IUPUI Pre-Med Club

Financing a Medical Education at the Indiana

University School of Medicine

Where Do You Start?

Know Your Cost of Attendance

Understand Your Financial Aid Options

What is a Cost of Attendance?

The Cost of Attendance (COA) is what the school publishes as the reasonable cost estimate for a student attending the institution for a period of one academic year. The COA includes a cost estimate for

Tuition, fees (if applicable) Books and Supplies Housing (aka Room and Board) Personal Expenses Transportation

2012-2013 AAMC Cost of Medical School Data

AAMC Survey Preliminary Data from 76 Public Schools and 53 Private Schools

Public PrivateMedian Tuition and Fees $32,414 $50,309Median Cost of Attendance $53,685 $72,344

A Sample COA

Your Financial Aid Options

• Borrowing through Federal Loans (Guaranteed versus Credit-Based). Private Loans are discouraged for U.S. citizens because of the potential expense and complexity. Only source for International students with a valid U.S. co-signer.

• Institutional Funding Opportunities – Parents information is generally a requirement.

• Alternatives

Federal Direct Student Loans

Under the U.S. Department of Education, the following Direct Loans (DL) are available:Federal DL Stafford Unsubsidized Loan (Variable-Fixed Rate) - 10-year Treasury Note Plus 3.6%

A Guaranteed Source of funding

Federal Graduate PLUS Loan (Variable-Fixed Rate) - 10-year Treasury Note Plus 4.6%

Credit Based (credit ready, not credit worthy) Recommend you check your credit history -

https://www.annualcreditreport.com/cra/index.jsp

Federal Direct Student Loans (Cont.)

There are many benefits to borrowing through Federal student loan programs. Loans discharged in the event of borrowers

death or total permanent disability Internship/Residency Forbearance Flexible Repayment Options IBR or PAYE and the PSLF Options One lender, the federal government

DL Federal Stafford Loan

All Stafford Loans are Unsubsidized for Graduate Students (2011 Debt Ceiling Congressional Legislation).

Amount is $20,500 for Graduate Students and an additional amount of $20,000 for Health Professions Students. Total $40,500 annually

Lifetime aggregate of $224,000. Every $40,500 accrues interest of approximately $5 per

day Interest rate fixed for life of loan based on 10-year

Treasury Note Plus 3.6%, capped at 9.50%

DL Graduate PLUS Loan

The Graduate PLUS Loan became available to Graduate and Professional Students in 2006 through Congressional legislation.

Unlimited funding, but limited to COA minus other financial aid.

Based on student being Credit Ready, no negatives on your credit report.

Interest rate fixed for life of loan based on 10-year Treasury Note Plus 4.6%, capped at 10.50%

Institutional Funding Opportunities

Approximately thirty-four percent of IUSM medical students receive IUSM scholarship support ranging from $1,000 - $31,500. Categories of support include:

Restricted (Donor Specificity)Academic/Merit BasedFinancial NeedCombined Academic Achievement and Financial

Need

IUSM Restricted Scholarships

• Through the generosity of alumni and friends, IUSM has scholarships that are restricted to medical students who primarily come from Indiana geographical areas or some specificity other than merit or financial need or both.

• Some scholarships are specific to a student attending one of the 8 IUSM campuses. For example, IUSM - Evansville Campus.

IUSM Academic/Merit Scholarships

The IUSM Scholarship Committee meets as early as December through April to select incoming students for 4-year merit-based scholarships, amounts range from $10,000 - $31,500.• Based on AMCAS Application Information, which

may include the Undergrad and Science GPAs and MCAT Scores.

• Additionally, may be based on Interview Scoring.• May be further based on Leadership and other

outstanding attributes.

IUSM Financial Need Scholarships

o Based on the students Free Application for Federal Student Aid (FAFSA) information, which takes into consideration the parent’s ability to contribute. Amounts range from $2,000 - $10,000.

o Highly recommend that students provide parental information on the FAFSA for all potential IUSM need-based considerations. Lack of parental information defaults to only be considered for Federal student loans.

Combined Scholarships

o Based on the students Free Application for Federal Student Aid (FAFSA) information, which takes into consideration the parent’s ability to contribute, not the expectation that they will be contributing.

o Additionally, looks at the student’s academic class standing. For incoming first year students, we look at the MCAT scores only.

Funding Alternatives Armed Forces Health Professions Scholarship Program (HPSP)

through the ARMY, NAVY or Air Force.

National Health Service Corp (NHSC) through the Health Resources and Services Administration (HRSA).

Indiana Primary Care Scholarship through IUSM. Federal Primary Care Loan (PCL) through the Dept. of Health and

Human Services (DHHS) – 5% Simple Interest Loan – No interest while in school or residency.

Loans to Disadvantaged Students (LDS) – 5% Simple Interest Loan – No interest while in school or residency.

Armed Forces Health Professions Scholarship Program (HPSP)

• Covers Tuition and Fees and counts as a financial aid resource in the COA.

• Provides a $2,122 monthly stipend (adjusted annually for cost of living) and does not count as a financial aid resource in the COA.

• Provides reimbursement of books and supplies• Provides a $20,000 sign on bonus

National Health Service Corp (NHSC)

• Covers Tuition and Fees and counts as a financial aid resource.

• Provides $1,289 monthly stipend (may be adjusted annually for cost of living) and does not count as a financial aid resource

• Provides a lump sum for books and supplies, health insurance and other items throughout 4 years.

• Primary Care includes FM, IM, Peds, Med/Peds, Psychiatry and OB/GYN

Indiana Primary Care Scholarship

• Covers In-state tuition and applicable fees for an Indiana resident who can commit to a primary care practice in an Indiana underserved area.

• Highly encourages application to an Indiana residency program.

• Primary Care includes General Internal Medicine, Family Medicine, General Pediatrics and Med/Peds.

Financing a Medical Education can be Challenging and Expensive

• 86% of 2012 class report having educational debt

• 62% of 2012 class report debt $150,000 or higher

IUSM Class of 2013 Indebtedness

• 265 out of 313 borrowed. • Borrowed a total of $45,700,579.• Accrued approximately $5,962,500 based on

an average accrual interest of $22,500 over 4 years of medical school per borrower.

Federal Loan Repayment Options

• Internship/Residency Forbearance, where no payment is necessary during residency.

• Income Based Repayment (IBR) and Pay As You Earn (PAYE), based on income not amount of debt. PAYE Loans after Oct. 1, 2007.

• Public Service Loan Forgiveness (PSLF), must debt with Direct Loans and make 120 IBR payments while in a not-for-profit to achieve forgiveness of debt balance.

• www.ibrinfo.org

How PSLF Works

How PSLF Works

Debt Management

• Is the investment in medical school worth it considering the educational debt?

• Currently, only 17% of borrowers take longer than 10 years to repay educational indebtedness.

• Medical students have extremely low student loan default rates

• 78% said educational debt is NOT a major factor in plans following graduation.

• Doctors are in the top 5% of wage earners in the U.S.

Medical School Considerations

• In-state versus out-of-state tuition cost – At IUSM, you are a non-resident student for fee-paying purposes unless you have been in the state for one year prior to matriculation without the intent to enroll or you are working and can appeal your status.

• Check your Credit History to be sure you are able to qualify for the Grad PLUS Loan

• Cost of Living

Worst Case Scenario

Worst Case Scenario (Cont.)

The Reality Check

The Upside of Medicine

Questions?