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![Page 1: Financial Aid for Medical School March 8th, 2014 Daniel Hewitt Director of Financial Aid – Virginia Campus.](https://reader036.fdocuments.in/reader036/viewer/2022081515/56649e315503460f94b21b93/html5/thumbnails/1.jpg)
Financial Aid forMedical School
March 8th, 2014
Daniel Hewitt
Director of Financial Aid –
Virginia Campus
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Costs at VCOM
Financial aid options and why loans are good, realistic options
Budget planning and repayment options that are manageable
Agenda
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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.
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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
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Applying For Loans
2014-2015 Free Application for Federal Student Aid (FAFSA)
http://www.fafsa.ed.gov
2014-2015 VCOM Financial Aid Applicationhttp://www.vcom.vt.edu/2018/
Loan applications
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Loan Eligibility
1. Cost of Attendance -Scholarships and Service Contracts =
Unsubsidized Stafford Loan
2. Cost of Attendance -Scholarships and Service Contracts -
Unsubsidized Stafford Loan =Graduate PLUS or Private loan
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Unsubsidized Stafford LoansFixed interest rate, set June 1st
1.072% origination fee Interest starts accruing right awayNo credit check, but cannot be in default on
any student loanMaximum amount of $47,197 (12-month calendar)
$44,944 maximum for OMS1 (11 month calendar)
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Graduate PLUS and Private LoansGraduate 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
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Loan Applications
For Unsubsidized Stafford and Graduate PLUS loans:1. only require an Award Letter response
For Private loans:1. require an Award Letter response, and
2. 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
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Borrowing Responsibly
Unsubsidized Stafford – 5.41% fixed (currently)
Graduate PLUS – 6.41% fixed (currently)
Year 1 Year 2 Year 3 Year 4 Total
Annual Unsubsidized Limits
$44,944 $44,944 $42,722 $42,722 $175,332
Graduate PLUS $28,496 $26,906 $30,402 $28,846 $114,650
Maximum Stafford & Graduate PLUS
$73,440 $71,850 $73,124 $71,568 $289,982
The approximate cost of your education:
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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
PrincipalBalance
Balance at graduation (after interest capitalization)
Total loan costbased on a 25-year
repayment term
Borrower 1: Maximum Unsubsidized & Grad PLUS
$290,000 $327,963 $731,833
Borrower 2: Less $5,000 of Unsubsidized &
Grad PLUS$270,000 $305,078 $677,023
Difference $20,000 $22,885 $54,810
The Long-Term Cost
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BreakdownPrincipal balance
Difference $20,000
Yearly $5,000
Weekly $96.15
Daily Cost $13.69
If you adjust your expenses by less than $14 a day for
the next four years,
you could save yourself $55,000!
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Determine Your IncomeEmployment
Personal savings
Family support
Financial aid funds
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Identify Your Expenses
Fixed Expenses:
Tuition and feesRentChild careTaxes Insurance premiums
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Identify Your Expenses
Variable Expenses:
UtilitiesFoodClothingTransportationOther living expenses
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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
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Loan Repayment
Repayment Plan LengthNormal = 10 yearsExtended = up to 25 years
Repayment Plan TypeStandard – fixed, equal monthly payments Income-Based – monthly payments go up and
down with your income
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Loan Repayment
Postponement Options
Defermentsex. – In-School Deferment
Forbearancesex. – Residency Forbearance
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Early Repayment
No early repayment penalties of any kindWithin 120 days of disbursement, loan fees
and accrued interest are negatedExtra payments go to accrued interest first,
then to principal
Death, or Total and Permanent Disability
Discharge
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Costs at VCOM
Financial aid options and why loans are good, realistic options
Budget planning and repayment options that are manageable
Review
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Questions?
Daniel Hewitt Eloise Turner
[email protected] [email protected]
(540) 231-6021 (540) 231-5923