Financial Aid forMedical School

March 8th, 2014

Daniel Hewitt

Director of Financial Aid –

Virginia Campus

Costs at VCOM

Financial aid options and why loans are good, realistic options

Budget planning and repayment options that are manageable

Agenda

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.

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

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

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

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)

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

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

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:

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

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!

Determine Your IncomeEmployment

Personal savings

Family support

Financial aid funds

Identify Your Expenses

Fixed Expenses:

Tuition and feesRentChild careTaxes Insurance premiums

Identify Your Expenses

Variable Expenses:

UtilitiesFoodClothingTransportationOther living expenses

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

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

Loan Repayment

Postponement Options

Defermentsex. – In-School Deferment

Forbearancesex. – Residency Forbearance

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

Costs at VCOM

Financial aid options and why loans are good, realistic options

Budget planning and repayment options that are manageable

Review

Questions?

Daniel Hewitt Eloise Turner

dhewitt@vcom.vt.edu eturner@vcom.vt.edu

(540) 231-6021 (540) 231-5923