FINANCIAL AID INFORMATIONAL SEMINAR: What you need to know

FINANCIAL AID INFORMATIONAL SEMINAR: What you need to know

FINANCIAL AID INFORMATIONAL SEMINAR: WHAT YOU NEED TO KNOW Student Loans: Basic Information Student Loan Servicers Loan Interest Estimated Cost of Attendance and Student Budgets Tips for Budgeting your Student Loans Managing Prior Student Loans Changes in Curriculum Financial Aid Impact Loan Repayment Basics 2

WHO DO I CONTACT IF I HAVE FINANCIAL QUESTIONS? Free Phone Available in Housing office! 3

STUDENT LOANS: BASIC INFORMATION

DIRECT UNSUBSIDIZED LOAN Payments not required while enrolled at least half time (5 credits) Interest will accrue while in school Interest will be capitalized at repayment Unpaid accumulated interest will be added to the total amount owed No prepayment penalty for payments made while in school 2016 2017 Interest rate: 5.31% (fixed for life of loan) Loan origination fee: 1.069% One-time grace period: 6 months 5

DIRECT GRADUATE PLUS LOAN Payments not required while enrolled at least half-time (5 credits) Interest will accrue while in school Interest will be capitalized at repayment Unpaid accumulated interest will be added to the total amount owed No prepayment penalty for payments made while in school 2016 2017 Interest rate: 6.31% (fixed for life of loan) Loan Origination fee: 4.276% Credit-based: Borrower must not have Adverse Credit 6

WHAT DOES THE DOE CONSIDER ADVERSE CREDIT? Bankruptcy discharge within the past five years Accounts currently 90 days or more delinquent Defaulting on a loan, even if the claim has been paid For additional information on what the DOE considers adverse credit, visit: https://studentloans.gov/mydirectloan/faqs.action 7

STUDENT LOAN GRACE PERIOD A set period of time after you graduate, leave school, or drop below half-time enrollment before you begin repayment on your loan Subsidized/Unsubsidized loans: one full 6 month period Perkins loans: 9 months PLUS loans have no grace period but may be eligible for a deferment Contact loan servicer for more information Gives you time to get financially settled and to select your repayment plan Lender or servicer will contact you to inform you when first payment is due Make sure contact information is current with your loan servicer! For most loans, interest will accrue during grace period 8

PRIVATE STUDENT LOANS Interest rate and repayment terms vary Eligibility requirements vary Credit check required Low debt-to-income ratio may affect approval Cosigner usually required Cannot be consolidated with federal student loans Federal loans will lose all federal benefits if consolidated with private loans Not eligible for any federal repayment or forgiveness programs May be used to fund Selectives or MPH/MSc/MBA coursework 9

STUDENT LOAN SERVICERS

WHAT IS A LOAN SERVICER? Company that collects payments on a loan, responds to customer service inquiries, and performs other administrative tasks associated with maintaining a loan on behalf of a lender Your loan is assigned to a loan servicer by the U.S. Department of Education (ED) after your loan amount is first disbursed Current Federal Loan servicers include: PHEAA/FedLoan Servicing Great Lakes Education Loan Services, Inc. Nelnet Navient Full list of servicers available on the Federal Student Aid website 11

STUDENT LOAN SERVICERS Enroll in an online account with your loan servicer Make online payments View loan balance details Change repayment plans Request loan deferment / forbearance Update contact information Not sure who your loan servicer is? Log into the National Student Loan Data System (NSLDS) www.nslds.ed.gov 12

NATIONAL STUDENT LOAN DATA SYSTEM (NSLDS) US Department of Education s (ED s) central database for student aid FSA ID needed to access your account Information includes Current lender and servicer Loan Status Outstanding Interest Outstanding principal balance (OPB) of the loan NSLDS does not provide information on private loans www.nslds.ed.gov 13

NSLDS: FEDERAL STUDENT LOAN HISTORY nslds.ed.gov 14

LOAN INTEREST: How Interest Accrual and Capitalization Effects your Overall Loan Debt

INTEREST CAPITALIZATION 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 Capitalization may occur when a loan: Enters repayment Exits deferment Exits forbearance Exits any status in which interest accrues Repayment plan is changed by the borrower 16

INTEREST CAPITALIZATION AND IT S IMPACT $12,000 disbursed amount +$3,238 outstanding interest $15,238 New loan amount after capitalization! (27% added to original loan amount) $37,975 disbursed amount +$9,469 outstanding interest $47,444 New loan amount after capitalization! (25% added to original loan amount) 17

ESTIMATED COST OF ATTENDANCE AND STUDENT BUDGETS Estimated Cost of Attendance (COA) Explained Student Loan Refunds Budgeting Tips and Tricks Useful Budgeting Tools

COST OF ATTENDANCE (COA) EXPLAINED SGU determines the amount you can borrow by creating a reasonable estimated Cost of Attendance (COA) for the academic year Includes tuition, room and board, books and fees, and other necessary expenses such as transportation Parts of the COA budget are fixed, such as tuition, but living expenses are estimated each loan period Updated annually Same criteria for all students Use as a guide in planning finances for the academic year Intended to be a modest budget Returning to school as a graduate student may require adjustment to spending habits A more frugal lifestyle may seem difficult, but should be viewed as a temporary measure that will be well worth any short-term inconvenience 19

SCHOOL OF MEDICINE BUDGET Estimated Loan Refund = Total Financial Aid Eligibility Total Billed Expenses Loan Fees Any payments made to account The information above outlines the estimated Cost of Attendance for the Basic Science terms based on 2016-17 rates. To be used for informational purposes only. 20

BUDGET INCREASES Case-by-case basis, subject to federal and university policy Common budget increase requests include Computer purchase One-time budget increase for the lesser of $1,800 or cost of computer Airfare Roundtrip airfare to/from Grenada is more than budget allowance of $1,500 Dependent Care Additional eligibility for students with families / children Students with spouse only not eligible for dependent care increase Complete eligibility requirements and application instructions available under Budget Increases in Financial Aid section of Carenage 21

PROCESSING OF YOUR LOAN REFUND Funds disburse 10 days prior to start of the term Refund issued approximately 3-5 business days after disbursement Direct Deposit available for expedient posting of funds to your bank account instructions available on SGU Carenage Portal Refunds are sent to your mailing address unless you have set up direct deposit To change your refund mailing address, sign into SGU Student Self Service and click on the Personal Information tab Questions regarding refunds, account balance or direct deposit should be addressed to Student Finances at billing@sgu.edu 22

WHAT IF I BORROWED TOO MUCH? Excess loan funds can be returned to the school within 120 days of disbursement Financial Aid office will cancel the portion of the loan that is returned Any loan fees or accrued interest on returned amount also cancelled / reversed Request to borrow less for the upcoming term Accept a lower loan amount for the following term to minimize loan debt If loans for next term are already in place, email your Financial Aid Counselor with your request to be manually adjusted Maintain eligibility to borrow up to the cost of attendance until the end of the loan period 23

BUDGETING YOUR STUDENT LOANS

SGU FINANCIAL AID TOP TIPS FROM STUDENTS 25

BUDGETING TIPS & TRICKS: MAKING YOUR FUNDS LAST Make a budget and stick to it Use a spreadsheet, online budget tool, notebook whatever works for you Keep track of everything! Have a reserve Plan for periods of non-enrollment (i.e. Time between Term 5 and start of clinical rotations, breaks between terms) Grocery shop weekly Reduce tendency to eat out Roommates Sharing cost of housing/rent is always less expensive than living alone 26

BUDGETING TIPS & TRICKS: MAKING YOUR FUNDS LAST Limit entertainment costs Planning for activities should be done within the limits of your budget Look for student discounts / free activities Stop before you Shop Before buying something, ask yourself is this a necessity and how often will you use it Utilize University Bus System Free to all SGU students and runs every day Financial aid cannot cover costs of the purchase of a car, gas, insurance, parking, or maintenance Smart Banking Research low and no-fee checking accounts and make sure to be aware of any foreign transaction fees you may incur Plan out ATM withdrawals by taking out what you need for a specific period of time and 27 putting the ATM card away

HELPFUL BUDGETING TOOLS (TO NAME A FEW) SGU Financial Aid Resources page Financial Aid Section SGU Carenage Continuously updated with links to new and useful financial tools and websites Mint.com Pulls all financial accounts into one place. Set a budget, track your goals, etc. Free apps for smart phones /computers YNAB You Need a Budget http://www.youneedabudget.com/ Apple, Android and Desktop apps to help budget your spending as it happens TG Texas Guaranteed Loan Servicer Corp. http://www.tgslc.org/ Offers resources to help plan and prepare for college, learn the basics of money management, and repay federal student loans 28

MANAGING PRIOR STUDENT LOANS

IN-SCHOOL DEFERMENT Postpones your loan payment while in school Federal Subsidized loans will not accrue interest while in deferment Federal Unsubsidized / Grad PLUS loans will continue to accrue interest Once matriculated at least half-time (5 credits), you will be automatically reported as enrolled to your federal loan servicers Initial reporting of in-school status not submitted until after Term 1 begins Continue to make any payments due or speak with your loan servicer about deferment or forbearance options until your loans are officially reported with an in-school status Perkins loans or private education loans May need to submit In-school Deferment form to Registrar s Office Obtain through servicer s website or school that services your Perkins loans Email all completed paperwork to enrolmentchanges@sgu.edu Perkins Loans may require a separate deferment form every 6 months 30

CHANGES IN CURRICULUM: EFFECTS ON FINANCIAL AID Satisfactory Academic Progress (SAP) Leave of Absence (LOA) Individual Advancement Program (IAP)

SOM SATISFACTORY ACADEMIC PROGRESS (SAP) Federal regulations require that students who are not in good academic standing are ineligible for federal loans Not making academic progress means: After Term 1: Course grade less than 70% Terms 2 5: Cumulative Weighted Mean Percentage Grade less than 75% Not removed from Period of Academic Focus after one term Have not earned at least 50% of attempted curriculum after first 2 terms of enrollment or have not earned at least 60% of their attempted curriculum thereafter 32

IF YOU ARE NOT MEETING SAP Placed on Financial Aid Warning If not meeting SAP after FA Warning term: Not eligible for aid unless appeal is submitted to Financial Aid and approved Specifies the exceptional circumstances that lead to the poor academic performance and States what has changed that will allow the student to demonstrate academic progress in the next and future terms If SAP appeal is accepted: Will be provided with an academic plan Must meet academic plan in order to receive federal aid in future term 33

LEAVE OF ABSENCES If a student must take a leave of absence during basic science terms: Prior to 60% point in term Tuition will be prorated for term Federal Loans will be prorated based on the number of days enrolled Reported to federal enrollment database as not enrolled Re-billed tuition upon return for repeated term Loans go into grace period If LOA is more than 6 months:» No further grace period available review various repayment options Be mindful of timeline for Satisfactory Academic Progress 34

LEAVE OF ABSENCES If a student must take a leave of absence during basic science terms: After 60% point in term Student responsible for full tuition charges for term Federal Loans will not be adjusted Reported to federal enrollment database as not enrolled Re-billed tuition upon return for repeated term Loans go into grace period If LOA is more than 6 months:» No further grace period available review various repayment options Be mindful of timeline for Satisfactory Academic Progress 35

INDIVIDUAL ADVANCEMENT PROGRAM (IAP): TERMS 3/4 & 5 Option to drop a single course during the term Tuition and Fees No change to tuition/fee charges in the term you are approved to enter IAP Will not be charged tuition when repeat courses in subsequent term Administrative Fees will be charged Changes to Financial Aid Since no tuition charged when repeating course(s): Loan amount to be reduced when repeating course» Still eligible to borrow for fees and living expenses No scholarship for repeated term Since extending length of academic program, loan indebtedness will increase May impact ability to complete Basic Sciences on time 36

ADDITIONAL FINANCIAL AID INFORMATION

TIPS FOR NAVIGATING STUDENT FINANCIAL AID AT SGU Read your SGU Email Most students who run into issues with financial aid tend to have missed important information by skimming or ignoring emails Create a system for managing large volumes of email so you don't miss key details Know how much you should be receiving Notify the Office of Financial Aid if you receive more or less money than you expect Communicate If you have a question, concern, update or issue - try to be proactive Problems with financial aid can arise when students procrastinate Plan now, breathe easier later Taking time to figure out your finances, budget, important dates and loan particulars now will help ensure you don't have to try and manage financial aid during busier, more stressful times (like finals) 38

SGU FINANCIAL AID COMMUNICATION PLAN: THOSE ANNOYING EMAIL NOTIFICATIONS Student Email Subject Headings Action Required Read these emails ASAP!! Used whenever student needs to take action response required, outstanding financial aid requirement, etc. Important Information Need to know info, no action required Loan Servicer information Monitoring your Credit 1098-T tax form information Term 5 Informational Email Informational Used when providing useful information to students, no required action needed Outside scholarship available 39

APPLYING FOR FINANCIAL AID: FUTURE TERMS Before each new Award Year, you will be contacted via SGU email by the Office of Financial Aid to complete Financial Aid outstanding requirements: Renew your FAFSA online at https://fafsa.ed.gov/ SGU School of Medicine Code G22333 Loan Award Offer Acceptance Review and submit online through SGU Student Self Service Visit https://studentloans.gov Sign new Master Promissory Notes (MPN s) Complete Direct PLUS Application Health Insurance Enrollment or Waiver Online through the WEA website (access through Carenage portal) 40

PREPARING FOR CLINICAL ROTATIONS AND RESIDENCY Not eligible for loans for period between the end of Term 5 and start of clinical rotations Plan ahead for Clinical living expenses Loan Processing is different in Clinical terms Attend Financial Aid Presentation in Term 5 You will be contacted prior regarding date/time, etc. Plan for expenses due to Residency Applications / Interviews Private Residency and Relocation loan available Credit-based 41

WHEN LOANS ENTER REPAYMENT

ESTIMATED SUMMARY OF MEDICAL SCHOOL COSTS Tuition and Fees: $ 264,585 Living Expenses: $ 114,300 Total Estimated Cost of Attendance: $ 378,885* Median Student Loan Debt of SGU Borrowers: $ 324,000** *Based on current 2016-17 rates for MD program to be completed in 4 calendar years; subject to change **2015 MD Graduates; Includes private, federal and institutional loans 43

PAYING OFF STUDENT LOANS EARLY Borrowers can always prepay loans without penalty Make payments towards unsubsidized loans that have the highest rates and/or most frequent capitalization Should save more money over time Payments can be made online directly to your loan servicer Unless otherwise noted, loan payments typically are applied first toward late fees, then interest, and finally principal 44

FEDERAL LOAN REPAYMENT PLANS Standard Repayment Graduated Repayment Extended Repayment Income-Driven Repayment Plans Income-Contingent Repayment (ICR) Income-Based Repayment (IBR) Pay As You Earn (PAYE) Revised Pay As You Earn (REPAYE) 45

LOAN PAYMENT RELIEF OPTIONS: Public Service Loan Forgiveness (PSLF) National Institute of Health (NIH) National Health Service Corps (NHSC) Other Various State and Private Organization programs

PUBLIC SERVICE LOAN FORGIVENESS (PSLF) Federal program that forgives the remaining balance on your Direct Loans after all requirements are met To be eligible for PSLF you must: Make 120 of the right kind of payments With the right kind of loan While working in the right kind of job 47

PSLF ELIGIBILITY EXPLAINED The right kind of payments Any income-driven repayment plan 10-Year Standard Repayment Plan Any other plan with payments that are at least equal to the monthly payment amount you d be required to pay under 10-Year Standard Plan 120 payments do not have to be consecutive The right kind of loan Direct Loans (William D. Ford Direct Loan Program) Federal Family Education Loan (FFEL) Program loans can be consolidated into a Direct Loan, even if you have consolidated previously The right kind of job All federal, state, local, or tribal government agencies or organizations, and many not-for-profit organizations are qualifying employers for PSLF Does your potential residency placement qualify? The answer may help you decide where you want to complete your residency. 48

NATIONAL INSTITUTE OF HEALTH (NIH) LOAN REPAYMENT PROGRAM https://lrp.nih.gov Part of the U.S. Department of Health & Human Services Primary Federal agency for conducting & supporting medical research Offers 5 loan repayment programs to attract health care professionals to careers in clinical, pediatric, health disparities, contraception & infertility research 2 year commitment to a research career will repay up to $35,000 per year of a qualified educational debt Basic eligibility requirements: Government research funding (federal, state or local) or domestic nonprofit research funding Student loan debt equal to at least 20% of annual salary U.S. Citizen 49

NATIONAL HEALTH SERVICE CORPS (NHSC) LOAN REPAYMENT PROGRAM https://nhsc.hrsa.gov/ Up to $50,000 to repay student loans for primary care medical, dental and mental/behavioral health clinicians Two-year commitment to work at an approved NHSC site in a highneed, underserved area Full-time or half-time service option Payment is free from Federal income tax Opportunity to apply to extend your service and receive additional loan repayment assistance after completing initial commitment Amount received depends on where you serve Higher need areas yields greater loan repayments 50

DOCTORS ACROSS NEW YORK (DANY) LOAN REPAYMENT PROGRAM Series of state-funded programs to help train and place physicians in a variety of settings and specialties to care for New York's diverse population DANY programs include: Physician Loan Repayment including Residency Loan Repayment tracks Ambulatory Care Training and other initiatives Physician Loan Repayment provides up to $150,000 in funding over a fiveyear period for physicians who commit to a five-year service obligation in an underserved region For additional information, visit: http://www.health.ny.gov/professionals/doctors/graduate_medical_educatio n/doctors_across_ny/ 51

OTHER PHYSICIAN LOAN REPAYMENT PROGRAMS State-Based Repayment Programs Many states offer different loan repayment/forgiveness programs Often must be employed in Health Professional Shortage Area (HPSA) May offer $100K or more based on commitment Additional information: https://www.aamc.org 52

USEFUL LINKS AND ADDITIONAL INFORMATION

SGU CARENAGE: FINANCIAL AID RESOURCES Located on the Financial Aid page of the Carenage Portal Tools to allow you to financially plan and manage your student loans and personal finances efficiently and effectively Useful information and financial aid resources in the form of PDF s, videos, and recorded webinars Topics include: Financial Literacy Personal finances Budgeting Money-saving websites https://mycampus.sgu.edu/web/financial-aid/financial-aid-resources 54

OLLOW US ON FACEBOOK! www.facebook.com/sgufinaid SGU Financial Aid deadline reminders and important information Useful tips and tools for personal money management Relevant news articles regarding student loans and personal finance Financial Aid Counselor contact information and website links 55

WHO DO I CONTACT IF I HAVE FINANCIAL QUESTIONS? Free Phone Available in Housing office! 56