Financing Your Medical Education April 11, 2015

Federal School G41672 TCMC Need-based grants; must provide parental data on FAFSA Federal Loans – uses student data only to determine eligibility Apply for Financial Aid

Federal Loan Programs Federal Unsubsidized Direct Loan Federal Graduate PLUS Loan

Federal Loan Programs Federal Unsubsidized Direct Loan – not based on financial need, interest is charged during all periods, even while the student is in school and during grace and deferment periods. – Current interest rate is fixed at 6.21%

Federal Loan Programs Federal Graduate PLUS Loan – additional unsubsidized loan available to graduate/professional students. In addition to the annual loan limits and can be used to help pay for educational expenses up to the cost of attendance minus all other financial aid. – PLUS loan borrowers cannot have an adverse credit history (a credit check is done at the time of application). Good for 120 days (new regulation) – Current interest rate is fixed at 7.21%

Federal Loan Program Amounts Unsubsidized - $20,500 graduate student base amount Unsubsidized additional amount for MD students – $21,111 for 9.5 month academic year $40,500 2 nd year – $22,222 for 10 month academic year – $26,667 for 12 month academic year – Amounts prorated based on 9 months – Total Unsubsidized for 9.5 month $41,611

Federal Loan Program Amounts Federal Graduate PLUS Loan Amount – Cost of Attendance minus other financial aid equals the maximum that can be borrowed in PLUS Loan – Example $79,873 Cost of Attendance (PA Resident) - $41,611 Unsubsidized - ? Any other aid (grants /scholarships) = maximum PLUS Loan amount for the year

Cost of Attendance – PA Residents Pennsylvania Residents Educational Expenses Tuition $51,492 Student Service Fee $545 Technology Fee $1,420 Books/Medical Equipment $2,180 Health Insurance est $5,122 - opt out if covered under another plan Disability Insurance $50 Living Expenses Rent/Utilities $7,721 Food $2,574 Miscellaneous $5,529Indirect expenses Transportation $3,240 Total Budget $79,873 Direct Expenses pay to TCMC

Cost of Attendance Non-PA Residents Non-Pennsylvania Residents Educational Expenses Tuition $57,287 Student Service Fee $545 Technology Fee $1,420 Books/Medical Equipment $2,180 Health Insurance est $5,122 - opt out if covered under another plan Disability Insurance $50 Living Expenses Rent/Utilities $7,721 Food $2,574 Miscellaneous $5,529Indirect expenses Transportation $3,240 Total Budget $85,668 Direct Expenses

Loan Application Process Entrance Counseling Before any Unsubsidized or Direct PLUS Loan can be disbursed to your account, you must complete entrance loan counseling - a federal requirement that helps you to understand your responsibilities regarding your loan. You can complete this requirement on line at Sign in under Manage My Direct Loan using your PIN and then click on Entrance Counseling.

Loan Application Process Complete a Master Promissory Note – The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. – You will not have to fill out a new MPN for future loans. – Will have to complete separate MPNs for the Direct Unsubsidized and Direct PLUS Loan if you will be borrowing through both loan programs.

Loan Application Process PLUS Process – The PLUS Request is a 4-step process. Step 4 includes a credit check (New Regulation-credit check expires after 120 days). At the end of the PLUS process, an acknowledgement is created and sent to the borrower and the college. – The acknowledgement is used by the Financial Aid Office to certify your eligibility for the loan. You can request up to the amount of the cost of attendance or a lesser amount.

Loan Funds Loan funds will be disbursed to TCMC at the beginning of each semester. One half the approved amount, less fees, will be sent to the college in the fall and one half the approved amount will be sent in the spring. Origination fees – Unsubsidized Current Rate 1.073% Grad PLUS Current Rate 4.292%

Loan Funds Credit Balance Refunds – Amounts exceeding balance due TCMC create credit balance on student’s account – Credit balance refunds issued to student by Bursar’s Office within first 2 weeks of semester

Budgeting Your Expenses Live like a student now; you don’t want to live like a student later Don’t use credit cards; pay with cash Bring your own coffee Carpool Roommate(s) Cook in; don’t eat out Vacations – limit

Loan Calculators/Repayment Tools AAMC - MedLoans Organizer and Calculator AAMC – Financial literacy NSLDS - National Student Loan Data System - federal database stores your federal loan records Private Loans – contact servicer for information on in-school deferment or forbearance SALT-provides practical information on money management, budgeting, debt management and more!

Private/External Scholarships Explore private sources of funding Listing on TCMC financial aid website Military Scholarships National Health Service Corps Scholarship National Health Service Corps Loan Repayment Program

Questions? Contact information: (570) Thank you!