TTUHSC Financial Aid Information Packet Financial Aid Inside this issue: Financial Aid Budgets 2 2011-2012 How Do I Pay for School What is Financial Aid 2 3 Eligibility 3 Application Process 3 Types of Loans 4 Managing Your Loans Identity Theft & Protection Other Financial Aid Resources Financial Aid Time Line 5 6 7 8 Web Resources 8 Contact Info 8 School of Allied Health
Page 2 Information Packet Understanding the TTUHSC Financial Aid Budget It is estimated that the average Graduate Allied Health student will leave school with at least $57,000 in Federal Stafford loan debt and $28,000 in private alternative loan debt.. The average Undergraduate Allied Health student will leave school with at least $30,000 in Federal Stafford loan debt. You do not have to borrow the maximum allowed. You should create a budget and only borrow the amount you need to cover your expenses. A very conservative approach is recommended in evaluating your financial needs while attending school, especially if you are relying on loans as a primary source of income. Be as thrifty as possible. Items that are covered by Financial Aid Tuition & Fees Books & Supplies (including lab equipment) Housing and food Transportation Health Insurance Personal and miscellaneous (medical, dental, clothing, cleaning, etc.) Travel and living expenses for away rotations Computer (covered during 1st year; only if program requires computer) Items that are NOT covered by Financial Aid Automobile payments Consumer debt (credit cards, loan payments) Transportation costs for residency/job interviews State Professional License Exam Understand the effects of Credit and Consumer debt Prepare for lifestyle changes. It s important to avoid consumer debt from credit cards and other consumer loans that will be difficult to support on a financial aid budget. Live within your budget and resist spontaneous spending. Understand all of the terms and conditions of credit cards and loans. Private loan programs can help bridge the financing gap between your expected costs and what you can fund through savings and financial aid. As with any educational loan, it is in your best interest to be conservative and only borrow what you absolutely need. Remember, all loans must be repaid! How Do I Pay For School Savings live frugally now and while in school Family use cash gifts from family and friends for school costs Outside Scholarships apply often School, outside organizations, scholarship web searches Financial Aid Apply every year. Financial aid awards range from grants, scholarships and student loans.
Information Packet Page 3 What is Financial Aid? FINANCIAL AID is defined as assistance to pay for your educational expenses. These expenses include tuition, fees, books, supplies, instruments and living expenses while in school. Any assistance is considered financial aid regardless of the source. These sources are: Grants Funds from Federal and State sources that do NOT require repayment Scholarships State, Institutional, Organizational funds that do NOT require repayment Loan Programs Money that must be paid back. May consist of Federal and Private loans Who is Eligible to Receive Financial Aid? To be eligible to receive financial aid, you must be accepted and matriculated in a degree-granting program. Allied Health students classified as leveling may be eligible to receive student loans only, while progressing toward a regular student status. Contact our office for details. Allied Health students classified as provisional are not eligible to receive financial aid. Allied Health Students must be enrolled at least half time (6 hours for undergraduate or 5 hours for graduate) to be eligible for financial aid. How Do I Apply For Financial Aid? Complete a 2011-2012 FAFSA (Free Application for Federal Student Aid) OR a. Go to: www.fafsa.ed.gov Follow the instructions as directed. b. Complete the Renewal FAFSA (students who applied for financial aid in 2010-2011 should receive a PIN # reminder by e-mail. This PIN # is to be used to access your renewal application on the web. If you need a PIN #, go to www.pin.ed.gov. PLEASE NOTE: We are Texas Tech University Health Sciences Center. We are NOT Texas Tech University. Our school code is: 016024. If you are entering a graduate/professional program, you are now considered an independent student on the FAFSA. This means you are no longer required to provide parent information on your FAFSA. HOWEVER, students who enter a Grad/professional program with less than 72 completed college hours will still be considered as an undergraduate student and may be required to provide parent information on the FAFSA. Please check with our office if you are not sure if you fall into this category.
Page 4 Information Packet Types of Financial Aid Loans Features and Benefits Ho do I apply? How much can I borrow? Perkins Loans Low fixed interest rate. Direct disbursement of funds. Contact your school. Fill out the FAFSA (Free Application for Federal Student Aid) and submit it to your school. Note: This loan is granted based on financial need and availability of funds. Graduate/Professional Students: up to $6000 per year. Undergraduate Students: Up to $4000 per year. Typical yearly award is $1500. Aggregate limits Grad/Prof: $60,000 (includes loans borrowed at undergraduate level) Undergraduate: $27,500 Note: Awards based on availability of funds at school. Federal Direct Stafford Loans Subsidized No Payments while you are in school. You are not responsible for interest accrued while you are in school, and during grace and eligible deferment periods Contact your school. Fill out the FAFSA (Free Application for Federal Student Aid) and submit it to your school. Note: This loan is granted based on financial need. Graduate/Professional students: $8,500 per year Aggregate Limit - $65,500 Dependent and Independent Undergraduate Students: $3500 Freshman $4500 Sophomore $5,500 Junior & Senior Aggregate limit: $23,000 Federal Direct Stafford Loans Unsubsidized No payments while you are in school. Interest-only payments available during school, otherwise interest will be added to the principal loan balance. Contact your school. Fill out the FAFSA (Free Application for Federal Student Aid) and submit it to your school. Grad/Professional students: $12,000 per year Aggregate limit: $138,500 (up to $65,500 may be subsidized) The total Sub & Unsub Direct loans per year may not exceed $20,500. Undergraduate Independent: Students & Dependent Students whose parents cannot borrow Parent Plus loan: 1st & 2nd yr: $6,000 3rd, 4th & 5th yr: $7,000 Aggregate limit: $57,000 (up to $23,000 may be subsidized) Undergraduate Dependent Students whose parents can borrow Parent Plus loan: $2,000 per year Aggregate limit: $31,000 (up to $23,000 may be subsidized) Note: Students who are not eligible for any of the Subsidized loan may replace this with an additional unsubsidized loan. Alternative Loans/ Graduate Plus Loans No payments while you are in school. Ability to sign without a co-signer may be available. Grad Plus loans are available only to graduate/professional students. Alternative Loans: Applications are available through your lender. As these are private loans, students must meet lender s credit requirements. Grad Plus loans: Applications are completed at www.studentloans.gov All students: Cost of Education minus financial aid. Program limits may apply for alternative loans; see specific loan terms for details. How much will it cost? Interest Rate: 5% Fixed During in-school, grace or deferment, interest rate is fixed at 6.8%. *Undergraduate students only: During in-school, grace or deferment, interest rate is fixed at 6.8%. Alternative loan - interest rates vary by lender. Contact your lender for more information. Loans disbursed 7/1/10-6/30/11 interest rate is fixed at 4.5% Grad Plus loan 7.8% fixed interest rate Loans disbursed 7/1/11-6/30/12 Interest rate is fixed at 3.4% When must I begin repayment? What else should I know 9 mo after you graduate, leave school or drop below half-time status. Employment cancellation benefit available to those who qualify. Contact the school for details. Loans are available through your school. 6 months after you graduate, leave school or drop below halftime status. 6 months after you graduate, leave school or drop below half-time status. Depending on the program, 6 to 9 months after you leave school. Special program rules may apply. Repayment incentives and additional interest rate reductions or credits may be available for alternative loans.
Information Packet Page 5 Managing Your Student Loans Making the step to an Allied Health Program is one of the best investments you can make. Smart management of education loans is essential to making the investment pay off! 1. Know your rights & responsibilities As a borrower, you have the right to: Written information about your loan obligations, including consolidation An explanation of default and its consequences A copy of your promissory note and return of the original note when the loan is paid in full Balance information and repayment schedule prior to repayment Be notified if your loan is sold, with information on the new holder A grace period, if eligible Prepay your loan early without a penalty Request a forbearance based on conditions listed on your promissory note As a borrower, you are required to: Participate in entrance and exit counseling programs Repay the loan according to the repayment schedule Repay your loan according to the terms of your loan agreement Notify your lender/loan servicer of any changes in academic status, your name, address or phone number Notify your loan servicer of anything that affects your ability to repay or impacts your eligibility for deferment or cancellation of the loan Notify your lender if you graduate, withdraw from school, or drop below halt-time status; transfer to another school; fail to enroll during the period for which the loan was intended 2. Organize & keep accurate records Keep Copies of EVERYTHING Keep all loan documents and financial aid information in one place Organize and record loans by type Document calls and record names every time you speak to your lender 3. Minimize your debt Borrow conservatively If possible, pay interest while in school. 4. Consider what your monthly payment will be: $125.00 per month for every $10,000 borrowed If you live like a professional while you re in school, you ll risk having to live like a student once you have graduated.
Page 6 Information Packet The following are some tips to reduce your chances of identity theft: Protect your Social Security number. Don t carry your card in your wallet and avoid giving the number upon request. Never divulge personal information over the phone. Try to carry just two credit cards and make sure you have the numbers written down in a safe place in case they are lost. It s a good idea to have photo copy of both sides of all your credit cards in case your wallet is lost or stolen. File the copies in a secure place. Shred documents before tossing them in the trash. This include credit card statements, checks, pay stubs, and medical bills. Stop pre-approved credit card and home equity applications that arrive in the mail they are another gold mine for identity theft. Contact the Consumer Data Industry Association at 1-888-567-8688 or at www.optoutprescreen.com. The online approach allows you to stop solicitations for two years or permanently. Check your credit report at least once a year. The Fair and Accurate Credit Transactions Act (FACT) gives you the right to request a free annual copy of your credit report. Beware of the pop-up ads and Internet based companies that offer free copies of your credit report. Read the fine print. Don t leave bills or other important information lying around or in your car. Don t respond to emails asking for sensitive information. Thwarting Identity Theft Legitimate businesses will never request personal information via an email message. This technique is known as phishing. Don t take the bait. What if you are a victim? If you think you have been victimized, we recommend the following actions: Have a Fraud Alert placed on your credit file. Contact any one of the three major credit agencies. Report the problem to your credit card issuers and any other companies where you might have accounts that have been compromised. Follow up in writing using the ID Theft Affidavit found at www.consumer.gov/idtheft/. This is a free form from the FTC that is accepted by all creditors. File a police report and make a copy of it. It is an essential document you will need to help repair the damage. With this report, you can get the credit reporting agencies to erase any fraudulent accounts from your credit history. File a complaint with the FTC. For more ways to protect yourself from identity theft, visit the FTC website: www.ftc.gov. Credit Worthiness & Credit Bureau Information It is important to know your consumer credit history, especially as you begin school. Your Credit History: A credit bureau gathers information about what you spend, where you spend it and how much you pay. The credit bureaus keep your personal credit history for a period of approximately ten years. If you miss one payment or default on a loan, the credit bureau will not change your status for up to ten years, whether you pay a collection agency on the defaulted loans or not. The typical credit report includes the following types of information: Identifying information: your name, current & previous addresses, social security #, date of birth, employers. Credit Information: credit accounts you have with bank, retailers, credit card issuers and other lenders. Your report will also list the date you opened the account, your credit limit, current balance and repayment pattern (number of late payments and how late they were). Public record information: bankruptcies, tax liens or monetary judgments. Inquiries: names of all credit guarantors and potential employers who obtained a copy of your credit report for any reason. Beginning June 1, 2005, all Texas residents may receive one free credit report from each bureau annually. Visit www.annualcreditreport.com to request a copy or send a signed request. The three bureaus are: 1. Trans Union-TU www.transunion.com 1-800-888-4213 2. Experian www.experian.com 1-800-397-3742 3. Equifax-CBI www.equifax.com 1-800-685-1111
Information Packet Page 7 Are There Any Other Types of Financial Aid Programs? Military Armed Forces Health Professions Scholarship Program A Health Professions Scholarship from any of the military services provides up to four years full tuition, all required fees, books/equipment, and a monthly stipend. In return for each year of support from one of the armed services, you must serve one year active duty in that service-or a minimum of two year s service-excluding periods of postgraduate professional education. Armed Forces Financial Assistance Programs: Annual grants up to $18,000 plus a monthly stipend. Participants must be eligible for appointment as a commissioned officer. For each year of participation, residents must serve at least one year in active Federal Service upon completion of specialty training. The Armed Forces have many different loan repayment programs available see your recruiter for specific details. For more information: Air Force: www.airforce.com/opportunities/healthcare/education Army: www.goarmy.com/amedd/hpsp.jsp Navy: www.navy.com/careers/healthcare Hazelwood Act For Texas veterans, who have exhausted their eligibility for federal benefits (including VA, Pell Grants, S.E.O.G, and others), this Act will waive tuition charges. See the schools veterans (VA) counselor for further details. Rural Health TTUHSC F. Marie Hall Institute for Rural and Community Health The F. Marie Hall Institute for Rural and Community Health awards more than $125,000 annually in scholarships. A key element of the scholarship program is the emphasis on providing additional ruralfocused experiences outside the classroom setting. Scholarship recipients participate in a wide range of rural-focused educational and community service activities to foster their development as rural health professionals. www.ttuhsc.edu/ruralhealth/scholarships.aspx Outstanding Rural Scholar Recognition Program This program provides scholarships to physician assistant students in return for service commitment in a rural community. www.tdra.state.tx.us Physician Assistant Loan Repayment Program This program provides loan reimbursement to physician assistants who practice in qualifying areas of rural Texas, in which there is a shortage of primary healthcare providers. www.tdra.state.tx.us/txdra/programs/sorh/grants/orsprogram.aspx
Page 8 Financial Aid Process Time Line Spring semester of each year: Student completes Free Application for Federal Student Aid (FAFSA) TTUHSC receives FAFSA data from the Federal processor electronically. www.fafsa.ed.gov TTUHSC sends a missing information email to the student if additional documents are needed. Student returns those necessary documents to complete the financial aid file. TTUHSC emails award notification to the student. The award offer outlines the programs and funding the student is eligible for. Student completes the Federal Direct Stafford Loan Application process for the year. (only for students borrowing Federal Direct Stafford Loans). Student completes Grad Plus/Alternative loan application (only for students borrowing one of these loans) 10 days prior to the start of each semester: Federal Direct Loan processing service electronically sends loan funds to the school Financial aid funds (loans, grants, & scholarships) are posted towards student s tuition accounts The week before the start of each semester: TTUHSC SBS Office sends any refunds to student based on student s refund preference. Web Resources US Department of Education FinAid-Student Guide to Financial Aid National Student Loan Data System Texas Guaranteed Student Loan Corporation Texas Financial Aid Information TTU Red to Black Money Management FastWeb Scholarship Search www.studentaid.ed.gov/ www.finaid.org www.nslds.ed.gov www.tgslc.org www.collegefortexans.com www.orgs.ttu.edu/r2b/ www.fastweb.com Questions Concerning Tuition, Fees and Refunds For tuition and fee information, or how refunds are processed, please contact the Student Business Services (SBS) at (806) 743-7867 Knowing Who to Turn to for Help For Financial Aid questions & concerns, please contact: Karen Burnett, Senior Financial Aid Advisor, AH Students (806) 743-3025 Room 2C400, Lubbock Campus Karen.Burnett@ttuhsc.edu Mia Myers, Senior Financial Aid Advisor, PA Students (806) 743-3025 Room 2C400, Lubbock Campus Mia.Myers@ttuhsc.edu For questions regarding registration, enrollment verifications & deferments, and VA certifications please contact: Donna Davis, Assistant to the Registrar (806) 743-2300 Room 2C400, Lubbock Campus Donna.Davis@ttuhsc.ed For questions regarding student services and residency questions, please contact: Margret Duran, Director (806) 743-2300 Room 2C400, Lubbock Campus Margret.Duran@ttuhsc.edu