financing your medical education. topics the financial aid process the financial aid process medical...
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FINANCING YOUR FINANCING YOUR MEDICAL EDUCATIONMEDICAL EDUCATION
TOPICSTOPICS
THE FINANCIAL AID PROCESSTHE FINANCIAL AID PROCESS MEDICAL SCHOOL COSTS & BUDGETMEDICAL SCHOOL COSTS & BUDGET DETERMINING FINANCIAL AID AWARDS DETERMINING FINANCIAL AID AWARDS CATEGORIES OF FINANCIAL AIDCATEGORIES OF FINANCIAL AID MEDICAL SCHOOL DEBTMEDICAL SCHOOL DEBT THE IMPORTANCE OF CREDIT RATINGTHE IMPORTANCE OF CREDIT RATING QUESTIONSQUESTIONS
FINANCIAL AID FINANCIAL AID APPLICATION PROCESSAPPLICATION PROCESS
OOCC EXPLORE THE FINANCIAL AID APPLICATION PROCEDURES AND DEADLINESEXPLORE THE FINANCIAL AID APPLICATION PROCEDURES AND DEADLINES
TTOO OBTAIN INSTITUTIONAL APPLICATION FORMSOBTAIN INSTITUTIONAL APPLICATION FORMS
BBEE BEGIN RESEARCHING THE WEB FOR SCHOLARSHIPSBEGIN RESEARCHING THE WEB FOR SCHOLARSHIPS
RR
JJAANNUU FILL OUT THE FAFSA ON THE WEBFILL OUT THE FAFSA ON THE WEB
AARRYY
MM OBTAIN ESTIMATES OF FINANCIAL AID OFFERS FROM ALL SCHOOLSOBTAIN ESTIMATES OF FINANCIAL AID OFFERS FROM ALL SCHOOLS
A A YY MAKE A DECISION AS TO WHICH MEDICAL SCHOOL YOU WANT TO ATTENDMAKE A DECISION AS TO WHICH MEDICAL SCHOOL YOU WANT TO ATTEND
UCSD MEDICAL UCSD MEDICAL SCHOOL 2005-06 SCHOOL 2005-06
BUDGETBUDGETDESCRIPTIONDESCRIPTION FIRST YEAR FIRST YEAR
BOOKSBOOKS $1,976$1,976
RENT/UTILITIES RENT/UTILITIES ($919/MO)($919/MO)
$8,731$8,731
FOOD FOOD
($308/MO)($308/MO)$2,926$2,926
MISC./PERSONAL MISC./PERSONAL ($307/MO)($307/MO)
2,9172,917
TRANSPORTATION TRANSPORTATION ($307/MO)($307/MO)
$2,917$2,917
EQUIPMENT BAGEQUIPMENT BAG $925$925
MICROSCOPEMICROSCOPE $150$150
REGISTRATION FEESREGISTRATION FEES $22,007.50$22,007.50
TOTALTOTAL $42,550$42,550
OFF CAMPUS
UCSD MEDICAL UCSD MEDICAL SCHOOL 2005-06 SCHOOL 2005-06
BUDGETBUDGETDESCRIPTIONDESCRIPTION FIRST YEAR FIRST YEAR
BOOKSBOOKS $1,976$1,976
RENT/UTILITIES RENT/UTILITIES
($550/MO)($550/MO)$5,225$5,225
FOOD FOOD
($308/MO)($308/MO)$2,926$2,926
MISC./PERSONAL MISC./PERSONAL ($307/MO)($307/MO)
2,9172,917
TRANSPORTATION TRANSPORTATION ($307/MO)($307/MO)
$2,917$2,917
EQUIPMENT BAGEQUIPMENT BAG $925$925
MICROSCOPEMICROSCOPE $150$150
REGISTRATION FEESREGISTRATION FEES $22,007.50$22,007.50
TOTALTOTAL $39,044$39,044
ON
CAMPUS
UCSD MEDICAL UCSD MEDICAL SCHOOL 2005-06 SCHOOL 2005-06
BUDGETBUDGET
22ndnd YEAR YEAR 33rdrd YEAR YEAR 44thth YEAR YEAR
ON ON CAMPUSCAMPUS $44, 970$44, 970 $44, 636$44, 636 $31, 361$31, 361
OFF OFF CAMPUSCAMPUS $49, 399$49, 399 $49, 064$49, 064 $34, 682$34, 682
TOTAL FOR 4 YEARS $175,695 OFF CAMPUS $160,000 ON CAMPUS
PUBLIC VS. PRIVATE PUBLIC VS. PRIVATE MEDICAL SCHOOL MEDICAL SCHOOL
COSTSCOSTS
PUBLICPUBLIC PRIVATEPRIVATE UCSDUCSD
$18, 612$18, 612 $27, 826$27, 826 $20, 172$20, 172
National Average for 2004-05 according to the AAMCTuition and Fees only
FINANCIAL AID FINANCIAL AID AWARDSAWARDS 60% OF THE ENTIRE CLASS WILL RECEIVE 60% OF THE ENTIRE CLASS WILL RECEIVE
SCHOOL BASED FINANCIAL AID PACKAGE.SCHOOL BASED FINANCIAL AID PACKAGE. THE NEEDIEST SCHOOL PACKAGE FOR THE NEEDIEST SCHOOL PACKAGE FOR
2005-06 IS 2005-06 IS $24,273$24,273
($19,980 GRANT & $4293 SCHOOL LOAN)($19,980 GRANT & $4293 SCHOOL LOAN) THE LOWEST NEED SCHOOL-BASED THE LOWEST NEED SCHOOL-BASED
PACKAGE FOR 2005-06 IS PACKAGE FOR 2005-06 IS $20,673$20,673 ($10,301 GRANT AND $10,372 LOAN)($10,301 GRANT AND $10,372 LOAN)
HOW YOUR AWARDS ARE HOW YOUR AWARDS ARE DETERMINEDDETERMINED
2005-062005-06SINGLE STUDENTSSINGLE STUDENTS
PARENTS’ CONTRIBUTIONPARENTS’ CONTRIBUTION
NEED CATEGORYNEED CATEGORY
STUDENT IS SINGLE & PARENT’S STUDENT IS SINGLE & PARENT’S STUDENT IS SINGLE & STUDENT IS SINGLE & PARENT’SPARENT’SCONTRIBUTION IS > $23,887CONTRIBUTION IS > $23,887 CONTRIBUTION IS < $23,887CONTRIBUTION IS < $23,887
NEED CATEGORY 1NEED CATEGORY 1 NEED CATEGORY 2 -- 5NEED CATEGORY 2 -- 5
STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR FEDERAL STAFFORD LOANFEDERAL STAFFORD LOAN INSTITUTIONAL GRANTS &INSTITUTIONAL GRANTS &ONLYONLY LOANSLOANS
WHY USE PARENTS’ WHY USE PARENTS’ INCOME AND ASSET INCOME AND ASSET
INFO?INFO?1.1. STUDENTS FROM LOW-INCOME BACKGROUNDS STUDENTS FROM LOW-INCOME BACKGROUNDS
USUALLY ENTER MEDICAL SCHOOL WITH A USUALLY ENTER MEDICAL SCHOOL WITH A SUBSTANTIALLY HIGHER DEBT THAN STUDENTS FROM SUBSTANTIALLY HIGHER DEBT THAN STUDENTS FROM MORE AFFLUENT FAMILIES.MORE AFFLUENT FAMILIES.
2.2. IN GENERAL, STUDENTS FROM AFFLUENT IN GENERAL, STUDENTS FROM AFFLUENT BACKGROUNDS ARE ABLE TO CALL ON THEIR BACKGROUNDS ARE ABLE TO CALL ON THEIR PARENTS FOR FINANCIAL HELP, WHEREAS STUDENTS PARENTS FOR FINANCIAL HELP, WHEREAS STUDENTS FROM LOWER INCOME FAMILIES DO NOT HAVE FROM LOWER INCOME FAMILIES DO NOT HAVE ACCESS TO THIS RESOURCE.ACCESS TO THIS RESOURCE.
3.3. IF LIMITED SCHOOL-BASED FUNDS WERE IF LIMITED SCHOOL-BASED FUNDS WERE DISTRIBUTED EVENLY AMONG ALL STUDENTS IN THE DISTRIBUTED EVENLY AMONG ALL STUDENTS IN THE SCHOOL, REGARDLESS OF PARENT INCOME, THE SCHOOL, REGARDLESS OF PARENT INCOME, THE AMOUNT OF GRANT AND LOW-INTEREST LOAN MONEY AMOUNT OF GRANT AND LOW-INTEREST LOAN MONEY AVAILABLE TO EACH STUDENT WOULD BE AVAILABLE TO EACH STUDENT WOULD BE SUBSTANTIALLY REDUCEDSUBSTANTIALLY REDUCED..
HOW YOUR AWARDS ARE HOW YOUR AWARDS ARE DETERMINEDDETERMINED
2005-062005-06
MARRIED STUDENTS WITHOUT MARRIED STUDENTS WITHOUT CHILDRENCHILDREN
SPOUSE’S NET MONTHLY INCOMESPOUSE’S NET MONTHLY INCOME
NEED CATEGORYNEED CATEGORY
STUDENT IS MARRIED & SPOUSE’SSTUDENT IS MARRIED & SPOUSE’S STUDENT IS MARRIED, SPOUSE’S NET STUDENT IS MARRIED, SPOUSE’S NET INCOME IS > $1926/MONTHINCOME IS > $1926/MONTH INCOME < $1926/MONTHINCOME < $1926/MONTH
NEED CATEGORY 1NEED CATEGORY 1 NEED CATEGORY 2NEED CATEGORY 2
STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR
FEDERAL STAFFORD LOANSFEDERAL STAFFORD LOANS INSTITUTIONAL GRANTS &INSTITUTIONAL GRANTS &
ONLYONLY LOANSLOANS
FINANCIAL AWARD FINANCIAL AWARD SAMPLESAMPLE
Single student without childrenSingle student without children
EFC = $2083 (Estimated Family/Parent Contribution)EFC = $2083 (Estimated Family/Parent Contribution)
Need Category 5 Need Category 5 eligible for school aid eligible for school aid $19, 980 – School $19, 980 – School Grant Grant $4293 – School Loan$4293 – School Loan
TOTALTOTAL $24,273$24,273Budget Budget $42,550$42,550Student Contribution Student Contribution - $1000- $1000Financial NeedFinancial Need $41, 550 $41, 550 School AidSchool Aid - $24, 273- $24, 273Unmet Need Unmet Need $17, 277$17, 277
Federal LoansFederal Loans $8,500 Subsidized Stafford ($8500 max) $8,500 Subsidized Stafford ($8500 max)
$8,777 $8,777 Unsubsidized Stafford ($30,000 Unsubsidized Stafford ($30,000 max)max)
Unmet NeedUnmet Need $0 $0
FINANCIAL AWARD FINANCIAL AWARD SAMPLESAMPLE
Single student without childrenSingle student without children
EFC = $23,900 (Estimated Family/Parent Contribution)EFC = $23,900 (Estimated Family/Parent Contribution)
Need Category 1 Need Category 1 Not Eligible for School AidNot Eligible for School Aid$0$0
Budget Budget $42,550$42,550
Student Contribution Student Contribution - $1000- $1000
Financial NeedFinancial Need $41,550$41,550
School AidSchool Aid - $0- $0
Unmet Need Unmet Need $41,550$41,550
Federal LoansFederal Loans - $8,500 Subsidized Stafford - $8,500 Subsidized Stafford
- $30,000- $30,000 Unsubsidized Stafford Unsubsidized Stafford
Unmet NeedUnmet Need $3020 Alternative Loans $3020 Alternative Loans
CATEGORIES OF FINANCIAL CATEGORIES OF FINANCIAL AIDAID
INSTITUTIONAL AIDINSTITUTIONAL AID – BASED ON STUDENT’S & PARENTS’ INCOME AND ASSETSBASED ON STUDENT’S & PARENTS’ INCOME AND ASSETS– INCLUDES GRANTS, SCHOLARSHIPS, FELLOWSHIPS AND LOANSINCLUDES GRANTS, SCHOLARSHIPS, FELLOWSHIPS AND LOANS
OUTSIDE GRANTS AND SCHOLARSHIPSOUTSIDE GRANTS AND SCHOLARSHIPS– USUALLY RESTRICTIVE IN NATURE USUALLY RESTRICTIVE IN NATURE – BASED ON FACTORS SUCH AS THE AREA OF RESIDENCE, BASED ON FACTORS SUCH AS THE AREA OF RESIDENCE,
ETHNICITY, RELIGIOUS AFFILIATION, ETC.ETHNICITY, RELIGIOUS AFFILIATION, ETC.– EXAMPLES: NATIONAL MEDICAL FELLOWSHIPS, BECA EXAMPLES: NATIONAL MEDICAL FELLOWSHIPS, BECA
SCHOLARSHIP, NATIONAL HISPANIC SCHOLARSHIP, THE CHINESE SCHOLARSHIP, NATIONAL HISPANIC SCHOLARSHIP, THE CHINESE AMERICAN MEDICAL SOCIETY SCHOLARSHIPAMERICAN MEDICAL SOCIETY SCHOLARSHIP
CATEGORIES OF FINANCIAL CATEGORIES OF FINANCIAL AIDAID
OUTSIDE LOANSOUTSIDE LOANS
– FEDERAL LOANS (SUBSIDIZED AND FEDERAL LOANS (SUBSIDIZED AND UNSUBSIDIZED)UNSUBSIDIZED)
HAVE BETTER TERMS THAN THE ALTERNATIVE LOANS HAVE BETTER TERMS THAN THE ALTERNATIVE LOANS INTEREST CAP AT 8.25%INTEREST CAP AT 8.25% DON’T REQUIRE CREDIT CHECKDON’T REQUIRE CREDIT CHECK
– PRIVATE LOANS (THROUGH OUTSIDE LENDERS)PRIVATE LOANS (THROUGH OUTSIDE LENDERS) ALTERNATIVE LOANS - REQUIRE CREDIT CHECKALTERNATIVE LOANS - REQUIRE CREDIT CHECK OTHER OUTSIDE AGENCY LOANS - MAY OR MAY NOT OTHER OUTSIDE AGENCY LOANS - MAY OR MAY NOT
REQURE CREDIT CHECKSREQURE CREDIT CHECKS CAN’T BE CONSOLIDATED WITH YOUR FEDERAL LOANSCAN’T BE CONSOLIDATED WITH YOUR FEDERAL LOANS
CATEGORIES OF FINANCIAL CATEGORIES OF FINANCIAL AIDAID
SERVICE OBLIGATION PROGRAMSSERVICE OBLIGATION PROGRAMS– REQUIRE A COMMITMENT TO PRACTICE IN A PARTICULAR FIELD REQUIRE A COMMITMENT TO PRACTICE IN A PARTICULAR FIELD
OF MEDICINE OR IN A SPECIFIC GEOGRAPHIC LOCATIONOF MEDICINE OR IN A SPECIFIC GEOGRAPHIC LOCATION– HAVE STIFF PENALTIES FOR DEFAULTING ON THE SERVICE HAVE STIFF PENALTIES FOR DEFAULTING ON THE SERVICE
COMMITMENTCOMMITMENT– EXAMPLES: ARMED FORCES SCHOLARSHIP PROGRAMS, THE EXAMPLES: ARMED FORCES SCHOLARSHIP PROGRAMS, THE
NATIONAL HEALTH SERVICE CORPS AND THE PRIMARY CARE NATIONAL HEALTH SERVICE CORPS AND THE PRIMARY CARE LOANLOAN
LOAN REPAYMENT PROGRAMSLOAN REPAYMENT PROGRAMS– PROVIDE BACK-END HELP AFTER GRADUATION FROM MED PROVIDE BACK-END HELP AFTER GRADUATION FROM MED
SCHOOL BY REPAYING ALL OR A PORTION OF A STUDENT’S SCHOOL BY REPAYING ALL OR A PORTION OF A STUDENT’S OUTSTANDING EDUCATIONAL DEBTOUTSTANDING EDUCATIONAL DEBT
– MOST ARE TIED TO PRACTICING IN A PARTICULAR AREA OF MOST ARE TIED TO PRACTICING IN A PARTICULAR AREA OF MEDICINE OR SPECIFIED GEOGRAPHIC LOCATIONMEDICINE OR SPECIFIED GEOGRAPHIC LOCATION
– EXAMPLES: NATIONAL HEALTH SERVICE CORPS LOAN EXAMPLES: NATIONAL HEALTH SERVICE CORPS LOAN REPAYMENT PROGRAM, THE CALIFORNIA STATE LOAN REPAYMENT PROGRAM, THE CALIFORNIA STATE LOAN REPAYMENT PROGRAM, ETC.REPAYMENT PROGRAM, ETC.
MEDICAL SCHOOL MEDICAL SCHOOL DEBTDEBT
AVERAGE ALL AVERAGE ALL SCHOOLSSCHOOLS $115,218$115,218
AVERAGE PUBLIC AVERAGE PUBLIC SCHOOLSSCHOOLS $104,385$104,385
AVERAGE PRIVATE AVERAGE PRIVATE SCHOOLSSCHOOLS $133,357$133,357
AVERAGE UCSDAVERAGE UCSD $75,126$75,126*ACCORDING TO THE AAMC FOR 2004**INCLUDES PRE-MATRICULATION DEBT
ESTIMATE OF ESTIMATE OF REPAYMENTREPAYMENT
REPAYMENREPAYMENT PERIODT PERIOD
TOTAL PAID TOTAL PAID IN IN
FORBEARANCFORBEARANCEE
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
$147,183$147,183 $147,183$147,183 $1,227$1,227
15 YEARS15 YEARS $33,000 OR $33,000 OR $688/MO$688/MO $174,625$174,625 $207,625$207,625 $970$970
25 YEARS25 YEARS $33,000 OR $33,000 OR $688/MO$688/MO $236,535$236,535 $269,535$269,535 $788$788
LOAN AMOUNT OF $100,000 AT 8.25% INTEREST RATE
CAN I AFFORD THE CAN I AFFORD THE MONTHLY PAYMENT ON MY MONTHLY PAYMENT ON MY
SALARY ?SALARY ?AVERAGE ANNUAL SALARY AVERAGE ANNUAL SALARY
OF FAMILY PRACTITIONEROF FAMILY PRACTITIONER
GROSS MONTHLY PAY FORGROSS MONTHLY PAY FOR
A SALARY OF $142,000/YEARA SALARY OF $142,000/YEAR
MONTHLY LOAN PAYMENTMONTHLY LOAN PAYMENT
BASED ON 30-40% OF SALARYBASED ON 30-40% OF SALARY
$142,000
$11,833/MO
$3550 - $4733/MO
THE IMPORTANCE OF THE IMPORTANCE OF CREDIT RATINGCREDIT RATING
ALTERNATIVE LOAN PROGRAMS ALTERNATIVE LOAN PROGRAMS REQUIRE A CREDIT CHECKREQUIRE A CREDIT CHECK
LENDER WILL LOOK AT:LENDER WILL LOOK AT:– DEROGATORY CREDITDEROGATORY CREDIT– EDUCATIONAL LOAN DEFAULTSEDUCATIONAL LOAN DEFAULTS– HISTORY OF LATE PAYMENTS ON HISTORY OF LATE PAYMENTS ON
CONSUMER DEBTCONSUMER DEBT
WHAT’S A GOOD CREDIT WHAT’S A GOOD CREDIT SCORE?SCORE?
800 + 800 + EXCELLENTEXCELLENT 750-799750-799 VERY GOOD TO VERY GOOD TO
EXCELLENTEXCELLENT 700-749700-749 GOOD TO VERY GOODGOOD TO VERY GOOD 650-699650-699 FAIR TO GOODFAIR TO GOOD 600-649600-649 POOR TO FAIRPOOR TO FAIR BELOW 600BELOW 600 VERY POOR TO POORVERY POOR TO POOR
HOW TO MAINTAIN HOW TO MAINTAIN GOOD CREDIT?GOOD CREDIT?
RETIRE CREDIT CARD DEBT BEFORE RETIRE CREDIT CARD DEBT BEFORE ENTERING MEDICAL SCHOOLENTERING MEDICAL SCHOOL
OBTAIN A COPY OF YOUR CREDIT OBTAIN A COPY OF YOUR CREDIT REPORT AND CLEAN UP ANY NEGATIVE REPORT AND CLEAN UP ANY NEGATIVE CREDIT THAT YOU CANCREDIT THAT YOU CAN
DON’T BORROW MORE THAN YOU DON’T BORROW MORE THAN YOU NEEDNEED
ALWAYS KNOW EXACTLY HOW YOU ALWAYS KNOW EXACTLY HOW YOU WILL REPAY THE DEBT AND HOW IT WILL REPAY THE DEBT AND HOW IT WILL AFFECT YOUR MONTHLY BUDGETWILL AFFECT YOUR MONTHLY BUDGET
WHAT TO DO IF WHAT TO DO IF DENIED?DENIED? OBTAIN AND REVIEW CREDIT REPORT OBTAIN AND REVIEW CREDIT REPORT
USED IN DECISION PROCESS BY LENDERUSED IN DECISION PROCESS BY LENDER CORRECT ANY ERRORS CONTAINED IN CORRECT ANY ERRORS CONTAINED IN
REPORTREPORT APPEAL CREDIT DECISION, IF APPEAL CREDIT DECISION, IF
APPROPRIATEAPPROPRIATE CONSIDER CO-SIGNER OR NON-STUDENT CONSIDER CO-SIGNER OR NON-STUDENT
BORROWER AS OPTION, IF AVAILABLEBORROWER AS OPTION, IF AVAILABLE
QUESTIONS??? QUESTIONS???
Contact theContact theFinancial Aid OfficeFinancial Aid Office