FINANCING YOUR MEDICAL EDUCATION

TOPICS THE FINANCIAL AID PROCESS THE FINANCIAL AID PROCESS MEDICAL SCHOOL COSTS & BUDGET MEDICAL SCHOOL COSTS & BUDGET DETERMINING FINANCIAL AID AWARDS DETERMINING FINANCIAL AID AWARDS CATEGORIES OF FINANCIAL AID CATEGORIES OF FINANCIAL AID MEDICAL SCHOOL DEBT MEDICAL SCHOOL DEBT THE IMPORTANCE OF CREDIT RATING THE IMPORTANCE OF CREDIT RATING QUESTIONS QUESTIONS

FINANCIAL AID APPLICATION PROCESS O C EXPLORE THE FINANCIAL AID APPLICATION PROCEDURES AND DEADLINES T O OBTAIN INSTITUTIONAL APPLICATION FORMS B E BEGIN RESEARCHING THE WEB FOR SCHOLARSHIPS RJAN U FILL OUT THE FAFSA ON THE WEB ARY M OBTAIN ESTIMATES OF FINANCIAL AID OFFERS FROM ALL SCHOOLS A Y MAKE A DECISION AS TO WHICH MEDICAL SCHOOL YOU WANT TO ATTEND

UCSD MEDICAL SCHOOL BUDGET DESCRIPTION FIRST YEAR BOOKS$1,976 RENT/UTILITIES ($919/MO) $8,731 FOOD($308/MO)$2,926 MISC./PERSONAL ($307/MO) 2,917 TRANSPORTATION ($307/MO) $2,917 EQUIPMENT BAG $925 MICROSCOPE$150 REGISTRATION FEES $22, TOTAL$42,550 OFF CAMPUSOFF CAMPUS

UCSD MEDICAL SCHOOL BUDGET DESCRIPTION FIRST YEAR BOOKS$1,976 RENT/UTILITIES($550/MO)$5,225 FOOD($308/MO)$2,926 MISC./PERSONAL ($307/MO) 2,917 TRANSPORTATION ($307/MO) $2,917 EQUIPMENT BAG $925 MICROSCOPE$150 REGISTRATION FEES $22, TOTAL$39,044 ONCAMPUSONCAMPUS

UCSD MEDICAL SCHOOL BUDGET 2 nd YEAR 3 rd YEAR 4 th YEAR ON CAMPUS $44, 970 $44, 636 $31, 361 OFF CAMPUS $49, 399 $49, 064 $34, 682 TOTAL FOR 4 YEARS $175,695 OFF CAMPUS $160,000 ON CAMPUS

PUBLIC VS. PRIVATE MEDICAL SCHOOL COSTS PUBLICPRIVATEUCSD $18, 612 $27, 826 $20, 172 National Average for according to the AAMC Tuition and Fees only

FINANCIAL AID AWARDS 60% OF THE ENTIRE CLASS WILL RECEIVE SCHOOL BASED FINANCIAL AID PACKAGE. 60% OF THE ENTIRE CLASS WILL RECEIVE SCHOOL BASED FINANCIAL AID PACKAGE. THE NEEDIEST SCHOOL PACKAGE FOR IS $24,273 THE NEEDIEST SCHOOL PACKAGE FOR IS $24,273 ($19,980 GRANT & $4293 SCHOOL LOAN) THE LOWEST NEED SCHOOL-BASED PACKAGE FOR IS $20,673 ($10,301 GRANT AND $10,372 LOAN) THE LOWEST NEED SCHOOL-BASED PACKAGE FOR IS $20,673 ($10,301 GRANT AND $10,372 LOAN)

HOW YOUR AWARDS ARE DETERMINED SINGLE STUDENTS PARENTS’ CONTRIBUTION NEED CATEGORY STUDENT IS SINGLE & PARENT’S STUDENT IS SINGLE & PARENT’S CONTRIBUTION IS > $23,887CONTRIBUTION IS $23,887CONTRIBUTION IS < $23,887 NEED CATEGORY 1NEED CATEGORY STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR FEDERAL STAFFORD LOANINSTITUTIONAL GRANTS & ONLYLOANS

WHY USE PARENTS’ INCOME AND ASSET INFO? 1. STUDENTS FROM LOW-INCOME BACKGROUNDS USUALLY ENTER MEDICAL SCHOOL WITH A SUBSTANTIALLY HIGHER DEBT THAN STUDENTS FROM MORE AFFLUENT FAMILIES. 2. IN GENERAL, STUDENTS FROM AFFLUENT BACKGROUNDS ARE ABLE TO CALL ON THEIR PARENTS FOR FINANCIAL HELP, WHEREAS STUDENTS FROM LOWER INCOME FAMILIES DO NOT HAVE ACCESS TO THIS RESOURCE. 3. IF LIMITED SCHOOL-BASED FUNDS WERE DISTRIBUTED EVENLY AMONG ALL STUDENTS IN THE SCHOOL, REGARDLESS OF PARENT INCOME, THE AMOUNT OF GRANT AND LOW-INTEREST LOAN MONEY AVAILABLE TO EACH STUDENT WOULD BE SUBSTANTIALLY REDUCED.

HOW YOUR AWARDS ARE DETERMINED MARRIED STUDENTS WITHOUT CHILDREN SPOUSE’S NET MONTHLY INCOME NEED CATEGORY STUDENT IS MARRIED & SPOUSE’SSTUDENT IS MARRIED, SPOUSE’S NET INCOME IS > $1926/MONTHINCOME $1926/MONTHINCOME < $1926/MONTH NEED CATEGORY 1NEED CATEGORY 2 STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR FEDERAL STAFFORD LOANSINSTITUTIONAL GRANTS & ONLYLOANS

FINANCIAL AWARD SAMPLE Single student without children EFC = $2083 (Estimated Family/Parent Contribution) Need Category 5 eligible for school aid $19, 980 – School Grant $4293 – School Loan TOTAL$24,273 Budget $42,550 Student Contribution - $1000 Financial Need$41, 550 School Aid - $24, 273 Unmet Need $17, 277 Federal Loans $8,500 Subsidized Stafford ($8500 max) $8,777 Unsubsidized Stafford ($30,000 max) $8,777 Unsubsidized Stafford ($30,000 max) Unmet Need $0

FINANCIAL AWARD SAMPLE Single student without children EFC = $23,900 (Estimated Family/Parent Contribution) Need Category 1 Not Eligible for School Aid$0 Budget $42,550 Student Contribution - $1000 Financial Need$41,550 School Aid - $0 Unmet Need $41,550 Federal Loans - $8,500 Subsidized Stafford - $30,000 Unsubsidized Stafford - $30,000 Unsubsidized Stafford Unmet Need $3020 Alternative Loans

CATEGORIES OF FINANCIAL AID INSTITUTIONAL AID INSTITUTIONAL AID –BASED ON STUDENT’S & PARENTS’ INCOME AND ASSETS –INCLUDES GRANTS, SCHOLARSHIPS, FELLOWSHIPS AND LOANS OUTSIDE GRANTS AND SCHOLARSHIPS OUTSIDE GRANTS AND SCHOLARSHIPS –USUALLY RESTRICTIVE IN NATURE –BASED ON FACTORS SUCH AS THE AREA OF RESIDENCE, ETHNICITY, RELIGIOUS AFFILIATION, ETC. –EXAMPLES: NATIONAL MEDICAL FELLOWSHIPS, BECA SCHOLARSHIP, NATIONAL HISPANIC SCHOLARSHIP, THE CHINESE AMERICAN MEDICAL SOCIETY SCHOLARSHIP

CATEGORIES OF FINANCIAL AID OUTSIDE LOANS OUTSIDE LOANS –FEDERAL LOANS (SUBSIDIZED AND UNSUBSIDIZED) HAVE BETTER TERMS THAN THE ALTERNATIVE LOANS HAVE BETTER TERMS THAN THE ALTERNATIVE LOANS INTEREST CAP AT 8.25% INTEREST CAP AT 8.25% DON’T REQUIRE CREDIT CHECK DON’T REQUIRE CREDIT CHECK –PRIVATE LOANS (THROUGH OUTSIDE LENDERS) ALTERNATIVE LOANS - REQUIRE CREDIT CHECK ALTERNATIVE LOANS - REQUIRE CREDIT CHECK OTHER OUTSIDE AGENCY LOANS - MAY OR MAY NOT REQURE CREDIT CHECKS OTHER OUTSIDE AGENCY LOANS - MAY OR MAY NOT REQURE CREDIT CHECKS CAN’T BE CONSOLIDATED WITH YOUR FEDERAL LOANS CAN’T BE CONSOLIDATED WITH YOUR FEDERAL LOANS

CATEGORIES OF FINANCIAL AID SERVICE OBLIGATION PROGRAMS SERVICE OBLIGATION PROGRAMS –REQUIRE A COMMITMENT TO PRACTICE IN A PARTICULAR FIELD OF MEDICINE OR IN A SPECIFIC GEOGRAPHIC LOCATION –HAVE STIFF PENALTIES FOR DEFAULTING ON THE SERVICE COMMITMENT –EXAMPLES: ARMED FORCES SCHOLARSHIP PROGRAMS, THE NATIONAL HEALTH SERVICE CORPS AND THE PRIMARY CARE LOAN LOAN REPAYMENT PROGRAMS LOAN REPAYMENT PROGRAMS –PROVIDE BACK-END HELP AFTER GRADUATION FROM MED SCHOOL BY REPAYING ALL OR A PORTION OF A STUDENT’S OUTSTANDING EDUCATIONAL DEBT –MOST ARE TIED TO PRACTICING IN A PARTICULAR AREA OF MEDICINE OR SPECIFIED GEOGRAPHIC LOCATION –EXAMPLES: NATIONAL HEALTH SERVICE CORPS LOAN REPAYMENT PROGRAM, THE CALIFORNIA STATE LOAN REPAYMENT PROGRAM, ETC.

MEDICAL SCHOOL DEBT AVERAGE ALL SCHOOLS $115,218 AVERAGE PUBLIC SCHOOLS $104,385 AVERAGE PRIVATE SCHOOLS $133,357 AVERAGE UCSD $75,126 *ACCORDING TO THE AAMC FOR 2004 **INCLUDES PRE-MATRICULATION DEBT

ESTIMATE OF REPAYMENT REPAYMENT PERIOD TOTAL PAID IN FORBEARANCE TOTAL PAID IN REPAYMENT TOTAL PAID OVERALL MONTHLY PAYMENT IN REPAYMENT 10 YEARS PAYMENT BEGINS AFTER GRADUATION $147,183$147,183$1, YEARS $33,000 OR $688/MO $174,625$207,625$ YEARS $33,000 OR $688/MO $236,535$269,535$788 LOAN AMOUNT OF $100,000 AT 8.25% INTEREST RATE

CAN I AFFORD THE MONTHLY PAYMENT ON MY SALARY ? AVERAGE ANNUAL SALARY OF FAMILY PRACTITIONER GROSS MONTHLY PAY FOR A SALARY OF $142,000/YEAR MONTHLY LOAN PAYMENT BASED ON 30-40% OF SALARY $142,000 $11,833/MO $ $4733/MO

THE IMPORTANCE OF CREDIT RATING ALTERNATIVE LOAN PROGRAMS REQUIRE A CREDIT CHECK ALTERNATIVE LOAN PROGRAMS REQUIRE A CREDIT CHECK LENDER WILL LOOK AT: LENDER WILL LOOK AT: –DEROGATORY CREDIT –EDUCATIONAL LOAN DEFAULTS –HISTORY OF LATE PAYMENTS ON CONSUMER DEBT

WHAT’S A GOOD CREDIT SCORE? EXCELLENT EXCELLENT VERY GOOD TO EXCELLENT VERY GOOD TO EXCELLENT GOOD TO VERY GOOD GOOD TO VERY GOOD FAIR TO GOOD FAIR TO GOOD POOR TO FAIR POOR TO FAIR BELOW 600VERY POOR TO POOR BELOW 600VERY POOR TO POOR

HOW TO MAINTAIN GOOD CREDIT? RETIRE CREDIT CARD DEBT BEFORE ENTERING MEDICAL SCHOOL RETIRE CREDIT CARD DEBT BEFORE ENTERING MEDICAL SCHOOL OBTAIN A COPY OF YOUR CREDIT REPORT AND CLEAN UP ANY NEGATIVE CREDIT THAT YOU CAN OBTAIN A COPY OF YOUR CREDIT REPORT AND CLEAN UP ANY NEGATIVE CREDIT THAT YOU CAN DON’T BORROW MORE THAN YOU NEED DON’T BORROW MORE THAN YOU NEED ALWAYS KNOW EXACTLY HOW YOU WILL REPAY THE DEBT AND HOW IT WILL AFFECT YOUR MONTHLY BUDGET ALWAYS KNOW EXACTLY HOW YOU WILL REPAY THE DEBT AND HOW IT WILL AFFECT YOUR MONTHLY BUDGET

WHAT TO DO IF DENIED? OBTAIN AND REVIEW CREDIT REPORT USED IN DECISION PROCESS BY LENDER OBTAIN AND REVIEW CREDIT REPORT USED IN DECISION PROCESS BY LENDER CORRECT ANY ERRORS CONTAINED IN REPORT CORRECT ANY ERRORS CONTAINED IN REPORT APPEAL CREDIT DECISION, IF APPROPRIATE APPEAL CREDIT DECISION, IF APPROPRIATE CONSIDER CO-SIGNER OR NON-STUDENT BORROWER AS OPTION, IF AVAILABLE CONSIDER CO-SIGNER OR NON-STUDENT BORROWER AS OPTION, IF AVAILABLE

QUESTIONS??? Contact the Financial Aid Office