A Closer Look Open House Financing Your WPI Education April 2009

Worcester Polytechnic Institute 2 Agenda  Time lines – what do I need to do and when  Billing  Financing Options  Questions

Worcester Polytechnic Institute 3 Time Lines – What do I need to do and When  June 23, 2009 – Non-WPI Awards information sheet due to the Office of Financial Aid. The sheets will be mailed home the first week of June.  July/August - Signed MPNs (Master Promissory Notes) & online entrance counseling for Federal Stafford and Perkins Loans  June 30, 2009 – Bills sent electronically to students.  July 31, 2009 – Fall 2009 bills due  August 23, 2009 – Orientation / move in day.

Worcester Polytechnic Institute 4 Billing  Tuition Bills: E-Bills sent twice a year (once per semester). Half of the annual cost is billed each semester. Fall bill sent late June with late July due date. Spring bill sent early December with early January due date. Balance due = total charges for semester less ½ financial aid credits (loan fees deducted from proceeds) and other resources. Pending grants and loans appear as deductions from balance due initially. Actual proceeds from pending aid and loans may vary from estimated amount. May see changes on bills. Federal Work Study and Federal Community Service Work Study funds cannot be deducted from bill. Paid directly to students for hours worked.

Billing WPI bills all students electronically. Cashnet is WPI’s vendor partner. Notification that bill is ready to be viewed will be sent to student at WPI address and to anyone student sets up as authorized payer. Student needs WPI ID and PIN to login and set up authorized payer’s id, password, address. Student and authorized payer can view bill, account activity, pay online through secure website. Can pay through MC/Discover/AMEX (2.75% convenience fee) online, electronic check (no fee), paper check in mail, wire transfers, 12-month pay plan (TMS), cash and check in person (2 nd floor Boynton Hall). Worcester Polytechnic Institute 5

Billing Charges for: Tuition (flat rate, overload may apply) Fees (social fee and health fee) Room Meals Health insurance – Massachusetts requires full-time students to be covered under qualified health plan, will be billed unless provide evidence of coverage, can do so online. Damage and housing deposits Miscellaneous fees (kits, late enrollment, late registration, late payment) Worcester Polytechnic Institute 6

Financing Options  Monthly Payment Plans : Tuition Management Systems (TMS) $100 Application Fee. Can use in combination with loans, out-of-pocket payments. Pay bill over 12 months starting in June. No interest. Half of annual contract is credited to student account each semester.  Parent Loans : Parent Plus Loan (Federal Loan for parents of undergraduate students) Fixed interest rate of 8.5%. Repayment starts month after 2 nd disbursement. Some deferment and forbearance capabilities Apply at Worcester Polytechnic Institute 7

Financing Options continued Federal student loans – delayed disbursement –Perkins Campus based revolving loan fund ECSI is servicer Students notified starting mid-summer to complete entrance counseling and Master Promissory Note (MPN) online Proceeds credited once all steps completed –Stafford loans Externally funded Various lenders and servicers, can choose Students notified starting early summer to choose a lender, e-sign Master Promissory Note and complete Stafford Entrance Counseling Proceeds credited once all steps completed and disbursement date reached. Disbursement of funds delayed for first year students until late September but students are allowed to take a credit for the loan on the fall bill Worcester Polytechnic Institute 8

Financing Options continued  Private Parent Loans: Parent is applicant Eligibility based on credit score Payments start after 2 nd disbursement Interest rates and fees can vary No prepayment penalties Student may be considered a co-applicant.  Private Student Loans Student is applicant Payments deferred while student is in school Accrue interest while deferred Interest rates and fees can vary widely No prepayment penalties Typically requires a credit worthy cosigner Worcester Polytechnic Institute 9

Financing Options continued  How to choose a lender Interest Rate Borrower Benefits Terms Customer Service Worcester Polytechnic Institute 10

The Loan Process How the process works :  Apply for private loans (parent or student) no later than mid-June to early July. Many lenders currently have their applications for available on their sites. Be aware of how long the credit decision is good for, they can range from 60 – 180 days.  If at all possible, you should electronically sign your promissory note. Most lenders offer this capability. Worcester Polytechnic Institute 11

Loan Process How the process works: Worcester Polytechnic Institute 12  Once the private loan has been approved and the WPI Office of Financial Aid receives the promissory note (electronically or hard copy), the loan will be certified.  The WPI Office of Financial Aid then electronically certifies the loan. This means we have to verify that the amount you are borrowing is equal to or less than the total cost of education less the total financial aid awarded.

Worcester Polytechnic Institute 13  We will not certify a loan until it has been approved and the promissory note has been received by the lender.  Most loans are sent via EFT (electronic funds transfer) and are posted directly to the students account.  If students will need some of this money for books they can set up an “auxiliary cash account”. Since cash refunds cannot be issued to students until at least two weeks into the academic period, this allows students to buy books without waiting for the refund.  If a loan program does not require certification by the school, we cannot allow the student to take credit for the loan. Since the proceeds are mailed directly to the student, a payment needs to be made to the student’s account once the proceeds are received. The Loan Process continued

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