University Office of Student Financial Aid
Frequently Asked Questions (FAQs)
What is the IRS Data Retrieval Tool?
Answer in this PDF.
I've been selected for federal verification Group V1 - what does this mean?
Answer in this PDF.
Do you need to complete a Self-Certification Form for your Institutional Loans?
Answer in this PDF.
STAFF/GETTING HELP
Who in the University Office of Student Financial Aid can help me if I have questions about applying for financial aid, including applying for a Federal Stafford Loan or if I want to know the status of my file or my Stafford Loan?
APPLYING FOR FINANCIAL AID
What are the financial aid deadlines?
Federal Direct Stafford Application Deadlines
What application material must be filed?
When should I start the financial aid process if I have applied to Jefferson, but have not yet been accepted?
When should I start the financial aid process if I was previously enrolled at Jefferson, but am currently on a leave of absence, and plan to return for the coming semester?
Do I have to follow the same process every year?
Does my application process change if I change from one college to another within Thomas Jefferson University?
Why am I sometimes required to submit additional information even after I have completed the published
financial aid application requirements?
If all of the information I included on my FAFSA is correct, why are some notations printed advising me to
check the answers?
Why is parental income and asset information required even if I meet the federal criteria for independence?
What is the expected processing time from the date my application is complete?
Are there other websites that may provide information on financial aid?
What is the IRS Data Retrieval Tool?
How does this change the process of filling out my FAFSA?
In what cases will I not be able to use the DRT?
How do I obtain a free Tax Return Transcript from the IRS?
I did not use the IRS DRT when I filed my 2013-14 FAFSA – Can I go back and update my FAFSA now that I have filed my Tax Return?
I was selected for Verification. Can I submit photocopies of tax returns to satisfy Verification requirements?
What if I choose not to use the Data Retrieval Tool or I make a change to the IRS information after I've transferred it to my FAFSA?
What is V1 Verification and what requirements must I fulfill?
STUDENT EXPENSES
What items are included in the standard student expense budget?
REEVALUATION OF FINANCIAL AID ELIGIBILITY
What should I do if my costs exceed the standard budget?
What should I do if I need to apply for additional funding, either because I realize I did not borrow enough to meet the standard budget or because my financial situation has changed?
Can my budget be increased to include the cost of a computer?
TUITION BILLING PROCESS
What is the process for funds to be applied to my tuition account from institutional sources, Federal Direct Stafford Loan funds, outside scholarships and outside service commitment programs such as the military or National Health Service Corps?
Why do I receive bills stating that I owe a balance when I have sufficient financial aid to cover my tuition and fees?
What items should I bring to registration or to the Tuition/Cashier's Office when I am inquiring about my bill?
How am I notified when a refund is available to me?
REPAYMENT OF STUDENT LOANS
What if I receive a notice that my lender thinks I should begin repayment, but I am enrolled in school?
What should I do with the (account) statements I receive periodically from my lenders?
Am I required to pay the interest on my unsubsidized loans while I am in school?
How can I obtain information on consolidation?
Am I required to attend an Exit Interview prior to graduating or otherwise leaving school?
Is the Exit Interview where I can find out information on repayment, alternative sources of repayment, tax issues,
projected salaries?
Financial Aid/Indebtedness, Acronyms & Terminology
Who in the University Office of Student Financial Aid can help me if I have questions about applying for financial aid, including applying for a Federal Stafford Loan or if I want to know the status of my file or my Stafford Loan?
The front desk staff of the Financial Aid Office is able to help you with many of your processing and program questions. The three members of the front desk staff are:
| Jacquelyne Roundtree, Administrative Coordinator Kristin Mozzachio, Financial Aid Assistant |
Items that the staff can help you with:
|
If you are not eligible to borrow additional funds because your resources (i.e., family resources, financial aid, private funding) meet your total budget, or there are other unique circumstances regarding your personal financial aid situation, the front desk staff will set up an appointment for you to meet with:
- Susan McFadden, University Director of Financial Aid
- Thomas Stewart, University Associate Director of Financial Aid
- Melissa Cadet, Financial Aid Coordinator
- Atheia Mobley, Financial Aid Coordinator
- Sean Duffy, Financial Aid Coordinator
- Usha Nair, Student Services Coordinator
- Nicole Bailey, Student Services Coordinator
In referring you to the appropriate person, the front desk staff makes the assessment based on the individual who has previously worked with your file and/or the nature of the problem.
1. What are the financial aid deadlines?
Financial aid deadlines are based on the school and year of the program in which you are enrolled.
Please note that the deadlines listed below differentiate between institutional aid and the Federal Direct Stafford Loan Program.
Institutional Financial Aid application deadlines are listed by program under Deadlines
Federal Direct Stafford Application Deadlines
Not less than six weeks before your tuition bill due date. During the peak lender processing period (May to September) processing may require a four- to six-week period. To ensure that your funds are received in a timely manner and to avoid late fees being applied to your tuition account, you must:
- Submit all of the institutional application requirements (as outlined in Question 2).
- Complete the Federal Stafford application located on Banner Web (indicating the amount you want to borrow).
- Complete a separate Master Promissory Note (MPN) (this is the form you must sign acknowledging your responsibility to repay the debt). The MPN can be completed at http://studentloans.gov
(Please Note: A complete description of the Federal Direct Stafford application process is outlined in Question 2.)
See also Question 5, Question 6 and Question 10.
2. What application material must be filed?
Instructions on the application process for each school and links to required application materials can be found under Apply for Financial Aid.
See also Question 5 and Question 6.
3. When should I start the financial aid process if I have applied to Jefferson, but have not yet been accepted?
We recommend that you at least file a FAFSA (Free Application for Federal Student Aid) and indicate Jefferson as a school in which you are interested in attending. You can complete the FAFSA on the Web at www.fafsa.ed.gov. Please remember: You must include parents' information on the FAFSA if you are dependent or are applying for Jefferson institutional aid.
Once you are accepted, an email will be sent to you with instructions as to how to complete the other application material on Banner Web. Once you have completed all financial aid application requirements, we will review your file and determine your eligibility for financial aid.
You can complete the FAFSA on the Web at www.fafsa.ed.gov. Please remember: You must include parents' information on the FAFSA if you are applying for Jefferson institutional aid.
Once you have completed all financial aid application requirements, we will then review your file and determine your eligibility for financial aid.
4. When should I start the financial aid process if I was previously enrolled at Jefferson, but am currently on a leave of absence, and plan to return for the coming semester?
This will depend upon the semester in which you intend to return and when you last filed a financial aid application.
If you intend to return for the Fall semester, please follow the deadlines listed in Question 1. If you intend to return for the Spring semester and have previously filed financial aid application material for that academic year, you will not have to re-apply. We will use the current application material filed for that academic year.
5. Do I have to follow the same process every year?
Each year that you intend to receive financial aid funds, you must reapply. Please refer the deadlines listed in Question 1 and to the application requirements outlined in Question 2.
6. Does my application process change if I change from one college/school to another within Thomas Jefferson University?
Yes, to some degree. Please refer to the deadlines listed in Question 1 and the required application material listed in Question 2.
7. Why am I sometimes required to submit additional information even after I have completed the published financial aid application requirements?
There are a number of reasons why this may happen.
- The information you submitted to the school does not match the information you reported on your Free Application for Federal Student Aid (FAFSA).
- The Federal Government has selected you for "Verification." This means they would like the school to confirm that all information reported on the FAFSA is true and accurate.
- The Federal Government could not confirm certain information regarding your citizenship status, the information on file with the Social Security Administration, your Selective Service registration, and/or the status of previous federal loans that may be in default. In these instances, the Government is requesting that the school clear this information prior to awarding any federal funds to the student.
8. If all of the information I included on my FAFSA is correct, why are some notations printed advising me to check the answers?
There are times when the information submitted on the FAFSA is correct, but may conflict with other information on record.
9. Why is parental income and asset information required even if I meet the federal criteria for independence?
As noted in Jefferson's financial aid publications, the first responsibility for financing education must rest with students and their family. This policy, consistent with the majority of private colleges and medical schools nationwide, is based on the limited nature of institutional funding. Parent income and asset information is required in an attempt to distribute the limited pool of institutional funding in the most equitable manner possible. While students may meet the federal criteria for independence, Jefferson requires the inclusion of parental information to ensure that the limited funding that is available is disseminated to the students that have the least amount of potential parental support. Reversal of this policy would mean that students from even the wealthiest families could choose to replace parental support with expected Jefferson support.
Even if parents are not paying the direct cost of an education, they still represent a potential source of support. Often times, this potential support includes assistance with living or transportation costs, monetary gifts, assistance with the interest payments on unsubsidized loans during the in-school period or actual post-graduation repayment.
It is important to emphasize that this policy applies to institutional aid only. Students who meet the federal criteria for independent status may apply for Federal Direct Stafford, Federal Direct Grad PLUS (if Graduate Student), and Federal Work Study. In addition, independent, undergraduate students, who do not have a prior Bachelor's degree, may apply for Federal Pell, Supplemental Educational Opportunity Grant (SEOG) and state grant funds by submitting only their, and if applicable their spouse's, income and asset information.
10. What is the expected processing time from the date my application is complete?
Please remember that the sooner you complete all of the application requirements, the sooner we are able to advise you of your financial aid eligibility.
Eligibility notices, pertaining to institutional financial aid, will be emailed to students starting in late March for all students who meet the application deadlines noted in Question 1.
If you complete your financial aid application after the deadline date, notification of your eligibility should be sent within three to four weeks of the date that you completed all requirements.
The requested disbursement date for the first half of your Federal Direct Stafford Loan, Federal PLUS loan, and private alternative loans is 13 days prior to the beginning of classes. The requested disbursement date for the second half of your Federal Stafford Loan and private alternative loans is between mid-December and early January
It is important to note that registration and Satisfactory Academic Progress (i.e., grades from prior term) must be confirmed prior to Federal or alternative loan funds being disbursed to the student's tuition account.
11. Are there other websites that may provide information on financial aid?
Other websites that may provide information on financial aid are:
- Americorps National Service
- Fastweb (includes information on military scholarships and incentives)
- FINAID The Financial Aid Information Page
- Financial Aid from the U.S. Department of Education
- National Health Service Corps (NHSC)
- National Institute of Health (NIH)
12. What is the IRS Data Retrieval Tool?
The IRS Data Retrieval Tool (IRS DRT) allows you and if applicable, your parent(s) to upload data from your federal tax returns into your FAFSA. It may be used during the initial filing or when subsequent corrections are made to your 2013-14 FAFSA. This option will streamline and expedite the processing of your financial aid not to mention simplification of completing the FAFSA. The IRS DRT will be available beginning February 3, 2013. Your taxes must be submitted to the IRS at least 2 weeks prior to using the tool.
13. How does this change the process of filling out my FAFSA?
The US Department of Education has recently decided to streamline the financial aid application process and to make it more accurate. ALL students and parents (dependent students only) who indicate they have filed a federal tax return will be directed to use the IRS Data Retrieval Tool (DRT).
Applicants and parents who indicate they “will file” a federal tax return will receive email communication(s) directing them to use the IRS Data Retrieval Tool (DRT)to update their income information once they have filed their 2012 federal income tax return.
Applicants selected for the verification process will be required to use the IRS Data Retrieval Tool (or) they may choose to request a tax transcript from the IRS which can later be submitted to the Financial Aid Office.
The Financial Aid Office highly suggests that you use the IRS Data Retrieval Tool from the start if eligible. Even though it sounds like it may delay your application, it will be a quicker method than requesting an IRS Tax Transcript which may take 2 to 4 weeks to receive.
14.In what cases will I not be able to use the DRT?
You will not be able to use the IRS Data Retrieval Tool (DRT) if any of the following are true:
-Marital status changed after December 31, 2012
-Filed "Married Filing Separately"
-Filed an amended returnFiled a foreign tax return
-Filed a tax return using a Tax ID Number (TIN)
-The home address on the FAFSA does not match the address on the tax return
-Applicants who are have not and are not required to file a 2012 Federal Tax Return.
For applicants that cannot use the online IRS Data Retrieval Tool, a paper tax transcript must be requested directly from the IRS.
15. How do I obtain a free Tax Return Transcript from the IRS?
There are three ways to request your Federal Tax Return Transcript:
Order Online at www.irs.gov, then select the following:
-Click “Order a Tax Return or Account Transcript” located in the right-hand column
-Click “Order a Transcript” under Step 3
-Enter your SSN, date of birth, street address and zip code
-Click Continue
-Select “Return Transcript”
-Then select the appropriate year—2012
-Click “Continue” (If you amended your tax return, you must submit an IRS Tax Account -Transcript as well as the IRS Tax Return Transcript)
Call the IRS at 1.800.829.1040, then select the following:
-Option 2 (Personal Income Taxes)
-Option 1 (Tax History)
-Option 2 (Tax Return Transcript)
-Enter & verify SSN
-Enter & verify number of street address
-Press 2 for Tax Transcript and Indicate what year is requested (2012)
Order by Mail: Complete Form 4506T-EZ (Request for Individual Tax Return Transcript) and mail to the address indicated on the form. Form 4506T-EZ is available online at www.irs.gov
16. I did not use the IRS DRT when I filed my 2013-14 FAFSA – Can I go back and update my FAFSA now that I have filed my Tax Return?
YES. Tips for using the IRS Data Retrieval Tool (IRS DRT) after you filed your FAFSA:
-Go to www.fafsa.ed.gov, click "LOGIN”
-Click "Make FAFSA Corrections" and enter PIN and password
-Click "Financial Information"
-For the question "have you completed the IRS income tax return" choose "already completed"
-Choose the correct answer to the questions in the pop-up box. If "none of the above" you are eligible to use the IRS Data Retrieval Tool.
-Enter information requested (name, address, etc.) and click "submit" (all information must match IRS records. -Note, periods after middle initials, "St" versus "Street", etc.)
-Check "Transfer my tax information into the FAFSA" and click "Transfer Now,", click "OK""
-On the FAFSA webpage, click "Sign and Submit" and follow instructions to submit the changes
** Dependent students must use the DRT process for both themselves and their parents
** Do not make any adjustments to the tax information once it has been transferred to the FAFSA. If any information is incorrect, please contact the Office of Financial Aid.
17. I was selected for Verification. Can I submit photocopies of tax returns to satisfy Verification requirements?
NO. Beginning with the 2012-2013 award year, institutions can no longer accept copies of federal income tax returns to satisfy federal financial aid verification requirements. In general and in accordance with federal financial aid regulations, all applicants who have already filed their 2013-2014 FAFSA but elect to not use the IRS Data Retrieval Process will be required to support their reported FAFSA data with information obtained directly from the Internal Revenue Service (IRS). This would include but not be limited to a 2012 IRS tax return transcript for students and their parents (if a dependent student), as well as other documentation required to verify information on the FAFSA.
18. What if I choose not to use the Data Retrieval Tool or I make a change to the IRS information after I've transferred it to my FAFSA?
Applicants who choose not to use the FAFSA-IRS Data Retrieval Tool (OR) applicants who use the tool but subsequently change the income information will be informed that they will be required to verify the information used on the FAFSA. Verification includes, but is not limited to, submitting a copy of your/your parent 2012 IRS Tax Transcript (see item #3 for instructions as to ordering a copy from the IRS) and may require verification of family members, those enrolled in college, and child support received.
If you choose NOT to complete the FAFSA using the DRT and choose NOT to submit an IRS 2012 Tax Transcript, then per federal regulations you are not eligible to receive any federal grant, loan, or Work-Study, nor will be considered for any financial aid offered by the University Office of Student Financial Aid. No further consideration of your application will be made.
19. What is V1 Verification and what requirements must I fulfill?
V1 Verification is the standard verification process performed on FAFSAs selected for verification. Most students selected for verification will be selected for V1 Verification.
There is a number of requirements students must fulfill if selected for V1 Verification. Refer to this PDF for details on what you must fulfill if selected.
What items are included in the standard student expense budget?
The standard student expense budget will be dependent upon the major in which you are enrolled. Tuition charges are set annually by each college, books and supplies are determined by the requirements of each major, living expenses are based on room charges in the Martin Building for dependent students and moderate cost of living in the Philadelphia area for Independent students. (Moderate cost of living is determined on an annual basis by the Bureau of Labor Statistics.)
In accordance with federal regulations, the standard budget items are as follows:
- Tuition
- Room
- Board
- Books
- Supplies
- Transportation
- Miscellaneous
- Medical-Dental
- Major Medical Insurance (required by institution)
- Loan Fees
Please note that a major component of the Student Expenses Budget is the tuition charge. This varies between the different majors, and is dependent upon your enrollment status. Detailed tuition information is on the Registrar's site.
If you interested in living in on-campus TJU housing, rates and accommodation information can be found on the Department of Housing and Residence Life webpage, www.jefferson.edu/housing.
Reevaluation of Financial Aid Eligibility
What should I do if my costs exceed the standard budget?
If you feel you have costs that exceed the standard budget, you should make an appointment with a financial aid staff member. At that time, these additional costs will be evaluated to see if these are educationally related expenses (as specified by the federal government) and if so what adjustments may be made to address the unusual financial circumstances.
What should I do if I need to apply for additional funding, either because I realize I did not borrow enough to meet the standard budget or because my financial situation has changed?
Contact the University Office of Student Financial Aid to discuss your needs. Most often, the front desk personnel can assist you by calculating your remaining loan eligibility and directing you as to how to apply for additional funds. If the front desk staff feels you have special circumstances, (as noted in question 1) they will schedule an appointment for you to meet with a member of the administrative staff.
Can my budget be increased to include the cost of a computer?
Federal regulations allow for the inclusion of a computer in a student's budget. While Jefferson does not require students to own a computer, with proper documentation, students may request a one-time budget adjustment of not more than $1,500 to accommodate the purchase of a computer. Please note, however, that institutional funding may not be increased to accommodate this additional expense.
What is the process for funds to be applied to my tuition account from institutional sources, Federal Subsidized and Unsubsidized Stafford Loan funds, outside scholarships and outside service commitment programs such as the military or National Health Service Corps?
The process for application of financial aid funds to your tuition account is as follows:
Institutional & Institutionally Administered Federal (e.g., Pell Grants, Perkins, SEOG, PHEAA state grants) Funds
When your financial aid eligibility is awarded, it is logged onto your financial aid computer record. This record of your aid is "fed" to the Tuition/Cashier's Office computer system and your aid is placed on your tuition account. Institutional scholarships are viewed as a direct payment toward your outstanding tuition balance. Institutional loans are placed on your tuition account as a memo once the required Self-Certification Form is completed and will remain until the student signs the promissory note and payment is made. Promissory notes are mailed by the Tuition/Cashier's Office (usually within two weeks of when the Self-Certification Form is signed.)
Federal Direct Stafford Loans
When the loan application has been processed and sent to the lender the Federal Direct Stafford is placed on the tuition account as a memo, which means the aid is pending. The memo credit is taken off and replaced with an actual payment only after the Federal Direct Stafford loan disbursement is received. Federal direct Stafford Loan funds are sent by the lender to the University Office of Student Financial Aid, usually within 5 days of when the application was processed. Note: If the loan application is certified prior to the start of the term, funds will be requested for disbursement 10 days prior to the start of the term to allow sufficient time to deposit the funds to your tuition account and issue any applicable refund.
It is important to note that a few additional steps are required when the Stafford funding is received in the Financial Aid Office. Students' records are reviewed for completion of verification and the Entrance Interview requirement as well as confirmation of registration and Satisfactory Academic Progress. If the student's record has been finalized and all academic requirements have been met, then the funds are sent to the Tuition/Cashier's Office within three days of receipt.
Federal Direct Stafford Loan funds received by Electronic Funds Transfer (EFT) do not require student's signature and will be immediately deposited as a payment to the student's tuition account.
Outside, private scholarships and loans funds (e.g. National Merit Scholarship, William Goldman Foundation, Pennsylvania Medical Society)
Funding from outside agencies is usually sent directly to the University Office of Student Financial Aid. The Financial Aid Office logs these funds to your financial aid record, checks to ensure that an overaward is not created, and sends the funds to the Tuition/Cashier's Office within 4 days of receipt.
In most cases, these funds are sent in the form of a check and the student's signature is required. The Tuition/Cashier's Office will notify you of this requirement. Once the check is signed, the funds are deposited to your tuition account as a payment.
(Note: Memo credits for outside funds are not usually placed on student accounts.)
Military and National Health Service Corp (NHSC) Scholarships
Upon receiving a full-tuition scholarship of this type, submit official notification to the Financial Aid Office. Only by doing this can your funds be paid to the Tuition/Cashier's office.
The Financial Aid Office will record your military or NHSC scholarship on your financial aid record and transmit this information to the Tuition/Cashier's Office. Typically in October and again in January, the Tuition Office will send invoices to these agencies requesting funds for all students that have been recorded as a recipient. The first half of the scholarship is usually sent to the Tuition/Cashier's Office within six weeks of receipt of the invoice.
The second half of the scholarship is usually sent in January of the spring semester.
Why do I receive bills stating that I owe a balance when I have sufficient financial aid to cover my tuition and fees?
When your financial aid eligibility is calculated and awarded, it is logged onto your financial aid computer record. This record of your aid is "fed" to the Tuition/Cashier's Office computer system and your aid is placed on your tuition account.
However, as noted in question 1 (above), certain types of aid require further action by the student (e.g., institutional loans require a Self Certification Form and a promissory note to be signed) before an actual payment can be made to your account. Therefore, a memo credit appears on your tuition account letting the Tuition/Cashier's Office know that funds are pending but cannot be paid until a requirement, such as submission of a signed promissory note, has been met.
Once this requirement has been met, the memo credit will be taken off the tuition account and a payment is made to the outstanding tuition.
Federal Direct Stafford Loan funds will also reflect on your tuition account as a memo credit toward tuition until loan funds are received from your lender. At that time, the memo credit is removed and the payment is applied to your account.
Memo credits will always appear on your bill until the promissory note(s) has been signed and submitted to the Tuition/Cashier's Office or until your Federal Direct Stafford Loan funds are received from the lender. As memo credits are not payments, you will continue to receive a bill from the Tuition/Cashier's Office until promissory notes have been signed and until Federal Direct Stafford loan proceeds have been received.
What items should I bring to registration or to the Tuition/Cashier's Office when I am inquiring about my bill?
Information is transmitted electronically between the University Office of Student Financial Aid and the Tuition/Cashier's Office regarding student financial aid. The information that is transmitted reflects actual as well as pending financial aid.
However, funds not yet received by the school may not be applied to your tuition account. For these reasons, we recommend that you bring certain items to Registration and/or the Tuition/Cashier's Office when inquiring about a bill. The recommended items are:
- Print a copy of your award from Banner Web.
- A copy of correspondence from any outside agencies from which you expect to receive funding.
Please note: Students sponsored by the National Health Service Corps (NHSC) or the Armed Forces Health Professions Scholarship Program (AFHPS) must bring copies of the award confirmation (i.e., NHSC award notice and AFHPS appointment orders) to the Financial Aid Office.
How am I notified when a refund is available to me?
When the combination of financial aid and other payments exceeds your tuition and fee obligation, then a refund is produced which may be used for other educationally related expenses.
The Controller's Office has established a standard schedule during which refund are issued.
If your funds are received (in the Tuition/Cashier's Office) by Monday at 12 p.m., you will receive a refund on that Friday. If your funds are received (in the Tuition/Cashier's Office) after Monday at 12 p.m., then you will receive a refund the following Friday.
If you have any questions about a refund, please call the Tuition/Cashier's Office at (215) 503-7669.
What if I receive a notice that my lender thinks I should begin repayment, but I am enrolled in school?
Students may receive this type of notice from their lender if:
- They were previously enrolled in a college or university, other than Thomas Jefferson University, or
- Have changed colleges within Thomas Jefferson University
- There has been a change in a your expected date of graduation.
If you receive this type of notice from your lender, you should:
- Obtain the 'in-school' deferment form from that lender. (Most lenders provide this form at the same time they advise the borrower that they are scheduled to begin repayment.)
- Take the deferment form to the Registrar's Office, which will confirm that you are enrolled at least half time (i.e., minimum of six credits in for undergraduate students and minimum of 5 credits for graduate students. Students enrolled in the Medical College are always enrolled on a full-time basis).
Deferment forms submitted to the University Office of the Registrar are forwarded to the National Student Loan Clearinghouse (NSLC) for processing. Thomas Jefferson University is a participating member of NSLC, a non-profit consortium representing schools, guarantors, lenders and servicers. The NSLC was established to standardize, simplify and automate student enrollment verification and deferment processing. Normal submission of deferment forms to the NSLC occurs on a weekly basis. However, during times of peak activity, such as the beginning of a new semester, forms are forwarded several times per week. In cases of extreme need, normal deferment processing will be bypassed and contact made directly with the lending agency or guarantor.
At the beginning of each semester and approximately monthly thereafter, the Registrar's Office transmits a comprehensive enrollment file to NSLC. The vast majority of lending institutions nationwide are then able to access this information online to ensure that they have the most up to date information before sending a repayment notice to their respective borrowers.
What should I do with the (account) statements I receive periodically from my lenders?
The only action you need to take when you receive any statements from your lenders, is look over the statement to verify that all of the information on the statement is correct. If the information is correct, then make sure to put the information in a safe place for future reference.
If any of the information on the statement is incorrect, then you should contact the lender and find out what you must do to ensure that they make all pertinent corrections to your account information. Then check follow-up statements you receive in the future to confirm that all biographic and financial information remains accurate.
Am I required to pay the interest on my unsubsidized loans while I am in school?
You are not required to pay the interest on either your Federal Direct Unsubsidized Stafford, Federal Graduate PLUS or your private unsubsidized alternative loans while you are in school. Furthermore, most Federal and private lenders will not capitalize your accumulated interest until you graduate or otherwise begin repayment. Therefore, for the most part, you do not run the risk of the accumulated interest being added to the principal, thereby increasing the amount of the principal on which future interest amounts will be calculated.
However, there is one option you may want to consider to keep down the amount of your total debt.
If your parents or other family members are able to pay the interest as it accumulates, then your debt at graduation will be only the amount of principal you actually borrowed. Additionally, as of January 1, 2002, the benefit of graduating with your debt stabilized at the original principal amount will be enhanced by corresponding tax privileges. Under the current federal tax laws, paid student loan interest can be deducted only if the loan is in active repayment status.
How can I obtain information on consolidation?
Students do not need to worry about consolidation of their loans while they are in school. In fact, except for the clause that allows students to consolidate their Ford Direct Loans with Federal Direct Stafford Loans, students are not allowed to consolidate while enrolled in school on at least a half-time basis.
All students are required to complete a federally mandated Exit Interview prior to graduation. Loan consolidation is discussed at length during Exit counseling whether online or in person. Information on consolidation includes:
- The potential positive points of consolidation (e.g., the benefit of reducing the number of lenders that you are required to interact with, the variety of repayment options (standard, extended, graduated and income based) from which you may choose, and the benefit of lower monthly payments, due to extending the repayment period).
- The potential negative points of consolidation (e.g., only federal loans may be consolidated, the interest rate on lower cost loans may be increased when combined with higher cost loans, and by extending the repayment period, your total payback is increased).
As of January 2008, there is only one federal consolidation program offered. Please see www.loanconsolidation.ed.gov for information.
There are important questions students need to ask, such as
- What loans may be consolidated?
- Based on your specific debt portfolio, how do the potential positive and negative aspects of consolidation apply to you?
- If you decide to consolidate, when is the best time?
- Can your repayment plan change after you've already begun or even completed the consolidation process?
Students are urged to access the Direct Consolidation website to obtain some preliminary information. However more comprehensive information is provided by the University Office of Student Financial Aid, not only via the Exit Interview, but by the debt management seminars held at various times throughout the year. The schedule for these seminars is discussed in Question 6 below.
5. Am I required to complete an Exit Interview prior to graduating or otherwise leaving school?
Per federal regulations, a student who drops below a half-time student status (i.e. 4 or less credits for graduate students, 5 or less credits for undergraduate students, takes a leave of absence, withdraws, or graduates) and who has borrowed through any institutional or federal loan program, must complete an Exit Interview prior to the cessation of enrollment.
The Exit Interview is an important avenue by which you are advised of your rights, responsibilities and what will happen to your loan(s) once you are no longer enrolled. Medical School Exit Interviews for graduating students are held in small group sessions. Small group sessions are beneficial as students, through discussion, share information, ideas, and concerns. If, after attending a Small Group Exit Interview, you have follow up personal, financial or repayment questions, then a member of the Financial Aid staff will be happy to meet with you to review your individual debt management issues. All other students must complete the Exit Counseling program made available online at www.nslds.ed.gov.
6. Is the Exit Interview where I can find out information on repayment, alternative sources of repayment, tax issues, projected salaries?
Yes, the Exit Interview is one avenue by which you can obtain this information. However, more importantly there are avenues you may access while you are still in school.
Some of this information is introduced at the Entrance Interview that is required for all first-year students. In addition, the University Office of Student Financial Aid sponsors two seminar series to provide Thomas Jefferson University students with information on Debt Management, Tax Issues, Mortgage Basics, Insurance Planning and Investment Strategies. The seminar series for all students and Jefferson Health System residents is held in the spring (usually February and March). Email notices are sent to students in January and reminder emails are sent 1-2 weeks prior and resident local addresses usually three to four weeks prior to the each seminar, advising them of the exact dates and times.
Students may also obtain important information regarding repayment and tax issues via websites and other resources on campus.
As noted in question number 4 (above), students may obtain information about Federal Direct Consolidation Program via the web site at www.loanconsolidation.ed.gov.
Students are able to estimate their loan repayment via the student loan calculators that are available at www.loanconsolidation.ed.gov and www.mappingyourfuture.org/paying/standardcalculator.htm.
Information about the education and loan repayment benefits provided under the Tax Relief Act of 1997 and the Economic Growth and Tax Relief Act of 2001 may be obtained via www.irs.gov.
The Jefferson School of Health Professions Office of Career Planning and Placement conducts an extensive survey of graduates placements and salaries. Copies of this information may be obtained by contacting that office at (215) 503-5805.
Medical Economics magazine publishes an annual survey, usually in the September issue, providing salary information for physicians nationwide. This survey includes comparisons based on geographic location, specialty and years in practice. Thomas Jefferson University's library currently maintains a subscription to this publication.
