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 • • • • • • 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 UPlan 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. • • • • 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: onestop@umn.edu Or contact Liz – 612.624.4138 or holmx029@umn.edu Thank you and best wishes! UPlan