Winter Preview Financing Your WPI Education February 2010

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

Time Lines – what do I need to do and when?  February 1, 2010 Submit your FAFSA and CSS Profile Applications if you intend to apply for need based financial aid.  April - May 2010* Start researching financing options.  June 2010* Apply for financing. * Applies to those who plan to use financing to pay the WPI Tuition bill. Worcester Polytechnic Institute 3

Time Lines – continued  Early July Bills sent electronically to students.  July 31, 2010 Fall 2010 bills due.  August 22, 2010 Orientation / move in day. Worcester Polytechnic Institute 4

Billing – WPI Bursar’s Office WPI Tuition bills (e-Bills) are sent twice per year; fall & spring semesters. WPI bills are students electronically. Cashnet is WPI’s vender partner. Student and authorized payer can view the bill and account activity as well as pay the bill online through a secure website. Students need a WPI ID and PIN to log into site. Students can set up an authorized payer to also view and pay bill. Once set up by the student, authorized payers will also receive all electronic bill notifications sent to student. Worcester Polytechnic Institute 5

Billing - continued Can pay bill through the following: –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). –Parent or Student loans 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 : Federal Direct Plus Loan (Federal Loan for parents of undergraduate students) Fixed interest rate of 7.9%. Repayment starts month after 2 nd disbursement. Some deferment and forbearance capabilities Worcester Polytechnic Institute 7

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. To view a list of current suggested lenders please visit our website at: Worcester Polytechnic Institute 8

Financing Options continued  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 To view a list of current suggested lenders please visit our website at: 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 June to early July. Lenders will not have their applications for available on their sites until early April. Be aware of how long the credit decision is good for, they can range from 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 is informed that the lender has received the signed promissory note (electronically or hard copy), and all loan disclosures have been signed and received, 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.  COA – financial aid/resources = maximum borrowing (loan)

Worcester Polytechnic Institute 13  We will not certify a loan until it has been approved and the promissory note and loan disclosures have been received by the lender.  Most loans are sent via EFT (electronic funds transfer) and are posted directly to the students account. The Loan Process - continued

Worcester Polytechnic Institute 14  If students need some of loan money for books, they can set up an “auxiliary cash account” with the WPI Bursar’s Office. 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 (DTC loans), 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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