financing your medical education. topics the financial aid process medical school costs & budget...
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TOPICSTHE FINANCIAL AID PROCESSMEDICAL SCHOOL COSTS & BUDGETDETERMINING FINANCIAL AID
AWARDS CATEGORIES OF FINANCIAL AIDMEDICAL SCHOOL DEBTTHE IMPORTANCE OF CREDIT RATINGQUESTIONS
FINANCIAL AID APPLICATION PROCESS
OC 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 MEDICAL SCHOOL 2009-10 BUDGET
DESCRIPTIONDESCRIPTION FIRST YEAR FIRST YEAR
BOOKSBOOKS $1,107$1,107
RENT/UTILITIES RENT/UTILITIES ($917/MO)($917/MO)
$8,712$8,712
FOOD FOOD
($349/MO)($349/MO)$3,316$3,316
MISC./PERSONAL MISC./PERSONAL ($348/MO)($348/MO)
$3,306$3,306
TRANSPORTATION TRANSPORTATION ($368/MO)($368/MO)
$3,496$3,496
EQUIPMENT BAGEQUIPMENT BAG $1,263$1,263
MICROSCOPEMICROSCOPE $150$150
REGISTRATION FEESREGISTRATION FEES $26,968.50$26,968.50
TOTALTOTAL $48,319$48,319
OFF CAMPUS
PUBLIC VS. PRIVATE MEDICAL SCHOOL COSTS
PUBLICPUBLIC PRIVATEPRIVATE UCSDUCSD
$25,208$25,208 $42,906$42,906 $26,969$26,969
National Average for 2009-10 according to the AAMCResident Tuition, Fees & Health Insurance
FINANCIAL AID AWARDS60% OF THE ENTIRE CLASS WILL
RECEIVE SCHOOL BASED FINANCIAL AID PACKAGE.
THE NEEDIEST SCHOOL PACKAGE FOR 2009-10 FOR THE 1ST YEAR CLASS IS $27,577 ($22,293 GRANT & $5,284 SCHOOL LOAN)
THE LOWEST NEED SCHOOL-BASED PACKAGE FOR 2009-10 IS $23,977 ($11,122 GRANT AND $12,855 LOAN)
HOW YOUR AWARDS ARE DETERMINED2009-10
SINGLE STUDENTSPARENTS’ CONTRIBUTION
NEED CATEGORY
STUDENT IS SINGLE & PARENT’S STUDENT IS SINGLE & PARENT’SCONTRIBUTION IS >= $27,066 CONTRIBUTION IS < $27,066
NEED CATEGORY 1 NEED CATEGORY 2 -- 5
STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR FEDERAL DIRECT LOAN & INSTITUTIONAL GRANTS &OUTSIDE LOANS ONLY LOANS
WHY USE PARENTS’ INCOME AND ASSET 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 DETERMINED2009-10
MARRIED STUDENTS WITHOUT CHILDREN
SPOUSE’S NET MONTHLY INCOME
NEED CATEGORY
STUDENT IS MARRIED & SPOUSE’S STUDENT IS MARRIED, SPOUSE’S NET INCOME IS > $2,183/MONTH NET INCOME < $2,183/MONTH
NEED CATEGORY 1 NEED CATEGORY 2
STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR FEDERAL DIRECT LOANS & INSTITUTIONAL GRANTS &OUTSIDE LOANS ONLY LOANS
FINANCIAL AWARD SAMPLESingle student without children
EFC = $2310 (Estimated Family/Parent Contribution)
Need Category 5 eligible for school aid $22,293 – School Grant $ 5,284 – School LoanTOTAL$27,577
Budget $48,319Student Contribution - $ 1,000Financial Need $47,319 School Aid - $27,577Unmet Need $19,742
Federal Loans $8,500 Subsidized Direct ($8500 max)$11,242 Unsubsidized Direct ($32,000 max)
Unmet Need $0
FINANCIAL AWARD SAMPLESingle student without children
EFC = $27,100 (Estimated Family/Parent Contribution)
Need Category 1 Not Eligible for School Aid $0
Budget $48,319Student Contribution - $1000Financial Need $47,319School Aid - $0Unmet Need $47,319Federal Loans - $8,500 Subsidized Direct
- $32,000 Unsubsidized DirectUnmet Need $6,819 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 AIDOUTSIDE LOANS
FEDERAL LOANS (SUBSIDIZED, UNSUBSIDIZED AND GRADUATE PLUS LOANS ) HAVE BETTER TERMS THAN PRIVATE/ALTERNATIVE
LOANS INTEREST RATE 6.8% FOR DIRECT; 7.9% FOR GRAD PLUS DIRECT DOES NOT REQUIRE CREDIT CHECK
PRIVATE LOANS (THROUGH OUTSIDE LENDERS) ALTERNATIVE LOANS - REQUIRE CREDIT CHECK OTHER OUTSIDE AGENCY LOANS - MAY OR MAY NOT
REQURE CREDIT CHECKS CANNOT BE CONSOLIDATED WITH YOUR FEDERAL LOANS
CATEGORIES OF FINANCIAL AIDSERVICE 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, NIH LOAN REPAYMENT PROGRAMS (FOR STUDENTS INTERESTED IN RESEARCH)
MEDICAL SCHOOL DEBTAVERAGE ALL AVERAGE ALL SCHOOLSSCHOOLS $156,456$156,456
AVERAGE PUBLIC AVERAGE PUBLIC SCHOOLSSCHOOLS $148,101$148,101
AVERAGE PRIVATE AVERAGE PRIVATE SCHOOLSSCHOOLS $170,012$170,012
AVERAGE UCSDAVERAGE UCSD $109,119$109,119*ACCORDING TO THE AAMC FOR 2009**INCLUDES PRE-MATRICULATION DEBT
ESTIMATE OF REPAYMENTREPAYMENREPAYMENT PERIODT PERIOD
TOTAL PAID TOTAL PAID IN IN
FORBEARANCFORBEARANCEE
(assume 4 year(assume 4 year
residency)residency)
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 SALARY ?
AVERAGE ANNUAL SALARY OF FAMILY PRACTITIONER
GROSS MONTHLY PAY FORA SALARY OF $142,000/YEAR
MONTHLY LOAN PAYMENTBASED ON 10% --15% OF SALARY
$150,000
$12,500/MO
$1250/MO— $1875/MO
THE IMPORTANCE OF CREDIT RATING
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?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 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?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 OR NON-STUDENT BORROWER AS OPTION, IF AVAILABLE
QUESTIONS???
Contact theContact theFinancial Aid OfficeFinancial Aid Office