TOPICSTHE FINANCIAL AID PROCESSMEDICAL SCHOOL COSTS & BUDGETDETERMINING FINANCIAL AID

AWARDS CATEGORIES OF FINANCIAL AIDMEDICAL SCHOOL DEBTTHE IMPORTANCE OF CREDIT RATINGQUESTIONS

FINANCIAL AID APPLICATION PROCESS

OC EXPLORE THE FINANCIAL AID APPLICATION PROCEDURES AND

DEADLINES

TO OBTAIN INSTITUTIONAL APPLICATION FORMS

BE BEGIN RESEARCHING THE WEB FOR SCHOLARSHIPS

R

JANU FILL OUT THE FAFSA ON THE WEB

ARY

M OBTAIN ESTIMATES OF FINANCIAL AID OFFERS FROM ALL SCHOOLS

A Y MAKE A DECISION AS TO WHICH MEDICAL SCHOOL YOU WANT TO

ATTEND

UCSD MEDICAL SCHOOL 2009-10 BUDGET

DESCRIPTIONDESCRIPTION FIRST YEAR FIRST YEAR

BOOKSBOOKS $1,107$1,107

RENT/UTILITIES RENT/UTILITIES ($917/MO)($917/MO)

$8,712$8,712

FOOD FOOD

($349/MO)($349/MO)$3,316$3,316

MISC./PERSONAL MISC./PERSONAL ($348/MO)($348/MO)

$3,306$3,306

TRANSPORTATION TRANSPORTATION ($368/MO)($368/MO)

$3,496$3,496

EQUIPMENT BAGEQUIPMENT BAG $1,263$1,263

MICROSCOPEMICROSCOPE $150$150

REGISTRATION FEESREGISTRATION FEES $26,968.50$26,968.50

TOTALTOTAL $48,319$48,319

OFF CAMPUS

PUBLIC VS. PRIVATE MEDICAL SCHOOL COSTS

PUBLICPUBLIC PRIVATEPRIVATE UCSDUCSD

$25,208$25,208 $42,906$42,906 $26,969$26,969

National Average for 2009-10 according to the AAMCResident Tuition, Fees & Health Insurance

FINANCIAL AID AWARDS60% OF THE ENTIRE CLASS WILL

RECEIVE SCHOOL BASED FINANCIAL AID PACKAGE.

THE NEEDIEST SCHOOL PACKAGE FOR 2009-10 FOR THE 1ST YEAR CLASS IS $27,577 ($22,293 GRANT & $5,284 SCHOOL LOAN)

THE LOWEST NEED SCHOOL-BASED PACKAGE FOR 2009-10 IS $23,977 ($11,122 GRANT AND $12,855 LOAN)

HOW YOUR AWARDS ARE DETERMINED2009-10

SINGLE STUDENTSPARENTS’ CONTRIBUTION

NEED CATEGORY

STUDENT IS SINGLE & PARENT’S STUDENT IS SINGLE & PARENT’SCONTRIBUTION IS >= $27,066 CONTRIBUTION IS < $27,066

NEED CATEGORY 1 NEED CATEGORY 2 -- 5

STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR FEDERAL DIRECT LOAN & INSTITUTIONAL GRANTS &OUTSIDE LOANS ONLY LOANS

WHY USE PARENTS’ INCOME AND ASSET INFO?

1. STUDENTS FROM LOW-INCOME BACKGROUNDS USUALLY ENTER MEDICAL SCHOOL WITH A SUBSTANTIALLY HIGHER DEBT THAN STUDENTS FROM MORE AFFLUENT FAMILIES.

2. IN GENERAL, STUDENTS FROM AFFLUENT BACKGROUNDS ARE ABLE TO CALL ON THEIR PARENTS FOR FINANCIAL HELP, WHEREAS STUDENTS FROM LOWER INCOME FAMILIES DO NOT HAVE ACCESS TO THIS RESOURCE.

3. IF LIMITED SCHOOL-BASED FUNDS WERE DISTRIBUTED EVENLY AMONG ALL STUDENTS IN THE SCHOOL, REGARDLESS OF PARENT INCOME, THE AMOUNT OF GRANT AND LOW-INTEREST LOAN MONEY AVAILABLE TO EACH STUDENT WOULD BE SUBSTANTIALLY REDUCED.

HOW YOUR AWARDS ARE DETERMINED2009-10

MARRIED STUDENTS WITHOUT CHILDREN

SPOUSE’S NET MONTHLY INCOME

NEED CATEGORY

STUDENT IS MARRIED & SPOUSE’S STUDENT IS MARRIED, SPOUSE’S NET INCOME IS > $2,183/MONTH NET INCOME < $2,183/MONTH

NEED CATEGORY 1 NEED CATEGORY 2

STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR FEDERAL DIRECT LOANS & INSTITUTIONAL GRANTS &OUTSIDE LOANS ONLY LOANS

FINANCIAL AWARD SAMPLESingle student without children

EFC = $2310 (Estimated Family/Parent Contribution)

Need Category 5 eligible for school aid $22,293 – School Grant $ 5,284 – School LoanTOTAL$27,577

Budget $48,319Student Contribution - $ 1,000Financial Need $47,319 School Aid - $27,577Unmet Need $19,742

Federal Loans $8,500 Subsidized Direct ($8500 max)$11,242 Unsubsidized Direct ($32,000 max)

Unmet Need $0

FINANCIAL AWARD SAMPLESingle student without children

EFC = $27,100 (Estimated Family/Parent Contribution)

Need Category 1 Not Eligible for School Aid $0

Budget $48,319Student Contribution - $1000Financial Need $47,319School Aid - $0Unmet Need $47,319Federal Loans - $8,500 Subsidized Direct

- $32,000 Unsubsidized DirectUnmet Need $6,819 Graduate PLUS Loan

CATEGORIES OF FINANCIAL AIDINSTITUTIONAL AID

BASED ON STUDENT’S & PARENTS’ INCOME AND ASSETS INCLUDES GRANTS, SCHOLARSHIPS, FELLOWSHIPS AND

LOANS

OUTSIDE GRANTS AND SCHOLARSHIPS USUALLY RESTRICTIVE IN NATURE BASED ON FACTORS SUCH AS THE AREA OF RESIDENCE,

ETHNICITY, RELIGIOUS AFFILIATION, ETC. EXAMPLES: NATIONAL MEDICAL FELLOWSHIPS, BECA

SCHOLARSHIP, NATIONAL HISPANIC SCHOLARSHIP, THE CHINESE AMERICAN MEDICAL SOCIETY SCHOLARSHIP

CATEGORIES OF FINANCIAL AIDOUTSIDE LOANS

FEDERAL LOANS (SUBSIDIZED, UNSUBSIDIZED AND GRADUATE PLUS LOANS ) HAVE BETTER TERMS THAN PRIVATE/ALTERNATIVE

LOANS INTEREST RATE 6.8% FOR DIRECT; 7.9% FOR GRAD PLUS DIRECT DOES NOT REQUIRE CREDIT CHECK

PRIVATE LOANS (THROUGH OUTSIDE LENDERS) ALTERNATIVE LOANS - REQUIRE CREDIT CHECK OTHER OUTSIDE AGENCY LOANS - MAY OR MAY NOT

REQURE CREDIT CHECKS CANNOT BE CONSOLIDATED WITH YOUR FEDERAL LOANS

CATEGORIES OF FINANCIAL AIDSERVICE OBLIGATION PROGRAMS

REQUIRE A COMMITMENT TO PRACTICE IN A PARTICULAR FIELD OF MEDICINE OR IN A SPECIFIC GEOGRAPHIC LOCATION

HAVE STIFF PENALTIES FOR DEFAULTING ON THE SERVICE COMMITMENT

EXAMPLES: ARMED FORCES SCHOLARSHIP PROGRAMS, THE NATIONAL HEALTH SERVICE CORPS AND THE PRIMARY CARE LOAN

LOAN REPAYMENT PROGRAMS PROVIDE BACK-END HELP AFTER GRADUATION FROM MED

SCHOOL BY REPAYING ALL OR A PORTION OF A STUDENT’S OUTSTANDING EDUCATIONAL DEBT

MOST ARE TIED TO PRACTICING IN A PARTICULAR AREA OF MEDICINE OR SPECIFIED GEOGRAPHIC LOCATION

EXAMPLES: NATIONAL HEALTH SERVICE CORPS LOAN REPAYMENT PROGRAM, THE CALIFORNIA STATE LOAN REPAYMENT PROGRAM, NIH LOAN REPAYMENT PROGRAMS (FOR STUDENTS INTERESTED IN RESEARCH)

MEDICAL SCHOOL DEBTAVERAGE ALL AVERAGE ALL SCHOOLSSCHOOLS $156,456$156,456

AVERAGE PUBLIC AVERAGE PUBLIC SCHOOLSSCHOOLS $148,101$148,101

AVERAGE PRIVATE AVERAGE PRIVATE SCHOOLSSCHOOLS $170,012$170,012

AVERAGE UCSDAVERAGE UCSD $109,119$109,119*ACCORDING TO THE AAMC FOR 2009**INCLUDES PRE-MATRICULATION DEBT

ESTIMATE OF REPAYMENTREPAYMENREPAYMENT PERIODT PERIOD

TOTAL PAID TOTAL PAID IN IN

FORBEARANCFORBEARANCEE

(assume 4 year(assume 4 year

residency)residency)

TOTAL PAID TOTAL PAID IN IN

REPAYMENREPAYMENTT

TOTAL TOTAL PAID PAID

OVERALLOVERALL

MONTHLY MONTHLY PAYMENT PAYMENT

IN IN REPAYMENREPAYMEN

TT

10 YEARS10 YEARSPAYMENT PAYMENT BEGINS AFTER BEGINS AFTER GRADUATIONGRADUATION

$172,621$172,621 $172,621$172,621 $1,439$1,439

15 YEARS15 YEARS $34,000 OR $34,000 OR $708/MO$708/MO $199,729$199,729 $233,728$233,728 $1,110$1,110

25 YEARS25 YEARS $34,000 OR $34,000 OR $708/MO$708/MO $260,277$260,277 $294,277$294,277 $868$868

LOAN AMOUNT OF $125,000 AT 6.8% INTEREST RATE

CAN I AFFORD THE MONTHLY PAYMENT ON MY SALARY ?

AVERAGE ANNUAL SALARY OF FAMILY PRACTITIONER

GROSS MONTHLY PAY FORA SALARY OF $142,000/YEAR

MONTHLY LOAN PAYMENTBASED ON 10% --15% OF SALARY

$150,000

$12,500/MO

$1250/MO— $1875/MO

THE IMPORTANCE OF CREDIT RATING

THE GRAD PLUS LOAN PROGRAM REQUIRES A CREDIT CHECK

A GRAD PLUS APPLICANT IS CONSIDERED TO HAVE ADVERSE CREDIT IF: APPLICANT IS 90 DAYS OR MORE DELINQUENT ON

THE PAYMENT OF ANY DEBT APPLICANT HAD ANY DEBT DISCHARGED IN

BANKRUPTSY ANY TIME IN THE LAST FIVE YEARS THE APPLICANT HAS BEEN THE SUBJECT OF A

DEFAULT DETERMINATION ON ANY DEBT, FORECLOSURE, A TAX LIEN, A REPOSSESSION, A WAGE GARNISHMENT, OR A WRITE-OFF OF A TITLE IV DEBT ANY TIME DURING THE LAST FIVE YEARS

WHAT’S A GOOD CREDIT SCORE?800 + EXCELLENT750-799 VERY GOOD TO

EXCELLENT700-749 GOOD TO VERY GOOD650-699 FAIR TO GOOD600-649 POOR TO FAIRBELOW 600 VERY POOR TO POOR

HOW TO MAINTAIN GOOD CREDIT?

RETIRE CREDIT CARD DEBT BEFORE ENTERING MEDICAL SCHOOL

OBTAIN A COPY OF YOUR CREDIT REPORT AND CLEAN UP ANY NEGATIVE CREDIT THAT YOU CAN

DON’T BORROW MORE THAN YOU NEED

ALWAYS KNOW EXACTLY HOW YOU WILL REPAY THE DEBT AND HOW IT WILL AFFECT YOUR MONTHLY BUDGET

WHAT TO DO IF DENIED?OBTAIN AND REVIEW CREDIT REPORT

USED IN DECISION PROCESS BY LENDER

CORRECT ANY ERRORS CONTAINED IN REPORT

APPEAL CREDIT DECISION, IF APPROPRIATE

CONSIDER CO-SIGNER OR NON-STUDENT BORROWER AS OPTION, IF AVAILABLE

QUESTIONS???

Contact theContact theFinancial Aid OfficeFinancial Aid Office