University of Mississippi Medical Center M3 Financial Aid Update

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University of Mississippi Medical Center

M3 Financial Aid Update

Disbursement Dates1st Disb- June 3rd

2nd Disb- January 2nd

* Make sure you have determined your budget prior to accepting your Financial Aid.

Financial Aid Updates

Component M3Tuition/Fees 23,149Housing/Food 18,000Books/Supplies 582Transportation 4,800Personal Misc 5,400Medical Insurance 2,236USMLE 2/ State Lic 1,760Loan Fees 472

Total 56,399

M3 Cost of Attendance

88% of class report having educational debt

62% of class report debt $150,000 or higher

Public Schools

Private Schools

All Schools

Median $160,000 $190,000 $170,000

Class of 2012 Indebtedness

Source: AAMC 2012 Graduate Questionnaire (GQ)

Know the Details of Your Loans

The FIRST Stop…

www.aamc.org/FIRST

Medloans® Organizer and Calculator

Master Promissory Note

A contract with the lender

Has a multi-loan feature

Carefully read before signing

Rights and responsibilities

Rights include the ability to:

Prepay any federal loan without penalty

Request a shorter repayment schedule

Change repayment plans

Request a deferment or forbearanceReview your promissory note for all rights

Rights and Responsibilities

Responsibilities include:

Make on time loan payments Make payments despite receipt of billNotify the lender of changes in contact infoAttend an Exit Counseling sessionReview your promissory note for all responsibilities

Finding Your Federal Loans

To access, provide:

- SSN- Date of Birth- First 2 letters of last name- FAFSA PIN (

www.pin.ed.gov)

www.nslds.ed.gov

Finding Other Loans

www.annualcreditreport.com

To access, provide:- Name - Address- Date of Birth- SSN

Interest Rates

Capitalization

Addition of unpaid interest to the principal

Principal + Interest = Larger Principal

$162,000$185,029

$23,029

Debt Management TipPay the interest on

unsubsidized loans PRIOR to capitalization

The Repayment Timeline

Grace Periods

A period when payments are not required

Occurs automatically

Subsidized loans are interest free during grace

Unsubsidized loans continue to accrue interest

Availability and duration is based on loan type

Grace Periods

Direct PLUS loans

Enters repayment upon full disbursement

In-school deferment will post-pone payments

Interest begins accruing upon disbursement

Interest accrues continuously

Maximum interest rate is 7.9%

NOTICE: Repayment Begins

Options During Residency

During residency, there are two choices:

Postpone Payments

Make Payments

DefermentForbearance

Select a Repayment Plan

Deferment

Must apply and qualify

Interest does not accrue on subsidized loans

Unsubsidized loans continue to accrue interest

NOTE: For more details on deferment or to request a deferment, contact your servicer

Forbearance

Must request from the servicer

Interest accrues on all loans

Many types (administrative, discretionary, mandatory)

NOTE: For more details on forbearance or to request a forbearance, contact your servicer

Determines the payment

amount &

interest cost

$2,130/mo

$1,280/mo

$1,050/mo

$ 630/mo

$ 400/mo

Estimated Monthly Payment Amounts

Repayment Plans

Have a Spending Plan

A Spending Plan in 1-2-3

1) Put it in writing

2) Review periodically to identify leaks

3) Make necessary adjustments

“Live like a student while you are a student…”

www.aamc.org/FIRST

The Basics of BudgetingRefer to page 33

Your Total Income

Your Total Expenses

= Your Discretionary Income

Spending Wants: Leaks

Small amounts add up over time

It may not look like much in the short term

$5 gourmet coffeeX 25 weekdays/mo$125 per month

$125 in coffee per mo.X 10 months$1250 per year

Total Cost of Starbucks:

$5,000

But it adds up over time

Spending Alternatives

Pay attention to the small stuff…

Commit to review your budget regularly

$8 coffee beans per weekX 4 bags per month$32 per month

$32 per monthX 10 months$320 per year

Total Cost of coffee beans:

$1,280

Savings $3,720

Credit: Understand & Protect

10%10%

Payment history

Amount Owed

Length of history

New credit

Type of credit

A FICO Score is Based On…

How to Improve Your Score

During medical school, be sure to:

Pay bills on time

Pay down debt on lines of credit

Apply for credit sparingly

Check your Credit Report

www.annualcreditreport.com

Financial Aid Wellness DayComing in February

Make sure to be watching your email

REMINDERS

University of Mississippi Medical Center M3 Financial Aid Update

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