Financial Aid Office

Quick Financial Aid Links -------------------------------------------- MD Students Graduate Students Medical/Dental Residents On-Line Entrance & Exit Counseling Related Web Sites

Loan Information 2005-2006

MPH, MS, PhD & Post Graduate Dental Loan Comparison Chart

While many graduate students receive financial assistance from their departments, others rely on need-based financial assistance in lieu of or to augment departmental assistance. The chart on the back of this sheet provides information about the aid programs our students use most frequently. More detailed information is available in the Graduate Student Financial Aid Handbook which is distributed through departments or available on the Financial Aid Office web site:

http://www.urmc.rochester.edu/smd/finaid.

Eligibility for most of these resources is based on financial need and requires the submission of a financial statement to enable the Financial Aid Office to determine and certify eligibility. Several of the programs are federally funded and have regulatory requirements, which must be addressed through the application process. Application materials can be obtained from the Financial Aid Office or found on our web site.

FIRST...a Subsidized Stafford: The best loan for a graduate student who is a US citizen or permanent resident is the federally subsidized Stafford loan. While eligibility for the subsidy -- interest payments during in-school or deferment periods -- is based upon financial need, most students qualify because parent income is not a factor in eligibility determination. Because the federal government guarantees repayment, no collateral is required nor must a borrower have an established credit history. The current amount available annually is $8,500. See the chart for details.

THEN...an Unsubsidized Stafford: Students requiring more than $8,500 may obtain up to an additional $10,000 through an Unsubsidized Stafford loan. Like the Subsidized Stafford, an Unsubsidized Stafford is federally guaranteed, but there is no interest subsidy while the borrower is in school or deferment. Generally borrowers accrue rather than pay the accumulating interest during this period. See the chart for further details.

Stafford loans can be obtained simply by submitting a Free Application for Federal Student Assistance (FAFSA) and additional materials as described in the Graduate Student Financial Aid Handbook.

Finally, If Necessary....

Students requiring more than the amount accessible through federal loans and international students with American cosigners may find additional loan funds available from private sector lenders. The Financial Aid Office is required to certify the cost of education and any awarded financial aid, which may reduce eligibility for the loan funds being sought. Since family resources are not a factor in this analysis, these loans are generally referred to as cost-based rather than need-based.

The enclosed chart contains information about Grad Excel and Grad Access, private loan programs available to graduate students (there are others). Grad Excel is among the few for which international students may be eligible, assuming a U.S. cosigner.

When selecting a private lender, a number of variables impact cost. Both the up-front fees and the long-term cost may vary, depending on the lender. Cost factors to be considered include the interest rate and the frequency with which accrued interest is capitalized, or added to the principal. The ultimate cost of a loan increases with the frequency of capitalization.

Beyond cost factors, also consider customer service, turn-around time in obtaining funds, and, to make repayment easier, ascertain whether the lender intends to sell the loan to another collector and what entity will be servicing the loan during the repayment period. It is quite possible to take a series of loans from one lender, only to find that individual loan obligations have subsequently been sold to different secondary markets and hence require separate repayment processes.

Under current tax laws, not all interest on student loans is deductible. For this reason, some families opt to fund education through a home equity loan, interest on which is deductible.

Students in degree programs interested in employment subsidized through the Federal Work-Study (FWS) Program should, in addition to submitting a financial aid application, make contact with employers directly. Employers are interested in hiring students eligible for FWS because these federal funds provide up to 75% of one's earnings. FWS funds can be used to subsidize both academic year and summer employment, and both University jobs and jobs in off-campus community service agencies.

Nancy Janson
Director of Financial Aid
Nancy_Janson@urmc.rochester.edu

Margaret Christian
Assistant Director of Financial Aid
Margaret_Christian@urmc.rochester.edu

Ellen Poole
Financial Aid Advisor
Ellen_Poole@urmc.rochester.edu