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 during Clinical Terms Residency/Relocation Loans Loan Repayment Options Loan Payment Relief Options Monday, March 10, 2014 4:30 5:30PM Alumni Lecture Hall

Who do I contact if I have financial questions? If your question is pertaining to your financial aid application, your budget, or the amount you should borrow, please contact: 1(800) 899-6337 Financial Aid Diane Beltrani Director of Financial Aid Ext. 1224 Tami Vecchio Associate Director Ext. 1230 Laura Raygada Financial Aid Counselor (A - D) Ext. 1227 Laura Faylo Financial Aid Counselor (E - KO) Ext. 1228 Kara Johnston Financial Aid Counselor (KR PE) Ext. 1349 Michele Wulfken Financial Aid Counselor (PH U) Ext. 1391 Cynthia Lessing Assistant Director (V - Z) Ext. 1364 Christine Cathcart Clinical Financial Aid Counselor (A-C & P-Z) Ext. 1417 Lynda Hanley Clinical Financial Aid Counselor (D O) Ext. 1393 Angela Kuhlmeier Student Health Insurance Ext. 1232 Beth Cohen Loan Specialist for Canadian students Ext. 1237 Registrar Enrollment Verification / Deferments enrolmentchanges@sgu.edu The e-mail address for the Financial Aid Department is faid@sgu.edu Student Finances If your question is pertaining to your refund check, the balance of your account, or your student account bill, please contact: 1(800) 899-6337 Valerie Cascio vcascio@sgu.edu Ext. 1268 Gini Davanzo gdavanzo@sgu.edu Ext. 1271

Financial Aid During Clinical Terms Financial Aid Counselor Changes Clinical Training MUST be at US School When a new MPN is needed When a new FAFSA is needed Loans with a Split Disbursement

Loan Applications and Disbursement Timeline Clinical training consists of three (3) 16 week terms for a total of 48 weeks of rotations Clinical training must be in the US to be eligible for federal loans Clinical Term = 16 weeks of rotations Term FAFSA YR New MPN s required Disbursement Date 2 nd Disbursement Date Split Disbursement Term Start Date: Next Term Start Date: Next Term Start Date: 06-16-2014 1 2013-2014 Yes 06-06-2014 08-11-2014 Yes 10-06-2014 2 2014-2015 Yes 09-26-2014 11-17-2014 Yes 02-09-2015 3 2014-2015 Yes 01-30-2015 03-30-2015 Yes

Split Disbursement?? Since we are relatively new to the Federal loan program, we are required to disburse all one term loans in 2 equal disbursements If your loan disbursement is split in a term, you may request an advance on the refund the 2 nd disbursement will generate

Financial Aid Budget - Clinical Terms

Time off from Rotations Bridge Time You must contact your Financial Aid Counselor as taking time off will effect the disbursement of your loans. Each term is 16 weeks of actual rotations NOT calendar weeks.

Processing of your Loan Refund Funds disbursed 10 days prior to start of the term Refund issued approximately 3 business days after funds are credited to student account Direct Deposit available for expedient posting of funds to your bank account instructions available on MY SGU Refunds are sent to your mailing address unless you have set up direct deposit Questions regarding refunds, account balance or direct deposit should be addressed to Student Finances Email: billing@sgu.edu To change your refund mailing address log into SGU Student Self Service and click on the Personal Information tab

Student Health Insurance During Clinical Rotations Processed each year prior to August 1 st 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 1 st or you will be automatically enrolled and billed While both schools require adequate health insurance coverage while enrolled, you do not have to enroll in a separate health insurance policy at both SGU and your clinical rotation site One comprehensive policy is sufficient Notify both schools of your policy information to fulfill outstanding requirements **Monitor your SGU emails for notifications

Student Health Insurance Cost If you take health insurance through SGU (currently WEA) your budget will be increased automatically for this cost If you pay for your own health insurance through an outside policy, and are not covered by your parents, your budget may be increased for this cost after submitting an application for review

Check your SGU email!! Although you will be completing your clinical terms at another school of Veterinary Medicine, you are still an SGU student Action Required All SGU notifications and communications are sent to your SGU email address: May need to sign Promissory Notes May need to provide Student Health Insurance Information May need to accept loan awards May need to update your clinical schedule

Residency & Relocation Loans Available in the final year of school, the Residency and Relocation Loan can help students cover the expenses associated with relocating after graduation and /or finding a residency, including travel to interviews and relocation costs, which are not covered by federal student loan programs. Only one lender currently provides this loan Sallie Mae Not available after graduation

Residency & Relocation Loans Eligibility is based on a credit evaluation securing a cosigner may increase the likelihood of being approved. Borrower may apply for co-signer release after successful completion of their education& 24 consecutive payments Borrow up to a maximum of $20,000 Cannot be consolidated under a Federal Consolidation loan Funds are disbursed directly to the student Link to loans: https://www.salliemae.com/globalhealthloan

Residency & Relocation Loan www.salliemae.com/globalhealthloan 14

Residency & Relocation Loan Loan Repayment Example Information obtained from: https://www.salliemae.com/assets/products/library/mkt3236_salliemae_rr_final.pdf Interest is charged while you are in school and during the applicable separation period of either 36 months after graduation or 9 months after withdrawing from school or attendance falling below half-time status. Any interest that remains unpaid when you enter full repayment will be added to your loan balance. Information advertised valid as of November 25, 2013.

Potential Earnings AVMA reports mean income of $118,726 in 2011 for private practitioners: Industry: $167,415 Food animal exclusive: $136,324 Companion animal predominant: $121,584 Public/Corporate Practice: $132,205 Food animal predominant: $106,875 Mean full-time starting salary - $65,404 Data Source: AVMA Report on Veterinary Compensation, 2013 edition

The Gender Gap Female Practitioners Reported Lower Earnings in Every Category Compared to their Male Counterparts

What is the median debt level of US loan borrowers in the 2012 DVM graduating class? (combination of federal and private loans) A. $ 80,000 B. $152,000 C. $200,000 D. $412,000 Response Counter 0% 0% 0% 0% A. B. C. D.

Loan Repayment Options 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) Pay As You Earn (PAYE)

Federal Loan Consolidation Combines 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 interest rates May increase repayment term up to 30 years, depending on your loan balance Resolves any split servicing issues Needed for Public Health Forgiveness Program if you have FFELP loans The Direct Loan Program is the only source for a federal consolidation loan www.loanconsolidation.ed.gov

Non-Income Driven Repayment Options 21

Income-Contingent Repayment Plan (ICR) For more information, visit www.studentaid.ed.gov Advantages Considerations Who this plan works for Monthly payments calculate based on the borrower's income, family size, and total amount borrowed. The monthly payment amount is adjusted annually, based on changes in annual income and family size. Only Direct Loans The maximum repayment period is 25 years. After 25 years, any remaining debt will be discharged (forgiven). Under current law, the amount of debt discharged is treated as taxable income, so you will have to pay income taxes 25 years from now on the amount discharged that year unless you are applying for PSLF. Unpaid interest per year is capitalized not to exceed 10% of the original amount you owe. 20 percent of your monthly discretionary income 23

Income-Based Repayment Plan (IBR) Visit www.ibrinfo.org for a payment estimate calculator Advantages Considerations Who this plan works for Your maximum monthly payments will be 15 percent of discretionary income. Loan forgiveness after making the equivalent of 25 years of qualifying monthly payments. Partial interest subsidy (for first three years ) FFEL & Direct Loans You must have a partial financial hardship. You'll pay more for your loan over time than you would under the 10- year standard plan. You may have to pay income tax on any amount that is forgiven. Payment s change as you income changes Low monthly payment tied to the household income & family size Max payment capped at an amount equal to the Standard 10 yr payment Qualify payment for Public Loan Forgiveness 24

Pay As You Earn Repayment Plan (PAYE) Visit www.studentaid.ed.gov/payasyouearn Advantages Considerations Who this plan works for Your maximum monthly payments will be 10 percent of discretionary income. Loan forgiveness after making the equivalent of 20 years of qualifying monthly payments. Partial interest subsidy (for first three years ) Only Direct Loans You must have a partial financial hardship. You'll pay more for your loan over time than you would under the 10- year standard plan. You may have to pay income tax on any amount that is forgiven. Payment s change as you income changes Have no Federal loans as of October 1, 2007 Low monthly payment tied to the household income & family size Max payment capped at an amount equal to the Standard 10 yr payment Qualify payment for Public Loan Forgiveness forgiven after 10 years 25

Income Driven Repayment Plans Summarized 26

Income-Based Repayment (IBR) Eligibility Example Balance at start of repayment* $163,978 Total standard payments for IBR-eligible loans $1,887 12 months worth of payments $22,644 AGI $65,000 State of Residence Florida Household size 1 2013 Poverty Income Guideline $11,490 150% of Poverty Income Guideline $17,235 Discretionary Income [0.15 * ($65,000 - $17,235)] $7,165 Is borrower experiencing partial financial hardship? Does a year's worth of payments exceed discretionary income? Yes Yes Initial Monthly Payment Under IBR $597 *Balance includes principle and outstanding unpaid loan interest at time of repayment

A 2013 DVM Graduate has accumulated a total of $206,858 of outstanding federal loan principle. Interest was not paid while in school. What is the student s current amount of accumulated outstanding interest? A. $7,325 B. $16,932 C. $21,230 D. $28,924 Response Counter $7,325) 0.0% 0.0% 0.0% 0.0% $16,... $21,... $28,...

Interest Capitalization Capitalization is 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: -The loan enters repayment -The loan exits deferment -The loan exits forbearance -The loan exits any status in which interest accrues 17

Interest Capitalization and Its Impact Interest on most loans accrues from the date funds are disbursed until the loan is paid in full Capitalization is the addition of unpaid accrued interest to the principal balance of a loan The less frequent the better. Capitalization may occur more frequently for certain loans during forbearance

Loan Repayment Relief Options Federal Public Service Loan Forgiveness Program (PSLF) The Veterinary Medicine Loan Repayment Program (VMLRP) U.S. Military Army Specialty Pay Various State and Private Organizations

How does Public Service Loan Forgiveness (PSLF) 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

Public Service Loan Forgiveness (PSLF) If you hold a public service job, you may be eligible to have a portion of your federal student loan debt forgiven This includes work in all 501(c)(3) non-profit organizations, including medical schools and teaching hospitals To qualify, you must meet eligibility requirements, which include: 120 qualifying monthly payments on an eligible Federal Direct Loan on or after 10/1/2007 Employment in a public service job during the time the qualifying payments are made and at the time the loan is forgiven

Public Service Loan Forgiveness (PSLF) 1) The right kind of job. Your job is eligible if you are employed by a nonprofit, tax-exempt 501(c) (3) organization check with the IRS, employed by Federal, State, Local or Tribal government or serve in the AmeriCorps or Peace Corps. 2) The right kind of loan. Direct Loans (William D. Ford Direct Loan Program). Federal Family Education Loan (FFEL) Program, you can consolidate into a Direct Loan to take advantage of PSLF, even if you have consolidated previously. 3) The right kind of payment. These are payments made under the Income- Based Repayment (IBR), Income-Contingent Repayment (ICR), or Standard 10-Year Repayment plans. PSLF is intended for people who have high debt relative to income and qualify for ICR or IBR for at least part of their careers in public service.

The Veterinary Medicine Loan Repayment Program (VMLRP) The VMLRP will pay up to $25,000 each year towards qualified educational loans Eligible veterinarians must agree to serve in a National Institute of Food and Agriculture (NIFA) designated veterinarian shortage situations for a period of three years Eligibility requirements: 1) Have a degree of Doctor of Veterinary Medicine (DVM), or the equivalent, from a college of veterinary medicine accredited by the AVMA Council on Education; 2) Have qualifying educational loan debt as defined in 7 CFR 3431 Section 3; 3) Secure an offer of employment or establish and/or maintain a practice in a veterinary shortage situation, as determined by the Secretary, within the time period specified in the VMLRP service agreement offer; and 4) Provide certifications and verifications in accordance with 7 CFR 3431 Section 16. For more information: http://www.nifa.usda.gov/nea/animals/in_focus/an_health_if_vmlrp.html

Program to Benefit U.S. Military Army Specialty Pay As a veterinarian, you could qualify for $2,000 to $5,000 annually through the Diplomate Board Certified Pay (DBCP) Must have a Diplomate award in a specialty recognized by the American Veterinary Medical Association For more information, visit: http://www.goarmy.com/amedd/veterinarian/benefits.html Source - AVMA website:https://www.avma.org/about/savma/studentfinancialresources/pages/scholarship-loan-repayment-and-forgiveness-programs.aspx

State-Funded Loan Repayment / Forgiveness Programs A number of states have passed legislation establishing their own loan repayment or loan forgiveness programs for veterinarians. For more information, visit the AVMA website: https://www.avma.org/advocacy/stateandlocal/pages/state-veterinary-loanrepayment-programs.aspx

Private Loans Do you have both Private and Federal Loans? SallieMae Smart Option Loan Ed Invest Loans SGU Institutional Loans (ISL) Federal Loans Current SGU Federal Direct Loans Federal Loans from prior schools

Do you have both Private and Federal Loans? Consolidation Cannot consolidate Private and Federal loans together Can consolidate Private loans (i.e. Sallie Mae, Ed Invest, Institutional loan) May provide lower interest rate One bill/one payment for private loans Aware of 1 lender for Private Loan Consolidation Wells Fargo

SGU Institutional Loans (ISL) Interest rate - 9% Capitalized at repayment 10 year repayment Loans are consolidated at graduation/separation New rate at consolidation 3 month LIBOR + 9%

Repayment Tips Verify your Federal Student loans online at www.nslds.ed.gov Notify your lender or servicer if: 1. You change your name, address, or telephone number 2. You want to switch to a different payment plan after repayment begins 3. You want to change your payment due date because the date assigned doesn t work for you 4. You think you re going to have trouble making your student loan payment

Repayment Tips Sign up to make your monthly payment via automatic debit (ACH) instead of by check Explore the education tax benefits that are available visit studentaid.org or irs.gov (search for Publication 970) The amount of interest that you pay is the lowest under the standard 10-year repayment plan There is no pre-payment penalty for federal student loans Choose an alternative plan if you have cash flow problems early on

Financial Advisors http://www.gladvisor.com/

Useful links A Strategic Approach to Managing Veterinary School Debt This video highlights the federal student debt relief programs and repayment strategies available to help veterinarians lower the cost of their student debt and manage their liquidity. http://www.gladvisor.com/onlinepresentations.aspx

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My SGU Financial Aid Office Financial Aid Resources 39