2. OU-HCOM FINANCIAL AID Info about Loans OU-HCOM FINANCIAL AID Info about Loans Marie Barone Michelle Kittle

3. What is a Financial Aid Package? - A collection of financial resources available to the student to help pay for the costs associated with attendance at school. -Resources may include student loans, scholarships, stipends, etc.

4. Main Factors in Determining your aid packages: -The Educational Budget – set by OU-HCOM -Stafford & other Loan Limits – set by federal regulations

5. ***PROJECTED*** Student Educational Budget Year 1 2012-13 = $59,521 What is included? Tuition & fees ($32,011) * Books & Equipment ($7,548) * Room & Board-10 months ($12,992) * Transportation ($3,110) * Personal ($3,860) * Out of State Charge $13,274 *

6. What is not included in a student budget:   Car Payments   Expenses outside of school year – summer 2012 and summer 2013   Past consumer debt (car payments, house payments, etc.)   Credit Card Debt   Moving Expenses   Expenses for family members other than the student

7. Loans Available - Federal Direct Stafford Loans -Federal Direct Grad PLUS Loans

8. Stafford Loans l l Stafford Unsubsidized Loan - $42,722 Fixed (interest accrues at disbursement) Interest = 6.8% Does not consider credit history Total loan amount is divided and disbursed by the # of terms the student is enrolled in an academic year. This loan is the basis of most student aid packages.

9. Origination Fees for the Stafford Loans for 2012-13 Stafford Loans: 1% origination fee which is subtracted from the loan money you receive Sample: $1,000 (principal) - $10 (origination fee) = $990

10. Stafford Loan Limit Issues Annual Stafford Loan Amounts: -Year 1 = $42,722 Year 1 Year 2 = $40,500 Year 3 = $47,167 Year 4 = $47,167 Aggregate Stafford Loan Limits (over lifetime as a borrower) $224,000

11. Annual Stafford loan limits In-state calculation $59,521* Cost of attendance $59,521* Stafford Loan limit $42,722 Remaining need: $16,799 (aka annual shortfall) Out of state calculation $72,795* Cost of attendance $72,795* Stafford Loan limit $42,722 Remaining need: $30,073 (aka annual shortfall) *estimated costs

12. Graduate PLUS loan l l Federally funded loan with a fixed rate of 7.9% l l Credit-based loan – cannot have any negative credit within the past 24 months of application - students can be denied – can use a co-signer l l No annual or aggregate limit l l Note – has separate promissory note with 90 day credit limit - we will process Graduate Plus loans the first week of classes

13. Origination Fees on Grad PLUS loans for 2011-13 Grad PLUS Loans: 4% origination fee Sample: $1,000 (principal) - $40 (fee) = $960

14. Help??? Help??? How do I figure out how much loan money I need? Where do I start with figuring out a budget?

15. One Suggestion Start with annual Stafford loan limits and subtract fixed costs $42,295 = Max Stafford (minus fees – estimate) -$32,011 = Projected tuition & Fees (estimate only) -$1,412 = Health Insurance (last year’s amount – this will change) $8,872 = money for all other expenses Divide by 10 months = $887/per month

16. Questions