Types of Student Loans Federal Private Institutional (Tufts)
Federal Student Loans Federal Direct Subsidized Loan Federal Direct Unsubsidized Loan Federal Direct Graduate PLUS Loan Federal Perkins Loan Federal Health Professions Student Loan (HPSL)
Federal Direct Subsidized Loan 6.8% non-accruing, fixed interest rate Annual maximum is $8,500 Aggregate maximum is $65,500 (including undergraduate) Six-month grace period before repayment & interest accrual begins 1% origination fee (with automatic .5% fee-reduction) **No new Direct Subsidized Loans will be originated for graduate and professional students after July 1, 2012**
Federal Direct Unsubsidized Loan 6.8% accruing, fixed interest rate Annual maximum pro-rated to reflect the number of months a student is enrolled. Twelve-month maximum (D14 & D13) is $47,167 (minus Subsidized eligibility) Aggregate maximum of all Direct Loans (including Subsidized) is $224,000 (includes undergraduate) Six-month grade period before repayment begins Interest capitalizes at the end of the grace period 1% origination fee (with automatic .5% fee-reduction, this benefit ends 7/1/12)
Federal Direct Graduate PLUS Loan 7.9% accruing, fixed interest rate No annual/aggregate maximum—designed to “fill in the gaps” left over after all other sources of financial aid Approval is based on a credit check Six-month post-enrollment deferment before repayment begins Accrued interest capitalizes the day after you academically clear and again after the six-month deferment period 4% origination fee (with 1.5% automatic 1.5% fee- reduction, this benefit ends 7/1/12)
Federal Perkins Loan 5% non-accruing, fixed interest rate Campus-based loan Current annual maximum is $5,000 Nine-month grace period before repayment or interest accrual begins No origination fee.
Federal Health Professions StudentLoan (HPSL) 5% non-accruing, fixed interest rate Campus-based loan Current annual maximum is $10,100 Twelve-month, post-enrollment grace period before repayment and interest accrual begins No origination fee
Private Education Loans Interest rates, annual/aggregate maximums, fees, and approval criteria vary from lender to lender It is important to do your research before applying for a private loan Keep in mind that applying with a co-signer may help you to receive a lower interest rate. Direct-to-consumer (such as Residency & Relocation Loans)
Institutional Loans Tufts Loan Program 7% non-accruing, fixed interest rate Current annual maximum is $9,100 Six-month, post-enrollment grace period before repayment & interest accrual begins No origination fee.
Direct Costs For 2011-2012, these charges are $72,235 (D14), $67,707 (D13), and $67,587 (D12) These are set costs. Little to no “wiggle room.” Tuition and fees generally increase between 4-6% each year.
Monthly Living Expense Budgets On-Campus Off-Campus Living with (Dorm) (Apartment or Parents or House) RelativesRent/Dorm $897 $1,225 $275ChargeUtilities 50 200 50Food 475 350 225Transportation 65 100 175Miscellaneous 213 225 175TOTAL $1,700 $2,100 $900
Managing Your Cost of Education So how do you keep borrowing at a minimum? Direct costs are unavoidable, so the key lies to managing your indirect costs that are associated with you being here at Tufts. The power is yours!
Create a Realistic Spending Plan Do you need that one bedroom apartment downtown? Boston vs. Allston vs. Malden vs. Cambridge Craiglist, Craigslist, Craiglist Do you need to have a car in the city? Can you save money by purchasing a semesterly T-Pass? Can you live with one roommate? Two roommates? (bonus points if they come with a pet you can enjoy ) Netflix vs. Cable vs. Hulu vs. Amazon Prime Cell phone plan—how many minutes do you really use?
Seek Outside Sources of Funding Apply for EVERYTHING (as long as you don’t have to pay!!) The Internet is a great resource—just be careful about sharing your information Health Professions Scholarship & National Health Service Corps Does your employer offer a scholarship/loan for coming to dental school? Does your undergraduate institution? High school? Alumni groups often offer grants/scholarships to students seeking to further their education Pay attention to your tufts.edu email!! Scholarship opportunities are sent out by the school, we will not chase you down!
Remain Familiar With What YouHave Borrowed Many students are “numb” to their debt load Remember that you can return funds OR request more (possibly) as needed throughout the year—be in touch with us! Don’t just blindly sign your award letter—can you reduce your spending to increase your Grad PLUS Loan? Your Unsub? Always remember that loans must be paid back. You are borrowing against your future income. Living cheaper now means you can have more room for fun stuff later!
National Student Loan Data System www.nslds.ed.gov (will need FAFSA PIN to log in) Check outstanding principal and interest on all (graduate and undergraduate) loans Contact information on all loan servicers You will need this information when you enter repayment—it is a good idea to familiarize yourself with it NOW
Loan Repayment Programs Tufts LRAP – http://lrap.tufts.edu State: - Check with your state’s Public Health Department for available programs Federal: - National Health Service Corps http://nhsc.hrsa.gov/loanrepayment
$ALT www.saltmoney.org Created by American Student Assistance (ASA) Partnership with Tufts Dental so all currently enrolled students have free membership (for life!!) Source of financial information for student loans & more Track loans, plan repayment, learn money smart strategies, find deals, job searches Will receive activation information ~ February 1
Federal Student Aid On The Web www.studentloans.gov (will need FAFSA PIN to log in) Information on applying for, managing, and repaying federal student loans Good source for announcements and current information on updates to federal student aid programs Links to other resources!
Direct Loan Consolidation www.loanconsolidation.ed.gov Resource for federal loan consolidation information, including the pros and cons and impact this will have on you Place to apply for a Federal Direct Consolidation Loan
Access Group Financial Aid www.accessgroup.org Resource specially geared towards graduate students (including health professions!) Information on student loans, financial aid, and financial literacy (credit, borrowing, saving, spending, etc.) Tons of FREE materials that can be helpful with real- world issues
FinAid! www.finaid.org Great source of general financial aid information Information on both federal & private loans Helpful financial aid calculators – how much will you be spending over the life of the loan?
Tufts Dental Financial Aid Office We are here to help you! I love answering questions from my students Rosemary Hilliard, financial coordinator for the classes of D2016, D2014, D2012, and all DIS students – firstname.lastname@example.org, 617-636-3850 Nikki Lowe Lane, financial coordinator for the classes of D2015, D2013, and all PG students – email@example.com, 617-636-2153