Financing Your Education at Wayne State University School of Medicine Presented by Deirdre Moore, Interim Director Office of Student Financial Aid Presented by Deirdre Moore, Interim Director Office of Student Financial Aid

You are going to medical school, but how are you going to pay for it?? We’ll help you answer that question!

Today’s Session Will Answer the Following Questions: 1.What is financial aid and how is eligibility determined? 2.How do you apply for financial aid? 3.When do you apply for financial aid? 4.What types of financial aid are available? 1.What is financial aid and how is eligibility determined? 2.How do you apply for financial aid? 3.When do you apply for financial aid? 4.What types of financial aid are available?

Today’s Session Will Answer the Following Questions: 5.What is a typical award offer? 6.How are you notified of your award? 7. When is financial aid disbursed? 8. Where do you go for more information? 5.What is a typical award offer? 6.How are you notified of your award? 7. When is financial aid disbursed? 8. Where do you go for more information?

#1: Financial Aid and How Eligibility is Determined

What is Financial Aid? Non-Need Based Aid –Grants –Scholarships –Private Loans –Service Obligation Programs Need Based Aid (determined from FAFSA) –Grants –Scholarships –Federal Loans –Federal Work Study Non-Need Based Aid –Grants –Scholarships –Private Loans –Service Obligation Programs Need Based Aid (determined from FAFSA) –Grants –Scholarships –Federal Loans –Federal Work Study

Non-Need Based Aid Eligibility is based on factors such as: –Academic performance –Community service –Affiliation with a particular organization –Special interests –Service obligation –Credit history Eligibility is based on factors such as: –Academic performance –Community service –Affiliation with a particular organization –Special interests –Service obligation –Credit history

Need Based Aid Eligibility is determined from the Free Application for Federal Student Aid (FAFSA): School’s Cost of Attendance -Expected Family Contribution __________________________ Unmet Need (Amount of need-based aid that can be awarded) Eligibility is determined from the Free Application for Federal Student Aid (FAFSA): School’s Cost of Attendance -Expected Family Contribution __________________________ Unmet Need (Amount of need-based aid that can be awarded)

Cost of Attendance Costs associated with attending WSU SOM for one academic year –Tuition and Omnibus Fee –Books and Supplies –Living Expenses –Personal and Miscellaneous –Transportation Costs associated with attending WSU SOM for one academic year –Tuition and Omnibus Fee –Books and Supplies –Living Expenses –Personal and Miscellaneous –Transportation

Est. Cost of Attendance MI Resident Year I Students –Resident Tuition Rate: $24,633 –Books and Supplies: 1,280 –Living Away Expenses: 13,060 –Personal and Miscellaneous: 4,236 –Transportation: 3,060 TOTAL RESIDENT COA: $46,269 –Resident Tuition Rate: $24,633 –Books and Supplies: 1,280 –Living Away Expenses: 13,060 –Personal and Miscellaneous: 4,236 –Transportation: 3,060 TOTAL RESIDENT COA: $46,269

Est. Cost of Attendance MI Non-Resident Year I Students –Non-Resident Tuition Rate: $49,475 –Books and Supplies: 1,280 –Living Away Expenses: 13,060 –Personal and Miscellaneous: 4,236 –Transportation: 3,677 TOTAL NON-RESIDENT COA: $ 71,728 –Non-Resident Tuition Rate: $49,475 –Books and Supplies: 1,280 –Living Away Expenses: 13,060 –Personal and Miscellaneous: 4,236 –Transportation: 3,677 TOTAL NON-RESIDENT COA: $ 71,728

Cost of Attendance (cont’d) Items such as health insurance and uninsured medical expenses are not automatically included Budgets do not cover expenses for spouses or dependents Please contact OSFA for individual budget adjustments Items such as health insurance and uninsured medical expenses are not automatically included Budgets do not cover expenses for spouses or dependents Please contact OSFA for individual budget adjustments

Expected Family Contribution Determined from FAFSA –For Loan Only Applicants Information provided by student (and spouse, if married) –For Campus-Based Aid Applicants Information provided by parent(s), in addition to student (and spouse, if married) Determined from FAFSA –For Loan Only Applicants Information provided by student (and spouse, if married) –For Campus-Based Aid Applicants Information provided by parent(s), in addition to student (and spouse, if married)

Why is parental information required when applying for Campus-Based Aid? A family’s ability to pay for educational costs must be evaluated in a consistent manner so that limited resources can be awarded equitably.

#2: How To Apply for Financial Aid

How to Apply for Non-Need Based Financial Aid Contact the appropriate organization, lender, or other provider Contact OSFA –Alternative Loans –National Health Services Corp –Posted scholarships WSU SOM scholarship recipients are selected during admissions process Contact the appropriate organization, lender, or other provider Contact OSFA –Alternative Loans –National Health Services Corp –Posted scholarships WSU SOM scholarship recipients are selected during admissions process

How to Apply for Need-Based Financial Aid Complete the FAFSA Online – –Include parental data if applying for campus-based aid –List our school code, E00570, in the school release section Complete the FAFSA Online – –Include parental data if applying for campus-based aid –List our school code, E00570, in the school release section

How to Apply for Need-Based Financial Aid (cont’d) FAFSA General Eligibility Requirements – U.S. citizen or eligible non-citizen –Males must be registered with Selective Service –Valid Social Security Number –Not in default on prior federal loans FAFSA General Eligibility Requirements – U.S. citizen or eligible non-citizen –Males must be registered with Selective Service –Valid Social Security Number –Not in default on prior federal loans

WSU SOM Application Process All Applicants (in addition to FAFSA): –Complete Entrance Counseling at if a first- time borrower –Complete Verification if: selected by federal processor, or applying for Campus-Based Aid All Applicants (in addition to FAFSA): –Complete Entrance Counseling at if a first- time borrower –Complete Verification if: selected by federal processor, or applying for Campus-Based Aid

WSU SOM Application Process (cont’d) Verification Process: –Submit Verification Worksheet –Submit Income Documentation for Self, Spouse (if married), and Parents (if applying for CB Aid) Forms available on our Web site in February at Verification Process: –Submit Verification Worksheet –Submit Income Documentation for Self, Spouse (if married), and Parents (if applying for CB Aid) Forms available on our Web site in February at

#3: When To Apply for Financial Aid

When To Apply for Financial Aid Non-Need Based Aid: – Check with individual provider – deadline may be earlier than March Need Based Aid: –File the FAFSA after January 1st –Submit required documents to OSFA by March 1st to meet priority deadline Non-Need Based Aid: – Check with individual provider – deadline may be earlier than March Need Based Aid: –File the FAFSA after January 1st –Submit required documents to OSFA by March 1st to meet priority deadline

#4: Types of Financial Aid

Types of Financial Aid Grants and Scholarships Federal Service Obligation Programs Loans –Federal –Institutional –Private Sources Grants and Scholarships Federal Service Obligation Programs Loans –Federal –Institutional –Private Sources

Federal Service Obligation Programs Indian Health Service (IHS) National Health Service Corps (NHSC) United States Armed Forces Health Professions –Air Force/Army/Navy Indian Health Service (IHS) National Health Service Corps (NHSC) United States Armed Forces Health Professions –Air Force/Army/Navy

Loans Loans are funds that must be repaid by the borrower. There are four sources: –Federal Title IV –Federal Title VII –Institutional –Private Loans are funds that must be repaid by the borrower. There are four sources: –Federal Title IV –Federal Title VII –Institutional –Private

Federal Title IV Student Loans Administered by the U.S. Department of Education Eligibility determined from FAFSA Two Types: –Stafford Subsidized, Unsubsidized, Graduate PLUS –Perkins Administered by the U.S. Department of Education Eligibility determined from FAFSA Two Types: –Stafford Subsidized, Unsubsidized, Graduate PLUS –Perkins

Stafford Student Loans Fixed interest rate of 6.8% Standard 10 year repayment and $50 minimum monthly payment, with other options available Deferment and forbearance options Student borrows from a lender that participates in Federal Family Educational Loan Program (FFELP) Fixed interest rate of 6.8% Standard 10 year repayment and $50 minimum monthly payment, with other options available Deferment and forbearance options Student borrows from a lender that participates in Federal Family Educational Loan Program (FFELP)

Stafford Student Loans (cont’d) Grace period of 6 months after enrollment ceases Maximum 1.5% origination fee (after 7/1/07) deducted from loan proceeds PRIOR to disbursement Can be Subsidized or Unsubsidized depending on student’s unmet need Grace period of 6 months after enrollment ceases Maximum 1.5% origination fee (after 7/1/07) deducted from loan proceeds PRIOR to disbursement Can be Subsidized or Unsubsidized depending on student’s unmet need

Subsidized Stafford Student Loan Interest is subsidized by the federal government during in-school, grace, and approved deferment periods Annual maximum of $8,500 Interest is subsidized by the federal government during in-school, grace, and approved deferment periods Annual maximum of $8,500

Unsubsidized Stafford Student Loan Interest is NOT subsidized by the federal government and begins accruing at disbursement Borrower chooses whether to pay interest or capitalize Interest is NOT subsidized by the federal government and begins accruing at disbursement Borrower chooses whether to pay interest or capitalize

Unsubsidized Stafford Student Loan (cont’d) –Annual Maximum of $32,000 plus: Additional $8,500 if not eligible for Subsidized Loans Additional $2,222 for each month of enrollment beyond the standard 9- month academic year –Annual Maximum of $32,000 plus: Additional $8,500 if not eligible for Subsidized Loans Additional $2,222 for each month of enrollment beyond the standard 9- month academic year

Graduate Plus Loans As of 7/01/06 Borrow through FFEL loan providers Borrow must be creditworthy Maximum eligibility is COA minus other aid, no annual or aggregate limits Must be certified by OSFA Borrow through FFEL loan providers Borrow must be creditworthy Maximum eligibility is COA minus other aid, no annual or aggregate limits Must be certified by OSFA

Graduate Plus Loans (cont’d) Fixed interest rate of 8.5% Origination fee of 3% Interest is not subsidized and begins accruing upon disbursement Same payment, deferment, forbearance and cancellation provisions as unsubsidized Federal Stafford loans Fixed interest rate of 8.5% Origination fee of 3% Interest is not subsidized and begins accruing upon disbursement Same payment, deferment, forbearance and cancellation provisions as unsubsidized Federal Stafford loans

Aggregate Loan Limits for Health Professions Students Stafford Subsidized and Unsubsidized Loans –$189,125 of which $65,500 can be Subsidized. –Includes undergraduate debt. Perkins Loans –$40,000 including undergraduate debt. Stafford Subsidized and Unsubsidized Loans –$189,125 of which $65,500 can be Subsidized. –Includes undergraduate debt. Perkins Loans –$40,000 including undergraduate debt.

Aggregate Loan Limits for Health Professions Students Stafford Graduate PLUS –Currently no annual or aggregate maximum Stafford Graduate PLUS –Currently no annual or aggregate maximum

Aggregate Loan Limits for Health Professions Students (cont’d) Stafford Subsidized and Unsubsidized Loans –If you borrowed prior to medical school, you will reach your aggregate maximum if you borrow your annual maximum –Maximum borrowing for four years of medical school will total $179,777 Stafford Subsidized and Unsubsidized Loans –If you borrowed prior to medical school, you will reach your aggregate maximum if you borrow your annual maximum –Maximum borrowing for four years of medical school will total $179,777

Perkins Loan 5% fixed interest rate Interest is subsidized by the federal government during in-school, grace, and approved deferment periods 5% fixed interest rate Interest is subsidized by the federal government during in-school, grace, and approved deferment periods

Perkins Loan (cont’d) Student borrows from the school Awarded to Campus-Based Aid eligible students No loan fees Grace period of 9 months after enrollment ceases Student borrows from the school Awarded to Campus-Based Aid eligible students No loan fees Grace period of 9 months after enrollment ceases

Perkins Loan (cont’d) Standard 10 year repayment and $40 minimum monthly payment Deferment and forbearance options Can be consolidated with Stafford Loans after graduation Standard 10 year repayment and $40 minimum monthly payment Deferment and forbearance options Can be consolidated with Stafford Loans after graduation

Federal Title VII Student Loans Administered by the U.S. Department of Health and Human Services 5% fixed interest rate Need-based eligibility determined by FAFSA results Participating schools select recipients Administered by the U.S. Department of Health and Human Services 5% fixed interest rate Need-based eligibility determined by FAFSA results Participating schools select recipients

Federal Title VII Student Loans (cont’d) Annual maximum up to COA minus other aid Grace period of 12 months after enrollment ceases Deferment and forbearance options available Full time enrollment is required Annual maximum up to COA minus other aid Grace period of 12 months after enrollment ceases Deferment and forbearance options available Full time enrollment is required

Federal Title VII Student Loans (cont’d) Student borrows from school Student must be Campus-Based Aid eligible Programs: –Primary Care Loan (PCL) –Loans for Disadvantaged Students (LDS) Student borrows from school Student must be Campus-Based Aid eligible Programs: –Primary Care Loan (PCL) –Loans for Disadvantaged Students (LDS)

Federal Title VII: Primary Care Loan Student must sign contract to enter residency in, and practice in, primary care until loan is repaid in full Failure to comply with contract will result in 18% interest rate Awarded to Year III and IV students Student must sign contract to enter residency in, and practice in, primary care until loan is repaid in full Failure to comply with contract will result in 18% interest rate Awarded to Year III and IV students

Federal Title VII: Loans for Disadvantaged Students Student must come from disadvantaged background Student’s parent(s) must meet poverty guidelines Student must come from disadvantaged background Student’s parent(s) must meet poverty guidelines

WSU SOM Institutional Loans 6% fixed interest rate No loan fees School is the lender Awarded based on unmet need and availability of funds 6% fixed interest rate No loan fees School is the lender Awarded based on unmet need and availability of funds

Private Loans Also called Alternative Loans Maximum eligibility is COA minus other aid Must be certified by OSFA Variable interest rate with no cap Interest is not subsidized and begins accruing upon disbursement Also called Alternative Loans Maximum eligibility is COA minus other aid Must be certified by OSFA Variable interest rate with no cap Interest is not subsidized and begins accruing upon disbursement

Private Loans (cont’d) Borrower must be credit worthy Borrower with co-signer is sometimes eligible for better interest rate and repayment terms Deferment for residency is usually available Borrower must be credit worthy Borrower with co-signer is sometimes eligible for better interest rate and repayment terms Deferment for residency is usually available

#5: Sample Award Offers for Loans Only and Campus-Based Aid

Sample Award – Loans Only Year I Resident Est. COA $46,269 Minus EFC - 0 Stafford Subsidized Loan - 8,500 Stafford Unsubsidized Loan - 34,222 Graduate PLUS Loan - 3,547 _______ Unmet Need $ 0 Total Aid Awarded = $46,269 Year I Resident Est. COA $46,269 Minus EFC - 0 Stafford Subsidized Loan - 8,500 Stafford Unsubsidized Loan - 34,222 Graduate PLUS Loan - 3,547 _______ Unmet Need $ 0 Total Aid Awarded = $46,269

Sample Award – Loans Only Year I Non-Resident COA$71,728 Minus EFC- 0 Stafford Subsidized Loan- 8,500 Stafford Unsubsidized Loan- 34,222 Graduate PLUS Loan- 29,006 ________ Unmet Need $ 0 Total Aid Awarded = $71,728 Year I Non-Resident COA$71,728 Minus EFC- 0 Stafford Subsidized Loan- 8,500 Stafford Unsubsidized Loan- 34,222 Graduate PLUS Loan- 29,006 ________ Unmet Need $ 0 Total Aid Awarded = $71,728

Sample Award: Campus-Based Aid Year I Resident COA $46,269 Minus EFC- 0 BOG Grant- 8,000 Perkins Loan- 5,000 Stafford Subsidized Loan- 8,500 Stafford Unsubsidized Loan- 24,769 _______ Unmet Need $ 0 Total Aid Awarded = $46,269 Year I Resident COA $46,269 Minus EFC- 0 BOG Grant- 8,000 Perkins Loan- 5,000 Stafford Subsidized Loan- 8,500 Stafford Unsubsidized Loan- 24,769 _______ Unmet Need $ 0 Total Aid Awarded = $46,269

Sample Award: Campus-Based Aid Year I Non-Resident COA$71,728 Minus EFC- 0 BOG Grant- 8,000 Perkins Loan- 5,000 Stafford Subsidized Loan- 8,500 Stafford Unsubsidized Loan- 34,222 Graduate PLUS Loan- 16,006 Unmet Need $ 0 Total Aid Awarded = $71,728 Year I Non-Resident COA$71,728 Minus EFC- 0 BOG Grant- 8,000 Perkins Loan- 5,000 Stafford Subsidized Loan- 8,500 Stafford Unsubsidized Loan- 34,222 Graduate PLUS Loan- 16,006 Unmet Need $ 0 Total Aid Awarded = $71,728

#6: How You Are Notified of Your Award

Notice of Financial Aid Award Electronic award notification will be e- mailed to your WSU Access ID via Pipeline. Accept your award on-line. If accepting Federal Stafford or Perkins Loans, you will receive notification to complete an online Master Promissory Note for each loan type. Electronic award notification will be e- mailed to your WSU Access ID via Pipeline. Accept your award on-line. If accepting Federal Stafford or Perkins Loans, you will receive notification to complete an online Master Promissory Note for each loan type.

#6: Financial Aid Disbursement Schedule

Disbursements of Financial Aid Two disbursements for federal aid: –Beginning of academic year –Midpoint of loan period Year I Academic Year –8/07/06 to 5/25/07 Year I Disbursement Dates: –7/28/06 and 01/02/07 Two disbursements for federal aid: –Beginning of academic year –Midpoint of loan period Year I Academic Year –8/07/06 to 5/25/07 Year I Disbursement Dates: –7/28/06 and 01/02/07

Disbursements of Financial Aid (cont’d) Funds are sent directly to school and applied to student account Once applied, funds in excess of charges create credit balance Credit balance will generate refund check Refund check is mailed to student Funds are sent directly to school and applied to student account Once applied, funds in excess of charges create credit balance Credit balance will generate refund check Refund check is mailed to student

#7: Where To Go For More Information

For More Information: WSU School of Medicine Web site – Association of American Medical Colleges – National Student Loan Data System – WSU School of Medicine Web site – Association of American Medical Colleges – National Student Loan Data System –

For More Information (cont’d): Mapping Your Future (Entrance Counseling) – Financial Aid Information Page – Health and Human Services: –National Health Service Corps Mapping Your Future (Entrance Counseling) – Financial Aid Information Page – Health and Human Services: –National Health Service Corps

For More Information (cont’d): Military: – – – Military: – – –

Office of Student Financial Aid (313) Hours: Monday through Friday 8:30 a.m. to 5:00 p.m. Hours: Monday through Friday 8:30 a.m. to 5:00 p.m.

Questions?Questions?