financing your medical education. topics the financial aid process medical school costs & budget...
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TOPICSTOPICSTHE FINANCIAL AID PROCESSMEDICAL SCHOOL COSTS & BUDGETDETERMINING FINANCIAL AID
AWARDS CATEGORIES OF FINANCIAL AIDMEDICAL SCHOOL DEBTTHE IMPORTANCE OF CREDIT RATINGQUESTIONS
FINANCIAL AID APPLICATION PROCESSFINANCIAL AID APPLICATION PROCESSOC EXPLORE THE FINANCIAL AID APPLICATION PROCEDURES AND
DEADLINES
TO OBTAIN INSTITUTIONAL APPLICATION FORMS
BE BEGIN RESEARCHING THE WEB FOR SCHOLARSHIPS
R
JANU FILL OUT THE FAFSA ON THE WEB
ARY
M OBTAIN ESTIMATES OF FINANCIAL AID OFFERS FROM ALL SCHOOLS
A Y MAKE A DECISION AS TO WHICH MEDICAL SCHOOL YOU WANT TO
ATTEND
UCSD 1UCSD 1stst YEAR MEDICAL SCHOOL 2013-14 BUDGET YEAR MEDICAL SCHOOL 2013-14 BUDGET
DESCRIPTIONDESCRIPTION FIRST YEAR FIRST YEAR
BOOKSBOOKS $1,424$1,424
RENT/UTILITIES RENT/UTILITIES ($887/MO)($887/MO)
$7,983$7,983
FOOD FOOD
($390/MO)($390/MO)$3,510$3,510
MISC./PERSONAL MISC./PERSONAL ($372/MO)($372/MO)
$3,300$3,300
TRANSPORTATION TRANSPORTATION ($362/MO)($362/MO)
$3,267$3,267
EQUIPMENT BAGEQUIPMENT BAG $1,366$1,366
MICROSCOPEMICROSCOPE $150$150
EARLY START HEALTH EARLY START HEALTH INS.INS.
$201$201
REGISTRATION FEESREGISTRATION FEES $35,618.50$35,618.50
TOTALTOTAL $56,820$56,820
PUBLIC VS. PRIVATEPUBLIC VS. PRIVATE MEDICAL SCHOOL TUITION AND FEES MEDICAL SCHOOL TUITION AND FEES
PUBLICPUBLIC PRIVATEPRIVATE UCSDUCSD
$30,532*$30,532* $48,295*$48,295* $35,619**$35,619**
*National Average for 2012-13 according to the AAMC
**2013-14 tuition & fees
FINANCIAL AID AWARDSFINANCIAL AID AWARDS50% OF THE ENTIRE CLASS WILL RECEIVE
SCHOOL BASED FINANCIAL AID PACKAGETHE NEEDIEST SCHOOL PACKAGE FOR
2013-14 IS $35,562 (First Year Class)
($31,235 GRANT & $4,325 SCHOOL LOAN)THE LOWEST NEED SCHOOL-BASED
PACKAGE FOR 2013-14 IS $31,962 ($15,597 GRANT & $16,365 LOAN) (First
Year Class)
HOW YOUR AWARDS ARE DETERMINED 2013-HOW YOUR AWARDS ARE DETERMINED 2013-1414
SINGLE STUDENTSPARENTS’ CONTRIBUTION
NEED CATEGORY
STUDENT IS SINGLE & PARENT’S STUDENT IS SINGLE & PARENT’SCONTRIBUTION IS > $29,701 CONTRIBUTION IS < $29,701
NEED CATEGORY 1 NEED CATEGORY 2 -- 5
STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR FEDERAL STAFFORD LOAN INSTITUTIONAL GRANTS &ONLY LOANS
WHY USE PARENTS’ INCOME AND ASSET WHY USE PARENTS’ INCOME AND ASSET INFO?INFO?
1. STUDENTS FROM LOW-INCOME BACKGROUNDS USUALLY ENTER MEDICAL SCHOOL WITH A SUBSTANTIALLY HIGHER DEBT THAN STUDENTS FROM MORE AFFLUENT FAMILIES.
2. IN GENERAL, STUDENTS FROM AFFLUENT BACKGROUNDS ARE ABLE TO CALL ON THEIR PARENTS FOR FINANCIAL HELP, WHEREAS STUDENTS FROM LOWER INCOME FAMILIES DO NOT HAVE ACCESS TO THIS RESOURCE.
3. IF LIMITED SCHOOL-BASED FUNDS WERE DISTRIBUTED EVENLY AMONG ALL STUDENTS IN THE SCHOOL, REGARDLESS OF PARENT INCOME, THE AMOUNT OF GRANT AND LOW-INTEREST LOAN MONEY AVAILABLE TO EACH STUDENT WOULD BE SUBSTANTIALLY REDUCED.
HOW YOUR AWARDS ARE DETERMINED 2013-14HOW YOUR AWARDS ARE DETERMINED 2013-14
MARRIED STUDENTS WITHOUT CHILDREN
SPOUSE’S GROSS MONTHLY INCOME
NEED CATEGORY
STUDENT IS MARRIED & SPOUSE’S STUDENT IS MARRIED, SPOUSE’S GROSS INCOME IS > $3,515/MONTH GROSS INCOME < $3,515/MONTH
NEED CATEGORY 1 NEED CATEGORY 2
STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR FEDERAL STAFFORD LOANS INSTITUTIONAL GRANTS &ONLY LOANS
FINANCIAL AWARD SAMPLEFINANCIAL AWARD SAMPLESingle student without children
EFC = $2310 (Estimated Family/Parent Contribution)
Need Category 5 eligible for school aid $31,235– School Grant $ 4,327– School Loan
TOTAL $35,562Budget $56,820Student Contribution - $ 1,000Financial Need $55,820School Aid - $35,562Unmet Need $20,258
Federal Loans $20,258 Unsubsidized Direct
Loan ($40,500 max)Unmet Need $0
FINANCIAL AWARD SAMPLEFINANCIAL AWARD SAMPLESingle student without children
EFC = $29,702 (Estimated Family/Parent Contribution)
Need Category 1 Not Eligible for School Aid $0
Budget $56,820Student Contribution - $1000Financial Need $55,820School Aid - $0Unmet Need $55,820Federal Loans - $40,500 Unsubsidized Direct LoanUnmet Need $15,320 Graduate PLUS Loan
CATEGORIES OF FINANCIAL AIDINSTITUTIONAL AID
BASED ON STUDENT’S & PARENTS’ INCOME AND ASSETS INCLUDES GRANTS, SCHOLARSHIPS, FELLOWSHIPS AND
LOANS
OUTSIDE GRANTS AND SCHOLARSHIPS USUALLY RESTRICTIVE IN NATURE BASED ON FACTORS SUCH AS THE AREA OF RESIDENCE,
ETHNICITY, RELIGIOUS AFFILIATION, ETC. EXAMPLES: NATIONAL MEDICAL FELLOWSHIPS, BECA
SCHOLARSHIP, NATIONAL HISPANIC SCHOLARSHIP, THE CHINESE AMERICAN MEDICAL SOCIETY SCHOLARSHIP
CATEGORIES OF FINANCIAL AIDCATEGORIES OF FINANCIAL AIDOUTSIDE FEDERAL LOANS
FEDERAL DIRECT UNSUBSIDIZED LOANFEDERAL DIRECT UNSUBSIDIZED LOAN INTEREST RATE 5.41% - for loans disbursed between July 1, 2013 to
June 30th, 2014 ORIGINATION FEE 1.072% ANNUAL MAXIMUM $40,500 6 MONTH GRACE PERIOD
FEDERAL DIRECT GRAD PLUS LOANFEDERAL DIRECT GRAD PLUS LOAN INTEREST RATE 6.41% – for loans disbursed between July 1, 2013 to
June 30th, 2014 ORIGINATION FEE 4.288% NO ANNUAL MAXIMUM 6 MONTH GRACE PERIOD – for loans disbursed after July 1, 2008
CATEGORIES OF FINANCIAL AIDCATEGORIES OF FINANCIAL AID
SERVICE OBLIGATION PROGRAMS REQUIRE A COMMITMENT TO PRACTICE IN A PARTICULAR
FIELD OF MEDICINE OR IN A SPECIFIC GEOGRAPHIC LOCATION
HAVE STIFF PENALTIES FOR DEFAULTING ON THE SERVICE COMMITMENT
EXAMPLES: ARMED FORCES SCHOLARSHIP PROGRAMS, THE NATIONAL HEALTH SERVICE CORPS AND THE PRIMARY CARE LOAN
LOAN REPAYMENT PROGRAMS PROVIDE BACK-END HELP AFTER GRADUATION FROM MED
SCHOOL BY REPAYING ALL OR A PORTION OF A STUDENT’S OUTSTANDING EDUCATIONAL DEBT
MOST ARE TIED TO PRACTICING IN A PARTICULAR AREA OF MEDICINE OR SPECIFIED GEOGRAPHIC LOCATION
EXAMPLES: NATIONAL HEALTH SERVICE CORPS LOAN REPAYMENT PROGRAM, THE CALIFORNIA STATE LOAN REPAYMENT PROGRAM, ETC.
AVERAGE MEDICAL SCHOOL DEBTAVERAGE MEDICAL SCHOOL DEBT
$183,066$183,066 $155,978$155,978 $106,670$106,670
*Per AAMC Medical Student Education: Debt, Costs, and Loan Repayment Fact Card for the Class of 2012**Figures include premedical education debt
ESTIMATE OF REPAYMENTESTIMATE OF REPAYMENTREPAYMENREPAYMENT PERIODT PERIOD
INTEREST ONLY INTEREST ONLY PAYMENTS PAYMENTS
DURING DURING RESIDENCYRESIDENCY
TOTAL PAID TOTAL PAID IN IN
REPAYMENREPAYMENTT
TOTAL TOTAL PAID PAID
OVERALLOVERALL
MONTHLY MONTHLY PAYMENT PAYMENT
IN IN REPAYMENREPAYMEN
TT
10 YEARS10 YEARSPAYMENT PAYMENT BEGINS AFTER BEGINS AFTER GRADUATIONGRADUATION
$172,621$172,621 $172,621$172,621 $1,439$1,439
15 YEARS15 YEARS $34,000 OR $34,000 OR $708/MO$708/MO $199,729$199,729 $233,728$233,728 $1,110$1,110
25 YEARS25 YEARS $34,000 OR $34,000 OR $708/MO$708/MO $260,277$260,277 $294,277$294,277 $868$868
LOAN AMOUNT OF $125,000 AT 6.8% INTEREST RATE
CAN I AFFORD THE MONTHLY PAYMENT ON MY CAN I AFFORD THE MONTHLY PAYMENT ON MY SALARY ?SALARY ?
AVERAGE ANNUAL SALARY OF FAMILY PRACTITIONER
GROSS MONTHLY PAY FORA SALARY OF $150,000/YEAR
MONTHLY LOAN PAYMENTBASED ON 10-15% OF SALARY
$150,000
$12,500/MO
$1250- $1875/MO
THE IMPORTANCE OF CREDIT THE IMPORTANCE OF CREDIT RATINGRATING
THE GRAD PLUS LOAN PROGRAM REQUIRES A CREDIT CHECK
A GRAD PLUS APPLICANT IS CONSIDERED TO HAVE ADVERSE CREDIT IF: APPLICANT IS 90 DAYS OR MORE DELINQUENT ON
THE PAYMENT OF ANY DEBT APPLICANT HAD ANY DEBT DISCHARGED IN
BANKRUPTSY ANY TIME IN THE LAST FIVE YEARS THE APPLICANT HAS BEEN THE SUBJECT OF A
DEFAULT DETERMINATION ON ANY DEBT, FORECLOSURE, A TAX LIEN, A REPOSSESSION, A WAGE GARNISHMENT, OR A WRITE-OFF OF A TITLE IV DEBT ANY TIME DURING THE LAST FIVE YEARS
WHAT’S A GOOD CREDIT SCORE?WHAT’S A GOOD CREDIT SCORE?800 + EXCELLENT750-799 VERY GOOD TO
EXCELLENT700-749 GOOD TO VERY GOOD650-699 FAIR TO GOOD600-649 POOR TO FAIRBELOW 600 VERY POOR TO POOR
HOW TO MAINTAIN GOOD HOW TO MAINTAIN GOOD CREDIT?CREDIT?
RETIRE CREDIT CARD DEBT BEFORE ENTERING MEDICAL SCHOOL
OBTAIN A COPY OF YOUR CREDIT REPORT AND CLEAN UP ANY NEGATIVE CREDIT THAT YOU CAN
DON’T BORROW MORE THAN YOU NEED
ALWAYS KNOW EXACTLY HOW YOU WILL REPAY THE DEBT AND HOW IT WILL AFFECT YOUR MONTHLY BUDGET
WHAT TO DO IF DENIED?WHAT TO DO IF DENIED?OBTAIN AND REVIEW CREDIT REPORT
USED IN DECISION PROCESS BY LENDER
CORRECT ANY ERRORS CONTAINED IN REPORT
APPEAL CREDIT DECISION, IF APPROPRIATE
CONSIDER CO-SIGNER AS OPTION, IF AVAILABLE