What Will We Be Talking About?

1. What Will We Be Talking About? • Financial aid overview • Cost of education • Financial aid • Other opportunities with in the university or outside • Understanding your loans • University bill and disbursement • Strategies for minimizing borrowing & money management

2. Confidentiality • All records and conversation with you and your parents are confidential • No public announcement should be made of amount and type of aid of a particular student

3. Know your cost of education • What is included and “not included • How much it cost per year • Cost of MD (Four or Five years)

4. Total cost of education includes • Educational Expenses • Tuition, Books and Supplies, fees • Essential Living Expenses- critical to survival • Food, shelter, clothing, medical insurance,etc. • Important Living Expenses - make life comfortable • Transportation, Other (computer, medical, dental not covered by insurance)

5. Total cost does not include Stanford Med. Stu. Stanford Med. Stu.

7. Maximum Financial Aid AvailableIf Eligible • Stanford Grant maximum $10,000 per quarter • Middle Income Assistance Program ($5,000 per quarter) • Federal Perkins Loan maximum $6,000 per year • Federal Subsidized Loan $8,500 per year • Stanford University Loan $2,000 per quarter • Federal Unsubsidized Loan $32,000 • Federal Grad PLUS Up to cost of education minus other financial aid

8. Stanford Grant • You are not required to repay • Your cooperation is needed and expected to write “thank you” letters to donors • Donors want to hear what you are doing and what your goals are • Directly applied to your bill

9. Other Sources of Grant Aid • Med. Scholars • Teaching and research assistantships • Other department grants

10. Other Sources of Grant Aid • Scholarship for Disadvantaged Students • Armed Services Health Professions • National Health Service Corp • Other outside grants • Check our web site • http://med.stanford.edu/md/financial_aid/external_funding.html

11. Understanding Your Loans • Players in the process • Types of loan programs • Terms and conditions • Repayment options • Monthly loan payments

12. What you need to know about your loans • Your loans must be repaid even if you: • Never graduate, do not get the residency you wished, never use the information you learned, don't like the quality of education received • Loans Must be Repaid With Agreed Upon terms • Interest rate • Repayment periods & options • Loan postponement Option

13. How Education Loans Differ from Other Loans (Mortgage, Credit Card) • No measurement of ability to pay (credit check, collateral) • Delayed repayment options • No in-school repayment • Flexible repayment options • Temporary postponement • Deferment & forbearance

14. Players in the Loan Process A Abera T Tiffany M Marti Servicing Agency

15. Loan Programs

16. Life Cycle of a Loan Forbearance Deferment IBR Repayment up to 30 years Grace period six months nine months In-School Four to five years

17. Your Rights As a Borrower • A choice in repayment plans • Five to thirty years to repay your loan • Prepayment of all or a part of your loan without penalty • Loan Postponement • Grace period • Deferment and forbearance • Access to information about your loan • Notification if your loan is sold • Cancellation of debt in the event of death or permanent disability

18. Your Responsibilities • Borrow wisely • Make academic progress • Know your repayment terms • Remember that your promise to repay is legally binding agreement • Tell your lender when you change your address, name or phone number • Keep documentation on your loan • Make your loan payments on time

19. Refund and Repayment • If you withdraw from medical school before the 60% of the enrollment period , you may be eligible for a refund of tuition and fees paid • A total refund which is due to the Stafford loans will be calculated based on withdrawal date and will be returned to the lender to reduce your loan • You must pay back the money you received as cash from the bursar’s office • No refund after completion of 60% enrollment period

20. Temporary Postponement • Grace Period: • The period of time that begins the day you cease to be enrolled at least halftime. Interest continues to accrue for the unsubsidized while the subsidized still free • Deferment: • Limited period of time during which payments on principal and/or interest are postponed while the loan is in good standing. • Forbearance: • A formal agreement between you and the lender to suspend, reduce payments. Lenders are required to grant forbearance. Interest accrues during forbearance.

21. Cancellation • Permanent disability • Upon death

22. Repayment • Standard or fixed—pay the same monthly payment until loan is repaid • Graduated—payments start outlow and gradually increase • Income-Based Repayment—newadjusted annually based on income • Extended repayment

24. Comparing Repayment OptionsLoan Amount $100,000Assumed 6.8%

25. Repayment Ability Educational Payments as a Percent of Gross Monthly Inocme Annual Gross Income

26. Consequences of Default • Failure to repay loans may result in: • Legal action against you, collection charges and legal fees • Loss of federal and state income tax refund • Loss of eligibility for other student aid • Loss of eligibility for loan deferments • Negative credit report • Wage garnishment

27. Disbursement • Must sign promissory notes • Must enroll for the required units • Must attend loan entrance session • Other holds • Enroll for direct deposit (optional) • New payment plan • No credit card

28. Student Bill- On campus

29. Student Bill-Off-campus

30. Strategies For Minimizing Borrowing • Be proactive in your financial aid process • Know the process • Look for opportunities • Have a systematic financial planning • Set a goal • Develop a cash flow model • Estimate total cost • Assemble your resources • Determine the difference • Go on a spending diet • Borrow wisely

31. Budget setting and Making your Money Work for You • Look at your income (savings, financial aid, paychecks) • Plot your expenses…fixed and variable • Do the math and live within your means, make ends meet

32. Academic Planning (Academic Path to graduation) • Determine the number of quarters you are attending (3 or 4) • Determine how long it take you to graduate (4 or 5 years) • Use the plan to determine total cost • List all the resources • Compare resource with cost

33. Why Budgeting? • You live with a fixed income • You have quarterly disbursement of funds • Help you meet your wants and needs • Help you avoid spending more than you have

34. Budget Buster SNL Budgeting Skit

35. Credit Card ABC’s • A credit card is helpful in emergencies, but they rarely happen at the mall! • Buying on SALE, is still SPENDING, not SAVING! • Credit card debt is not an investment, but it does reduce ability to invest! • Debt from credit cards can make it more difficult to achieve financial goals.

36. Budgeting- Sample 2009-10 On Campus

37. Budgeting- Sample 2009-10 Off Campus

38. If you have any Questions Contact Abera Metaferia Financial Aid Counselor Phone 650 724 3181 E-mail abera.metaferia@stanford.edu Tiffany Barone Financial Aid Assistant Phone 650 723 6958 E-mail tbarone@stanford.edu Marti Trujillo Financial Aid Director Phone 650 723 6954 E-mail mtrujill@stanford.edu

39. We are confident that any financial aid concerns and problems can be solved if we work together. • This is accomplished by direct & open communication between us. • Please visit us, call us and send us e-mail.