Agreement to Repay Tuition by fvo54222

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									         Welcome
         Class of 2013

Financial Aid Entrance Counseling
                    Financial Aid Overview
Approximately 88% of UVA medical students receive some kind of
financial aid.


To receive aid, you must apply each year. Our priority deadline for
returning students is April 15th.


To apply, you must submit the FAFSA (www.fafsa.ed.gov), the UVA
application (available in SIS), and the previous year’s tax returns.
Unless you have been told otherwise: For federal loans, we need only
your information. For school aid, we also need your parents’ information
and tax returns.

Read over all of your paperwork and disclosures – the master
promissory note, award letters, any statements that you receive – and
keep them in safe place.
Requesting Loans
                   Each year, you will
                   receive a preliminary
                   award letter email that
                   shows how much aid
                   you are eligible for
                   from all sources.

                   Read carefully - this
                   letter will also have
                   instructions for
                   accepting the various
                   types of aid.

                   Loans must be
                   accepted online
                   through SIS.
                 Requesting Loans

Use the budgeting spreadsheet on our website to
determine how much you need to borrow.


Aim low – if you don’t have it, you won’t spend it.


You can always request more loan money later if
needed, up to your maximum.


Request loans by July 1st to ensure that they appear
on your tuition bill.
                           Tuition Bills
UVA does not mail
paper tuition bills.

You will receive an
email from Student
Accounts every year
in July and November
notifying you that your
bill is available online
through QuikPay.

You can access
QuikPay through the
link in the email, or
through SIS.
If you have more
financial aid than the
cost of tuition, you will
see a negative amount
due on your bill.


Tuition payments can
be made online or by
check.


To set up your parents
to receive email
notifications and pay
bills online, click on
“Authorize Payers.”
                      Getting Your Money
All financial aid is applied towards payment of tuition & fees in equal
portions for fall and spring. If your financial aid is more than the cost of
tuition & fees, then the overage is disbursed to you after final
registration to help with living expenses.

You will receive your disbursement in a lump sum at the beginning of
each semester. Remember to set aside money that you will need for
things like boards, travel, and health insurance.

Although you will receive equal disbursements in fall and spring, your
semesters may not be of equal length, so budget carefully! Your fall
disbursement will be in late August, your spring disbursement will be in
late January.
                     August – January = 5 months
                   January – next August = 7 months
This means you should have money left over from fall to help with
spring!
                      Getting Your Money

ALL students should sign up for direct deposit. The form for direct
deposit is available online and in our office.

               www.hrs.virginia.edu/forms/dir-deposit.pdf

If you do not sign up for direct deposit, the University will mail a check
to your local mailing address. This may take up to 2 weeks longer than
direct deposit. Make sure your address in SIS is correct.
                        Federal Loans
The University of Virginia is lender-neutral. Students may
  select any lender for their federal loans.

   Lenders are allowed to charge up to 1.5% in fees
   May offer interest rate discounts or other incentives
   Must sign a master promissory note (Stafford
    application)
       The master promissory note is your agreement to repay your
        loans, even if you do not finish school or cannot find
        employment. You alone are responsible for these loans.
                          Federal Loans
If you are receiving federal loans this year, you MUST complete the
online entrance counseling at www.mappingyourfuture.org.
Click on “complete Online Student Loan Counseling,” then “Stafford
Entrance.”
Choose “Virginia,” then “University of Virginia School of Medicine.”
You must complete this entire session and enter your information at the
end for tracking. Failure to do so will delay disbursement of your loans.
                                Federal Loans

The entrance counseling on Mapping Your Future will give you some basic
information about your federal Stafford loans.
Some important highlights:
• All Stafford loans now have a fixed interest rate of 6.8%.
• No interest accrues on subsidized loans while in school or in the grace period.
• Interest accrues on your unsubsidized loans immediately.
• Your award letter will tell you your maximums for each loan type every year. Your
total cumulative Stafford maximum, including undergrad, is $224,000.
• The standard repayment term is 10 years, but students with over $30,000 in debt
may take up to 25-30 years to pay the loan back. The longer you take, the more
overall interest you will pay.
• Forbearance options: Medical residents may use the residency forbearance to
delay entering active repayment. During forbearance, interest accrues on all loans
but no payments are due.
                 How much does medical school cost?

                     2009/2010 Cost of Attendance Budgets
                                   Virginian        Non-Virginian
                Tuition & fees      35,150             45,150
             Living Expenses        15,800             15,800
              Books/supplies        1,026               1,026
                 Instruments         900                 900
             Health Insurance       2,092               2,092
                      TOTAL        $54,968             $64,968


The maximum that you can receive in any kind of financial aid, according to federal
regulations, is the Cost of Attendance.

Only borrow what you really need. Start planning for how to keep your debt
down. Take how much you’re borrowing this year and use that to project your
borrowing over the next four years. Then, you can take your total debt and
estimate your monthly payment at www.finaid.org.

The approximate average debt of our 2009 medical school graduates who
borrowed was about $121,000 (including debt from undergrad).
                          Keeping Your Debt Down
                Estimated Four-Year Cost of Attendance*

                   Virginians                                    $234,741

               Non-Virginians                                    $277,206
            *For Class of 2013, assuming a 4% increase in the costs each year for 4 years.

A Virginian who borrowed this entire cost of attendance for four years, and did
 not prepay any interest, would have a standard monthly payment of about:


                                        $3,184
A non-Virginian who borrowed this entire cost of attendance for four years, and
  did not prepay any interest, would owe $322,823 have a standard monthly
                               payment of about:


                                         $3,822
                       Keeping Your Debt Down

                        Owed at     Monthly   Total Interest     Total
                       Graduation   Payment                    Repayment


Virginian               $271,360     $3184     $147,346        $382,087
(Borrow $234,741,
repay over 10 Years)
Virginian               $271,360     $1960     $353,221        $587,962
($234,741 over 25
Years)
Non-Virginian           $322,823     $3822     $181,449        $458,565
($277,206 over 10
Years)

Non-Virginian           $322,823     $2374     $435,073        $712,276
($277,206 over 25
Years)
                Keeping Your Debt Down

Even if you just borrow the maximum subsidized ($8500) and
unsubsidized ($32,000-$38,667 depending on the year) loan each
year:
                     $177,556 borrowed
                 $202,594 owed at graduation

                    Monthly        Total       Total
                    payment      interest   repayment

     10 years        $2331      $102,219       $279,775


     25 years        $1406      $244,288       $421,844
Although your salary as a physician will be relatively high, large student
loan debt can be a burden. Even earning $150,000 a year, you will find it
very difficult – if not impossible – to make a $3000+/month student loan
payment. Your student loan debt can affect your ability to get other credit!


Also, you do not want to have to take your loan debt into account when
choosing a specialty. You should choose a specialty based on your
interests and your abilities, rather than the salary that you need to pay back
your loans.


So: Borrow ONLY what you really NEED. The cost of attendance budget
represents the maximum that you should need to get through school. You
should find that with careful budgeting you are able to get by on less. Work
with your parents, your family, your roommates, your spouse, and your
friends to make sure that you are not going into unnecessary debt.


    Live cheaply now, so that you don’t have to
             when you are a doctor!
                     Your Financial Aid Office

  Dennis Snyder        Margaret Baxton        Nancy Zimmer         Tonya Shifflett
(Last names A-H)       (Last names I-R)      (Last names S-Z)     Program Support
dls7d@virginia.edu   med7q@virginia.edu    nlb3w@virginia.edu    tss8v@virginia.edu




                             McKim Hall, Room 1172
                                 (434) 924-0033
                          8 AM – 5 PM, Monday – Friday
           No appointment necessary – feel free to drop by and see your
                              counselor any time.
                   Things our office can help with
              (in addition to financial aid, of course!):

• Candy


• Budgeting

• Financial emergencies


• Finding outside scholarships
  – check our website,
  www.healthsystem.virginia.
          edu/financialaid

• Debt management


• Financial Education:
    Money Talks
            Budgeting                                    Credit
            early October                             mid-November

 Living within the cost of attendance                Credit scoring
        Basic budgeting skills           How to build and maintain good credit
 Budgeting to limit borrowing needs          How to prevent identity theft
        Helpful hints and tips               Checking your credit report




        Home Financing                           Financial Planning
               mid-March                                  March

 Adjustable vs. fixed rate mortgages         Basic financial planning skills
         Renting vs. Buying              Saving for retirement while paying debt
 How your credit affects home buying          Choosing a financial planner
  Debt ratios, escrow, closing costs        The effects of student loan debt
                        Remember:

   Go to www.mappingyourfuture.org and complete the
    Stafford entrance counseling.

   Only borrow what you really need. $200/month now will
    cost you $20,000 later!

   We’re here to help. If you have any questions about how
    much to borrow, budgeting, student loans, repayment, or
    any other financial concern, please feel free to come in
    and see your counselor.

   We will have a table at the activities fair on Friday –
    please drop by and meet your counselor.

								
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