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

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

FINANCIAL AID INFORMATIONAL SEMINAR: WHAT YOU NEED TO KNOW DURING YOUR CLINICAL TERMS Loan Eligibility and Disbursements during Clinical Terms Residency & Relocation Loan Loan Interest and Capitalization Loan Repayment Options Loan Payment Relief Options 2

WHO DO I CONTACT IF I HAVE FINANCIAL QUESTIONS? 3

CLINICAL TIME LINE: MAY START Study for USMLE Step 1 December 10 Health clearance materials due March 1 Clinical Placement Assignments sent March 10 All ClinEd requirements must be completed Must take USMLE in order to start in May March 16 April 3 File an extension on LOA June 9 Approved Leave of Absence (ALOA) Start Clinical May 1 Rotations*** May 8 DECEMBER FEBRUARY MARCH APRIL MAY JUNE December 10 Grace period on Federal loans begins February 29 Financial Aid Awards for Clinical Term 1 updated in Student Self Service* March 20 MPN s should to be completed** April 7 Loans processed for confirmed placements * FAFSA 2016 2017 required ** Students that have a credit issue are advised to apply earlier for early resolution *** Illustrative purpose April 28 Loans disburse for May 8 th start*** May 2 Student refunds issued for living expenses*** June 9 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

LOAN DISBURSEMENTS AND BUDGET FOR CLINICAL TERMS 5

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 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 Time off (bridge time or LOA) will not count towards the 16 weeks you need to complete the term Time off will extend the length of you term and when you are eligible to receive your loan disbursement 6

TIME OFF FROM ROTATIONS Eligible for up to 20 weeks in a 12 month period 1 20 Weeks Advise Clinical Department Next Loan disbursement will be delayed This is known as Bridge Time 21 26 Weeks Leave of Absence required Contact Registrar Contact Financial Aid Counselor Exceeds 26 Weeks Extend Leave of Absence Loans may be reduced Loans move to grace/repayment Contact Financial Aid Counselor 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: 05-08-2017 1 04-28-2017 2016 2017 Yes Next Term Start Date: 08-28-2017** 2 08-18-2017 2017 2018 Yes Next Term Start Date: 01-01-2018 3 12-22-2017 2017 2018 No From To Weeks Total rotation weeks to date Rotations Hospital 05-08-2017 07-28-2017 12 12 Core Clerkship in Psychiatry Richmond 07-31-2017 09-08-2017 6 08-28-2017 18 Core Clerkship in Ob/Gyn Richmond ** 09-11-2017 09-22-2017 2 * 18 Bridge N/A 09-25-2017 12-15-2017 12 30 Core Clerkship in Surgery Lutheran 12-18-2017 03-09-2018 12 01-01-2018 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 Ob/Gyn. This is an example for illustrative purposes only. 8

OOPS! NO ROTATIONS SCHEDULED Keep your clinical rotation schedule current with your SGU Clinical Coordinator This 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 9

CLINICAL TERM BUDGET EXAMPLE Budget and Financial Aid Clinical Term 1 16 Weeks Direct (Billed Expenses) Term 1 Total Tuition $24,125 $24,125 Fees $3,931 $3,931 Malpractice Insurance $357 $357 Total Billed Expenses $28,413 $28,413 Indirect (Non-Billed Living Expenses) Room $5,200 $5,200 Board $1,120 $1,120 Miscellaneous $2,480 $2,480 Books $270 $270 Transportation $1,550 $1,550 Medical Insurance $0 $0 Total Non-Bille Expenses $10,620 $10,620 Origination Fee $1,339 $1,339 TOTAL - COST OF ATTENDANCE $40,372 $40,372 Approximate refund amount full funding Net Loan Disbursement = $38,647 Less Billed Expenses = $28,413 Approximate Refund = $10,234 Financial Aid Eligibility Term 1 Total Loan (GradPlus or Alternate) $40,372 $40,372 Scholarship $0 $0 Net Loan Proceeds Loan (GradPlus or Alternate) $38,647 $38,647 TOTAL - NET LOAN PROCEED $38,647 $38,647 *For illustrative purposes only. Based on 2016-2017 rates. Clinical budget example based on 2015-16 rates and are for illustrative purposes only amounts are subject to change. 10

USMLE STEP II EXAM FEES All student s budgets includes the fee associated with taking Step 2 (CK & CS) Increase will be reflected in your Clinical term 3 budget which will occur after the completion of 32 weeks of rotations (clinical terms 1 & 2) Currently the fee is $2,415 11

SPECIAL CIRCUMSTANCES: BUDGET INCREASES Health Insurance Waive out of SGU insurance and pay for your own health insurance policy (not covered by your parents) Additional Housing Expenses If actual rental expenses are more than in standard student budget amount ERAS Residency Application Expenses Expenses incurred for up to 100 residency applications can be submitted for a budget increase More information/other circumstances: https://mycampus.sgu.edu/web/financial-aid/budget-increases

PROCESSING OF YOUR LOAN REFUND Funds disburse 10 days prior to start of the term Refund issued approximately 3 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 13

THOSE ANNOYING EMAIL 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 Office of Financial Aid may need to update our systems May need to update rotation schedule 14

STUDENT HEALTH INSURANCE

STUDENT HEALTH INSURANCE DURING CLINICAL TERMS Processed each year prior to August 1st ** If you take health insurance through SGU (currently WEA) your budget will be increased for this cost. 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 emails for this notification 16

SATISFACTORY ACADEMIC PROGRESS (SAP) FEDERAL REGULATIONS STATE THAT STUDENTS WHO ARE NOT IN GOOD ACADEMIC STANDING ARE INELIGIBLE FOR FEDERAL LOANS

SATISFACTORY ACADEMIC PROGRESS (SAP) Not making academic progress means: Have not been removed from a period of academic focus after one term Cumulative Weighted Mean Percentage Grade Average less than 75% by the end of Term 5 Not meeting timeline requirement Start clinical training within 3 yrs of matriculation Have not earned at least 65% of the credits attempted Too many course withdrawals or failures 18

PREPARING FOR RESIDENCY AND LOAN REPAYMENT

RESIDENCY & RELOCATION LOAN Sallie Mae Residency and Relocation Loan Only loan currently available Different than Sallie Mae Smart Option Loan https://www.salliemae.com/student-loans/medical-residency-loan/ Private loan available to help cover the expenses associated with finding a residency (i.e. Interviews, travel, relocation costs, etc.) Approval based on credit evaluation securing a creditworthy cosigner may lower interest rate and increase the likelihood of being approved Student must be enrolled at least half time in final year of study or have graduated within the last 12 months Borrow up to a maximum of $20,000 Funds disbursed directly to the student No in-school payments required and grace period up to 3 years after graduation Interest does not capitalize during in-school or grace period 20

WHAT DO YOU THINK WAS THE MEDIAN DEBT LEVEL FOR A 2015 SOM US GRADUATE? (COMBINATION OF FEDERAL AND PRIVATE LOANS) A. $80,569 B. $189,438 C. $292,087 D. $352,016 $80,569 0% 0% 0% 0% Response Counter 21 $189,438 $292,087 $332,016

LOAN INTEREST How Interest Accrual and Capitalization Effects Overall Loan Debt

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 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 23

A 2015 MD GRADUATE HAS ACCUMULATED A TOTAL OF $292,313 OF OUTSTANDING FEDERAL LOAN PRINCIPLE FROM SGU. INTEREST WAS NOT PAID WHILE IN SCHOOL. WHAT IS THE AMOUNT OF ACCUMULATED OUTSTANDING INTEREST ON THE LOANS AT CAPITALIZATION? A. $9,325 B. $20,924 C. $38,938 D. $50,076 0% 0% 0% 0% $9,325 $20,924 $38,938 $50,076 24

INTEREST CAPITALIZATION AND IT S IMPACT NSLDS Federal loan Summary 25

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) 26

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) 27

FEDERAL LOAN CONSOLIDATION Combines multiple federal loans into a single loan Pays existing loans in full and replaces them with a new loan Acquires a new interest rate 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 www.studentloans.gov 28

NON-INCOME DRIVEN REPAYMENT OPTIONS Repayment Option Available? Eligibility Payment Terms / Calculation Standard Now All borrowers with federal loans (FFEL or Direct), new or old Graduated Now All borrowers with federal loans (FFEL or Direct), new or old Payments are fixed; Up to 10 years to repay Payments start lower and increase over a 10- year period Extended Now Must have $30,000 loan debt in DL or FFEL Payments are fixed or graduated; up to 25 years to repay 29

INCOME DRIVEN REPAYMENT PLANS Repayment Plan Available? Eligibility Monthly Payment Discharge After Revised Pay As You Earn (REPAYE) Now (since Dec. 17, 2015) All Direct student loan borrowers. No partial financial hardship (PFH) requirement 10% of discretionary income 20 years if repaying only undergraduate debt; 25 years if repaying any graduate debt Income-Based Repayment (2014 IBR) Now (since July 1, 2014) Borrowers who take out their first federal student loan on or after July 1, 2014, and have a PFH 10% of discretionary income, up to the fixed 10- year payment amount 20 years Pay As You Earn (PAYE) Now (since 2012) Direct student loan borrowers who took out their first loan after September 30, 2007 and at least one loan after September 30, 2011, and have a PFH 10% of discretionary income, up to the fixed 10- year payment amount 20 years Income-Based Repayment (Original IBR) Now (since 2009) All federal student loan borrowers (Direct or FFEL) with a PFH 15% of discretionary income, up to the fixed 10- year payment amount 25 years Income-Contingent Repayment (ICR) Now (since 1994) All Direct Loan borrowers. No PFH requirement The lesser of: 20% of discretionary income and 12-yr repayment amount x income percentage factor 25 years 30

IDR SIMILARITIES Provides borrowers with a monthly payment amount relative to their income Borrowers must complete application and submit income documentation each year Provides forgiveness benefit after 20 or 25 years of qualified repayment Forgiven amounts are considered taxable income (unless student qualifies for PSLF) 31

PAYE & REPAYE REPAYMENT EXAMPLE Loan Balance at start of repayment* $292,087 Standard monthly payment amount for (RE)PAYE eligible loans $3,361 12 months worth of standard payments $40,332 Adjusted Gross Income (AGI) $51,250 State of Residence Continental U.S. Household size 1 2016 Poverty Income Guideline $11,770 150% of Poverty Income Guideline $17,655 Discretionary Income [0.10 * ($51,250 - $17,655)] $3,359 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 $279 32

PUBLIC SERVICE LOAN FORGIVENESS (PSLF) 33

HOW DOES IT WORK? To be eligible for Public Service Loan Forgiveness (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 *The 120 payments do not have to be consecutive 34

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 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 do your residency. 35

INCOME-DRIVEN REPAYMENT PLAN COMPARISON & PSLF Lets take a look at the potential benefits of PSLF: Assuming a starting AGI of $51,250 during 4-year Residency Income increases 5% per year Income of $200,000 fifth year out of school Single, no children Total Loan Debt: $292,087 36

INCOME-DRIVEN REPAYMENT PLAN & PSLF Standard Repayment (10 yr) REPAYE REPAYE & PSLF Residency Yr 1 $3,361 $279 $279 Residency Yr 2 $3,361 $301 $301 Residency Yr 3 $3,361 $322 $322 Residency Yr 4 $3,361 $344 $344 In Practice Yr 1 $3,361 $1,556 $1,556 Total Amount Paid $403,362 $558,862 $141,954 Years of Repayment 10 25 10 Amount Forgiven $0 $235,538* $350,884 *Currently considered Taxable income 37

IS PSLF SOMETHING YOU ARE CONSIDERING WHEN YOU PLAN YOUR FUTURE EMPLOYMENT? A. Yes B. No Response 0% 0% Counter 38 Yes No

LOAN REPAYMENT WEBINAR A comprehensive webinar will be provided to you prior to graduation Information includes: Current loan repayment options Loan repayment strategies Loan forgiveness opportunities Tax filing information Monitor your SGU email for additional information and registration instructions 39

ADDITIONAL LOAN REPAYMENT PROGRAM OPPORTUNITIES 40

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 five loan repayment programs to attract health care professionals to careers in clinical, pediatric, health disparities, contraception & infertility research Two 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 41

DOCTORS ACROSS NEW YORK (DANY) LOAN REPAYMENT PROGRAM A 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_education/doctors_across_ny/ 42

EDUCATION DEBT REDUCTION PROGRAM (EDRP) Authorizes U.S. Department of Veteran Affairs(VA) to provide student loan reduction payments to employees with qualifying loans who are in health care positions providing direct patient care services and are in positions that are considered hard to recruit or retain Each Veterans Health Administration (VHA) facility determines which positions are hard to recruit and retain and when the facility will offer EDRP for these positions Participants may receive up to $120,000 towards a qualified loan over a 5 year period Qualified employees receive payments up to $24,000 per year, for up to five years, while they remain employed by VHA in the position that was approved for EDRP Loan must be for education that qualified the applicant for qualified position For additional information, visit: http://www.vacareers.va.gov/why-chooseva/education-support.asp 43

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) $100K or more available based on commitment https://www.aamc.org 44

LOAN REPAYMENT TIPS

LOAN REPAYMENT TIPS Access your Federal loan history online at www.nslds.ed.gov Private loan information available at www.annualcreditreport.com Identify types of student loans you have and their terms and conditions Keep your contact information up to date with loan servicers Enroll in automatic debit for monthly payments Select the repayment plan that is right for you Consider paying a little extra each month if possible No pre-payment penalty for Federal student loans Seek help at the first sign of financial difficulties 46

USEFUL LINKS AND ADDITIONAL INFORMATION 47

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 overall financial well-being Financial Aid Counselor Contact information and useful website links 48

SGU CARENAGE PORTAL: CLINICAL NEED TO KNOW INFO 49

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. 50

WHO DO I CONTACT IF I HAVE FINANCIAL QUESTIONS? 51