The Real Cost of Your Public Health Degree Sponsored by the Association of Schools of Public Health Prudence Goss Emory University Rollins School of Public Health Paul S. Garrard PGPresents, Independent Student Loan Consulting

Prudence Goss Associate Director of Admissions and Recruitment Rollins School of Public Health at Emory University

ASPH Member Schools

Paul S. Garrard Founder and President PGPresents, LLC Independent Student Loan Consulting

Today’s takeaways Minimize impact of borrowing on career decisions Preserve your options at repayment Expensive, but affordable Learn from your colleagues

Discussion topics Costs and ways to reduce them Student loan portfolios Repayment objectives and repayment options Student loans and credit Resources and action items

Discussion topics Costs and ways to reduce them Student loan portfolios Repayment objectives and repayment options Student loans and credit Resources and action items

Costs of PH degree Opportunity costs – Lost income Out of pocket costs – Cost of attendance* Financing costs – Costs associated with borrowing * Your Financial Aid Budget

Costs of PH degree Opportunity costs – Lost income Out of pocket costs – Cost of attendance* Financing costs – Costs associated with borrowing * Your Financial Aid Budget

Control what you can

Out of pocket (COA)* Tuition$27,600 Fees$ 492 Books and supplies$ 822 Living expenses$ 9,300 Insurance $ 1,267 TOTAL$39,481 * Cost of Attendance (also called your Financial Aid Budget)

Costs of PH degree Opportunity costs – Lost income Out of pocket costs – Cost of attendance* Financing costs – Costs associated with borrowing * Your Financial Aid Budget

Financing costs Costs associated with borrowing Impacted by – Interest rates, fees, and capitalization – Repayment term and repayment plan selected – Repayment strategy – Use and cost of postponement options

Reducing your cost Control what you can control Keep consumer debt in check Pay interest as it accrues Target payments on higher rate loans whenever possible Use caution with private loans

Discussion topics Costs and ways to reduce them Student loan portfolios Repayment objectives and repayment options Student loans and credit Resources and action items

Your portfolio Federal Stafford Loans* Federal Grad PLUS Loans* Federal Consolidation Loans* Federal Perkins Loans* Institutional Loans Private Loans * These loans are reflected on NSLDS at

Stafford and Grad PLUS Direct Loans* – Federal Stafford, Grad PLUS, Consolidation directly from federal government (no private lender) – All new loans are Direct Loans FFELP** – Federal Stafford, Grad PLUS, Consolidation from private lenders * Only lender for Stafford, Grad PLUS, Consolidation ** Federal Family Education Loan Program

NSLDS* Database of federal loans Stafford, Grad PLUS, Consolidation, Perkins Information on loan servicers – Click on number of each loan for back page with more information on each loan, including name of loan servicer * National Student Loan Data System at

Federal or private Federal Fixed interest rate Multiple repayment options, include IBR No fees to postpone May borrow up to COA Minimal or no credit check U.S. citizen or Permanent Resident PSLF eligible* Private Usually variable rate Limited repayment options, no IBR Possible fees to postpone Lender sets limits Based on credit, may need cosigner U.S. citizen or Permanent resident Not PSLF eligible* * Public Service Loan Forgiveness

Public Service Loan Forgiveness Designed to help borrowers by forgiving a portion of their loan balance in exchange for service Certain requirements must be met Public service definition includes non-profit employment* * ASPH estimates at least 75% of Class of 2011 graduates working in non-profit employment

Private loans Consider exhausting federal eligibility first before considering private loans Do your homework, ask questions Talk with your Financial Aid Office before taking out private loans

Changes in student loans Loss of subsidy on new loans* No discounts for timely payment Changes to repayment based on income Use of multiple loan servicers by Department of Education* * On new Stafford Loans for enrollment periods beginning on or after July 1, 2012

Discussion topics Costs and ways to reduce them Student loan portfolios Repayment objectives and repayment options Student loans and credit Resources and action items

Your objectives Protect income, maximize cash flow Limit the damage of interest accrual and capitalization Convenience of one loan provider Repayment help in exchange for service commitment

Repayment options* Standard (Level) Graduated Income “related” – Income Based Repayment Extended * Stafford, Grad PLUS, Federal Consolidation

Repayment at $50,000 Standard (Level) – $636 per month for 10 years – $26,287 total interest cost – $76,287 total repayment cost Extended – $383 per month for 25 years – $65,024 total interest cost – $115,024 total repayment cost Assumptions: Stafford Loan, unsubsidized at 6.8%, equal disbursements over four semesters

Discussion topics Costs and ways to reduce them Student loan portfolios Repayment objectives and repayment options Student loans and credit Resources and action items

FICO factors Types of credit used Payment history New credit Length of credit history Amounts owed 35% 30% 10% 15% Source: MyFICO.com

Credit “Double Whammy” Repayment does not usually begin until after graduation – Hard to build credit in school Any delinquency can adversely impact credit in exaggerated way – Credit may be somewhat in “limbo” during school

Discussion topics Costs and ways to reduce them Student loan portfolios Repayment objectives and repayment options Student loans and credit Resources and action items

Resources Financial Aid Office – Comprehensive site, with calculators – Database of federal loans – Information on Income Based Repayment – Information on PSLF* * Public Service Loan Forgiveness

Your TO DO items Borrow responsibly and update repayment numbers regularly Track loans, read your mail, notify servicers of changes Keep loans in Good Standing Establish relationship with FAO

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THANK YOU! Association of Schools of Public Health