How Much Should You Borrow?

or "Controlling that Dreaded Debt!"

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PLEASE BORROW ONLY

THE AMOUNT YOU WILL NEED!
 

Award Notification

 

Your financial aid award notification will offer you Federal Subsidized and/or Unsubsidized Stafford Loans up to your "Cost of Attendance," minus any grant funds that might be available. Scholarships are generally awarded at a later date and reduce your eligibility for the full loan amount offered. You must also report to us, and take into account, any aid received from other sources, such as an outside scholarship or Qualified Tuition Reduction (i.e. faculty dependent/spouse waiver). 

 

We are concerned about students borrowing excessively! Most UA medical students who are dependent upon loans also apply for scholarships, and are advised to be careful with expenses. We prefer that you take a close look at your expenses and resources and make a thoughtful decision.

If you don't borrow the full amount offered on your award notification, you may request additional Federal Stafford Loan funds later, assuming you were not awarded scholarship or other funding to replace that eligibility.  Please note that the Federal Stafford Loan by law is disbursed half in the Fall semester and half in the Spring semester (minus loan fees from each disbursement).

The School's Cost of Attendance

is not Your Budget!

 

Total financial aid may not exceed the cost of attendance as determined by the school.

"Cost of Attendance" must be determined by each school in order to administer the federal financial aid programs. It is expected to allow for a moderate cost of living and includes the following:

• Tuition and fees

• Housing

• Food

• Books and supplies, including medical equipment

• Transportation

• Medical Insurance (required for medical students as high risk group)

• U.S. Medical Licensing Exam fees if appropriate (Passing Step 1 and Step 2 Clinical Knowledge Exam and sitting for the Clinical Skills Exam are required for graduation)

• Miscellaneous Expenses

Living expenses are costs that YOU control and by making wise choices, you can decrease the amount of that dreaded debt that you don't even want to think about!

 

One of the best ways to limit the amount of debt you will incur in completing your medical education is to save on housing costs. If you can room with another student or find less expensive housing (e.g. guest house), your total borrowing can be decreased, which can result in a dramatic difference in your monthly payments during repayment, compared to a student who borrowed the maximum.

 

Small expenses add up and will cost you big time in the long run. Do you really want to establish a habit of a $3.89  latte every day?

 

If you have costs that are NOT allowed in the School's Cost of Attendance for federal student aid, reduced housing expenses may help you cover those costs.

 

NOT allowed in the School's Cost of Attendance for federal student aid are:

• Credit card payments

• Car payments

• Vacations, weddings, wedding rings

• Residency interviewing and relocation expenses (See Choosing a Lender)

Don't plan on budgeting according to the financial aid budget maximum; you should have room for unexpected expenses. You can access the rest of your loan eligibility later if necessary by contacting the College of Medicine Financial Aid Office.  If you have questions about your eligibility, please contact us.  Please note that scholarships awarded after the Federal Stafford Loan may reduce your eligibility for the loan (that's a GOOD thing!)

 

College of Medicine Cost of Attendance

(Estimated)

(Commuter lives with parents)

First-Year Med	Commuter	Non-Commuter
Tuition and Fees	18,776	18,776
Books & Supplies	1,305	1,305
Laptop Computer	1,708	1,708
Rent & Utilities	0	7,410
Food	0	4,130
Transportation	2,300	2,300
Medical Insurance	1,544	1,544
Other Miscellaneous	3,660	3,660
Total (10 months):	$33,423	40,833
Second-Year Med	Commuter	Non-Commuter
Tuition and Fees	18,077	18,077
Books & Supplies	592	592
Rent & Utilities	0	8,151
Food	4,543	4,543
Transportation	2,530	2,530
Medical Insurance	1,544	1,544
Step 1 Exam Fee	480	480
Other Miscellaneous	4,026	4,026
Total (11 months):	$31,792	$39,943
Third-Year Med	Commuter	Non-Commuter
Tuition and Fees	17,830	17,830
Books & Supplies	656	656
Rent & Utilities	0	8,892
Food	4,956	4956
Transportation	2,760	2,760
Medical Insurance	1,544	1544
Other Miscellaneous	4,392	4,392
Total (12 months):	$32,138	$41,030
Fourth-Year Med	Commuter	Non-Commuter
Tuition and Fees	17,593	17,597
Books & Supplies	671	671
Rent & Utilities	0	8,151
Food	4,543	4,543
Transportation	2,530	2,530
Medical Insurance	1,544	1,544
Step 2 & Clinical Skills Exam Fees	1,505	1,505
Other Miscellaneous	4,026	4,026
Total (11 months):	$32,416	$40567

Your Plan for 2008-2009:

	July 2008 - Mid January 2009	Mid January 2009- July 2009
Your Expenses	$	$
Personal/family funds available	(minus)	(minus)
Grants/scholarships	(minus)	(minus)
Funds Needed:	$	$
Do not borrow more than the amount you need.  Remember you want to SAVE loan eligibility for auto repair and other unexpected expenses. You cannot borrow more than the total loan offer on your award notification without reevaluation by the financial aid office.
Plan for any non-school period (e.g. June and July). Will  you work?  Do paid research? What are the possibilities?
If your expenses exceed the school's cost of attendance, how can you decrease your expenses?
Review your expenses to see if you have budgeted NEEDS vs. WANTS that could be decreased.
Do you have significant expenses in the medical category?
Do you have childcare expenses?
Laptop computer to UA College of Medicine specs not in Budget
You may qualify for a Budget Reevaluation.
If you can't resolve your dilemma, contact the College of Medicine Financial Aid Office for an appointment and bring YOUR BUDGET and this worksheet with you.

Your Budget 2008-2009 click here for printer friendly version 

Expense Category	Fall Semester	Spring Semester
Tuition and Fees
Books, supplies, medical equipment, lab coats
Medical Insurance
Rent & Utilities
Food
Auto Insurance/Registration
Gas and Oil Changes
Auto Maintenance
Auto Repair (Save Loan eligibility)
Unexpected Expenses (Save loan eligibility)
Board exam fees (Step 1, Step 2, CS exam)
Child Care Expenses
Prescriptions, medical, dental, optical expenses not covered by insurance
Credit cards or bills with balance due
Car payments
Toiletries, household products
Personal care, haircuts, laundry, dry cleaning
Subscriptions, Dues
Clothing
Gifts
Entertainment
Other Miscellaneous:
Total per semester:
	Academic Year Totals:

 

 

Award Notifications and Choosing a Lender

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