ou-hcom financial aid info about loans ou-hcom financial aid info about loans marie barone michelle...
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OU-HCOMOU-HCOMFINANCIAL AIDFINANCIAL AID
Info about Loans Info about Loans
Marie BaroneMichelle Kittle
What is a Financial Aid Package?
- A collection of financial resources available to the student to help pay for the costs associated with attendance at school.
-Resources may include student loans, scholarships, stipends, etc.
Main Factors in Determining your aid packages:
-The Educational Budget –
set by OU-HCOM
-Stafford & other Loan Limits –
set by federal regulations
***PROJECTED***
Student Educational BudgetYear 1 2012-13 = $59,521
What is included?Tuition & fees ($32,011) *
Books & Equipment ($7,548) * Room & Board-10 months ($12,992) *
Transportation ($3,110) * Personal ($3,860) *
Out of State Charge $13,274 *
What is not included in a student budget:
Car Payments Expenses outside of school year –
summer 2012 and summer 2013 Past consumer debt
(car payments, house payments, etc.) Credit Card Debt Moving Expenses Expenses for family members other than
the student
Stafford Loans Stafford Unsubsidized Loan - $42,722
Fixed (interest accrues at disbursement) Interest = 6.8%
Does not consider credit history
Total loan amount is divided and disbursed by the # of terms the student is enrolled in an academic year.
This loan is the basis of most student aid packages.
Origination Fees for the Stafford Loans for 2012-13
Stafford Loans: 1% origination fee which is subtracted from the loan money you receive
Sample: $1,000(principal) - $10(origination fee) = $990
Stafford Loan Limit IssuesStafford Loan Limit Issues
Annual Stafford Loan Amounts: -Year 1 = $42,722 Year 1 Year 2 = $40,500 Year 3 = $47,167 Year 4 = $47,167
Aggregate Stafford Loan Limits (over lifetime as a borrower)
$224,000
Annual Stafford loan limits Annual Stafford loan limits
In-state calculation
Cost of attendance $59,521*$59,521*
Stafford Loan limit $42,722
Remaining need: $16,799
(aka annual shortfall)
Out of state calculation
Cost of attendance $72,795*$72,795*
Stafford Loan limit $42,722
Remaining need: $30,073
(aka annual shortfall)
*estimated costs
Graduate PLUS loanGraduate PLUS loan Federally funded loan with a fixed rate of 7.9%
Credit-based loan – cannot have any negative credit within the past 24 months of application - students can be denied – can use a co-signer
No annual or aggregate limit
Note – has separate promissory note with 90 day credit limit - we will process Graduate Plus loans the first week of classes
Origination Fees on Grad Origination Fees on Grad PLUS loans for 2011-13PLUS loans for 2011-13
Grad PLUS Loans: 4% origination fee
Sample: $1,000(principal) - $40(fee) = $960
Help??? Help??? How do I figure out how much How do I figure out how much
loan money I need?loan money I need?
Where do I start with figuring Where do I start with figuring out a budget?out a budget?
One SuggestionOne Suggestion
Start with annual Stafford loan limits and subtract fixed costs
$42,295 = Max Stafford (minus fees – estimate)
-$32,011 = Projected tuition & Fees (estimate only)
-$1,412 = Health Insurance (last year’s amount – this will change)
$8,872 = money for all other expenses
Divide by 10 months = $887/per month