0910 Fin Aid Basics Prospective Students Web Version

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					     Financial Aid Basics for
      Prospective Students
          Class of 2013
     Prospective Student Workshop
            April 18, 2009

              Presented by
Wayne State University School of Medicine
     Office of Student Financial Aid
         Office of Student Financial Aid
                    Contact Information:

                 New Address as of 4/28/09:
        Mazurek Medical Education Commons
                  320 E. Canfield, Suite 317
www.med.wayne.edu/student_affairs/financial_aid
                 Email: finaidmed@wayne.edu
                        Phone: (313) 577-1039
                           FAX: (313) 993-1342
        Hours: Mon – Fri, 8:30 a.m. to 5:00 p.m.
 Congratulations! You are
 going to medical school.

How will you manage your
  educational costs??

We’ll help you answer that question!
Today’s Session Will Help with
  the Following Questions:
1. What is financial aid and how is
   eligibility determined?
2. How and when do you apply?
3. What sources of financial aid are
   available?
4. What is included in a typical award?
     Today’s Session Will Help with
       the Following Questions:

5.   How are you notified of your award?
6.   When and how is financial aid disbursed?
7.   What are some financial “best practices”?
8.   Where can you go for more information?
           #1:
 Financial Aid
          and
How Eligibility
             is
  Determined
    What is Financial Aid?
•   Can be Need-Based or Non-Need Based
•   Can be a grant, scholarship, loan, or work study
    program
•   Can come from a federal, state, institutional or
    private source
•   May have a service or work obligation
    Non-Need Based Aid
•   Eligibility is based on factors such as:
    –   Academic performance
    –   Community service
    –   Affiliation with a particular organization
    –   Special interests
    –   Service obligation
             Need Based Aid
Eligibility is determined from the Free Application for
    Federal Student Aid (FAFSA):

    School’s Cost of Attendance
-   Expected Family Contribution
    __________________________
    Unmet Need (Amount of need-based aid
    that can be awarded)
Guideline Cost of Attendance
•   Costs associated with attending WSU
    SOM for one academic year
    –   Tuition and Omnibus Fee
    –   Books and Supplies
    –   Living Expenses
    –   Personal and Miscellaneous
    –   Transportation
    Guideline Cost of Attendance
                  (cont’d)
•   Items such as health insurance and
    uninsured medical expenses are not
    automatically included
•   Budgets do not cover expenses for spouses
    or dependents (except day care)
•   Please contact OSFA for individual budget
    adjustments
    Expected Family Contribution
•   Determined from FAFSA
    – For Loan Only Applicants
      •   Information provided by student (and spouse, if
          married)
    – For Campus-Based Aid Applicants
      •   Information provided by parent(s), in addition to
          student (and spouse, if married)
          Why is parental
       information required
         when applying for
        Campus-Based Aid?
 A family’s ability to pay for educational
costs must be evaluated in a consistent
manner so that limited resources can be
           awarded equitably.
  2009-10 Cost of Attendance
  MI Resident Year I Students
– Resident Tuition/Fee Rate:  $29,275
– Books and Supplies:           1,453
– Living Away Expenses:        13,250
– Personal and Miscellaneous:   3,322
– Transportation:               3,930
TOTAL RESIDENT COA: $51,230
  2009-10 Cost of Attendance
MI Non-Resident Year I Students

– Non-Resident Tuition Rate:  $59,275
– Books and Supplies:           1,453
– Living Away Expenses:        13,250
– Personal and Miscellaneous:   3,322
– Transportation:               4,237
TOTAL NON-RESIDENT COA: $ 81,537
          #2:
        How
    To Apply
          for
Financial Aid
How to Apply for Financial Aid
•    Complete the Free Application for
     Federal Student Aid (FAFSA) Online
    – www.fafsa.ed.gov
    – Include parental data if applying for
       campus-based aid
    – List our school code, E00570
How to Apply for Financial Aid (cont’d)
   •   Meet FAFSA General Eligibility
       Requirements
       – U.S. citizen or eligible non-citizen
       – Males 18-26 must be registered with
         Selective Service
       – Valid Social Security Number
       – Not in default on prior federal loans
How to apply for financial aid (cont’d)

   •   After submitting FAFSA:
       – Check WSU Pipeline for outstanding
         requirements
       – Complete Verification if:
         •   selected by federal processor, or
         •   applying for Campus-Based Aid
How to apply for financial aid (cont’d)
•  Verification Process:
  – Submit Verification Worksheet +
  – Submit Income Documentation for
    Self, Spouse (if married), and Parents
    (if applying for CB Aid)
• Forms available on our web site
          #3:
       When
    To Apply
          for
Financial Aid
When To Apply for Financial Aid
 •   File the FAFSA after January 1st and
     by March 1st to meet priority deadline
 •   Obtain individual deadlines from
     outside agencies and organizations
 •   Submit WSU SoM Online Scholarship
     Application by April 30
          #4:
    Sources
           of
Financial Aid
Sources of Financial Aid
•   Grants and Scholarships
•   Federal Service Obligation Programs
•   Loans
    – Federal
    – Institutional
    – Private Sources
Federal Service Obligation
        Programs
 •   Indian Health Service (IHS)
 •   National Health Service Corps (NHSC)
 •   United States Armed Forces Health
     Professions
     – Air Force/Army/Navy/National Guard
                Loans
•   Loans must be repaid with interest
•   Primary Sources:
    – Federal Department of Education
      •   Stafford Subsidized and Unsubsidized,
          Graduate PLUS, Perkins
    – Federal Health and Human Services
    – WSU SOM Long Term
    – Alternative/Private
        Loans (continued)
•   Eligibility determined from FAFSA
•   Stafford and Perkins Loans will be
    automatically awarded to eligible
    students
•   Graduate PLUS and Private Loans will
    not be automatically awarded
     Stafford Student Loans
•   Grace period of 6 months after
    enrollment ceases
•   Origination fee deducted from loan
    proceeds PRIOR to disbursement
•   Can be subsidized or unsubsidized
    depending on student’s unmet need
     Stafford Subsidized Loan
•   Interest is paid by the federal government
    during in-school, grace, and approved
    deferment periods
•   Interest rate is 6.8% fixed
•   Annual maximum is $8,500
    Stafford Unsubsidized Loan
•   Interest begins accruing at disbursement
    (is NOT paid by federal government)
•   Student chooses to pay or capitalize
    interest while in school
•    Annual maximum $34,222 (yr 1) + up to
    $8500 if not subsidized eligible
        Graduate Plus Loans

•   Borrowers must be creditworthy
•   Maximum eligibility is COA minus
    other aid
•   Students must borrow maximum in
    Stafford Loans before Graduate PLUS
Graduate Plus Loans (cont’d)
•   Interest is not subsidized and begins
    accruing at disbursement
•   Fixed interest rate of 7.9%
•   6-month grace period after enrollment
    ceases (called “post enrollment
    deferment “)
        Perkins Loans
•   Campus-Based Aid eligible students
•   Interest is subsidized during in-school,
    grace, and approved deferment
•   5% fixed interest rate
•   Grace period of 9 months
    Federal Health & Human
        Services Loans
•   Full time enrollment is required
•   5% fixed interest rate
•   Grace period of 12 months after
    enrollment ceases
•   Deferment and forbearance options
    available
      Federal Health & Human
      Services Loans (cont’d)
•  Parent data is required on FAFSA ( per HHS
   guidelines)
• Student must be Campus-Based Aid eligible
• Programs:
  – Primary Care Loan (PCL)
  – Loans for Disadvantaged Students (LDS)
            Federal HHS:
         Primary Care Loan
•   Student must sign contract to enter
    residency in, and practice in, primary
    care until loan is repaid in full
•   Failure to comply with contract will
    result in 18% interest rate
•   Awarded to Year III and IV students
         Federal HHS:
    Loans for Disadvantaged
            Students

•   Student must come from
    disadvantaged background
•   Student’s parent(s) must meet poverty
    guidelines published annually
    WSU SOM Long Term Loans

•    6% fixed interest rate
•    Awarded to students who have unmet
     need that cannot be filled by other
     loans (i.e. credit denial)
•    Award amounts based on unmet need,
     availability of funds
             Private Loans
•   Interest is not subsidized and begins
    accruing upon disbursement
•   Variable interest rate with no cap
•   Maximum eligibility is COA minus other
    aid
•   Must be certified by OSFA
    Private Loans (cont’d)

•   Borrower must be credit worthy, or
•   Borrower can secure a co-signer
•   Deferment for residency is usually
    available
     Aggregate Loan Limits for
    Health Professions Students
•  Stafford Subsidized and Unsubsidized Loans
  – $224,000 (effective 4/18/08) of which
     $65,500 can be subsidized
  – Includes undergraduate debt
• Perkins Loans
  – $40,000 including undergraduate debt
     Aggregate Loan Limits for
    Health Professions Students
•    Graduate PLUS
    – Currently no annual or aggregate maximum
•   Alternative /Private
    – Varies by lender
    – Federal debt is taken into consideration
                #5:
Sample Award Offers
                for
        Loans Only
               and
  Campus-Based Aid
Sample Award – Loans Only
Year I Resident Est. COA          $51,230
Minus EFC                     -         0
Stafford Subsidized Loan      -     8,500
Stafford Unsubsidized Loan    -    34,222
Graduate PLUS Loan            -     8,508
                                  _______
Unmet Need                        $      0
Total Aid Awarded = $51,230
Sample Award – Loans Only
 Year I Non-Resident COA       $81,537
 Minus EFC                     -     0
 Stafford Subsidized Loan      - 8,500
 Stafford Unsubsidized Loan    - 34,222
 Graduate PLUS Loan            - 38,815
                               ________
 Unmet Need                     $     0
 Total Aid Awarded = $81,537
Sample Award: Campus-Based Aid
Year I Resident COA           $51,230
Minus EFC                     -      0
BOG Grant                     - 11,500
Perkins Loan                  - 3,000
Stafford Subsidized Loan      - 8,500
Stafford Unsubsidized Loan    - 28,230
                              _______
Unmet Need                    $      0
Total Aid Awarded = $51,230
Sample Award: Campus-Based Aid
  Year I Non-Resident COA $81,537
  Minus EFC                  -      0
  BOG Grant                  - 17,000
  Perkins Loan               - 3,000
  Stafford Subsidized Loan   - 8,500
  Stafford Unsubsidized Loan - 34,222
  Graduate PLUS Loan         - 18,815
  Unmet Need                  $      0
  Total Aid Awarded = $81,537
           #6:
How and When
      You Are
   Notified of
  Your Award
Notice of Financial Aid Award
•   Electronic award notice will be e-mailed
    to your WSU Access ID via Pipeline.
•   Accept your award on-line at
    www.pipeline.wayne.edu
•   After accepting loans, complete Entrance
    Counseling and Master Promissory Note
    (MPN) for each type.
Disbursements of Financial Aid
•   Two disbursements:
    – 50% at beginning of academic year
    – 50% at midpoint of
•   Year I 2009-10 Academic Year
    – 8/10/09 to 5/21/10
•   Year I 2008-09 Disbursement Dates:
    – 7/31/09 and 01/04/10
     Disbursements of Financial
            Aid (cont’d)
•   Funds are transmitted to school and applied
    to student account
•   Once applied, funds in excess of charges
    create credit balance
•   Credit balance will generate a refund
•   Refund is direct deposited or mailed
             #7:
       Financial
“Best Practices”
     Financial “Best Practices”
1.   Establish - and stick to - a budget
2.   Use credit cards wisely
3.   Review your credit report annually
4.   Borrow loans conservatively
5.   Review your loan history annually
    Financial “Best Practices”:
          #1 – Establish a Budget

•    Year I - 10 month academic year
     (excludes June and July)
•    CoA monthly allowances:
    – $1,325 rent/utilities/food/phone
    – $348 transportation
    – $259 miscellaneous/personal
Financial “Best Practices”
    #2 – Use Credit Cards Wisely

•    Pay down credit card debt BEFORE
     starting medical school
•    One or two credit cards will help
     establish credit history
•    Always make payments on time and
     stay below credit limit
    Financial “Best Practices”
#3 – Review your credit report annually

•    Each consumer credit reporting
     company must provide one free report
     each year:
     www.annualcreditreport.com or call
     877-322-8228
    Financial “Best Practices”
    #4 – Borrow loans conservatively
•    Use online budgeting tools such as
     www.mappingyourfuture.org
•    Be aware of the true cost of borrowing -
     Loans must be repaid with interest
•    Pay interest while in school, when possible,
     to reduce capitalization at repayment
Financial “Best Practices”
#5 – Review loan history annually

•   Your federal loan history is available
    from the National Student Loan Data
    System:
    – www.nslds.ed.gov
    – Use your FAFSA PIN # to log in
         #8:
Where To Go
    For More
 Information
       For More Information:
•   WSU School of Medicine Web site
    – www.med.wayne.edu
•   WSU SOM Office of Student Financial Aid
    – www.med.wayne.edu/student_affairs/financial_aid
•   WSU Pipeline
    – www.pipeline.wayne.edu
       For More Information:
•   Association of American Medical
    Colleges
    – http://www.aamc.org/first
•   National Student Loan Data System
    – www.nslds.ed.gov
•   Federal Direct Loan Programs
    – www.dl.ed.gov
For More Information (cont’d):
•   Mapping Your Future (budgeting info)
    – www.mapping-your-future.org
•   Financial Aid Information Page
    – www.finaid.org
•   Health and Human Services:
    – National Health Service Corps
      •   http://nhsc.bhpr.hrsa.gov
    For More Information (cont’d):

•   Military Health Professions Scholarships:
    – www.airforce.com
    – www.healthcare.goarmy.com
    – www.navy.com/careers/heathcare