finaid

							Financing Your Education
           at
 Wayne State University
   School of Medicine

        Presented by
Deirdre Moore, Interim Director
  Office of Student Financial Aid
You are going to medical
school, but how are you
  going to pay for it??

    We’ll help you answer
        that question!
Today’s Session Will Answer
 the Following Questions:
  1. What is financial aid and how is
     eligibility determined?
  2. How do you apply for financial aid?
  3. When do you apply for financial aid?
  4. What types of financial aid are
     available?
Today’s Session Will Answer
 the Following Questions:
  5.   What is a typical award offer?
  6.   How are you notified of your award?
  7.   When is financial aid disbursed?
  8.   Where do you go for more
       information?
           #1:
 Financial Aid
          and
How Eligibility
             is
  Determined
        What is Financial Aid?
•       Non-Need Based Aid
    –     Grants
    –     Scholarships
    –     Private Loans
    –     Service Obligation Programs

•       Need Based Aid (determined from FAFSA)
    –     Grants
    –     Scholarships
    –     Federal Loans
    –     Federal Work Study
    Non-Need Based Aid
•   Eligibility is based on factors such as:
    –   Academic performance
    –   Community service
    –   Affiliation with a particular organization
    –   Special interests
    –   Service obligation
    –   Credit history
             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)
        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
2006-07 Est. Cost of Attendance
  MI Resident Year I Students
– Resident Tuition Rate:      $24,633
– Books and Supplies:           1,280
– Living Away Expenses:        13,060
– Personal and Miscellaneous:   4,236
– Transportation:               3,060
TOTAL RESIDENT COA: $46,269
2006-07 Est. Cost of Attendance
MI Non-Resident Year I Students

   – Non-Resident Tuition Rate:  $49,475
   – Books and Supplies:           1,280
   – Living Away Expenses:        13,060
   – Personal and Miscellaneous:   4,236
   – Transportation:               3,677
   TOTAL NON-RESIDENT COA: $ 71,728
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
•   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.
          #2:
        How
    To Apply
          for
Financial Aid
How to Apply for Non-Need Based
        Financial Aid
 •   Contact the appropriate organization,
     lender, or other provider
 •   Contact OSFA
     – Alternative Loans
     – National Health Services Corp
     – Posted scholarships
 •   WSU SOM scholarship recipients are
     selected during admissions process
How to Apply for Need-Based
       Financial Aid
  •    Complete the FAFSA Online
      – www.fafsa.ed.gov
      – Include parental data if applying for
        campus-based aid
      – List our school code, E00570, in the
        school release section
How to Apply for Need-Based
   Financial Aid (cont’d)
   •   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
    WSU SOM Application
         Process
•    All Applicants (in addition to FAFSA):
     – Complete Entrance Counseling at
       www.mapping-your-future.org if a first-
       time borrower
     – Complete Verification if:
       •   selected by federal processor, or
       •   applying for Campus-Based Aid
    WSU SOM Application
      Process (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 in
   February at www.med.wayne.edu
          #3:
       When
    To Apply
          for
Financial Aid
When To Apply for Financial Aid
 •   Non-Need Based Aid:
     –   Check with individual provider –
         deadline may be earlier than March
 •   Need Based Aid:
     – File the FAFSA after January 1st
     – Submit required documents to OSFA by
       March 1st to meet priority deadline
          #4:
      Types
           of
Financial Aid
    Types 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
                Loans
•   Loans are funds that must be repaid
    by the borrower.
•   There are four sources:
    –   Federal Title IV
    –   Federal Title VII
    –   Institutional
    –   Private
Federal Title IV Student Loans
•   Administered by the U.S. Department
    of Education
•   Eligibility determined from FAFSA
•   Two Types:
    – Stafford Subsidized, Unsubsidized,
      Graduate PLUS
    – Perkins
    Stafford Student Loans
•    Fixed interest rate of 6.8%
•    Standard 10 year repayment and $50
     minimum monthly payment, with other
     options available
•    Deferment and forbearance options
•    Student borrows from a lender that
     participates in Federal Family Educational
     Loan Program (FFELP)
Stafford Student Loans (cont’d)
•   Grace period of 6 months after
    enrollment ceases
•   Maximum 1.5% origination fee (after
    7/1/07) deducted from loan proceeds
    PRIOR to disbursement
•   Can be Subsidized or Unsubsidized
    depending on student’s unmet need
        Subsidized Stafford
          Student Loan
•   Interest is subsidized by the federal
    government during in-school, grace,
    and approved deferment periods
•   Annual maximum of $8,500
      Unsubsidized Stafford
            Student Loan
• Interest is NOT subsidized by the
  federal government and begins
  accruing at disbursement
• Borrower chooses whether to pay
  interest or capitalize
     Unsubsidized Stafford
     Student Loan (cont’d)
– Annual Maximum of $32,000 plus:
  • Additional $8,500 if not eligible for
    Subsidized Loans
  • Additional $2,222 for each month of
    enrollment beyond the standard 9-
    month academic year
     Graduate Plus Loans
        As of 7/01/06
•   Borrow through FFEL loan providers
•   Borrow must be creditworthy
•   Maximum eligibility is COA minus other aid,
    no annual or aggregate limits
•   Must be certified by OSFA
Graduate Plus Loans (cont’d)

 •   Fixed interest rate of 8.5%
 •   Origination fee of 3%
 •   Interest is not subsidized and begins
     accruing upon disbursement
 •   Same payment, deferment, forbearance
     and cancellation provisions as unsubsidized
     Federal Stafford loans
Aggregate Loan Limits for Health
     Professions Students
 •  Stafford Subsidized and Unsubsidized Loans
   – $189,125 of which $65,500 can be
      Subsidized.
   – Includes undergraduate debt.
 • Perkins Loans
   – $40,000 including undergraduate debt.
Aggregate Loan Limits for Health
     Professions Students
 •    Stafford Graduate PLUS
     – Currently no annual or aggregate maximum
Aggregate Loan Limits for Health
 Professions Students (cont’d)
 •    Stafford Subsidized and Unsubsidized Loans
     – If you borrowed prior to medical school, you
        will reach your aggregate maximum if you
        borrow your annual maximum
     – Maximum borrowing for four years of medical
        school will total $179,777
        Perkins Loan

•   5% fixed interest rate
•   Interest is subsidized by the federal
    government during in-school, grace,
    and approved deferment periods
    Perkins Loan (cont’d)

•   Student borrows from the school
•   Awarded to Campus-Based Aid
    eligible students
•   No loan fees
•   Grace period of 9 months after
    enrollment ceases
    Perkins Loan (cont’d)

•   Standard 10 year repayment and $40
    minimum monthly payment
•   Deferment and forbearance options
•   Can be consolidated with Stafford
    Loans after graduation
Federal Title VII Student
         Loans
•   Administered by the U.S. Department
    of Health and Human Services
•   5% fixed interest rate
•   Need-based eligibility determined by
    FAFSA results
•   Participating schools select recipients
       Federal Title VII
    Student Loans (cont’d)
•    Annual maximum up to COA minus
     other aid
•    Grace period of 12 months after
     enrollment ceases
•    Deferment and forbearance options
     available
•    Full time enrollment is required
         Federal Title VII
      Student Loans (cont’d)
•    Student borrows from school
•    Student must be Campus-Based Aid eligible
•    Programs:
    – Primary Care Loan (PCL)
    – Loans for Disadvantaged Students (LDS)
      Federal Title VII:
     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 Title VII:
    Loans for Disadvantaged
            Students

•   Student must come from
    disadvantaged background
•   Student’s parent(s) must meet poverty
    guidelines
WSU SOM Institutional Loans

  •   6% fixed interest rate
  •   No loan fees
  •   School is the lender
  •   Awarded based on unmet need and
      availability of funds
            Private Loans
•   Also called Alternative Loans
•   Maximum eligibility is COA minus other aid
•   Must be certified by OSFA
•   Variable interest rate with no cap
•   Interest is not subsidized and begins accruing
    upon disbursement
    Private Loans (cont’d)

•   Borrower must be credit worthy
•   Borrower with co-signer is sometimes
    eligible for better interest rate and
    repayment terms
•   Deferment for residency is usually
    available
                #5:
Sample Award Offers
                for
        Loans Only
               and
  Campus-Based Aid
Sample Award – Loans Only
Year I Resident Est. COA          $46,269
Minus EFC                     -         0
Stafford Subsidized Loan      -     8,500
Stafford Unsubsidized Loan    -    34,222
Graduate PLUS Loan            -     3,547
                                  _______
Unmet Need                        $      0
Total Aid Awarded = $46,269
Sample Award – Loans Only
 Year I Non-Resident COA       $71,728
 Minus EFC                     -     0
 Stafford Subsidized Loan      - 8,500
 Stafford Unsubsidized Loan    - 34,222
 Graduate PLUS Loan            - 29,006
                               ________
 Unmet Need                     $     0
 Total Aid Awarded = $71,728
Sample Award: Campus-Based Aid
Year I Resident COA           $46,269
Minus EFC                     -     0
BOG Grant                     - 8,000
Perkins Loan                  - 5,000
Stafford Subsidized Loan      - 8,500
Stafford Unsubsidized Loan    - 24,769
                              _______
Unmet Need                    $      0
Total Aid Awarded = $46,269
Sample Award: Campus-Based Aid
  Year I Non-Resident COA $71,728
  Minus EFC                  -     0
  BOG Grant                  - 8,000
  Perkins Loan               - 5,000
  Stafford Subsidized Loan   - 8,500
  Stafford Unsubsidized Loan - 34,222
  Graduate PLUS Loan         - 16,006
  Unmet Need                  $     0
  Total Aid Awarded = $71,728
         #6:
       How
   You Are
 Notified of
Your Award
Notice of Financial Aid Award
•   Electronic award notification will be e-
    mailed to your WSU Access ID via
    Pipeline.
•   Accept your award on-line.
•   If accepting Federal Stafford or Perkins
    Loans, you will receive notification to
    complete an online Master Promissory
    Note for each loan type.
           #6:
 Financial Aid
Disbursement
     Schedule
Disbursements of Financial Aid
•   Two disbursements for federal aid:
    – Beginning of academic year
    – Midpoint of loan period
•   Year I 2006-2007 Academic Year
    – 8/07/06 to 5/25/07
•   Year I 2006-07 Disbursement Dates:
    – 7/28/06 and 01/02/07
Disbursements of Financial
       Aid (cont’d)
•   Funds are sent directly to school and
    applied to student account
•   Once applied, funds in excess of charges
    create credit balance
•   Credit balance will generate refund check
•   Refund check is mailed to student
         #7:
Where To Go
    For More
 Information
      For More Information:
•   WSU School of Medicine Web site
    – www.med.wayne.edu
•   Association of American Medical Colleges
    – http://www.aamc.org/students/financing/
•   National Student Loan Data System
    – www.nslds.ed.gov
For More Information (cont’d):
•   Mapping Your Future (Entrance Counseling)
    – 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:
    – www.airforce.com
    – www.goarmy.cov/med/amedd.htm
    – www.nrc.navy.mil/AREA1/MICHIGAN/health.htm
             Office of
              Student
         Financial Aid

       (313) 577-1039

finaidmed@wayne.edu
          Hours:
  Monday through Friday
   8:30 a.m. to 5:00 p.m.
Questions?