Financial Aid Informational Seminar
“What you need to know during the clinical terms”
• Clinical Terms
• Bridge & Residency/Relocation Loans
• Loan Repayment Options
• Loan Payment Relief Options
Wednesday, March 21st from 6 – 7 PM
at Bourne Hall
Clinical Terms
•
•
•
•
•
•
•
Federal Changes
Clinical Start Time Line
Satisfactory Academic Progress (SAP)
Budget
Bridge Time (No rotations)
How time off effects your loan
disbursement
Processing of your refund
Changes to Federal Loan Benefits
Effective July 1, 2012
– Subsidized portion of loan eliminated for
graduate level students
– Interest will begin to accrue on your new
loans as of the disbursement date
– Does not impact your existing federal loans
– Origination Fees increase to 1% for Stafford
loans and 4% for GPLUS
Clinical Start Time Line
Six Months
Student loans are considered to be in a deferred status during
this six month period (May 14th – December 12th )
May 14, 2012
Student
leaves
Grenada to
study for
USMLE 1:
Time line
starts
October 1, 2012
Students must have
filed for a Leave of
Absence if student
has not begun clinical
term 1
The Leave of Absence
keeps your loans in
deferment for up to 6
months
Anytime Student returns to school
after December 12, 2012
December 12, 2012
Students must request
an extension to
Leave of Absence if
student has not begun
clinical term 1.
Student will need to
contact servicers to
have loans returned to
be placed back into “in
school” deferment
status *
Loans will no longer be in deferred
status, grace period would have
been used up and repayment period
begins. Student must contact
their servicers to apply for
Income based repayment (IBR)
* Hope to be participant in National Student Clearinghouse by July 1, 2012- would be able to
electronically request deferment
Satisfactory Academic Progress
(SAP)
• Federal regulations require that students who
are not in good academic standing are
ineligible for federal loans
• Not making academic progress means
 Do not have a cumulative GPA of at least a 2.00
 Have not been removed from academic probation within one
academic year
 Do not have a cumulative GPA of at least a 2.50 by the end of
Term 5
 Are not meeting the timeline requirements (started clinical
training within 3yrs of matriculation)
If not meeting SAP
Clinical Terms 1 & 2
Budget and Financial Aid
Clinical Terms 1 & 2 - 32 weeks
Start Date After July 1
Term 1
Term 2
Total
University billed expenses
Tuition
Fees
Malpractice Insurance
TOTAL
$19,455
$3,170
$357
$22,982
$19,455
$3,170
$357
$22,982
$38,910 subject to change
$6,340 subject to change
$714 subject to change
$45,964
Non-billed (Living) expenses:
Room
Board
Miscellaneous
Books
Transportation
Bank Fees
Medical Insurance
Exam
TOTAL
$4,000
$2,400
$1,200
$920
$1,000
$715
$756
$0
$10,991
$4,000
$2,400
$1,200
$920
$1,000
$715
$756
$0
$10,991
$8,000
$4,800
$2,400
$1,840
$2,000
$1,430
$1,512
$0
$21,982
Financial Aid Eligibility:
Term 1
Disbursement Dates
Stafford Loan
Scholarship
Loan (GradPlus or Alternate)
Eligible Financial Aid
Term 8
Total
10 Days prior to start of term
$10,250
$10,250
$20,500
$23,723
$33,973
$23,723
$33,973
$47,446
$67,946
Time off from Rotations –
Bridge Time
• You must contact your Financial Aid Counselor
as taking time off will effect the disbursement of
your loans.
• Each term is 16 weeks of actual rotations NOT
calendar weeks.
Time off from Rotations –
Bridge Time
• Up to 20 weeks of bridge (vacation) time per
year.
• If you do not schedule another rotation within 30
days of last rotation you must request bridge
eligibility or a Leave of Absence.
– If you don’t you are considered not enrolled and loans
go into grace/repayment
– Financial aid may be reduced
– Cannot receive more than 1 ALOA in a 12 month
period
How time off effects your
loan disbursement
Clinical Term = 16 weeks of rotations
Term #
Loan
Disbursement
Date
FAFSA YR
Term Start Date:
08-13-2012
1
8-03-2012
2012 - 2013
Next Term Start
Date:
01-14-2013 **
2
01-04-2013
2012 - 2013
From
To
Weeks
Total rotation
weeks to date
Rotations
Hospital
08-13-2012
09-21-2012
6
6
Core Clerkship in Psychiatry
Richmond
09-24-2012
11-02-2012
6
6*
Bridge
N/A
11-05-2012
12-14-2012
6
12
Core Clerkship in Ob/Gyn
Richmond
12-17-2012 **
01-25-2013
6
18
Core Clerkship in Pediatrics
Richmond
01-28-2013
04-19-2013
12
30
Core Clerkship in Surgery
Lutheran
04-22-2013
07-19-2013
12
42
Core Clerkship in Medicine
01-14-2013
Richmond
*
**
Bridge time does not count towards the 16 weeks of required rotations to complete the term.
A new clinical term may start in the middle of an ongoing rotation. The start of a new rotation does not mean
the start of a new term. In this example student is in currently in Term 1 and would start Term 2 in the middle
of his Core Clerkship in Pediatrics.
Processing of your Refund
• Funds disbursed 10 days prior to start of the term
• Refund issued approx. 3 business days after funds are
credited to student account
• Direct Deposit available for expedient posting of funds
to your bank account – instructions available on MY SGU
• Refunds are sent to your mailing address unless you
have set up direct deposit
• Questions regarding refunds, account balance or direct
deposit should be addressed to Student Finances.
Email: billing@sgu.edu
• To change your refund mailing address go to Self
Service to Personal Information tab.
Student Health Insurance During
Clinicals
• Processed each year prior to August 1st
–If you have your own Health Insurance coverage
and want to waive out of school sponsored Student
Health
• You must waive by August 1st or
• You will be automatically enrolled and
billed for Plan 1
Monitor your SGU emails for this notification
Those annoying email notifications
Take the action needed to resolve them!
• May need to sign Promissory Notes
• May need to provide Student Health
Insurance Information
• May need to accept loan awards
• FAO may need to update our systems
Student Self Service
View FA Status
Student Self Service - Requirements
A000111111
Saint George University
Bridge & Residency/Relocation
Loans
• New Bridge Loan
• Residency & Relocation Loan details
• Loan Repayment Examples
NEW Bridge Loan
Bridge Loan
•
•
•
•
•
•
•
•
Borrower must have completed their first two (2) years of medical school
at St. George’s University*
Borrower may apply with or without a co-signer
Borrower must be the minimum age of majority based on the state of
permanent residence at the time of application
Minimum loan amount = $2,001.00
Maximum loan amount = $8,000.00 (inclusive of fees netted from loan)
Borrowers and Cosigners must meet minimum FICO score and other
credit requirements
Income requirements may apply.
Interest Rate/Fees
•
Variable Interest Rate, adjusted quarterly
•
An Origination Fee will apply
For additional information or questions, please call:
(877) 716-5406
To Apply Go to: www.brazos.us.com/private/stgeorges
*The Bank of Lake Mills Medical Bridge Loan Program is not being offered, made or endorsed by St. George’s
University. Bank of Lake Mills is not affiliated with St. George’s University.
Residency & Relocation Loans
•
Non-federal loans available to provide funds for graduating medical students who have
expenses not covered by federal aid packages, including residency expenses and
relocation costs
•
To be eligible a student must be enrolled at least half time in their final year of study
•
Your school is generally required to verify attendance – this is verified through the
Registrar’s office – contact Carla Gerrard – Ext. 1203
•
Funds are disbursed directly to the student
•
Cannot be consolidated under a federal Consolidation loan
•
Borrow up to a maximum of $15,000
•
Eligibility is based on a credit evaluation – securing a cosigner may increase the likelihood
of being approved. Borrower may apply for co-signer release after successful completion
of their education& 24 consecutive payments
•
Deferment during residency – must request from the lender
•
Link to loans: https://www.salliemae.com/student-loans/global-residency-loan/
SALLIE MAE Medical
Residency and Relocation
Loan
Lender ID: 900905
Who's Eligible Graduate
Cosigner Required No
Cosigner Release Yes
Rates from LIBOR 3.00% (3.34%
Interest Rate APR) to LIBOR + 11.88%
(11.68% APR)1
Interest Rate Type Variable
Interest Rate Reduction #1 0.25%
Minimum Loan Amount $1,000.00
Maximum Loan Amount $15000.00
Repayment begins three years after
graduation or nine months after
Repayment Begins
leaving school or dropping to less
than half-time status (4)
Grace Period 9 months
Origination Fee No origination fee
Repayment Fee No repayment fee
Valid for Past Due Balances No
1 Rates and fees shown are available for the Residency & Relocation Loan. Interest rates are
variable and may increase after consummation.
Loan Repayment Example
APR Example for Residency & Relocation Loan
Annual Percentage Rate Examples
Assuming an Interest Rate of 4.125%
Annual Percentage Rate Examples
Assuming an Interest Rate of 9.625%
Loan Amount
$10,000.00
$10,000.00
APR
4.07%
9.27%
Loan Fees
0.00%
0.00%
Principal Amount
Entering Repayment
$11,340.63
$13,128.13
Monthly Payment
(principal & interest)
$60.65
$115.84
Repayment Terms
(months)
300
300
Deferment Term
(months)
39
39
Total Paid
(Loan & Interest)
$18,195.00
$34,752.00
The interest rate may vary and is indexed to the 3-month London Interbank Offered Rate (LIBOR), as published in the
"Money Rates" section of The Wall Street Journal, rounded up to the nearest one-eighth of one percent, plus or minus a
margin. As of Friday, September 16, 2011, the 3-month LIBOR Index, rounded up, was 0.375%. The variable rate is
determined quarterly on the first day of January, April, July, and October based on the published LIBOR Index 15 days prior
to those dates. The Annual Percentage Rate (APR) for a loan will increase if the 3-month LIBOR Index increases and would
result in higher monthly payments, an increase in the number of scheduled payments, or both.
Loan Repayment Options
•
•
•
•
•
•
Standard
Graduated
Extended
Consolidation
Income Based (IBR)
Repayment Tips
Standard Repayment
Advantages
Considerations
Standard
Equal monthly
payments of at least
$50 (depending on your
loan balance) for up to
10 years.
Loan Amount
$138,500
Loan Term
Who this plan works
for
You will automatically
be placed on the
standard repayment
plan unless you decide
to choose another plan.
This plan is great for
someone who has a
steady monthly income
and can afford the
regular payments.
(Yrs)
Monthly
Payment
Total Paid
(Loan + Interest)
10
$1,593.86
$191,263.20
Graduated Repayment
Who this plan works
for
Advantages
Considerations
Graduated
Monthly payments start lower, but
increase over time for up to 10 years.
Talk to your lender or servicer to find
out more specifics.
Even though your payments are
low to start with, your loan term is
still ten years. Your loan
payments may end up being very
high near the end of your term.
Loan Amount
$ 138,500
Repayment Summary
Period
(years)
Monthly
Payment
1-2
$ 1,094.39
3-4
$ 1,330.50
5-6
$ 1,617.54
7-8
$ 1,966.52
9 - 10
$ 2,390.78
Totals
Months in
Repayment
Interest Payment
Total Loan
Payment
120
$ 63,094.47
$ 201,594.47
This plan may work well
for someone who expects
to have steady wage
increases.
Extended Repayment
Who this plan works for
Advantages
Considerations
Extended
Extended repayment
allows you to stretch
your payments out over
25 years, offering you a
lower payment over a
longer period of time.
Loan Amount
$138,500
To qualify, you must have total
outstanding principal and interest in
FFELP loans that exceeds $30,000. If
you do, you may repay your loans
based on a fixed or graduated payment
schedule for up to 25 years. Remember
that your payments will be lower, but
you'll pay more in interest because
you're taking longer to repay your loans.
That said, there is no pre-payment
penalty.
Loan Term
This plan is good for
someone who is looking
for a low monthly
payment. Depending on
your income, your
payment may be lower
than with the incomebased plan—run the
numbers to find out.
(Yrs)
Monthly
Payment
Total Paid
(Loan + Interest)
25
$961.29
$288,387.00
Loan Repayment Examples
Payment Plan
Amount Borrowed
Loan Term
(Yrs.)
Total Paid
(Loan + Interest)
Standard
$138,500
10
$191,263.20
Graduated
$138,500
10
$201,594.47
Extended
$138,500
25
$288,387.00
Consolidation
• Combines federal loans into a single loan
• Pays existing loans in full and replaces them with a
new loan
• Acquires a new interest rate
• Increases repayment term up to 30 years,
depending on your loan balance
• Resolves any split servicing issues
• Needed for Public Health Forgiveness Program
• The Direct Loan Program is the only source for a
federal consolidation loan
www.loanconsolidation@ed.gov
Special Direct Loan
Consolidation
•
•
•
•
•
Who is eligible?
You must have at least one loan held by Department of Education (ED)
and at least one lender held Federal Family Education Loan Program
(FFELP) loan to qualify
The lender-held FFELP loan cannot be in default
The lender-held FFELP loan must be in its grace period or in repayment
status – including delinquency, deferment (ex. Unemployment), or
forbearance status.
IN SCHOOL deferment does not qualify
Offer Ends June 30th
Benefits
• .25% interest rate reduction from the rate as of the date of
consolidation
• Additional .25% interest rate reduction is auto debit is set up
• The program is intended to assist borrowers with loans split among
loan servicers by simplifying the repayment process, resulting in one
monthly bill and payment.
Income Based Repayment (IBR)
• New payment plan effective July 1, 2009
• Payments based on income and family size instead
of amount borrowed
• You can participate if you have partial financial
hardship
• Must reapply each year and submit tax return for
verification
• Borrower who files married/joint: consider both spouse’s AGI in
determining payment amount
• Borrower who files married/separate: consider only the
borrower’s AGI and debt in determining payment amount
Income Based Repayment (IBR)
• Monthly payment is 15% of the difference between
your Adjusted Gross Income (AGI) minus 150% of
the monthly poverty level in your state of residence
applicable to family size
• Payment term is 10 years, but repayment period can
go up to 25 years
• Any remaining balance may be forgiven after 25
years and/or 300 on time payments
Benefits of IBR
• Subsidized loans are eligible for a subsidy for
the first 3 years
• your monthly payment amount may not cover all of the
interest that accrues on your loans each month. (negative
amortization)
• The gov’t pays the remaining unpaid accrued interest that is
due each month on your subsidized loans for up to three
consecutive years
Example:
Borrower has all Subsidized loans
Payment under IBR = $40
Monthly accrued interest = $75
DOE will pay: $35
 Visit www.ibrinfo.org for a payment calculator
Meet Evan – Borrower #2
Evan is single, with no dependents,
and resides in FL
Family size: 1
AGI: $48,460
Loan Balance: $150,000
Is Evan Eligible for IBR?
Family Size = 1
$4,038 Monthly *
-$1,396 150% of poverty level **
$ 2,642
15% of $2,642 = $396
Standard payment = $1,726
QUALIFIES
* Yearly Salary of $48,460
** Current Poverty level is $11,170 x 150% = $16,755 divide 12 this by $1,396
Meet Mary – Borrowe # 4
Mary is married, with no
Children, and lives in OH
Family size: 2
AGI: $180,000 (Joint Return)
Loan Balance: $150,000
Is Mary Eligible for IBR?
Family Size = 2
$15,000 Monthly
-$ 1,891 150% of poverty level *
$ 13,109
15% of $13,109 = $1,966
Standard payment = $1,726
DOES NOT QUALIFY
AGI of both Mary’s spouse and her own are used for determining their IBR eligibility. Speak with
your financial advisor whether file separately will be more advantageous.
* Yearly Salary of $180,000
** Current Poverty level is $15,130 x $150% = $22,695 divide this by 12 month = $1,891.25
Sonia – Borrower #3
Family Size = 2
Sonia is single, with one child, and
lives in NY
Family size: 2
AGI: $48,460
Loan Balance: $150,000
Is Sonia Eligible for IBR?
Family Size = 2
$4,038 Monthly *
-$1,891 150% of poverty level **
$ 2,147
15% of $2,642 = $396
Standard payment = $1,726
QUALIFIES
* Yearly Salary of $48,460
** Current Poverty level is $15,130 x $150% = $22,695 divide this by $1,891
Income-Based Repayment (IBR)
Borrower 1
Borrower 2
Borrower 3
Borrower 4
1
1
2
2
Monthly AGI*
$0
$4,038
$4,038
$15,000
150% of
Poverty Level
$0
$1,396
$1,891
$1,891
X**
$0
$2,642
$2,147
$13,109
15% of X
$0
$396
$322
$1,966
Family Size
Loan Amount
Standard Monthly
Payment
Borrowers who quality for
IBR
$150,000
$1,726.20
1, 2 & 3
$200,000
$2,301.61
All four borrowers
*The average first-year resident stipend for 2009 was $48,460. This amount will vary by region and specialty.
**Difference between AGI and 150% of poverty level
PAY AS YOU EARN
• On October 25, 2011, the Obama Administration
proposed a Pay-As-You-Earn plan that would cap
certain student loan borrowers’ loan payments at 10%
of their discretionary income.
• Under this proposal, borrowers paying under the PayAs-You-Earn plan would also be eligible to have their
remaining loan balance to be forgiven after making 20
years of payments.
• Details of the Pay-As-You-Earn plan, including
borrower and loan eligibility, will not be finalized until
the proposal goes through the negotiated-rulemaking
process.
Financial Advisors
Loan Payment Relief Options
•
•
•
•
Public Service Loan Forgiveness
Various State and Private Organizations
National Health Service Corp. (NHSC)
National Institute of Health (NIH)
How does Public Service Loan
Forgiveness (PSLF) work?
To be eligible for Public Service Loan
Forgiveness (PSLF) you must make 120 of the
right kind of payments, with the right kind of
loan, while working in the right kind of job. The
120 payments do not have to be consecutive.
Public Service Loan Forgiveness
(PSLF)
1) The right kind of job. Your job is eligible if you are employed by a
nonprofit, tax-exempt 501(c) (3) organization – check with the IRS,
employed by Federal, State, Local or Tribal government or serve in the
Americorps or Peace Corps.
2) The right kind of loan. Direct Loans (William D. Ford Direct Loan
Program). Federal Family Education Loan (FFEL) Program, you can
consolidate into a Direct Loan to take advantage of PSLF, even if you
have consolidated previously.
3) The right kind of payment. These are payments made under the
Income-Based Repayment (IBR), Income-Contingent Repayment
(ICR), or Standard 10-Year Repayment plans. PSLF is intended for
people who have high debt relative to income and qualify for ICR or
IBR for at least part of their careers in public service.
Does your potential residency placement qualify ? The answer may help
you decide where you want to do your residency.
Loan Repayment/Forgiveness
Programs
Residency Forebearance
• You must request forbearance from the
servicer for each of your loans
• Interest accrues on ALL loans
• Allows borrowers to postpone payment or
reduce the payments for a period of time
• Servicers are required to grant Mandatory
forbearance to residents through the
duration of their residency (approved in
annual increments).
• Credit is not affect adversely
Strategic Approach to Managing Medical School Debt
Two Medical School Graduates
GRADUATE A
GRADUATE B
DURING RESIDENCY
Choose to enroll in IBR & apply for PSLF
DURING RESIDENCY
Uses Residency Forbearance to postpone making
any payments on his federal loans during
residency
His monthly payment is $0
Monthly IBR payment is $37 during the 1st 2
years of residency & averages $333 during
remainder of residency
AFTER RESIDENCY
Her 1st year monthly payment is $352 and
increases to $1,294
Monthly payment never exceeds $2,211
AS A PRACTICING PHYSICIAN
Meets the PSLF program requirements and
retires debt after 6 more years, pating a total of
$134,766
AFTER RESIDENCY
Debt has increased by $53,584 from interest that
accrued during forbearance
Enters a standard 10 year repayment term payments are $2,837
AS A PRACTICING PHYSICIAN
Retires his dent on the standard repayment plan,
with the sum of his total payments over this
period totaling a staggering $340,390
Has $189,655 of debt forgiven (tax free) which is
equivalent to $316,092 in taxable income.
Graduate A retires her debt after the 10 year repayment term, paying a total of
$134,766 while Graduate B paid a total of $340,390. Taking a proactive approach to
managing student debt saved Graduate A $205,624 in loan repayments relative to
Graduate B.
National Health Service Corps
Loan Repayment Program
• Primary care clinicians can receive repayment
assistance in return for working in a NHSCapproved HPSA
– $60,000 for 2 yrs of service
– $170,000 for 5 yrs of service
• Continued service beyond 5 years may be
possible
• http://nhsc.hrsa.gov/loanrepaym
National Institute of Health (NIH)
• Part of the U.S. Department of Health and Human Services
• The primary federal agency for conducting and supporting
medical research
• Offers five loan repayment programs to attract health
professionals to careers in clinical, pediatric, health disparities, or
contraception and infertility research
• In exchange for a two or three-year commitment to a research
career, NIH will repay up to $35,000 per year of your qualified
educational debt
• Basic eligibility requirements:
• Government research funding (federal, state, or local) or
domestic nonprofit research funding
• Student loan debt equal to at least 20% of annual salary
• U.S. citizen
• For more information, visit lrp.nih.gov
Repayment Tips
• Verify your Federal Student loans at www.nslds.ed.gov
• Let your lender or servicer know if:
1. You change your name, address, or telephone
number
2. You want to switch to a different payment plan
after repayment begins
3. You want to change your payment due date
because the date assigned doesn’t work for you
4. You think you’re going to have trouble making
your student loan payment
Repayment Tips
• Sign up to make your monthly payment via automatic
debit (ACH) instead of by check
• Explore the education tax benefits that are
available—visit studentaid.org or irs.gov (search for
Publication 970)
• The amount of interest that you pay is the lowest
under the standard 10-year repayment plan
• There is no pre-payment penalty for federal student
loans
• Choose an alternative plan if you have cash flow
problems early on
Who do I contact if I have financial questions?
If your question is pertaining to your financial aid application, your
budget, or the amount you should borrow, please contact:
1(800) 899-6337
Financial Aid
Diane Beltrani
Tami Vecchio
Director of Financial Aid
Associate Director
Ext. 1224
Ext. 1230
Laura Raygada
Laura Faylo
Michelle Gennarelli
Michele Wulfken
Laurie Wagner
Financial Aid Counselor
Financial Aid Counselor
Financial Aid Counselor
Financial Aid Counselor
Assistant Director
Christine Cathcart
Lynda Hanley
Clinical Financial Aid Counselor
Clinical Financial Aid Counselor
Carla Gerrard
Angela Kuhlmeier
Enrollment Verification Officer
Student Health Insurance
Ext. 1236
Ext. 1232
Beth Cohen
Loan Specialist for Canadian students
Ext. 1237
(A - D)
(E - KO)
(KR – PE)
(PH – V)
(W - Z)
Ext. 1227
Ext. 1228
Ext. 1415
Ext. 1391
Ext. 1350
(A-C & P-Z) Ext. 1417
(D – O)
Ext. 1393
The e-mail address for the Financial Aid Department is faid@sgu.edu
Student Finances
If your question is pertaining to your refund check, the balance of your
account, or your student account bill, please contact:
1(800) 899-6337
Valerie Cascio
Gini Davanzo
vcascio@sgu.edu
gdavanzo@sgu.edu
Ext. 1268
Ext. 1271
Useful links
•
•
•
•
•
www.aamc.org/services/first - tools to manage student loan debt wisely
- The Economics of Becoming a Doctor- Includes information on Income-Based
Repayment and Public Service Loan Forgiveness, and a discussion of the economics of
earning an M.D. degree
http://www.gladvisor.com/onlinepresentations.aspx
– Medical Residents' Finances: A Strategic Approach to Managing Medical School DebtThis video highlights how federal student debt relief programs can help medical residents
lower the cost of their student loan debt. An overview of the benefits of Income-Based
Repayment and Public Service Loan Forgiveness is also provided.
http://www.IBRinfo.org
–
Income Based Repayment
http://www.aamc.org
–
Association of American Medical Colleges
http://www.nslds.ed.gov
-- Association of American Medical Colleges