week 14 financial aid kent l. barrus pre-professional advisor

Week 14 Week 14 Financial AidFinancial Aid

Kent L. BarrusKent L. BarrusPre-professional AdvisorPre-professional Advisor

Bio 311 - Professional School Bio 311 - Professional School PreparationPreparation

The only thing moreThe only thing moreexpensive than expensive than

education is education is ignorance.ignorance.

-Benjamin Franklin-Benjamin Franklin


Why talk Why talk about about financial aid?financial aid?

Indebted Medical Indebted Medical School Graduates, School Graduates, Class of 2003Class of 2003

PublicPublic PrivatePrivate AllAll

MeanMean $92.275 $92.275 (+6.4%)(+6.4%)

$129,3$129,392 92

(+4.5%(+4.5%))

$109,45$109,457 7

(+5.4%)(+5.4%)

MedianMedian $100,00$100,000 0

(+8.7%)(+8.7%)

$135,0$135,000 00

(+6.3%(+6.3%))

$105,50$105,500 0

(+5.5%)(+5.5%)

Percent at $100,000 or higherPercent at $100,000 or higher

51.7%51.7% 67.8%67.8% 58%58%


13.2%13.2% 44.2%44.2% 25.4%25.4%


2.8%2.8% 14.8%14.8% 7.5%7.5%

Percent of Graduates with DebtPercent of Graduates with Debt

84%84% 79.4%79.4% 82.1%82.1%


Figuring Out CostsFiguring Out Costs True CostsTrue Costs

Tuition and FeesTuition and Fees Public Schools and ResidencyPublic Schools and Residency

The BudgetThe Budget Calculated by the school’s financial aid officeCalculated by the school’s financial aid office

Modest enough to prevent over borrowing, but adequate Modest enough to prevent over borrowing, but adequate enough to recognize realistic costs.enough to recognize realistic costs.

Costs listed are ‘average’ costs.Costs listed are ‘average’ costs. Used for financial aid awards.Used for financial aid awards.


Figuring Out CostsFiguring Out Costs What is not in the budgetWhat is not in the budget

Family ExpensesFamily Expenses Optional EquipmentOptional Equipment CarsCars RelocationRelocation Preexisting debtPreexisting debt Residency InterviewResidency Interview


Applying for Financial AidApplying for Financial Aid FAFSA (Free Application for Federal Student FAFSA (Free Application for Federal Student

Aid)Aid) Used to create a needs analysisUsed to create a needs analysis

Other formsOther forms Individual schools financial aid applicationIndividual schools financial aid application Prior Year’s IRS 1040 formPrior Year’s IRS 1040 form Divorced/separated parent statementDivorced/separated parent statement Scholarship and outside award documentationScholarship and outside award documentation Federal verification form.Federal verification form. And others…..And others…..


Federal MethodologyFederal Methodology Basic GuidelinesBasic Guidelines

Cost of Attendance – Family Contribution = Financial NeedCost of Attendance – Family Contribution = Financial Need Dependent vs Independent?Dependent vs Independent?

U.S. Department of Education fundingU.S. Department of Education funding You are considered independent.You are considered independent.

U.S. Department of Health and Human Services FundingU.S. Department of Health and Human Services Funding You are considered dependentYou are considered dependent

No matter how old you areNo matter how old you are No matter if you even have had contact with your parentsNo matter if you even have had contact with your parents

You do have the option of not providing parental You do have the option of not providing parental information, but you will be forfeiting your ability to apply information, but you will be forfeiting your ability to apply for certain loans.for certain loans.


Applying for Financial AidApplying for Financial Aid Don’t underestimate the time to complete or Don’t underestimate the time to complete or

process a financial aid application.process a financial aid application. If you need money for school, it is just as important to If you need money for school, it is just as important to

stay on top of the process of applying for financial aid stay on top of the process of applying for financial aid as it is to manage all the steps required for getting as it is to manage all the steps required for getting admitted.admitted.


Free MoneyFree Money Scholarships for Disadvantaged Students (SDS)Scholarships for Disadvantaged Students (SDS)

Federal funding based on a schools definition of Federal funding based on a schools definition of disadvantageddisadvantaged

Institutional FundsInstitutional Funds Scholarships or grants available from the school you Scholarships or grants available from the school you

attend.attend. Some scholarships are overall and lower the cost of Some scholarships are overall and lower the cost of

tuition of all students.tuition of all students.


Free MoneyFree Money Scholarships for ServiceScholarships for Service

National Health Service Corps (NHSC)National Health Service Corps (NHSC) Loan repayment plan.Loan repayment plan. Established to encourage health practitioners to work in rural Established to encourage health practitioners to work in rural

underserved areas.underserved areas.

Armed Forces Health Professions Scholarships.Armed Forces Health Professions Scholarships. Army, Navy, Air ForceArmy, Navy, Air Force Pays for everything.Pays for everything. Required to spend 45 days on active duty during medical Required to spend 45 days on active duty during medical

school.school. Required to serve one year of active duty for every year of Required to serve one year of active duty for every year of

program funding.program funding. Minimum of three years payback.Minimum of three years payback.


Free MoneyFree Money Army National GuardArmy National Guard

Scholarships ranging from $2,800 to $6,000 per year.Scholarships ranging from $2,800 to $6,000 per year. Must participate in 16 hours of training a month and 2 Must participate in 16 hours of training a month and 2

weeks a year.weeks a year. May be called to active duty.May be called to active duty.

Scholarships for Native AmericansScholarships for Native Americans Covers all costs.Covers all costs. Must document you are child of a tribal member.Must document you are child of a tribal member. Service obligation of two years.Service obligation of two years.

Private Donor FundingPrivate Donor Funding Religious Affiliation, College Attendance, Ethnicity, etc.Religious Affiliation, College Attendance, Ethnicity, etc.


Scholarship Search ServicesScholarship Search Services The internet and federal government provide The internet and federal government provide

scholarship information.scholarship information. Never pay for scholarship searchesNever pay for scholarship searches

Free ServicesFree Services College boardCollege board Fast WebFast Web Scholarship Research Network ExpressScholarship Research Network Express Wired ScholarWired Scholar


Borrowing the MoneyBorrowing the Money Federal Loan ProgramFederal Loan Program

Lower interest rates.Lower interest rates. Lower fees.Lower fees. Defined deferment provisions.Defined deferment provisions. To be eligible you must:To be eligible you must:

Be a citizen of the USBe a citizen of the US Be enrolled at least half timeBe enrolled at least half time Be in good academic standingBe in good academic standing Not be in default of any previous loansNot be in default of any previous loans Show financial need based on FAFSA.Show financial need based on FAFSA.


Borrowing the MoneyBorrowing the Money Federal Stafford LoansFederal Stafford Loans

Subsidized or unsubsidizedSubsidized or unsubsidized Subsidized requires financial need criteria be met.Subsidized requires financial need criteria be met.

Deferment of interest and principle until after Deferment of interest and principle until after graduation for subsidized.graduation for subsidized.

Deferment of principle only for unsubsidizedDeferment of principle only for unsubsidized Borrowing Limit – Maximum of $8,500 per year for Borrowing Limit – Maximum of $8,500 per year for

subsidized or $38,500 per year for unsubsidized. Total subsidized or $38,500 per year for unsubsidized. Total cumulative maximum of $189,125.cumulative maximum of $189,125.

Interest rate may not exceed 8.25%Interest rate may not exceed 8.25% Apply through your school of acceptance.Apply through your school of acceptance.


Borrowing the MoneyBorrowing the Money William D. Ford Federal Direct Loan.William D. Ford Federal Direct Loan.

Similar to Stafford, but loan is originated from schools Similar to Stafford, but loan is originated from schools and not from Banks.and not from Banks.

Three options for repayment:Three options for repayment: Standard RepaymentStandard Repayment Extended RepaymentExtended Repayment Income Contingent RepaymentIncome Contingent Repayment Graduated RepaymentGraduated Repayment


Borrowing the MoneyBorrowing the Money Federal Perkins Student LoanFederal Perkins Student Loan

Based on financial need through FAFSABased on financial need through FAFSA Maximum of $6,000 per year with a cumulative total of Maximum of $6,000 per year with a cumulative total of

$40,000$40,000 Interest rate currently at 5% and does not accrue Interest rate currently at 5% and does not accrue

during school years.during school years. Ten year repayment to the school.Ten year repayment to the school. Not all schools participate in Perkins loans.Not all schools participate in Perkins loans.


Borrowing the MoneyBorrowing the Money Industry Specific LoansIndustry Specific Loans

Medical SchoolMedical School Loans for Disadvantaged Students (LDS)Loans for Disadvantaged Students (LDS)

5% loan5% loan Tuition plus $2,500 per year.Tuition plus $2,500 per year.

Primary Care Loans (PCL)Primary Care Loans (PCL) 5% loan5% loan Tuition plus $2,500 per year.Tuition plus $2,500 per year. If you don’t choose primary care, the interest increases to 12%.If you don’t choose primary care, the interest increases to 12%.

Loan Repayment Forgiveness ProgramsLoan Repayment Forgiveness Programs National Health Service Corps Loan RepaymentNational Health Service Corps Loan Repayment Indian Health Service Loan RepaymentIndian Health Service Loan Repayment Department of Defense Financial Assistance ProgramDepartment of Defense Financial Assistance Program State Loan Repayment ProgramsState Loan Repayment Programs



Medical SchoolMedical School Private LoansPrivate Loans

American Express Educational LoansAmerican Express Educational Loans AAMC MEDLOANSAAMC MEDLOANS



Dental SchoolDental School Federally Funded ScholarshipsFederally Funded Scholarships

National Health Service CorpsNational Health Service Corps Armed Forces Health Professions ScholarshipsArmed Forces Health Professions Scholarships National Institute of Dental and Craniofacial Research National Institute of Dental and Craniofacial Research

(NIDCR)(NIDCR) Privately Funded ScholarshipsPrivately Funded Scholarships

ADEA/Listerine Preventative Dentistry ScholarshipsADEA/Listerine Preventative Dentistry Scholarships ADA ScholarshipsADA Scholarships Many others….Many others….


Debt ManagementDebt Management Step One: Calculate your monthly paymentsStep One: Calculate your monthly payments

Use a loan repayment calculator on the internet.Use a loan repayment calculator on the internet. Use the AAMC book ‘Financial Planning and Use the AAMC book ‘Financial Planning and

Management Manual for U.S. Medical Students.’Management Manual for U.S. Medical Students.’ Use other web resourcesUse other web resources Use yet another web resourceUse yet another web resource And one moreAnd one more


Final WordsFinal Words Use the schools financial aid office. They exist Use the schools financial aid office. They exist

to serve you.to serve you.

week 14 financial aid kent l. barrus pre-professional advisor

Documents

financial aid awards

financial aid kent

realistic costs

average costs

residency public schools

fees public schools

percent of graduates

department of health