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Navigating Medical School Financial Aid: Loans, Scholarships, and Budget Planning

Explore financial aid options, loan eligibility, application processes, and responsible borrowing strategies for medical school expenses at VCOM. Learn how to manage repayment, budget effectively, and make informed financial decisions.

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Navigating Medical School Financial Aid: Loans, Scholarships, and Budget Planning

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  1. Financial Aid forMedical School March 8th, 2014 Daniel Hewitt Director of Financial Aid – Virginia Campus

  2. Agenda • Costs at VCOM • Financial aid options and why loans are good, realistic options • Budget planning and repayment options that are manageable

  3. Costs At VCOM • VCOM Tuition $40,600 • Federal Student Loan Fees* $ 1,669 • Living and Other Educational Expenses $31,171 (see expense estimates below) • Total Cost of Attendance $73,440 • SUPPLIES AND • EQUIPMENT $ 4,594 • HOUSING AND • UTILITIES $10,604 • MEALS $ 3,861 • TRANSPORTATION • AND TRAVEL $6,828 • MEDICAL AND • PERSONAL EXPENSES $5,284 * Federal student loan fees are included only if federal student loans are used.

  4. Financial Aid Options • Scholarships • VCOM’s website: http://www.vcom.vt.edu/financial/ • Service Contracts • National Health Service Corps (NHSC) Scholarship Program • Military Health Professions Scholarship Program (HPSP) • State agencies and individual hospitals • Students Loans • Unsubsidized Stafford • Graduate PLUS • Private

  5. Applying For Loans • 2014-2015 Free Application for Federal Student Aid (FAFSA) http://www.fafsa.ed.gov • 2014-2015 VCOM Financial Aid Application http://www.vcom.vt.edu/2018/ • Loan applications

  6. Loan Eligibility • Cost of Attendance - Scholarships and Service Contracts = Unsubsidized Stafford Loan • Cost of Attendance - Scholarships and Service Contracts - Unsubsidized Stafford Loan = Graduate PLUS or Private loan

  7. Unsubsidized Stafford Loans • Fixed interest rate, set June 1st • 1.072% origination fee • Interest starts accruing right away • No credit check, but cannot be in default on any student loan • Maximum amount of $47,197 (12-month calendar) • $44,944 maximum for OMS1 (11 month calendar)

  8. Graduate PLUS and Private Loans • Graduate PLUS loan • Fixed interest rate • 4.288% origination fee • Interest starts accruing right away • Private (Alternative) loan • Variable or fixed interest rate • Rates based on your credit score and the market rate • Interest starts accruing right away • Maximum amount for either loan is Cost of Attendance minus other aid

  9. Loan Applications • For Unsubsidized Stafford and Graduate PLUS loans: • only require an Award Letter response • For Private loans: • require an Award Letter response, and • require a separate application with a lender • All loan types require Promissory Notes (MPNs) through the Direct Loans website or through the lender’s website

  10. Borrowing Responsibly The approximate cost of your education: • Unsubsidized Stafford – 5.41% fixed (currently) • Graduate PLUS – 6.41% fixed(currently)

  11. The Long-Term Cost • Borrower 1 is financing to maximum Unsubsidized Stafford loan limits and supplementing with Graduate PLUS • Borrower 2 is financing as above, minus $5,000 each year in Graduate PLUS • These examples assume a 3-yr residency and 25-yr repayment

  12. Breakdown If you adjust your expenses by less than $14 a day for the next four years, you could save yourself $55,000!

  13. Determine Your Income • Employment • Personal savings • Family support • Financial aid funds

  14. Identify Your Expenses Fixed Expenses: • Tuition and fees • Rent • Child care • Taxes • Insurance premiums

  15. Identify Your Expenses Variable Expenses: • Utilities • Food • Clothing • Transportation • Other living expenses

  16. Cost of a Daily Latte Daily $4 Weekly $20 Monthly $87 Annually $1,040 Cost over 4 years $4,160 Repayment over 25 years at 6.41%$11,400

  17. Loan Repayment • Repayment Plan Length • Normal = 10 years • Extended = up to 25 years • Repayment Plan Type • Standard – fixed, equal monthly payments • Income-Based – monthly payments go up and down with your income

  18. Loan Repayment • Postponement Options • Deferments ex. – In-School Deferment • Forbearances ex. – Residency Forbearance

  19. Early Repayment • No early repayment penalties of any kind • Within 120 days of disbursement, loan fees and accrued interest are negated • Extra payments go to accrued interest first, then to principal • Death, or Total and Permanent Disability Discharge

  20. Review • Costs at VCOM • Financial aid options and why loans are good, realistic options • Budget planning and repayment options that are manageable

  21. Questions? Daniel Hewitt Eloise Turner dhewitt@vcom.vt.edueturner@vcom.vt.edu (540) 231-6021 (540) 231-5923

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