WIXLIB

Financial Aid at HMSBob Coughlin, Director of Financial AidSarah Dolisca, HMS ’17Kelley Humbert, HMS ’14Darci Phillips, HMS ‘14

Topics for Discussion The Financial Aid ProcessThe Award PackageWhat Else to ExpectAppeal ProcessOther Options/Resources AvailableSample PackagesPresidential Scholars ProgramLiving within the HMS BudgetQuestions

The Financial Aid Process Two Pathways to Financial Aid Option I Applying for institutional aid: unit loan and grants Parent information is requiredOption II Applying for federal loans ONLY No parental information required

The Financial Aid Process (cont’d) Financial Aid Application must be completebefore a decision will be madeOption IOption II HMS Fin Aid App FAFSAHMS Fin Aid AppNeed Access AppFAFSA1040/W-2s of Parents

Financial Aid Process: Option I Need-based financial aid systemNeed Budget – Calculated Family ContributionNeed met first with loans (Unit Loan Package)Remaining Need up to Tuition/Fees met by grants Ensures that students with highest need receive mostscholarship supportFinancial Need minus Unit Loan equals HMSScholarship

The Award Package: Option I Unit Loan Concept Unit Loan is fixed at 30,400 (willremain 30,400 each year at HMS)

The Award Package: Option I (cont’d) Composition of 2014-15 Unit Loan Package* 22,300 Federal Direct Loan (5.41%, unsubsidized) 5,000 Federal Perkins Loan (5%, subsidized) 3,100 HMS Revolving Loan (5% subsidized) orWolfson Loan (variable up to 7%, subsidized)Non US Citizens/Perm Res: federal loan portion replaced with private loanStudents meeting qualification for federal Loan for Disadvantaged Students(5%, subsidized) will receive 30,400 LDS loan* Loan terms/conditions are subject to change. The most reliable description of loanterms is the promissory note.

The Award Package: Option I (cont’d) HMS Scholarship Awarded if there is remaining need beyond UnitLoanCovers entire remaining need, up to tuition & feesAvailable for four years of traditional MDcurriculum

Sample Award Package:HMS Scholarship Recipient 22,300 Federal Direct Unsubsidized Loan 5,000 Federal Perkins Loan 3,100 HMS Revolving or HMS Wolfson Loan xx,xxx HMS Scholarship (up to remaining need)Note: The HMS Financial Aid Office does not package additional loans againstparent or student contribution; students are eligible to borrow unsubsidized loansagainst these figures

Sample Award Package:Unit Loan Only 22,300 Federal Direct Unsubsidized Loan 5,000 Federal Perkins Loan 3,100 HMS Revolving or HMS WolfsonLoanNote: The HMS Financial Aid Office does not package additional loansagainst parent or student contribution; students are eligible to borrowunsubsidized loans against these figures

What if I have no calculated financialneed or I am an Option II applicant? 44,944 Federal Direct Unsubsidized Loan

Award Package: Additional Info Award package does not fund up to Cost of Attendance,unless there is a 0 parent and 0 student contributionStudents may borrow additionally up to Cost ofAttendance through additional unsubsidized loansStudents are encouraged to reduce loan borrowingawarded!Students planning to fund their medical educationprimarily through loan sources are encouraged to discussthe implications of this plan with the HMS Financial AidOffice

Questions about your award package? CONTACT US! The Financial Aid Office is here to answerquestions, provide counseling anytimeFinancial Aid Appeal ProcessAppeals/Petitions Reviewed in May and OctoberYou’re not just a number at HMS!!

Financial Aid Appeal Process If a purely need-based award from another schoolreflects a substantially different familycontribution, LET US KNOW!!If there is additional information not addressed infinancial aid application, LET US KNOW!! Note: Anticipated change in family financial situationordinarily addressed mid-year (i.e., December)BUT cannot change packaging policy to matcha merit award offered elsewhere

Consideration of Parent Contribution For students who are below age 29 as of October 1, 2014,the full calculated parent contribution (PC) will be usedin determining eligibility for need-based fundsFor students who are age 29 as of October 1, thecalculated PC will be reduced by 25%For students who are age 30 as of October 1, thecalculated PC will be reduced by 40%For students who are age 31 as of October 1, thecalculated PC will be reduced by 60%For students who are age 32 and above as of October 1,the calculated PC will be reduced by 80%

Middle-Income Financial Aid Initiative Elimination or Reduction of Parent Contribution (PC) Parents with income levels 100K: PC will be 0Parents with income levels 100K - 150K: 100K - 110K: 110K - 120K: 120K - 130K: 130K - 140K: 140K - 150K;PC reduced 90%PC reduced 80%PC reduced 55%PC reduced 40%PC reduced 25%Assets must be typical for families with these income levels

Middle-Income Financial Aid Initiative Elimination of Parents’ Tax-DeferredRetirement Income In Need AnalysisElimination of Mandatory Minimum StudentContribution (SC)

What to expect next Award notifications mailed on a rolling basisonce financial aid application is complete Sign and return acceptance of awards to FAOfficeReflect adjustments on award letter (i.e., outsidescholarships, loan reductions, increased loanrequest)Award information will be available to viewonline at ‘My HMS Financial Aid Application’when ready: www.hms.harvard.edu/finaid

What to expect next (cont’d) E-mail notification of fall term bills Indicates term bill charges (tuition, fees, dorm)Anticipated aid (scholarship, loans)Balance due (charges minus anticipated aid)Notification e-mailed to your official Harvard E-mail address(provided to you by June) NOTE: The HMS Online Financial Aid Application is based on theemail address on file with AMCAS as of March 5, 2014Email address will change to your official HMS email address in JuneFall Cash Advance: May apply after August 18th (1st day ofOrientation) if a portion of your financial aid will be used tocover living expenses Form available online at www.hms.harvard.edu/finaid

Subsequent Years Reapply for financial aid each yearIf family financial situation remains the same,award will not change dramatically NOTE: Change in siblings’ university enrollmentcould have an impact Sibling Enrollment Verification form due each fall

Historical Trends Average loan indebtedness of medicalstudents nationally, Class of ‘13:app. 163K public; app. 181K privateAverage loan indebtedness,HMS Class of ‘13: 104,107Class of ’13 Unit Loan Total: 98,000Loan Figures include pre-medical school debtas well as dual degree debt

Other Financing Options Outside Scholarships Internships/Research/Employment Web-based scholarship searches (www.finaid.org)Scholarship Reference Book in HMS F.A.O.Email notifications from FAO throughout yearScholars in Medicine ProgramFederal Work-Study ProgramAdditional loan borrowing

Outside Scholarship Policy Outside awards replace Parent contribution and student loans, thenHMS scholarship

So how does it all work? Examples of financial aid packagesHow to live on the HMS budget Perspectives from current students

HMS Cost of Attendance Tuition & Fees: 58,151Vanderbilt Hall: 9,000Other Expenses -- food, books, travel, misc(estimate): 14,549Total 2014-15 Budget: 81,700 Note: HST Student Budget: 80,950If waiving Harvard Blue-Cross/Blue Shield HealthInsurance, budgets will be 79,334 and 78,584 (HST)Budget breakdown provided in admission packet

Example: 30,000 Family Contribution Richard Stone is from a family of five. Richard’s father is aphysician and his mother is a homemaker; his sister is acollege freshman and his brother is in high school. Thefamily’s annual income is 250,000; the equity in their homeis worth 225,000 and they have 25,000 in savings andinvestments. They also own another property with equity of 85,000. Richard does not have any resources of his own.Cost of Attendance:Less calculated PC:Less calculated SC:Equals Financial Need: 81,700 30,000 0 51,700Richard’s Financial Aid Package is: HMS Scholarship: 21,300 Unit Loan Package: 30,400 Total Aid: 51,700

Example: 0 Family Contribution Susan Taylor’s parents are married. Her father is ateacher and her mother is a realtor. The family’sannual income is 95,000. They have 15,000 insavings and 75,000 in home equity. Susan has 5,000 in her own savings account.Cost of Attendance:Less calculated PC:Less calculated SC:Equals Financial Need: 81,700 0* 750 80,950NOTE: Since Susan’s parents totalincome is less than 100K, noPC will be expected.Susan’s Financial Aid Package is: HMS Scholarship: 50,550 Unit Loan Package: 30,400 Total Aid: 80,950

Example: 16,000 Family Contribution Wesley Bowman is married. His spouse is a human resourcespecialist who earns 35,000 a year. They have 2,500 insavings. Wesley’s parents are married. His father is anengineer and his mother is a professor. The family’s annualincome is 135,000. They have 10,000 in savings and 50,000 in home equity. Wes has no siblings.Cost of Attendance: 81,700[Calculated PC: 26,700]Actual PC (reduced 40%): 16,000Less calculated SC: 0*Equals Financial Need: 65,700Wes’s Financial Aid Package is: HMS Scholarship: 35,300 Unit Loan Package: 30,400 Total Aid: 65,700NOTE: Since Wes’s parents earn less than 150K, they qualifyfor the Middle Income Initiative. Also, since Wes’s spouseearns less than 40K, no contribution from income will be expected.

Example: Option II Candidate Stacey Wu has worked and lived independently from herparents for several years. She has decided to apply forfinancial aid without providing parental financial disclosure.Stacey understands that under this option, she is eligible onlyfor federal and private loans. She has accumulated 30,000in her own savings.Cost of Attendance:Less calculated SC:Equals Financial Need: 81,700 6,000 75,700Stacey’s Financial Aid Package is: Direct Unsub Loan: 44,944 Total Aid: 44,944Note: Stacey would be eligible for additional unsubGrad PLUS and/or private loan borrowing

What to do now Avoid/eliminate credit card debt and keepyour credit history cleanThink about ways to live frugally

Presidential Scholars Program HMS Public Service Initiative Purpose: to relieve a portion of the loan obligation of graduatingstudents intending to pursue careers in public serviceEx: Primary care, family medicine, practice and/or research thatpromotes public health or health policy, commitment to underservedcommunities, international medicine (in resource poor settings)Eligibility requirements: graduating HMS students. Priority given tostudents who have educational debt 98,000Loan debt reduced at time of graduationProgram continuation based upon availability of funds. Programterms/conditions subject to change. Current funding anticipated to beavailable through FY16.

Presidential Scholars Program HMS Loan Repayment Assistance Program: Purpose: to provide debt-relief scholarships to HMS alumni withmodest incomes and high debt-to-income ratiosEligibility Requirements: HMS graduates who have completed their residency/fellowshiptrainingPreference for alumni pursuing public service careersAvailable to HMS alumni with high educational debt repayment andincome levels below 140,000No service commitmentProgram continuation based upon availability of funds. Programterms/conditions subject to change. Current funding anticipated to beavailable through FY16.

AbundanceFound Global Health LoanForgiveness Program Designed to relieve a portion of the loan obligationof graduating students intending to pursue careers inglobal health delivery 20% award disbursed immediately following graduation40-80% award disbursed upon completion of at least one year ofwork centered in global health deliveryPriority given to students with educational debt 98,000Program continuation based upon availability of funds. Programterms/conditions subject to change. Current funding anticipated to beavailable through FY15.