VCU School of MedicineClass of 2023 Financial Aid Summer Workshop Pemra Cetin & Paula Rafferty SOM Financial Aid
Know Your Players… SOM Financial Aid Office Located at MMEC Room 4-306 Open from 8:30 am to 5:00 pm Ms. Pemra Cetin Assistant Dean of Student Affairs and Financial Aid email@example.com Ms. Paula Rafferty Senior Financial Aid Counselor firstname.lastname@example.org
Financial Aid Terminology FAFSA - Free Application for Federal Student Aid https://fafsa.ed.gov (VCU School Code: 003735) PROFILE by College Board- Needed for all Scholarship considerations https://student.collegeboard.org/profile EFC - Expected Family Contribution TEFC - Total Expected Family Contribution COA- Cost of Attendance, Budget NSLDS - National Student Loan Database System http://www.nslds.ed.gov
How do we process your financial aid? • We receive your FAFSA and PROFILE information electronically 48hrs after you submit them. • You can view your information by logging onto eServices • You will notice either your application is complete or we are requesting more information. • You must fill out FAFSA every academic year if you are only applying for federal student loans. • You must fill out FAFSA and PROFILE every academic year if you are applying for both the federal student loans and scholarships.
Your identity • Your EID is needed to logon to eservices. EID Finder: http://www.ts.vcu.edu/askit/eid/eid-finder • Your V# is your assigned identification number, please memorize it.
Naturalized Citizens and Resident Aliens • We will need a copy of your US passport or naturalization papers or your resident alien card.
Types of Aid • Scholarships • SOM Scholarships (need and/or merit based) • NHSC (National Health Service Corps) https://nhsc.hrsa.gov/index.html • HPSP: Army, Navy, Air Force • Other
1838 Scholarship Campaign • To celebrate the year which MCV was founded, the medical school has launched the 1838 Campaign with a goal of $ 25-million. • The 1838 Campaign is a vital step toward our goal of providing meaningful scholarship support for students with financial need. • The campaign will give our school a competitive edge for recruiting top students, rewarding student excellence and reducing the burden of debt. • We have raised $ 22.5M of $ 25M 1838 Campaign which ends in June 2020…
How are we doing in terms on Scholarships? • Generally we have awarded about 50% of our students some type of Scholarship over the last five years. • 799 MD Students • 25 MD/PhD Students • Average scholarship award amount $ 6,501(2018-2019) • Average amount of Scholarship per student $ 9,465 (2018-2019) • We understand small amounts of Scholarships do not have major impact on students’ debt and ultimately on the overall indebtedness of the SOM. • We are changing our awarding philosophy to increase the average amount of Scholarship per student.
HPSP Contacts: Army Recruiter SSG Angela Sutton Office: (804) 530-8546 Cell: (443) 694-1016 Email: email@example.com Air Force Recruiter TSgt Nathan Jaynes Email: nathan.Jaynes@us.af.mil TSgt Zackery Nuvy Email:firstname.lastname@example.org Navy Recruiter LT Andrea N. McCoy Garrett Office: (434) 296-6304 Cell: (804)339-9775 Email: andrea.Mccoygarrett@navy.mil
Types of Aid • Federal Direct Subsidized Stafford Loan: no longer exists for Graduate/Professional Students. • Federal Direct Unsubsidized Stafford Loan $ 42,722 for M1 year • 6.079% as of July 1, 2019 until June 30, 2020 • Federal Direct Graduate Plus Loan • 7.079%as of July 1, 2019 until June 30, 2020 , COA minus other aid - requires additional application • Private Student Loans ***(Student loan interest rates have been determined based on the results of Treasury Department's 10 year note auction)
Federal vs. Private Loans Federal Private Can have variable or fixed rate. They often require credit check. May allow in-school deferment but some my require payments while in school. Can not be consolidated into direct consolidation but may be refinanced. Not eligible for PSLF. Each lender may offer a different repayment plan. Check with the lender. • Interest rates are fixed. • Credit check is not required except the Graduate Plus Loan. • Payments are not due until graduation or change in enrollment status. • Loans can be consolidated into a direct consolidation loan. • Federal Direct loans are eligible for Public Service Loan Forgiveness (PSLF). • There are several income based repayment plans. • No prepayment penalty.
Academic Year vs. Financial Aid &Tuition and Fees • Financial aid and charges are applied based on the University calendar. • You will always have two semesters within the academic year: • Fall and Spring. • You are on 10, 12, 12 and 10 month schedule • M1 and M4 10 months • M2 and M3 12 months • You will academically progress to M2 level in the beginning of Spring semester (January 2020) even though your financial aid and charges will remain the same.
2019-2020 Cost of Attendance/Budget In-State Resident Tuition and Fees: $ 35,369 Books and Supplies: $ 3,019 Computer: $ 1,530 Medical Insurance: $ 6,500 Room and Board: $ 15,131 Transportation: $ 3,570 Personal: $ 4,121 Loan Fees: $ 430 Total $ 69,670 Out of State Resident Tuition and Fees: $ 57,768 Books and Supplies: $ 3,019 Computer: $ 1,530 Medical Insurance: $ 6,500 Room and Board: $ 15,131 Transportation: $ 3,570 Personal: $ 4,121 Loan Fees: $ 430 Total $ 92,069
Sample Financial Aid AwardIn State Resident Federal Unsubsidized Stafford Loan (academic year) $ 42,722 Net Amount (Origination fee estimated=$ 430) $ 42,292 Fall or Spring Semester Net Amount $ 21,146 Fall Tuition and Fees (In State Resident) $17,684 Refund (7/29/2019-12/22/2019: 5 months) $ 3,462 Rent, Food, Transportation, Books, etc. Spring Tuition and Fees (In State Resident) $ 17,685 Refund (1/3/2020-5/29/2020+vacation: 7 months) $ 3,461 Rent, Food, Transportation, Books, etc.
Sample Financial Aid AwardOut of State Resident Federal Unsubsidized Stafford Loan (academic year) $ 42,722 Net Amount (origination fee estimated=$ 430) $ 42,292 Fall or Spring Semester Net Amount $ 21,146 Fall Tuition and Fees (In State Resident) $28,884 Shortage (7/29/2019-12/22/2019: 5 months) $ 7,738 Rent, Food, Transportation, Books, etc. ??? Spring Tuition and Fees (In State Resident) $ 28,884 Shortage (1/3/2019-5/29/2020+vacation): 7 months) $ 7,738 Rent, Food, Transportation, Books, etc. ??? Out of State students must borrow additional student loans (Federal Direct Graduate Plus Loan) if they do not have any other type of aid such as Scholarships or personal savings.
Federal Direct Graduate Plus Loan The maximum amount of Federal Direct Graduate Plus Loan you can borrow (assuming you only have Federal Direct Unsubsidized Stafford Loan) For Residents $ 26,948 For Non-Residents $ 49,347
Financial Aid Checklist The Financial Aid Checklist details actions you are required to take, including those required for disbursement of financial aid funds to your student bill, and actions that we strongly recommend you take once your financial aid has been awarded. • Accept your Federal Direct Unsubsidized Stafford Loan online. • Electronically sign the Master Promissory Note online. • Complete Federal Direct Loan Entrance Counseling. • Complete and submit an Authorization to Use Federal Title IV Funds (can be completed online through eservices) • Complete a Federal Graduate PLUS Loan Request if needed. • https://studentloans.gov/myDirectLoan/launchPLUS.action?plusType=gradPlus • **A separate MPN needs to be completed if you are receiving the Federal Graduate Plus Loan** • https://www.StudentLoans.gov. • Sign up for Direct Deposit (strongly recommended) • https://accounting.vcu.edu/media/strategic-enrollment-management/accounting/docs/directdeposit.pdf
Budgeting…Live Below Your Means • SOM Academic year is based on 10 months • Financial Aid needs to last you for 12 months • Your ability to budget now will help you with your finances in the future • Make changes if necessary • Control what you can control • Keep your other debt in check • Budget wisely and borrow responsibly
Budget Considerations Identify your fixed expenses Tuition & Fees Rent/Mortgage/Condo Fees Utilities Car payments, gas Medical insurance (we don’t automatically charge or pay for medical insurance) Insurance (Homeowners, renters, etc.) Child care Food Emergencies
Budgeting… Useful FREE expense trackers apps Expensify www.Expensify.com Pocket Expense http://www.appxy.com/pocket-expense Toshl Finance https://toshl.com
AAMC Financial Aid website: FIRST • Budgeting Tips • Budgeting Worksheet • Budgeting Basics https://students-residents.aamc.org/financial-aid/
Credit A credit score is a numerical calculation that takes into account the various entries in your credit report. You already have a credit score if you have a credit card in your name. 300 and 850
The basis for credit scoring • Past payment history • Amount owed on credit that has been extended • Length of credit • Search for acquiring new credit • Types of credit https://www.annualcreditreport.com/index.action
Credit History • Equifax 800 685 1111 www.equifax.com • Experian 888 397 3742 www.experian.com • Trans Union 877 322 8228
Medical Education is … EXPENSIVE! If you borrow up to the Cost of Attendance each year: You may graduate with over $ 200,000 debt (in state residents) or $ 300,000 debt (out of state residents) Indebtedness for the Class of 2018 based on AAMC data: Public $ 188,758, Private $ 209,367, All $ 196,520 2018 1st Post-MD Year median stipend: $ 55,974 *** AAMC Debt Card Class of 2018
Is it worth it? FACTS… • Medical Education is expensive • You will need to borrow to pay for your education • The debt levels for indebted medical school graduates have been rising faster than the inflation(6.3% per year since 1992 compared to2.5% CPI, AAMC) Inflation rate in 2.8% • The COA is increasing • There are very limited amount of Grants and Scholarships and they hardly cover the entire cost • Several policy changes in the recent years have affected the borrowing conditions for medical students, AAMC (loss of Subsidized Stafford Loan)
Can medical students who graduate with high debt levels pay off their student loans if they match to lower paying specialties without acquiring new debt? • Yes. • It is recommended that medical graduates utilize other resources that are available to them • Loan Repayment Programs: NHSC, State, Hospital • Public Service Loan Forgiveness https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service
Physician Salaries: AAMC – Careers in Medicinehttps://www.aamc.org/cim/profile
Helpful Websites AAMC FIRST https://www.aamc.org/services/first/ AAMC Careers in Medicine https://www.aamc.org/students/medstudents/cim/ NSLDS www.NSLDS.ed.gov Direct Loans http://www.direct.ed.gov/student.html SOM website http://www.medschool.vcu.edu
Loan Repayment • Your loans are in school deferred status while you are in school. • You will have 6 months grace period upon graduation. • If you don’t select a repayment plan, your loans will be automatically defaulted to 10 year standard repayment plan. • Income driven payment plans are there to help you with the loan payment during residency years. • PAYE: Pay As You Earn (most medical graduates select this option) • REPAYE: Revised Pay As You Earn • IBR: Income Based Repayment Plan • Forbearance
Public Service Loan Forgiveness The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying payment plan while working full-time for a not-for-profit organization. • Qualifying employment: Not for profit organizations that are tax-exempt under section 501(c)(3) of the Internal Revenue Code • Full time employment: 30 hours per week • Qualifying repayment plans: Income Driven Payment Plans (PAYE, REPAYE, IBR and the Standard Payment Plan) • The payments do not have to be consecutive. • Direct Loans are eligible. https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service#eligible-loans
Loan Repayment Scenario M1 $ 42,722 Federal Direct Unsubsidized Loan (6 %) M2 $ 47,167 Federal Direct Unsubsidized Loan (6 %) M3 $ 47,167 Federal Direct Unsubsidized Loan (6 %) M4 $ 42,722 Federal Direct Unsubsidized Loan (6 %) Total $ 179,778 Assumptions: PAYE During Residency, 3 Year Residency, $ 56,000 Residency Income with $ 200,000 Starting Salary after Residency Monthly Payment During Residency & after: $ 311- 358 & $ 1,503 - 1,996 Balance after Residency: $ 226,621 PAYE Estimated Monthly Payment After Residency: $ 1,503 - $ 1,996 (for 19 years) Total Interest Cost: $ 181,123 PAYE Forgiveness: 0 Total Repayment: $ 360,901 (loan is paid in full in 19 years) PSLF 10-year forgiveness: $ 162,108 Standard Payment Plan Monthly Payment $ 2,290
Loan Repayment Scenario M1 $ 42,722 Federal Direct Unsubsidized Loan (6%) M2 $ 47,167 Federal Direct Unsubsidized Loan (6%) M3 $ 47,167 Federal Direct Unsubsidized Loan (6%) M4 $ 42,722 Federal Direct Unsubsidized Loan (6%) Total $ 179,778 + $ 15,000 Federal Direct Graduate Plus Loan every year at 7 % (Total $ 60,000 Graduate Plus Loan Debt) Total Debt at Graduation: $ 239,778 (without interest) Assumptions: PAYE During Residency, 3 Year Residency, $ 56,000 Residency Income with $ 200,000 starting Salary after Residency Monthly Payment During Residency: $ 310 – 358 Balance after Residency: $ 309,547 PAYE Estimated Monthly Payment after Residency: $ 1,503 - $ 2,465 (for 20 years) Total Interest Cost: $ 321,069 PAYE Forgiveness after 20 years: $ 151,410 Total Repayment: $ 409,437 PSLF 10-year Forgiveness: $ 275,593 Standard Payment Monthly Payment amount: $ 3,107
What do you need to do? • Take RESPONSIBILITY for your future • Read all University email ($$$ for SOM Financial Aid emails) • Maintain current mailing address • Life Happens! Do not leave anything to the last minute • Make a budget and stick to it • Do not borrow more than you need • Resist impulse purchases • Always plan for the worst (have some emergency cash) • Make time to apply for Scholarships • Graduate on time (4 years) • NO, Starbucks Caramel Macchiato is not a necessity for you to succeed in medical School
While you are here… • Student Affairs Office is your best source for help • SOM FA Office has open door policy • Identify the people who help you at SOM and stick with them, just don't drive them crazy. • Use the resources available to you at SOM, tutoring, mentoring, advising, etc. • We will help you throughout your education and after, we never say FAREWELL… • We will meet with you once a year and before you graduate to talk about debt management and loan repayment • Love your family…they are a good source of emotional and financial support
THANK YOU! Congratulations on your acceptance to VCU SOM!