funding your dental education

Funding Your Dental
Education 2013-2014
Presented by Liz Holm
Office of Student Finance
Visit the One Stop home page
One Stop Home Page, cont.
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
Promissory notes/ entrance counseling
Refund “check”
1st Step: Complete a FAFSA
• FREE Application for Federal Student Aid
• U of M – Twin Cities federal school code is
• 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
• Must be U.S. citizen or eligible non-citizen to
receive federal aid
2nd Step - Packaging
Packaging first occurs mid-July for students with
complete records
• “Complete record” = FAFSA data received, no holds,
• 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
• 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
• Separate MPN and Entrance Counseling required for
unsubsidized and Grad Plus if borrowing both loans
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
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
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
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,
Grad PLUS loans do not use debt-to-income ratio or FICO score,
unlike private loans
– Annual Credit Report Request Service: (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)
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.
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: and Direct Loan
• 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 for more information
and repayment calculators
• Website and article links: – become
familiar with this website…
… and this website
How Much Loan Money to
• Live frugally and budget carefully
• Money management tips on One Stop:
• 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?
• 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
• 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
• 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 -
(access with your FAFSA PIN#)
• Federal Direct Loan info: (use
• Direct loan servicing: 1.800.848.0979
• Request PIN#:
• 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

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