Financial Aid Information Vicky Cagle Director of Student Financial Services April 14, 2010

1. Vanderbilt University School of Medicine Financial Aid InformationVicky CagleDirector of Student Financial ServicesApril 14, 2010

2. Financial Aid Applications • Available Jan. 1 • Complete prior year tax returns • FAFSA – Free Application for Federal Student Aid • Need Access Application • Priority deadline March 15

3. FAFSA • Available on our website at https://medschool.vanderbilt.edu/financial-services/ or www.fafsa.gov • Required for federal loans • Student/spouse sections only • School code E00459 (separate from Vanderbilt University)

4. Need Access Application • Available on our website at https://medschool.vanderbilt.edu/financial-services/ or www.needaccess.org • Required of those applying for institutional need-based aid • Parental information required • First time Need Access applicants processing fee: $28 • Renewal applicants processing fee: $15

5. Financial Aid Award Letters • Mailed beginning April 15 • Identifies aid eligibility • Funds from various sources meet total cost of attendance.

6. Estimated Cost of AttendanceFirst Year 2010-201112 months

7. Cost of Attendance • May include dependent child day care costs with documentation - only cost included for family • May not include credit card payments • May not include car payments • Federal regulations and applies to all schools

8. Budget • Have a budget and borrow less. • Do not borrow money just because you are eligible for it. • Borrow what you need, not what you want. • Decline loans that exceed your need. • “Live as a doctor now, and you will live as a student later.”

9. Types of Aid Available Scholarships Loans

10. Scholarships 100% have scholarships ranging from $2,000 - $65,000 • VMS Need-based Scholarships • VMS Non-need-based Scholarships • Other Scholarships

11. VMS Need-Based Scholarships • 31% of student body qualify • Ranges from $1,000 - $12,000 • Must complete the Need Access application and include parental info.

12. VMS Non-Need-Based Scholarships 100% of our students receive a minimum of $2,000—regardless of need. • Merit • Medical Scientist Training Program

13. Merit Scholarships • Awarded to 23% of our students • No application process • Every student that is invited is considered. • Offered shortly after invited • Phone call from one of the Deans and letter to follow • Awarded for all four years of study • Partial or Full Tuition

14. Medical Scientist Training ProgramMD/PhD Joint Degree • 10% of our students are accepted. • Funds cover tuition, fees, and a stipend for duration of program. • VMS and NIH funding

15. Armed Forces Health Professions Scholarship Program • 1% participating • Tuition, fees, books, and stipend each year • Service requirement • Minimum obligation three years

16. Other Scholarships • 5% have secured • Miscellaneous organizations and foundations such as sororities, fraternities, and state agencies • Research on your own • Emails sent by our office of opportunities as they become available • Amounts vary

17. Loans 67% have loans ranging from $500 - $62,000 • Federal Loans • Private Loans • VMS Need-Based Loans

18. Federal Loans Federal Direct Subsidized Stafford Loans Federal Direct Unsubsidized Stafford Loans Federal Direct Graduate PLUS Loans

19. Federal Direct Subsidized Stafford Loan 67% of our students utilize these loans. • $8,500 maximum available per year • $65,500 maximum aggregate • 6.8% fixed interest rate • Interest-free while in school and grace • 6-month grace following graduation • 1% origination fee and an up-front interest rate rebate of .5%

20. Federal Direct Unsubsidized Stafford Loan 55% of our students utilize these loans. • $47,167 minus any amount received from Subsidized Stafford • $224,000 maximum aggregate combined subsidized and unsubsidized • Same terms as the Subsidized Stafford except interest accrues from time of disbursement • Interest capitalizes at repayment

21. Federal Direct Graduate PLUS Loan 16% of our students utilize these loans. • Maximum available per year: cost of attendance minus any other aid received • No aggregate limit • 8.5% fixed interest rate • Interest accrues from time of disbursement • 6-month grace following graduation • Origination fee of 4% and an up-front interest rate rebate of 1.5% • Credit check - can be denied based on poor credit. • If denied, may reapply with credit worthy cosigner. • www.annualcreditreport.com

22. Private Loan • Available to international students with a U.S. credit worthy cosigner. • Maximum available is the cost of attendance minus any other aid received. • Interest rates vary based on credit score. • Interest accrues from time of disbursement.

23. VMS Need-Based Loan • International students will be considered for these loans since they do not qualify for federal loans. • Must complete the Need Access application and include parental info. • 7% interest rate • Interest free while in school, 12-month grace, and three-year residency deferment

24. Options During Repayment During residency, there are two choices: • Postpone payments Grace Deferment Forbearance • Make payments Select a repayment plan

25. Postpone with Grace —a period of time following graduation when you are not required to make payments. • Most occur automatically; • Subsidized loans are interest-free to borrower during grace; • Unsubsidized loans continue to accrue interest. Availability and duration are based on type of loan.

26. Postpone with Deferment —a period of time when a borrower may postpone payments. • You must apply and meet criteria; • Subsidized loans are interest-free to borrower during deferment; • Unsubsidized loans continue to accrue interest. Residents generally no longer qualify for deferment of federal loans.

27. Postpone with Forbearance —a period of time when a borrower may postpone or reduce payments due to financial hardship. • Application required; • Used after grace and deferment; • Interest accrues and capitalizes on all loans. Medical residency forbearance – lender must grant.

28. Repayment Plans Determines payment amount and interest cost • Standard (Level) • Graduated • Income Sensitive Repayment • Extended • Income Based Repayment (IBR) May extend payments to as many as 25 years

29. Income Based Repayment (IBR) • Payment based primarily on household income. • Family size also taken into consideration. • Partial subsidy available for the first 3 years. • Must demonstrate a Partial Financial Hardship (PFH). • www.IBRinfo.org

30. Other Options Loan Repayment Programs Public Service Loan Forgiveness Program (PSLF)

31. Loan Repayment Programs —programs that repay your educational debt after you complete residency in return for a commitment of service. The National Health Service Corps (NHSC) at www.lrp.nih.gov The National Institute of Health (NIH) at www.nhsc.hrsa.gov/loanrepayment More programs listed at www.aamc.org/stloans

32. Public Service Loan Forgiveness (PSLF) —program that forgives the remaining balance due on your federal student loans. • Requires 120 payments to Direct Loans • Requires simultaneous work in public service • Does not have to be continuous work • Payments must be required (versus voluntary)

33. What is considered Public Service? • Non-profit, tax exempt, 501(c)(3) organizations • Federal, state or local government • Military service • Public not-for-profit schools and colleges

34. Average Total Indebtedness (including undergraduate debt) - Class of 2009 VMS range $8,500 - $254,500