FINANCIAL AID INFORMATIONAL SEMINAR. What you need to know during your clinical terms

Transcription

1 FINANCIAL AID INFORMATIONAL SEMINAR What you need to know during your clinical terms

2 OVERVIEW Clinical timeline - Placement and Processing Loan Disbursements and Budget: Clinical Terms Student Health Insurance Satisfactory Academic Progress (SAP) Preparing for Residency and Loan Repayment Loan Interest and Capitalization Public Service Loan Forgiveness (PSLF) Additional Resources and Useful Information 2

3 WHO DO I CONTACT IF I HAVE FINANCIAL QUESTIONS? Who do I contact if I have financial questions? If your question is pertaining to your financial aid application, student budget, or the amount you would like to borrow, please contact: Financial Aid 1(800) faid@sgu.edu Diane Beltrani Director of Financial Aid Ext Tami Vecchio Associate Director Ext Cynthia Lessing Assistant Director Ext Laurie Wagner Assistant Director Ext Christine Cathcart Assistant Director Ext Laura Faylo Meyer Assistant Director Ext Basic Science Financial Aid Counselors Clinical Financial Aid Counselors Lorraine Leary (A-D) Ext Katie Toop (A-Hn) Ext Nicole Megas (E-Ko) Ext Laura Faylo Meyer (Ho-N) Ext Nancy Underwood (Kr-Pf) Ext Christine Cathcart (O-Z) Ext Michele Wulfken (Ph-U) Ext Melissa Gauler (V-Z) Ext Student Health Insurance Angela Kuhlmeier Ext Free Phone Available in Housing office! Beth Cohen Loan Specialist for Canadian Students Ext US Undergraduate Financial Aid Counselor Nicole Megas Debt Management Counselor Ext Beth Cohen Debt Management Counselor Ext If your question is pertaining to your refund check, student bill, or account balance due, please contact: Student Finances 1(800) ext billing@sgu.edu If your question is pertaining to loan deferment or enrollment verification, please contact: Registrar 1(800) ext regmail@sgu.edu 3

4 CLINICAL TIME LINE: MAY START Study for USMLE Step 1 December 16 Must take USMLE in order to start in May Health clearance materials due March 1 March 14 All ClinEd requirements must be completed Clinical Placement March 25 Assignments sent March 22 Approved Leave of Absence (ALOA) May 6 File an extension on LOA Start Clinical Rotations*** May 6 June 14 DECEMBER FEBRUARY MARCH APRIL MAY JUNE December 16 Grace period on Federal loans begins Feb 25 Financial Aid Awards for Clinical Term 1 updated in Student Self Service* March 18 MPN s should to be completed** April 16 Loans processed for confirmed placements * FAFSA required ** Students that have a credit issue are advised to apply earlier for early resolution *** Illustrative purpose April 26 Loans disburse for May 6 th start*** May 1 Student refunds issued for living expenses*** June 14 Loans no longer in a deferred status 6 month grace period expired. Student must contact loan servicer to obtain guidance on their options Clinical Department Financial Aid Leave of Absence 4

5 LOAN DISBURSEMENTS AND BUDGET: CLINICAL TERMS 5

6 CLINICAL LOAN DISBURSEMENTS The clinical curriculum of your education is 80 weeks of ROTATIONS Broken into 5 terms - each term is 16 weeks of rotations Clinical Term 1 16 wks Clinical Term 2 16 wks Clinical Term 3 16 wks Clinical Term 4 16 wks Clinical Term 5 16 wks Time off (bridge time or LOA) will not count towards the 16 weeks of rotations you need to complete the term Time off will effect when you are eligible to receive your loan disbursement Breaking to study for Step 2 In order to proceed to the next term and be eligible for financial aid you must have completed 16 weeks of rotations NOT CALENDAR WEEKS 6

7 LOAN DISBURSEMENT & BRIDGE TIME Clinical Term = 16 weeks of rotations (NOT CALENDAR WEEKS) Clinical Term # Loan Disbursement Date FAFSA Year New MPN S Needed? Term Start Date: Yes Next Term Start Date: ** Yes Next Term Start Date: No From To Weeks Total rotation weeks to date Rotations Hospital Core Clerkship in Psychiatry Richmond Core Clerkship in Ob/Gyn Richmond ** * 18 Bridge N/A Core Clerkship in Surgery Brooklyn *** 42 Core Clerkship in Medicine Richmond * Bridge time does not count towards the 16 weeks of required rotations to complete the term. ** A new clinical term may start in the middle of an ongoing rotation. The start of a new rotation does not mean the start of a new term. In this example student would start Term 2 in the middle of his Core Clerkship in Ob/Gyn. *** If student had not taken bridge time, clinical term 3 would have started on Dec. 16th th This is an example for illustrative purposes only. 7

8 WHEN WILL MY ACCOUNT BE BILLED DURING CLINICALS? Charged for Tuition, Admin Fees, Malpractice based on the start date of each 16 week clinical term There are 5 clinical terms Accounts are billed 2 months in advance of the start date of upcoming clinical term and due one month prior Billing may be delayed when first starting clinicals or when your schedule is not up to date Over 80 weeks of rotations, billed per week plus Malpractice Insurance 8

9 TIME OFF FROM ROTATIONS 1 20 Weeks Eligible for up to 20 weeks in a 12 month period BRIDGE TIME Weeks Activity 3 LEAVE OF ABSENCE Advise CLINICAL DEPT * Next Loan Disbursement will be delayed Contact REGISTRAR ** Leave of Absence Contact Financial Aid Counselor EXTENDED LOA Activity 4 Contact REGISTRAR ** Loans move to grace/repayment Contact Financial Aid Counselor Deferment Leave of Absence runs from last day of enrollment Activity 6 Weeks * CLINED@sgu.edu ** Enrolmentchanges@sgu.edu

10 OOPS! NO ROTATIONS SCHEDULED Keep your clinical rotation schedule current with your SGU Clinical Coordinator Includes both bridge time and rotations Gaps in your schedule may cause delays in financial aid processing and disbursements Gaps lasting longer than 30 days will cause you to be considered not enrolled Loans will go into grace/repayment Loans maybe reduced 10

11 CLINICAL TERM BUDGET EXAMPLE Direct (Billed Expenses) Budget and Financial Aid Clinical Term 1 Clin 1 TOTAL Tuition $ 26,094 $ 26,094 Fees $ 4,252 $ 4,252 Malpractice Insurance $ 357 $ 357 TOTAL $ 30,703 $ 30,703 Indirect (Non-Billed Living Expenses) 16 Weeks Approximate refund amount full funding Books $ 100 $ 100 Room $ 6,000 $ 6,000 Board (Food) $ 1,168 $ 1,168 Miscellaneous $ 2,448 $ 2,448 Transportation (Airfare) $ 1,550 $ 1,550 TOTAL $ 11,266 $ 11,266 Origination Fee $ 1,462 $ 1,462 TOTAL COST OF ATTENDANCE $43,431 $43,431 Net Loan Disbursement = $41,579 Less Billed Expenses = $30,703 Approximate Refund = $10,876 Financial Aid Eligibility Term 1 Total Loan (GradPlus or Alternate) $43,431 $43,431 Scholarship $0 $0 Net Loan Proceeds Loan (GradPlus or Alternate) $41,579 $41,579 TOTAL - NET LOAN PROCEEDS $41,579 $41,579 * For illustrative purposes only. Based on rates. Clinical budget example based on rates and are for illustrative purposes only amounts are subject to change. 11

12 USMLE STEP II EXAM FEES Step I exam fee already included in Term 5 budget All student s budgets includes the fee associated with taking Step 2 (CK & CS) Increase will be reflected in your Clinical term 3 budget Occurs after the completion of 32 weeks of rotations (Clinical terms 1 & 2) 2018 Exam Fee: $2,520* * Based on Sept 2018 rates 12

13 SPECIAL CIRCUMSTANCES: BUDGET INCREASES ERAS Residency Application Expenses Expenses incurred for up to 150 residency applications can be submitted for a budget increase. The transcript, ECFMG token & match fee are also considered. More information / Additional circumstances:

14 PROCESSING OF YOUR LOAN REFUND Funds disburse 10 days prior to start of the term Refund issued approximately 3-5 business days after disbursement Refunds are sent to your mailing address unless you have enrolled in direct deposit Questions regarding refunds, account balance or direct deposit should be directed to the Office of Student Finances at or ext

15 THOSE ANNOYING NOTIFICATIONS: TAKE THE ACTION NEEDED TO RESOLVE THEM! ACTION REQUIRED May need to sign Promissory Notes May need to provide Student Health Insurance Information May need to accept loan awards May need to update rotation schedule Office of Financial Aid may need to update our systems 15

16 STUDENT HEALTH INSURANCE

17 STUDENT HEALTH INSURANCE DURING CLINICAL TERMS Processed each year prior to August 1st ** All students budgets now include cost of health insurance even if waived If you have your own Health Insurance coverage and want to waive out of school-sponsored Student Health Insurance policy: You must waive by August 1st or you will be automatically enrolled and billed Monitor your SGU s for this notification 17

18 SATISFACTORY ACADEMIC PROGRESS (SAP)

19 SATISFACTORY ACADEMIC PROGRESS (SAP) Not making academic progress during clinical terms means: Have no more than 1 failing grade in the Clinical terms Not meeting timeline requirement Not on schedule to complete MD program within 6 years of matriculation Have not earned at least 67% of the credits attempted Too many course withdrawals or failures 19

20 PREPARING FOR RESIDENCY AND LOAN REPAYMENT

21 RESIDENCY & RELOCATION LOAN Sallie Mae Residency and Relocation Loan Private loan Only loan currently available Based on FICO score A cosigner may lower interest rate and increase likelihood of approval Help cover expenses associated with obtaining a residency Interviews, travel, relocation costs, etc. Must be enrolled at least half time in final year of study or have graduated within the last 12 months Maximum loan amount: $20,000 Funds disbursed directly to the student No in-school payments required Grace period up to 3 years after graduation Interest does not capitalize during in-school or grace period 21

22 WHAT WAS THE MEDIAN DEBT LEVEL OF US LOAN BORROWERS IN THE 2018 GRADUATING MD CLASS? (FEDERAL AND PRIVATE LOANS) 1. $175, $259, $378, $412,016 Response Counter 0% 0% 0% 0%

23 STUDENT LOAN INTEREST How Interest Accrual and Capitalization Effects Overall Loan Debt

24 INTEREST CAPITALIZATION The practice of adding unpaid interest charges to the principal balance of an educational loan, thereby increasing the size of the loan Interest is then charged on the new balance, which includes both the unpaid principal and the accrued interest 24

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26 INTEREST CAPITALIZATION Enters Repayment Exits any status in which interest is accruing Exits Deferment Repayment plan changed by borrower Loan Interest Capitalization Exits Forbearance Fail to submit documentation required to renew participation in repayment plan on time 26

27 AN MD GRADUATE HAS ACCUMULATED A TOTAL OF $378,644 OUTSTANDING FEDERAL LOAN PRINCIPAL FROM SGU. INTEREST NOT PAID WHILE IN SCHOOL. WHAT IS THE AMOUNT OF ACCUMULATED OUTSTANDING INTEREST ON THE LOANS AT CAPITALIZATION? 1. $20, $38, $50, $65,408 0% 0% 0% 0%

28 NSLDS FEDERAL LOAN SUMMARY nslds.ed.gov 28

29 NSLDS: FEDERAL STUDENT LOAN HISTORY nslds.ed.gov 29

30 NSLDS: FEDERAL STUDENT LOAN HISTORY 30

31 INTEREST CAPITALIZATION AND IT S IMPACT $20,500 Original Principal +$ 5,237 Outstanding Interest $25,737 New Principal after capitalization! (25.5% added to original loan amount) $17,084 Original Principal +$ 5,171 Outstanding Interest $ 22,255 New Principal after capitalization! (30% added to original loan amount) 31

32 LOAN INTEREST CAPITALIZATION Addition of unpaid interest to the principal of the loan $444,052 $378,644 $65,408 Principal + Interest = Larger Principal *Based on estimates only. Loan types and rates will affect these figures. 32

33 STUDENT LOAN REPAYMENT

34 LOAN REPAYMENT OPTIONS Federal Loan Consolidation Non-Income Driven Repayment Plans Standard Repayment Graduated Repayment Extended Repayment Income Driven Repayment Plans Income-Contingent Repayment (ICR) Income-Based Repayment (IBR) New Income-Based Repayment (New IBR) Pay As You Earn (PAYE) Revised Pay As You Earn (REPAYE) 34

35 FEDERAL LOAN CONSOLIDATION Combines multiple federal loans into a single loan Pays existing loans in full and replaces them with a new loan New Interest Rate: Weighted average of all loans Increases repayment term up to 30 years, depending on loan balance Resolves any split servicing issues May be required for Public Service Loan Forgiveness program Direct Loan Program is the only source for a federal consolidation loan 35

36 NON-INCOME DRIVEN REPAYMENT OPTIONS Repayment Option Standard Eligibility All borrowers with federal loans (FFEL or Direct), new or old Payment Terms / Calculation Payments are fixed; Up to 10 years to repay Graduated All borrowers with federal loans (FFEL or Direct), new or old Payments start lower and increase over a 10-year period Extended Must have $30,000 loan debt in DL or FFEL Payments are fixed or graduated; up to 25 years to repay 36

37 FEDERAL INCOME DRIVEN REPAYMENT (IDR) PLANS Plan Loan Types Includes Sub, Unsub, Grad Plus, consolidated Eligible Borrower Monthly Payment Years to Forgiveness Pay As You Earn (PAYE) Direct Loans New borrower as of 10/1/2007 & must have received a Direct loan disbursement on or after 10/1/ % of discretionary income Never more than 10-year standard Repayment amount 20 years Income- Based (IBR) Direct & FFEL Loans Any borrower with eligible federal student loans 15% of discretionary income Never more than 10-year standard Repayment amount 25 years Revised Pay As You Earn (REPAYE) Direct Loans Any borrower with eligible federal student loans 10% of discretionary income No Cap on monthly payment amount 20 years undergraduate 25 years graduate 37

38 IDR SIMILARITIES Monthly payment amount relative to borrower s income Borrowers must complete application and submit income documentation each year Forgiveness benefit after 20 or 25 years of qualified repayment Forgiven amounts are considered taxable income (unless student qualifies for PSLF) 38

39 PAYE & REPAYE REPAYMENT EXAMPLE Loan Balance at start of repayment* $378,138 Standard monthly payment amount for (RE)PAYE eligible loans $4, months worth of standard payments $52,920 Adjusted Gross Income (AGI) $55,400 State of Residence Continental U.S. Household size Poverty Income Guideline $12, % of Poverty Income Guideline $18,210 Discretionary Income ($55,400 - $18,210) $37,190 Is borrower experiencing partial financial hardship for PAYE? (Does a year's worth of payments exceed discretionary income?) Yes Initial Monthly Payment Under PAYE & REPAYE $310 39

40 PUBLIC SERVICE LOAN FORGIVENESS (PSLF) 40

41 PUBLIC SERVICE LOAN FORGIVENESS Federal program that forgives the remaining balance on your Direct Loans after all requirements are met 120 Qualifying Payments In Qualifying Repayment Plans When Applying For & Receiving PSLF On Direct Loans While Working For A Qualifying Employer Per IRS, forgiven amount is not taxable income 41

42 Identifying Qualifying Employers (PSLF) Check with the employer regarding their classification (government, nonprofit, etc.) Depending on employer type, public websites are available: Government: Tribal & College/University: Non-Profit 501(c)(3): Private Non-Profit: 42

43 INCOME-DRIVEN REPAYMENT PLAN COMPARISON & PSLF Lets take a look at the potential benefits of PSLF: Assumptions: Starting AGI of $52,469 during 4-year Residency Income of $200,000 fifth year out of school Income increased based on a modest annual growth rate (approximating inflation) Single, no children Total Loan Debt: $343,515 43

44 INCOME-DRIVEN REPAYMENT PLAN & PSLF Standard Repayment (10 yr) REPAYE REPAYE & PSLF Residency Yr 1 $4,013 $280 $280 Residency Yr 2 $4,013 $302 $302 Residency Yr 3 $4,013 $324 $324 Residency Yr 4 $4,013 $346 $346 In Practice Yr 1 $4,013 $1,496 $1,496 Total Amount Paid $481,580 $535,741 $134,076 Years of Repayment Amount Forgiven $0 $420,094* $462,346 *Currently considered Taxable income **Figures provided are estimated and for discussion purposes only 44

45 STUDENT LOAN REPAYMENT ESTIMATOR 45

46 IS PSLF SOMETHING YOU ARE CONSIDERING WHEN YOU PLAN YOUR FUTURE EMPLOYMENT? 1. Yes 2. No 0% 0% Response Counter

47 LOAN PAYMENT RELIEF OPTIONS Program information available on SGU Carenage Financial Aid Loan Forgiveness/Repayment Opportunities National Institutes of Health (NIH) National Health Service Corps (NHSC) Doctors Across New York (DANY) Education Debt Reduction Program (EDRP) Other Various Federal, State and Private Organization programs 47

48 STUDENT LOAN REPAYMENT WEBINAR Live webinar will be presented to you prior to graduation Information includes: Current loan repayment options Loan repayment strategies Loan forgiveness opportunities Tax filing information Monitor your SGU for additional information and registration instructions 48

49 USEFUL RESOURCES AND ADDITIONAL INFORMATION 49

50 OLLOW US ON FACEBOOK! SGU Financial Aid deadline reminders and important information Useful tips and tools for personal money management Relevant news articles regarding student loans and overall financial well-being Financial Aid Counselor Contact information and useful website links 50

51 SGU CARENAGE PORTAL: CLINICAL NEED TO KNOW INFO 51

52 USEFUL FINANCIAL AID LINKS AAMC Financial Aid Information - The AAMC's FIRST (Financial Information, Resources, Services, and Tools) program provides free resources to help you make wise financial decisions IBR Info - An independent, nonprofit source of information about new federal student loan repayment and forgiveness programs National Student Loan Data System (NSLDS) - Access your complete federal student loan history and servicer information Federal Student Aid website - Complete MPN s, Entrance / Exit Counseling, Use the Repayment Estimator, etc. 52

53 WHO DO I CONTACT IF I HAVE FINANCIAL QUESTIONS? Free Phone Available in Housing office! 53