement of ability to pay (credit check, collateral) • Delayed repayment options • No in-school repayment • Flexible repayment options • Temporary postponement • Deferment & forbearance

  13. Players in the Loan Process A Abera T Tiffany M Marti Servicing Agency

  14. Loan Programs

  15. Life Cycle of a Loan Forbearance Deferment IBR Repayment up to 30 years Grace period six months nine months In-School Four to five years

  16. Your Rights As a Borrower • A choice in repayment plans • Five to thirty years to repay your loan • Prepayment of all or a part of your loan without penalty • Loan Postponement • Grace period • Deferment and forbearance • Access to information about your loan • Notification if your loan is sold • Cancellation of debt in the event of death or permanent disability

  17. Your Responsibilities • Borrow wisely • Make academic progress • Know your repayment terms • Remember that your promise to repay is legally binding agreement • Tell your lender when you change your address, name or phone number • Keep documentation on your loan • Make your loan payments on time

  18. Refund and Repayment • If you withdraw from medical school before the 60% of the enrollment period , you may be eligible for a refund of tuition and fees paid • A total refund which is due to the Stafford loans will be calculated based on withdrawal date and will be returned to the lender to reduce your loan • You must pay back the money you received as cash from the bursar’s office • No refund after completion of 60% enrollment period

  19. Temporary Postponement • Grace Period: • The period of time that begins the day you cease to be enrolled at least halftime. Interest continues to accrue for the unsubsidized while the subsidized still free • Deferment: • Limited period of time during which payments on principal and/or interest are postponed while the loan is in good standing. • Forbearance: • A formal agreement between you and the lender to suspend, reduce payments. Lenders are required to grant forbearance. Interest accrues during forbearance.

  20. Cancellation • Permanent disability • Upon death

  21. Repayment • Standard or fixed—pay the same monthly payment until loan is repaid • Graduated—payments start outlow and gradually increase • Income-Based Repayment—newadjusted annually based on income • Extended repayment

  22. Comparing Repayment OptionsLoan Amount $100,000Assumed 6.8%

  23. Repayment Ability Educational Payments as a Percent of Gross Monthly Inocme Annual Gross Income

  24. Consequences of Default • Failure to repay loans may result in: • Legal action against you, collection charges and legal fees • Loss of federal and state income tax refund • Loss of eligibility for other student aid • Loss of eligibility for loan deferments • Negative credit report • Wage garnishment

  25. Disbursement • Must sign promissory notes • Must enroll for the required units • Must attend loan entrance session • Other holds • Enroll for direct deposit (optional) • New payment plan • No credit card

  26. Student Bill- On campus

  27. Student Bill-Off-campus

  28. Strategies For Minimizing Borrowing • Be proactive in your financial aid process • Know the process • Look for opportunities • Have a systematic financial planning • Set a goal • Develop a cash flow model • Estimate total cost • Assemble your resources • Determine the difference • Go on a spending diet • Borrow wisely

  29. Budget setting and Making your Money Work for You • Look at your income (savings, financial aid, paychecks) • Plot your expenses…fixed and variable • Do the math and live within your means, make ends meet

  30. Academic Planning (Academic Path to graduation) • Determine the number of quarters you are attending (3 or 4) • Determine how long it take you to graduate (4 or 5 years) • Use the plan to determine total cost • List all the resources • Compare resource with cost

  31. Why Budgeting? • You live with a fixed income • You have quarterly disbursement of funds • Help you meet your wants and needs • Help you avoid spending more than you have

  32. Budget Buster SNL Budgeting Skit

  33. Credit Card ABC’s • A credit card is helpful in emergencies, but they rarely happen at the mall! • Buying on SALE, is still SPENDING, not SAVING! • Credit card debt is not an investment, but it does reduce ability to invest! • Debt from credit cards can make it more difficult to achieve financial goals.

  34. Budgeting- Sample 2009-10 On Campus

  35. Budgeting- Sample 2009-10 Off Campus

  36. If you have any Questions Contact Abera Metaferia Financial Aid Counselor Phone 650 724 3181 E-mail abera.metaferia@stanford.edu Tiffany Barone Financial Aid Assistant Phone 650 723 6958 E-mail tbarone@stanford.edu Marti Trujillo Financial Aid Director Phone 650 723 6954 E-mail mtrujill@stanford.edu

  37. We are confident that any financial aid concerns and problems can be solved if we work together. • This is accomplished by direct & open communication between us. • Please visit us, call us and send us e-mail.

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