The Real Cost of Your Public Health Degree Sponsored by the Association of Schools of Public Health...

The Real Cost of Your Public Health Degree

Sponsored by the Association of Schools of Public

HealthPrudence Goss

Emory University Rollins School of Public HealthPaul S. Garrard

PGPresents, Independent Student Loan Consulting

Prudence GossAssociate Director of

Admissions and RecruitmentRollins School of Public Health

at Emory University

ASPH Member Schools

Paul S. GarrardFounder and President

PGPresents, LLCIndependent Student Loan Consulting

Today’s takeaways• Minimize impact of

borrowing on career decisions

• Preserve your options at repayment

• Expensive, but affordable• Learn from your colleagues

Discussion topics• Costs and ways to reduce

them• Student loan portfolios• Repayment objectives and

repayment options• Student loans and credit• Resources and action items

Costs of PH degree• Opportunity costs

–Lost income

• Out of pocket costs – Cost of attendance*

• Financing costs–Costs associated with

borrowing

* Your Financial Aid Budget

Control what you can

Out of pocket (COA)*

• Tuition $27,600• Fees $ 492• Books and supplies $ 822• Living expenses $

9,300• Insurance $ 1,267• TOTAL $39,481

* Cost of Attendance (also called your Financial Aid Budget)

Costs of PH degree• Opportunity costs

–Lost income

• Out of pocket costs – Cost of attendance*

• Financing costs–Costs associated with

borrowing

* Your Financial Aid Budget

Financing costs• Costs associated with borrowing• Impacted by– Interest rates, fees, and

capitalization– Repayment term and repayment

plan selected– Repayment strategy– Use and cost of postponement

options

Reducing your cost

• Control what you can control• Keep consumer debt in check• Pay interest as it accrues• Target payments on higher

rate loans whenever possible• Use caution with private

loans

Your portfolio• Federal Stafford Loans*• Federal Grad PLUS Loans*• Federal Consolidation Loans*• Federal Perkins Loans*• Institutional Loans• Private Loans

* These loans are reflected on NSLDS at www.NSLDS.ed.gov

Stafford and Grad PLUS

• Direct Loans*–Federal Stafford, Grad PLUS,

Consolidation directly from federal government (no private lender)–All new loans are Direct Loans

• FFELP**–Federal Stafford, Grad PLUS,

Consolidation from private lenders

* Only lender for Stafford, Grad PLUS, Consolidation ** Federal Family Education Loan Program

NSLDS*• Database of federal loans• Stafford, Grad PLUS,

Consolidation, Perkins • Information on loan servicers– Click on number of each loan for

back page with more information on each loan, including name of loan servicer

* National Student Loan Data System at www.NSLDS.ed.gov

Federal or privateFederal

• Fixed interest rate• Multiple repayment

options, include IBR• No fees to postpone• May borrow up to COA• Minimal or no credit

check• U.S. citizen or

Permanent Resident• PSLF eligible*

Private• Usually variable rate• Limited repayment

options, no IBR• Possible fees to

postpone• Lender sets limits• Based on credit, may

need cosigner• U.S. citizen or

Permanent resident• Not PSLF eligible*

* Public Service Loan Forgiveness

Public Service Loan Forgiveness

• Designed to help borrowers by forgiving a portion of their loan balance in exchange for service

• Certain requirements must be met

• Public service definition includes non-profit employment*

* ASPH estimates at least 75% of Class of 2011 graduates working in non-profit employment

Private loans• Consider exhausting federal

eligibility first before considering private loans

• Do your homework, ask questions

• Talk with your Financial Aid Office before taking out private loans

Changes in student loans

• Loss of subsidy on new loans* • No discounts for timely

payment• Changes to repayment based

on income• Use of multiple loan servicers

by Department of Education*

* On new Stafford Loans for enrollment periods beginning on or after July 1, 2012

Discussion topics

• Costs and ways to reduce them

• Student loan portfolios• Repayment objectives and


Your objectives• Protect income, maximize cash

flow• Limit the damage of interest

accrual and capitalization• Convenience of one loan

provider• Repayment help in exchange

for service commitment

Repayment options*• Standard (Level)

• Graduated• Income “related”–Income Based Repayment

• Extended * Stafford, Grad PLUS, Federal Consolidation

Repayment at $50,000

• Standard (Level)– $636 per month for 10 years– $26,287 total interest cost– $76,287 total repayment cost

• Extended– $383 per month for 25 years– $65,024 total interest cost– $115,024 total repayment cost

Assumptions: Stafford Loan, unsubsidized at 6.8%, equal disbursements over four semesters

FICO factorsTypes of credit used

Payment historyNew credit

Length of credithistory Amounts owed

35%

30%

10%10%

15%

Source: MyFICO.com

Credit “Double Whammy”

• Repayment does not usually begin until after graduation–Hard to build credit in school

• Any delinquency can adversely impact credit in exaggerated way–Credit may be somewhat in

“limbo” during school

Resources • Financial Aid Office• www.FINAID.org– Comprehensive site, with calculators

• www.NSLDS.ed.gov– Database of federal loans

• www.IBRinfo.org– Information on Income Based

Repayment• www.studentaid.ed.gov/publicservice – Information on PSLF*

* Public Service Loan Forgiveness

Your TO DO items

• Borrow responsibly and update repayment numbers regularly

• Track loans, read your mail, notify servicers of changes

• Keep loans in Good Standing• Establish relationship with

FAO

THANK YOU!Association of Schools of Public Health

The Real Cost of Your Public Health Degree Sponsored by the Association of Schools of Public Health...

Documents

Transcript of The Real Cost of Your Public Health Degree Sponsored by the Association of Schools of Public Health...