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

QUESTIONS???

Contact theContact theFinancial Aid OfficeFinancial Aid Office