1. Borrowing Wisely September 8, 2010

2. Borrow Nothing At All Consider a Service Commitment ◦ Military Options ◦ National Health Service Corp ◦ Loan Repayment/Forgiveness Options State and federal programs database…… www.aamc.org\stloan

3. Borrow But Have It Forgiven Eligible Loans + Qualifying Payments + Qualifying Work ______________________ Public Service Loan Forgiveness

4. PSLF - Eligible Loans Any non-defaulted loan made under the Direct Loan Program ◦ Subsidized ◦ Unsubsidized ◦ Graduate PLUS ◦ Consolidated Loans ◦ Perkins loans are NOT eligible* ◦ Private loans are NOT eligible period *could consolidate with Direct Loans to become eligible

5. PSLF - Qualifying Payments Make 120 on-time monthly payments in one of the following plans: ◦ Standard ◦ Income Contingent ◦ Income Based (most affordable) Payments must be made while simultaneously working in Public Service Does not have to be continuous service

6. PSLF - Qualifying Work Employed full-time (30 hours) in a public service job ◦ Non-profit, tax exempt, 501(c)(3) organizations ◦ Government ◦ Military Service ◦ Public Schools and Colleges ◦ Most medical schools and teaching hospitals ◦ Search online: http://www.irs.gov/app/pub-78/http://www.irs.gov/app/pub-78/ Can work in more than one job

7. Borrow the Best Loans First Borrow all the unsubsidized loans first before borrowing a Graduate PLUS Borrow the summer unsubsidized loan and save it for the next year (so you may not have to borrow a Grad PLUS) Interested in Primary Care? Ask about a special loan during your fourth year.

8. Borrow Only What You Need Create a spending plan ◦ Track spending for a month or two to figure what you actually need to live on Borrow in small increments ◦ Tuition plus two months of living expenses ◦ Ask for additional loans later You can returned unused funds at the end of the semester

9. Borrow Less Borrowing $5,000 less per year will….. ◦ Reduce your monthly payment by $400 ◦ Reduce total loan cost by $39,000 ◦ Reduce repayment term by 2 years

10. Budgeting Examples $1860 per month$1360 per month (-$500) ExpenseBudget Rent$626 Utilities$150 Insurance$224 Food$260 Transportation$350 Personal$100 Entertainment$100 Clothing$50 ExpenseBudget Rent$500 Utilities$100 Insurance$180 Food$200 Transportation$255 Personal$50 Entertainment$50 Clothing$25 Incentive drawing! Track your spending this fall, send me your budgets with a few tips on how you SAVED money, and you’ll be entered into a drawing for a $50 gift card!

11. Track Your Borrowing Use the Medloans  Organizer and Calculator http://www.aamc.org/programs/first/ Organize and keep track of your loans Develop repayment strategies Specifically designed for medical students

12. Resources FIRST Facts: http://www.aamc.org/programs/first/stude nts/factsheets.htm http://www.aamc.org/programs/first/stude nts/factsheets.htm Practical Money Skills: http://www.practicalmoneyskills.com/ http://www.practicalmoneyskills.com/ You Can Deal With It: http://www.youcandealwithit.com/ http://www.youcandealwithit.com/ Money Matters – MU Extension: http://missourifamilies.org/money/ http://missourifamilies.org/money/

13. Next Up Saving and Investing Office for Financial Success November 10th