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 firstname.lastname@example.org email@example.com firstname.lastname@example.org email@example.com 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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