FINANCING YOUR FINANCING YOUR MEDICAL EDUCATIONMEDICAL EDUCATION

TOPICSTOPICS

THE FINANCIAL AID PROCESSTHE FINANCIAL AID PROCESS MEDICAL SCHOOL COSTS & BUDGETMEDICAL SCHOOL COSTS & BUDGET DETERMINING FINANCIAL AID AWARDS DETERMINING FINANCIAL AID AWARDS CATEGORIES OF FINANCIAL AIDCATEGORIES OF FINANCIAL AID MEDICAL SCHOOL DEBTMEDICAL SCHOOL DEBT THE IMPORTANCE OF CREDIT RATINGTHE IMPORTANCE OF CREDIT RATING QUESTIONSQUESTIONS

FINANCIAL AID FINANCIAL AID APPLICATION PROCESSAPPLICATION PROCESS

OOCC EXPLORE THE FINANCIAL AID APPLICATION PROCEDURES AND DEADLINESEXPLORE THE FINANCIAL AID APPLICATION PROCEDURES AND DEADLINES

TTOO OBTAIN INSTITUTIONAL APPLICATION FORMSOBTAIN INSTITUTIONAL APPLICATION FORMS

BBEE BEGIN RESEARCHING THE WEB FOR SCHOLARSHIPSBEGIN RESEARCHING THE WEB FOR SCHOLARSHIPS

RR

JJAANNUU FILL OUT THE FAFSA ON THE WEBFILL OUT THE FAFSA ON THE WEB

AARRYY

MM OBTAIN ESTIMATES OF FINANCIAL AID OFFERS FROM ALL SCHOOLSOBTAIN ESTIMATES OF FINANCIAL AID OFFERS FROM ALL SCHOOLS

A A YY MAKE A DECISION AS TO WHICH MEDICAL SCHOOL YOU WANT TO ATTENDMAKE A DECISION AS TO WHICH MEDICAL SCHOOL YOU WANT TO ATTEND

UCSD MEDICAL UCSD MEDICAL SCHOOL 2005-06 SCHOOL 2005-06

BUDGETBUDGETDESCRIPTIONDESCRIPTION FIRST YEAR FIRST YEAR

BOOKSBOOKS $1,976$1,976

RENT/UTILITIES RENT/UTILITIES ($919/MO)($919/MO)

$8,731$8,731

FOOD FOOD

($308/MO)($308/MO)$2,926$2,926

MISC./PERSONAL MISC./PERSONAL ($307/MO)($307/MO)

2,9172,917

TRANSPORTATION TRANSPORTATION ($307/MO)($307/MO)

$2,917$2,917

EQUIPMENT BAGEQUIPMENT BAG $925$925

MICROSCOPEMICROSCOPE $150$150

REGISTRATION FEESREGISTRATION FEES $22,007.50$22,007.50

TOTALTOTAL $42,550$42,550

OFF CAMPUS

UCSD MEDICAL UCSD MEDICAL SCHOOL 2005-06 SCHOOL 2005-06

BUDGETBUDGETDESCRIPTIONDESCRIPTION FIRST YEAR FIRST YEAR

BOOKSBOOKS $1,976$1,976

RENT/UTILITIES RENT/UTILITIES

($550/MO)($550/MO)$5,225$5,225

FOOD FOOD

($308/MO)($308/MO)$2,926$2,926

MISC./PERSONAL MISC./PERSONAL ($307/MO)($307/MO)

2,9172,917

TRANSPORTATION TRANSPORTATION ($307/MO)($307/MO)

$2,917$2,917

EQUIPMENT BAGEQUIPMENT BAG $925$925

MICROSCOPEMICROSCOPE $150$150

REGISTRATION FEESREGISTRATION FEES $22,007.50$22,007.50

TOTALTOTAL $39,044$39,044

ON

CAMPUS

UCSD MEDICAL UCSD MEDICAL SCHOOL 2005-06 SCHOOL 2005-06

BUDGETBUDGET

22ndnd YEAR YEAR 33rdrd YEAR YEAR 44thth YEAR YEAR

ON ON CAMPUSCAMPUS $44, 970$44, 970 $44, 636$44, 636 $31, 361$31, 361

OFF OFF CAMPUSCAMPUS $49, 399$49, 399 $49, 064$49, 064 $34, 682$34, 682

TOTAL FOR 4 YEARS $175,695 OFF CAMPUS $160,000 ON CAMPUS

PUBLIC VS. PRIVATE PUBLIC VS. PRIVATE MEDICAL SCHOOL MEDICAL SCHOOL

COSTSCOSTS

PUBLICPUBLIC PRIVATEPRIVATE UCSDUCSD

$18, 612$18, 612 $27, 826$27, 826 $20, 172$20, 172

National Average for 2004-05 according to the AAMCTuition and Fees only

FINANCIAL AID FINANCIAL AID AWARDSAWARDS 60% OF THE ENTIRE CLASS WILL RECEIVE 60% OF THE ENTIRE CLASS WILL RECEIVE

SCHOOL BASED FINANCIAL AID PACKAGE.SCHOOL BASED FINANCIAL AID PACKAGE. THE NEEDIEST SCHOOL PACKAGE FOR THE NEEDIEST SCHOOL PACKAGE FOR

2005-06 IS 2005-06 IS $24,273$24,273

($19,980 GRANT & $4293 SCHOOL LOAN)($19,980 GRANT & $4293 SCHOOL LOAN) THE LOWEST NEED SCHOOL-BASED THE LOWEST NEED SCHOOL-BASED

PACKAGE FOR 2005-06 IS PACKAGE FOR 2005-06 IS $20,673$20,673 ($10,301 GRANT AND $10,372 LOAN)($10,301 GRANT AND $10,372 LOAN)

HOW YOUR AWARDS ARE HOW YOUR AWARDS ARE DETERMINEDDETERMINED

2005-062005-06SINGLE STUDENTSSINGLE STUDENTS

PARENTS’ CONTRIBUTIONPARENTS’ CONTRIBUTION

NEED CATEGORYNEED CATEGORY

STUDENT IS SINGLE & PARENT’S STUDENT IS SINGLE & PARENT’S STUDENT IS SINGLE & STUDENT IS SINGLE & PARENT’SPARENT’SCONTRIBUTION IS > $23,887CONTRIBUTION IS > $23,887 CONTRIBUTION IS < $23,887CONTRIBUTION IS < $23,887

NEED CATEGORY 1NEED CATEGORY 1 NEED CATEGORY 2 -- 5NEED CATEGORY 2 -- 5

STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR FEDERAL STAFFORD LOANFEDERAL STAFFORD LOAN INSTITUTIONAL GRANTS &INSTITUTIONAL GRANTS &ONLYONLY LOANSLOANS

WHY USE PARENTS’ WHY USE PARENTS’ INCOME AND ASSET INCOME AND ASSET

INFO?INFO?1.1. STUDENTS FROM LOW-INCOME BACKGROUNDS STUDENTS FROM LOW-INCOME BACKGROUNDS

USUALLY ENTER MEDICAL SCHOOL WITH A USUALLY ENTER MEDICAL SCHOOL WITH A SUBSTANTIALLY HIGHER DEBT THAN STUDENTS FROM SUBSTANTIALLY HIGHER DEBT THAN STUDENTS FROM MORE AFFLUENT FAMILIES.MORE AFFLUENT FAMILIES.

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

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

HOW YOUR AWARDS ARE HOW YOUR AWARDS ARE DETERMINEDDETERMINED

2005-062005-06

MARRIED STUDENTS WITHOUT MARRIED STUDENTS WITHOUT CHILDRENCHILDREN

SPOUSE’S NET MONTHLY INCOMESPOUSE’S NET MONTHLY INCOME

NEED CATEGORYNEED CATEGORY

STUDENT IS MARRIED & SPOUSE’SSTUDENT IS MARRIED & SPOUSE’S STUDENT IS MARRIED, SPOUSE’S NET STUDENT IS MARRIED, SPOUSE’S NET INCOME IS > $1926/MONTHINCOME IS > $1926/MONTH INCOME < $1926/MONTHINCOME < $1926/MONTH

NEED CATEGORY 1NEED CATEGORY 1 NEED CATEGORY 2NEED CATEGORY 2

STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR STUDENT IS ELIGIBLE FOR

FEDERAL STAFFORD LOANSFEDERAL STAFFORD LOANS INSTITUTIONAL GRANTS &INSTITUTIONAL GRANTS &

ONLYONLY LOANSLOANS

FINANCIAL AWARD FINANCIAL AWARD SAMPLESAMPLE

Single student without childrenSingle student without children

EFC = $2083 (Estimated Family/Parent Contribution)EFC = $2083 (Estimated Family/Parent Contribution)

Need Category 5 Need Category 5 eligible for school aid eligible for school aid $19, 980 – School $19, 980 – School Grant Grant $4293 – School Loan$4293 – School Loan

TOTALTOTAL $24,273$24,273Budget Budget $42,550$42,550Student Contribution Student Contribution - $1000- $1000Financial NeedFinancial Need $41, 550 $41, 550 School AidSchool Aid - $24, 273- $24, 273Unmet Need Unmet Need $17, 277$17, 277

Federal LoansFederal Loans $8,500 Subsidized Stafford ($8500 max) $8,500 Subsidized Stafford ($8500 max)

$8,777 $8,777 Unsubsidized Stafford ($30,000 Unsubsidized Stafford ($30,000 max)max)

Unmet NeedUnmet Need $0 $0

FINANCIAL AWARD FINANCIAL AWARD SAMPLESAMPLE

Single student without childrenSingle student without children

EFC = $23,900 (Estimated Family/Parent Contribution)EFC = $23,900 (Estimated Family/Parent Contribution)

Need Category 1 Need Category 1 Not Eligible for School AidNot Eligible for School Aid$0$0

Budget Budget $42,550$42,550

Student Contribution Student Contribution - $1000- $1000

Financial NeedFinancial Need $41,550$41,550

School AidSchool Aid - $0- $0

Unmet Need Unmet Need $41,550$41,550

Federal LoansFederal Loans - $8,500 Subsidized Stafford - $8,500 Subsidized Stafford

- $30,000- $30,000 Unsubsidized Stafford Unsubsidized Stafford

Unmet NeedUnmet Need $3020 Alternative Loans $3020 Alternative Loans

CATEGORIES OF FINANCIAL CATEGORIES OF FINANCIAL AIDAID

INSTITUTIONAL AIDINSTITUTIONAL AID – BASED ON STUDENT’S & PARENTS’ INCOME AND ASSETSBASED ON STUDENT’S & PARENTS’ INCOME AND ASSETS– INCLUDES GRANTS, SCHOLARSHIPS, FELLOWSHIPS AND LOANSINCLUDES GRANTS, SCHOLARSHIPS, FELLOWSHIPS AND LOANS

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

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

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

CATEGORIES OF FINANCIAL CATEGORIES OF FINANCIAL AIDAID

OUTSIDE LOANSOUTSIDE LOANS

– FEDERAL LOANS (SUBSIDIZED AND FEDERAL LOANS (SUBSIDIZED AND UNSUBSIDIZED)UNSUBSIDIZED)

HAVE BETTER TERMS THAN THE ALTERNATIVE LOANS HAVE BETTER TERMS THAN THE ALTERNATIVE LOANS INTEREST CAP AT 8.25%INTEREST CAP AT 8.25% DON’T REQUIRE CREDIT CHECKDON’T REQUIRE CREDIT CHECK

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

REQURE CREDIT CHECKSREQURE CREDIT CHECKS CAN’T BE CONSOLIDATED WITH YOUR FEDERAL LOANSCAN’T BE CONSOLIDATED WITH YOUR FEDERAL LOANS

CATEGORIES OF FINANCIAL CATEGORIES OF FINANCIAL AIDAID

SERVICE OBLIGATION PROGRAMSSERVICE OBLIGATION PROGRAMS– REQUIRE A COMMITMENT TO PRACTICE IN A PARTICULAR FIELD REQUIRE A COMMITMENT TO PRACTICE IN A PARTICULAR FIELD

OF MEDICINE OR IN A SPECIFIC GEOGRAPHIC LOCATIONOF MEDICINE OR IN A SPECIFIC GEOGRAPHIC LOCATION– HAVE STIFF PENALTIES FOR DEFAULTING ON THE SERVICE HAVE STIFF PENALTIES FOR DEFAULTING ON THE SERVICE

COMMITMENTCOMMITMENT– EXAMPLES: ARMED FORCES SCHOLARSHIP PROGRAMS, THE EXAMPLES: ARMED FORCES SCHOLARSHIP PROGRAMS, THE

NATIONAL HEALTH SERVICE CORPS AND THE PRIMARY CARE NATIONAL HEALTH SERVICE CORPS AND THE PRIMARY CARE LOANLOAN

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

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

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

– EXAMPLES: NATIONAL HEALTH SERVICE CORPS LOAN EXAMPLES: NATIONAL HEALTH SERVICE CORPS LOAN REPAYMENT PROGRAM, THE CALIFORNIA STATE LOAN REPAYMENT PROGRAM, THE CALIFORNIA STATE LOAN REPAYMENT PROGRAM, ETC.REPAYMENT PROGRAM, ETC.

MEDICAL SCHOOL MEDICAL SCHOOL DEBTDEBT

AVERAGE ALL AVERAGE ALL SCHOOLSSCHOOLS $115,218$115,218

AVERAGE PUBLIC AVERAGE PUBLIC SCHOOLSSCHOOLS $104,385$104,385

AVERAGE PRIVATE AVERAGE PRIVATE SCHOOLSSCHOOLS $133,357$133,357

AVERAGE UCSDAVERAGE UCSD $75,126$75,126*ACCORDING TO THE AAMC FOR 2004**INCLUDES PRE-MATRICULATION DEBT

ESTIMATE OF ESTIMATE OF REPAYMENTREPAYMENT

REPAYMENREPAYMENT PERIODT PERIOD

TOTAL PAID TOTAL PAID IN IN

FORBEARANCFORBEARANCEE

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

$147,183$147,183 $147,183$147,183 $1,227$1,227

15 YEARS15 YEARS $33,000 OR $33,000 OR $688/MO$688/MO $174,625$174,625 $207,625$207,625 $970$970

25 YEARS25 YEARS $33,000 OR $33,000 OR $688/MO$688/MO $236,535$236,535 $269,535$269,535 $788$788

LOAN AMOUNT OF $100,000 AT 8.25% INTEREST RATE

CAN I AFFORD THE CAN I AFFORD THE MONTHLY PAYMENT ON MY MONTHLY PAYMENT ON MY

SALARY ?SALARY ?AVERAGE ANNUAL SALARY AVERAGE ANNUAL SALARY

OF FAMILY PRACTITIONEROF FAMILY PRACTITIONER

GROSS MONTHLY PAY FORGROSS MONTHLY PAY FOR

A SALARY OF $142,000/YEARA SALARY OF $142,000/YEAR

MONTHLY LOAN PAYMENTMONTHLY LOAN PAYMENT

BASED ON 30-40% OF SALARYBASED ON 30-40% OF SALARY

$142,000

$11,833/MO

$3550 - $4733/MO

THE IMPORTANCE OF THE IMPORTANCE OF CREDIT RATINGCREDIT RATING

ALTERNATIVE LOAN PROGRAMS ALTERNATIVE LOAN PROGRAMS REQUIRE A CREDIT CHECKREQUIRE A CREDIT CHECK

LENDER WILL LOOK AT:LENDER WILL LOOK AT:– DEROGATORY CREDITDEROGATORY CREDIT– EDUCATIONAL LOAN DEFAULTSEDUCATIONAL LOAN DEFAULTS– HISTORY OF LATE PAYMENTS ON HISTORY OF LATE PAYMENTS ON

CONSUMER DEBTCONSUMER DEBT

WHAT’S A GOOD CREDIT WHAT’S A GOOD CREDIT SCORE?SCORE?

800 + 800 + EXCELLENTEXCELLENT 750-799750-799 VERY GOOD TO VERY GOOD TO

EXCELLENTEXCELLENT 700-749700-749 GOOD TO VERY GOODGOOD TO VERY GOOD 650-699650-699 FAIR TO GOODFAIR TO GOOD 600-649600-649 POOR TO FAIRPOOR TO FAIR BELOW 600BELOW 600 VERY POOR TO POORVERY POOR TO POOR

HOW TO MAINTAIN HOW TO MAINTAIN GOOD CREDIT?GOOD CREDIT?

RETIRE CREDIT CARD DEBT BEFORE RETIRE CREDIT CARD DEBT BEFORE ENTERING MEDICAL SCHOOLENTERING MEDICAL SCHOOL

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

DON’T BORROW MORE THAN YOU DON’T BORROW MORE THAN YOU NEEDNEED

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

WHAT TO DO IF WHAT TO DO IF DENIED?DENIED? OBTAIN AND REVIEW CREDIT REPORT OBTAIN AND REVIEW CREDIT REPORT

USED IN DECISION PROCESS BY LENDERUSED IN DECISION PROCESS BY LENDER CORRECT ANY ERRORS CONTAINED IN CORRECT ANY ERRORS CONTAINED IN

REPORTREPORT APPEAL CREDIT DECISION, IF APPEAL CREDIT DECISION, IF

APPROPRIATEAPPROPRIATE CONSIDER CO-SIGNER OR NON-STUDENT CONSIDER CO-SIGNER OR NON-STUDENT

BORROWER AS OPTION, IF AVAILABLEBORROWER AS OPTION, IF AVAILABLE

QUESTIONS??? QUESTIONS???

Contact theContact theFinancial Aid OfficeFinancial Aid Office