Student Financial Aid Overview for Medical Students

Student Aid Index and FAFSA Overview

  • Understanding the FAFSA:

    • The Free Application for Federal Student Aid (FAFSA) collects financial data from students and their families to determine eligibility for financial aid.

    • Student Aid Index (SAI):

    • Formerly known as the Expected Family Contribution (EFC).

    • Represents the government's estimate of a family's financial strength compared to others.

    • Calculated using data from the FAFSA but does not require inclusion of parents' income if the student is living independently (e.g., living at home).

  • Determining Financial Need:

    • The student aid index is subtracted from the cost of attendance to determine the student's financial need.

    • Example:

      • Cost of attendance = $70,000

      • Student aid index = $5,000

      • Financial need = $70,000 - $5,000 = $65,000.

    • Students with a student aid index above the cost of attendance can still receive financial aid; however, the student aid index affects the quality of the aid received, not the quantity.

Types of Financial Aid

  • Scholarships:

    • Considered the best form of financial aid as it does not require repayment (free money).

    • The School of Medicine conducts a single application to determine eligibility for multiple scholarships.

    • External scholarship opportunities:

    • Med center keeps track of outside scholarship opportunities and encourages students to apply.

    • Example: Some scholarships have previously awarded funding to multiple students.

  • Federal Work Study:

    • Enables students to work on campus and earn money to cover educational expenses while gaining job skills.

    • Not automatically awarded; students must express interest after the first semester and indicate availability (e.g., ten to fifteen hours a week).

Kansas Medical Student Loan Program (KMSL)

  • Overview of KMSL:

    • Three variants based on medical specialties:

    • Primary Care:

      • Covers internal medicine, family medicine, pediatrics, and emergency medicine.

    • Psychiatry and Child Psychiatry:

      • Specific program for these fields, which is newly established.

    • OBGYN:

      • The newest program with specific funding availability.

  • Loan Details:

    • Covers full tuition for one year and provides a living stipend of $18,000 to $22,000 annually.

    • Limitations:

    • Does not cover campus fees and board exam fees.

    • Overall annual coverage estimated between $17,000 to $25,000, with the option to borrow additional loans if needed.

  • Service Commitment:

    • After residency and within nine months, students must work in high-need areas of Kansas, avoiding Douglas County, Johnson, Shawnee, and Sedgwick counties.

    • Eligible service options include:

    • Working at VA hospitals in Kansas.

    • Teaching full-time at the med center in Kansas City or Salina.

    • Serving in designated community health hospitals or clinics focused on low-income individuals.

    • Example Clinic: GraceMed in Wichita and Topeka.

    • Commitment of service can lead to loan forgiveness after completing designated years of service.

  • Points System:

    • Prioritization based on student background:

    • Higher points for students from underserved areas in Kansas.

    • Mid-level points for populous areas.

    • Lowest points for out-of-state applicants.

Program Funding and Availability

  • Funding Variability:

    • Primary care has the largest pool of funds.

    • Psychiatry is newer with less frequent contract usage.

    • OBGYN funding is still in evaluation stages regarding its full utilization.

  • Consequences of Withdrawal from the Program:

    • Changing specialties or failing to fulfill service commitments results in increased repayment obligations (e.g., loans doubling within five years if not paid).

Other Funding Options for Medical School

  • Alternative Loan Programs:

    • Military programs, National Health Service Corps, and Indian Health Services offer tuition assistance and living expenses.

    • Majority of students resort to federal unsubsidized loans for funding.

    • Specific programs allowing interest deferrals for third and fourth-year students in primary care.

  • Changes in Federal Loan Limitations:

    • The new legislation (one day to beautiful bill act) increases the annual federal unsubsidized loan limit from $42,000 to $50,000.

    • Lifetime borrowing limit decreased to $200,000.

  • Grad PLUS Loans:

    • Previously available government loans for graduate students

    • Require a credit check focused on negative financial history (e.g., bankruptcy, overdue accounts).

    • Historically filled gaps in funding (up to $25,000 or $60,000 for out-of-state students) but may soon be discontinued.

Summary

  • It is crucial to understand the mechanisms of financial aid, the impact of the student aid index, and the available programs to finance medical education while being aware of the implications of service commitments and potential changes in loan programs.