funding your dental education

Report
Funding Your Dental
Education 2013-2014
Presented by Liz Holm
Office of Student Finance
UPlan
Visit the One Stop home page
One Stop Home Page, cont.
http://onestop.umn.edu/
Contains much helpful information:
• Registration, financial aid, deadline dates
• Forms online
• Grades, transcripts, degree planning
• Respond to your eFAAN
• Monitor your bill and any holds on your record
• Direct deposit sign-up – very important!
• Parent/guest access
The Financial Aid Process –
Six Steps
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•
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•
•
FAFSA
Packaging
eFAAN
Promissory notes/ entrance counseling
Disbursement
Refund “check”
1st Step: Complete a FAFSA
• FREE Application for Federal Student Aid
• U of M – Twin Cities federal school code is
003969
• Apply in January prior to fall semester enrollment
(must do this each year)
• Name must exactly match name on SSN card
• Complete tax return first; use IRS data retrieval
tool
• Must be U.S. citizen or eligible non-citizen to
receive federal aid
UPlan
2nd Step - Packaging
•
Packaging first occurs mid-July for students with
complete records
• “Complete record” = FAFSA data received, no holds,
etc.
• Packaging done weekly thereafter
• Primary form of funding is through federal loans
• See your department or college for other types of aid
(non-resident tuition waivers, scholarships,
fellowships, etc.)
• Keep FAFSA PIN# - it will be needed later to sign
MPN for federal loans
3rd Step - eFAAN (electronic
Financial Aid Award
Notification)
• After packaging, you will be notified of eFAAN via
email communication to your U of M email account
• Respond to your loan offers via your eFAAN
(“financial aid status” link on One Stop home page)
• Accept, reduce, or decline loan offers by responding
to eFAAN – plan your budget carefully before
responding to loan offers
• Report any scholarships, tuition benefits, nonresident tuition waivers, military service contracts,
etc., in “self-reported awards” section on eFAAN
4th Step - Promissory Notes and
Entrance Counseling
• After accepting loans on eFAAN at One Stop link, will be directed
to sign electronic master promissory note (MPN) for federal loans
• Use FAFSA PIN# to sign MPN for federal loans
• Separate MPNs required for federal unsubsidized and federal
Grad PLUS loans if borrowing both loans
• MPN good for 10 years if enrolled continuously
• Complete Entrance Counseling – link on One Stop takes you to
StudentLoans.gov
• Separate MPN and Entrance Counseling required for
unsubsidized and Grad Plus if borrowing both loans
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5th Step - Disbursement
• First disbursement date occurs within 10 days prior to
start of fall semester (mid-August for D1 and end of
August for D2, D3, D4)
• Fall disbursement occurs twice weekly thereafter
• Fall half of loan disburses into your fall account; is
first applied to fall tuition and fees
• FAWA choice on eFAAN allows loans to pay other
charges in student account (books, library fines, etc.)
• Spring half of loans disburse into your spring
account, starting no sooner than 10 days prior to start
of spring semester (mid-January)
• Spring disbursement occurs twice weekly thereafter
6th Step - Refund “check”
• Your refund (or credit balance) is the surplus money
after aid has paid tuition and fees; this is returned to
student for living expenses
• The University no longer issues refund checks;
refunds are sent electronically to bank account
• Everyone must set up direct deposit! (via link on One
Stop home page)
• If aid does not cover that semester’s charges in your
student account, remaining amount owing must be
paid by due date http://onestop.umn.edu/finances/pay/index.html
Cost of Attendance (COA)
•
•
•
COA set by University Regents each year (at the end of June); are six
components. Fall/spring semester amounts for 2013-2014:
– Tuition and fees ($17820 resident/ $30480 non-resident)
– Room and Board ($5332)
– Books and Supplies ($3863)
– Transportation ($375)
– Personal and Miscellaneous ($1000)
– Loan fees (weighted average $190)
All aid – scholarships, loans, tuition waivers, employer reimbursements,
military service contracts, etc., must fit within COA ($57160 res/ $82480
non-res for fall/spring period)
Budget carefully; COA adjustments allowed only in unusual
circumstances
Loan Types and Amounts
Federal Unsubsidized
• 6.8% interest, 1.051% origination fee
• Annual maximum $40500 (fall/spring) and $20250 summer
• Lifetime unsubsidized loan aggregate $224000 (includes
undergraduate borrowing)
Federal Graduate PLUS
• 7.9% interest, 4.204% origination fee
• No annual or lifetime loan limit, Grad Plus loans do not count toward
unsubsidized aggregate
• Student is borrower, Grad Plus must fit within COA
UPlan
Graduate PLUS Eligibility
• Borrower must not have adverse credit history
• Per federal regulation, adverse credit history = being 90 days or
•
•
•
more delinquent on debt, or credit report that shows default,
discharge, foreclosure, repossession, tax lien, wage garnishment,
etc.
Grad PLUS loans do not use debt-to-income ratio or FICO score,
unlike private loans
– Annual Credit Report Request Service:
www.annualcreditreport.com (Trans Union, Experian, Equifax)
Review your credit history for accuracy and correct any errors
BEFORE you need a loan
If Grad Plus loan denied, student can request an endorser (cosigner)
UPlan
Health Professions Loan
• Need-based loan, intended for lower-income families
• Must include parent data on FAFSA to be considered
• If you added parent data to your FAFSA late (after
initially submitting it), contact Liz immediately
• Complete FAFSA early, best if we receive your
FAFSA data by early May
• Health Professions Loan amount and availability
varies from year-to-year (limited fund)
• Requires full-time enrollment
Health Professions Loan, cont.
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•
•
•
One-year grace period
Five percent interest
Ten-year repayment period
Payments made to University (Student
Account Assistance office)
• Health Professions Loan can be consolidated
with other federal loans
• Electronic promissory note in 2013-2014
Loan Repayment
• Varies with type of loan
• Utilize repayment calculators: StudentLoan.gov and Direct Loan
websites
• Health Professions Loan – 1-yr grace period, payments made to
U of M Student Account Assistance office
• Unsubsidized – can pay quarterly interest while in school, or
postpone paying interest until you enter repayment
– Principal repayment starts 6 months after graduation, leaving
school, or dropping to less than half-time enrollment
• Grad PLUS – repayment starts 45 days after final disbursement
but can be deferred while enrolled at least half-time
• Both unsubsidized and Grad Plus loan payments made to your
federal loan servicer
Federal repayment plans
• Several to choose from: Standard, Extended,
Graduated, Income Contingent, IncomeBased, Pay As You Earn, Income Sensitive
• Best choice depends on student income
• Public Service Loan Forgiveness program
allows for cancellation of loan after 120 ontime qualifying loan payments
• Must be employed full-time by federal, state,
local agency, or non-profit organization
Federal versus Private Loans
• Federal loans generally more favorable, even though some
private loans may have lower interest rates
• Often private lender requires co-signer or high FICO score to get
lower private loan rates; rates also could be variable not fixed
• Federal loans offer many repayment options and Public Service
Loan Forgiveness. See StudentLoans.gov for more information
and repayment calculators https://studentloans.gov/myDirectLoan/index.action
• Website and article links:
http://studentaid.ed.gov/types/loans/federal-vs-private
http://usatoday30.usatoday.com/money/perfi/columnist/block/201106-06-private-student-loans_n.htm
http://www.dailyfinance.com/2013/05/01/student-loans-public-vsprivate-paying-for-college/
StudentLoans.gov – become
familiar with this website…
… and this website
How Much Loan Money to
Accept?
• Live frugally and budget carefully
• Money management tips on One Stop:
http://onestop.umn.edu/finances/manage_money/ind
ex.html
• If you take too much loan money, loans can be
reduced and excess returned to Dept of Ed for you
• Send Liz request in writing from your U of M email
account – please include student ID number!
• If you take too little loan money we can offer
additional loan (within reason – limited number of
item types)
How Much Loan Money to Accept?
(resident)
• Example – student offered and accepts full amount of
loans: $40500 unsub ($20250 fall/$20250 spring) and
$16660 Grad Plus ($8330 fall/$8330 spring)
• After loan origination fees removed, $20038 unsub
and $7980 Grad Plus will go into fall account (total
$28018)
• Fall resident tuition & fee charges = approx. $20711
• Fall refund returned to student = $7307
• Is $7307 more than needed to live on during fall
semester? If yes, accept a lower loan amount
How Much Loan Money to
Accept? (non-resident)
• Example – student offered and accepts full amount of
loans: $40500 unsub ($20250 fall/$20250 spring) and
$419800 Grad Plus ($20990 fall/$20990 spring)
• After loan origination fees removed, $20038 unsub
and $20108 Grad Plus will go into fall account (total
$40146)
• Fall resident tuition & fee charges = approx. $33371
• Fall refund returned to student = $6775
• Is $6775 more than needed to live on during fall
semester? If yes, accept a lower loan amount
Monitor your loan debt
Check your borrowing at NSLDS (National Student
Loan Data System - http://www.nslds.ed.gov
(access with your FAFSA PIN#)
• Federal Direct Loan info: http://www.dled.gov (use
FAFSA PIN#)
• Direct loan servicing: 1.800.848.0979
• Request PIN#: http://www.pin.ed.gov
• NSLDS shows only federal sub, unsub, Grad Plus,
Parent Plus, and Perkins loans. Does not list
private, HPL or University loans
Finding Answers
• Walk-in: Room 2-693 Moos Tower: Tues and Thurs
11-12 (Note: these hours may change fall semester, and
will be canceled periodically through December 2014 due
numerous meetings related to University ESUP project –
check door sign or contact Liz)
- One Stop can answer many questions:
– Phone: 612.624.1111 or 1.800.400.8636
– In-person: STSS, West Bank Skyway, or Coffey Hall
(St Paul)
– Email: [email protected]
Or contact Liz – 612.624.4138 or [email protected]
Thank you and best
wishes!
UPlan

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