University of Mississippi Medical Center M3 Financial Aid Update

1. University of Mississippi Medical Center M3 Financial Aid Update

2. Financial Aid Updates Disbursement Dates • 1stDisb- June 3rd • 2ndDisb- January 2nd • * Make sure you have determined your budget prior to accepting your Financial Aid.

3. M3 Cost of Attendance

4. 88% of class report having educational debt 62% of class report debt $150,000 or higher Class of 2012 Indebtedness • Source: AAMC 2012 Graduate Questionnaire (GQ)

5. Know the Detailsof Your Loans

6. The FIRST Stop… Medloans® Organizer and Calculator • www.aamc.org/FIRST

7. A contract with the lender Has a multi-loan feature Carefully read before signing • Rights and responsibilities MasterPromissoryNote

8. Rights include the ability to: Rights and Responsibilities • Prepay any federal loan without penalty • Request a shorter repayment schedule • Change repayment plans • Request a deferment or forbearance • Review your promissory note for all rights

9. Rights and Responsibilities Responsibilities include: Make on time loan payments • Make payments despite receipt of bill • Notify the lender of changes in contact info • Attend an Exit Counseling session • Review your promissory note for all responsibilities

10. Finding Your Federal Loans • To access, provide: • - SSN • - Date of Birth • - First 2 lettersof last name • FAFSA PIN (www.pin.ed.gov) www.nslds.ed.gov

11. Finding Other Loans • To access, provide: • Name • Address • - Date of Birth • - SSN www.annualcreditreport.com

12. Interest Rates

13. Capitalization Addition of unpaid interest to the principal $185,029 $162,000 $23,029 Larger Principal + Interest Principal =

14. Debt Management Tip Pay the interest on unsubsidized loans PRIOR to capitalization

15. The Repayment Timeline

16. Grace Periods • Grace A period when payments are not required Occurs automatically Subsidized loans are interest free during grace Unsubsidized loans continue to accrue interest Availability and duration is based on loan type

17. Grace Periods

18. Direct PLUS loans Enters repayment upon full disbursement In-school deferment will post-pone payments Interest begins accruing upon disbursement Interest accrues continuously Maximum interest rate is 7.9% NOTICE: Repayment Begins

19. Options During Residency • During residency, there are two choices: Make Payments Select a Repayment Plan Postpone Payments Deferment Forbearance

20. Options During Residency Deferment A period when payments are not required Must apply and qualify Interest does not accrue on subsidized loans Unsubsidized loans continue to accrue interest NOTE: For more details on deferment or to request a deferment, contact your servicer

21. Options During Residency Forbearance A period when payments are not required Must request from the servicer Interest accrues on all loans Many types (administrative, discretionary, mandatory) • NOTE: For more details on forbearance or to request a forbearance, contact your servicer

22. Options During Residency $2,130/mo Determines the payment amount & interest cost $1,280/mo $1,050/mo $ 630/mo $ 400/mo

23. Repayment Plans Estimated Monthly Payment Amounts

24. Have a Spending Plan

25. Have a Spending Plan • A Spending Plan in 1-2-3 • Put it in writing • Review periodically to identify leaks • Make necessary adjustments “Live like a student while you are a student…”

26. Have a Spending Plan www.aamc.org/FIRST

27. The Basics of Budgeting Refer to page 33 Your Total Income Your Total Expenses = Your Discretionary Income

28. Spending Wants: Leaks • Small amounts add up over time • It may not look like much in the short term $5 gourmet coffee X 25 weekdays/mo $125 per month

29. Spending Wants: Leaks • Small amounts add up over time • It may not look like much in the short term $125 in coffee per mo. X 10 months $1250 per year

30. Spending Wants: Leaks • Small amounts add up over time • It may not look like much in the short term But it adds up over time Total Cost of Starbucks: $5,000

31. Spending Alternatives • Pay attention to the small stuff… • Commit to review your budget regularly $8 coffee beans per week X 4 bags per month $32 per month

32. Spending Alternatives • Pay attention to the small stuff… • Commit to review your budget regularly $32 per month X 10 months $320 per year

33. Spending Alternatives • Pay attention to the small stuff… • Commit to review your budget regularly Total Cost of coffee beans: $1,280

34. Spending Alternatives • Pay attention to the small stuff… • Commit to review your budget regularly Savings $3,720

35. Credit: Understand & Protect

36. A FICO Score is Based On… Type of credit Payment history New credit 10% 10% 35% 15% 30% Length of history Amount Owed

37. How to Improve Your Score • During medical school, be sure to: Pay bills on time Pay down debt on lines of credit Apply for credit sparingly

38. Check your Credit Report www.annualcreditreport.com

39. REMINDERS • Financial Aid Wellness Day • Coming in February • Make sure to be watching your email