Student Financial Aid Guide - Des Moines University

Introduction

The Financial Aid Office is committed to providing quality student financial aid services to all DMU students. The goal is to make adequate financial assistance available to all students within the Student Cost of Attendance Budget and the availability of financial aid. While we can assist you in finding funds, we cannot guarantee that you will receive or qualify for enough funds to meet your cost of attendance budget.

The information in this handbook is designed to give you all the information you will need to apply for financial aid for the duration of you program. The Financial Aid Office staff is available from 8:00 am-4:30 pm CST if you have questions about this information or something that was not addressed in this guide.

How to Contact Us:

In Person or Mail: DMU

3200 Grand Ave.

Academic Center, 4^th Floor

Des Moines, IA 50312

E-mail: Financial.Aid@dmu.edu

Telephone: 515-271-1470 or 800-240-2767 ext.1470

Website: www.dmu.edu\fa

Please note at the time of posting all information was accurate. Financial aid regulations, policies, budgets etc. change and updates will be made as necessary to the on-line version of this guide.

General Information

Single student budget

Based on federal regulations, student cost of attendance budgets are designed for the student only and are not intended to cover family living expenses. If you are married the Department of Education along with the University expects your spouse to be a contributor to family expenses. Regulations allow budget increases to help with day care expenses. If you have children for whom your spouse chooses to be a caregiver and will not be working, you must arrange for outside support in addition to financial aid through the University.

The University works conscientiously to provide a reasonable expense budget and to monitor long term debt and maintain low default rates. Financial aid and financial counseling is available on campus to help provide advice and to answer questions pertaining to your financial concerns.

Credit

Good credit will play an important role in financing your education if you plan on using an alternative loan prior to completing your education. A credit check is done eachtime you apply for a Grad Plus or an alternative loan. Poor credit and/or excessive

student loans could diminish your ability to secure an alternative loan. The financial aid office encourages all prospective alternative loan applicants to order a credit report. You can request a free credit report from three main bureaus at www.Annualcreditreport.com.

If something is incorrect now is the time to start the dispute process. Listed below are the three main credit bureaus and how to contact them:

Experian (formerly TRW) www.experian.com 888-397-3742

Equifax www.equifax.com 800-997-2493

TransUnion www.transunion.com 800-888-4213

Stafford Eligibility and Loan Limits

You must be at least a half time student, meet US citizenship or residency requirements and not be in default on any federal loans to qualify for the Stafford Loan program.

You also must not be over the aggregate limit which varies by program:

DO and DPM is $189,125
All other programs $138,500

You need to be aware of your prior Stafford Loans and if you will hit this limit plan accordingly to secure additional financing. If you do not know how much you have already borrowed in Stafford Loans check your Student Aid Report (SAR) or you can access www.nslds.ed.gov with your pin number to find out loan balances and who currently holds the loan.

Subsidized Stafford

$8500 (all programs)

Unsubsidized Stafford

DO and DPM:

$32,000 for 9 month academic year
$34,222 for 10 month academic year
$36,444 for 11 month academic year
$38,667 for 12 month academic year

MPH:

$24,500

All other programs:

$12,000

Entrance and Exit Counseling

Every student who borrows student loans is required to have entrance and exit counseling. The entrance interview is done online as part of the financial aid packet available on the portal or www.dmu.edu/fa. The confirmation document is electronically sent to the financial aid office. Until the certification is received no loans will be processed. On-line exit counseling is also required when you leave DMU and is available on the portal.

Free Application for Federal Student Aid (FAFSA)

To apply for all aid awarded by DMU, a FAFSA must be completed each year you plan to apply for aid. The FAFSA may be completed on line at www.fafsa.ed.gov after January 1st of the upcoming award year. All DMU students are graduate students and, for financial aid purposes, “Independent”. You must provide parental information on the FAFSA only if applying for a Perkins Loan or a Super Primary Care Loan (4^th year DO’s only). When completing the FAFSA it is suggested that you use a completed tax form; many answers for the FAFSA are taken directly from the tax form. If you use estimates you will have to go back and update the information. The DMU school code for the FAFSA is 015616. By using this code the student aid report (SAR) will be electronically sent to the DMU financial aid office. When the SAR is received if you have been selected for verification or need to make a correction you will be notified in writing.

Verification

The Department of Education randomly selects students to verify financial information. You will be notified of this on your SAR and the financial aid office will send you written notification of what needs to be done. Verification requires a student to provide a verification worksheet, tax form and W-2 information to the financial aid office to verify the information on the FAFSA is the same as the other forms. If something needs to be corrected the financial aid office will notify you in writing of the discrepancy. If corrections need to be made to the FAFSA, the financial aid office must have the corrected one before any funds can be released. If a student can not complete the verification process within 45 days federal regulations require the loan proceeds to be returned to the lender. They can be re-issued upon satisfactory completion of verification.

How to apply

First, plan a realistic expense budget. The DMU cost of attendance budget is an average of what expenses may be and is also the maximum you can receive. You can request any amount of financial aid up to the DMU student budget for your class. Federal regulations do not allow the financial aid office to certify a student for more than the student budget (this includes all financial aid resources including but not limited to loans, scholarships, NHSC, HPSP (military) any other form of financial aid a student may be receiving).

Second, you must determine what the best available sources are to meet individual expenses (refer to Types of Financial Aid). Once this is determined it is time to apply for financial aid.

First time borrowers need to complete an Entrance Interview. It is available at http://www.dmu.edu/FA/entranceinterview/index.htm.

Next, go online at www.fafsa.ed.gov to complete the FAFSA. This must be done every academic year to determine eligibility. Please have a copy of the prior years tax form.

To apply for a Stafford Loan first time borrowers or students that wish to change lenders are required to complete a Stafford Loan Master Promissory Note (MPN). All Stafford borrowers are required to complete a Stafford Loan Request Form available on the DMU student portal. If you are applying for a GradPlus or an alternative loan please refer to the financial aid packet on the portal for information and instructions.

Once financial aid has been processed an award letter is sent. This is notification that the school has approved the amounts listed. If a Grad Plus or an alternative loan was certified, the lender approves or denies the loan based on credit.

Budgets

Student Cost of Attendance Budgets are an estimate of average living costs in the Des Moines area for the number of months you are in school and an allowance for tuition books and fees; this is the maximum you can receive. Each program and year of study will have a different budget. Each student is allowed to receive funding (from all resources i.e.: loans, scholarships, etc.) up to the budget. Budgets are adjusted each academic year to reflect any necessary changes. Current budgets are available online at www.dmu.edu/fa or in the FAO. Per month living expenses are the same for all programs; tuition, fees, books etc. will vary by program.

Here are some examples of 2008-2009 Year I Student Cost of Attendance Budgets

		DO(10)*	DPM(10)*	DPT(10)*	PA(12)*
Tuition and Fees	$	34,698	25,265	21,194	25,184
Books and Equipment	$	3,392	2,350	2,327	4,709
Rent, Food, Utilities, Clothing, Personal	$	13,740	13,740	13,740	16,488
Travel and Transportation	$	3,285	3,285	3,847	3,745
Health Insurance	$	2,107	2,107	2,107	2,107
TOTAL	$	57,222	46,747	43,215	52,233

*Indicates number of months of term

Using one of the examples, the maximum amount you could receive from ALL resources (loans AND scholarships combined) is the total for your program. If you do not need to borrow the maximum, request only the amount necessary to meet your needs. We will certify your request up to the budget maximum; if you only need $25,000 then apply for $25,000. If during the year you realize you may need more than the $25,000 you may apply for additional funds based on your remaining student budget eligibility.

Remember, based on federal regulations, budgets are designed for the student only and are not intended to cover family living expenses.

In certain documented circumstances a student’s budget may be increased to receive additional funds. These may include but are not limited to: child day care costs, excessive un-reimbursed medical bills (student only) costs associated with a disability, or certain other unusual or unforeseen circumstances (not associated with living expenses, car payments, credit card payments, etc.). Please contact the financial aid office for information.

Types of Financial Aid

Loans

Federal Stafford Student Loan — Loan limit is $8,500 per year as a graduate or professional student. Students are not charged interest while enrolled at least half time. Interest rate is 6.8%. Need analysis (FAFSA) is required.

Federal Unsubsidized Stafford Loan

DO and DPM $32,000 for 9 month academic year

$34,222 for 10 month academic year
$36,444 for 11 month academic year
$38,667 for 12 month academic year

MPH:

$24,500

All other programs $12,000

Interest is charged during in-school period. Interest rate is 6.8%. Need analysis (FAFSA) is required.

The aggregate limit for Subsidized and Unsubsidized Stafford loans is:

DO and DPM is $189,125

All other programs $138,500

Students cannot exceed these limits.

Federal Grad PLUS Loan – Maximum-Cost of Attendance Budget minus all other financial aid resources. Interest rate fixed at 8.5%, accrues in school and a fee of up to 4% is deducted at disbursement. FAFSA is required.

Federal Perkins Student Loan — Maximum of $6,000 per year graduate/professional. Application available on the portal. Parental information is required. Students are not charged interest while in school. Need analysis (FAFSA) is required. Interest rate is fixed at 5 percent. Limited funds available to students with exceptional financial need. Priority deadline is May 1st .

Federal Super Primary Care Loan — Obtained by applying through the University. Available only to 4^th year D.O. students who agree to complete a primary care residency and practice in primary care until the loan is paid in full. This is a federal government loan that is based on exceptional financial need and requires parental information. Interest rate is fixed at 5 percent and interest does not accrue during school or residency. Loan amount is up to $100,000 and loan proceeds are used to payoff prior years DMU medical school loans. All 4^th year DO students are notified in the fall of loan requirements, application procedures and deadline information. Limited funds.

Alternative Loans – If you choose not to use the Grad Plus Loan, private alternative loans are available to help students meet their school approved cost of attendance budget. When considering an alternative loan here are some things to think about.

1. Terms. Terms may vary by your field of study, credit rating, and prior debt, among other things. What is best for one student may not be the best for another.

2. Credit. Credit plays an important role in securing alternative loan financing. Each time you apply for an alternative loan the lender does a credit check. It is important to have good credit and maintain it to insure you maintain your eligibility. Poor credit may inhibit your ability to borrow from an alternative loan program, and it may lead to being required to find a cosigner. In some situations a student may even be required to go into immediate repayment (make payments while in school).

3. Cumulative debt. Lenders may take into account how much prior student loan debt you have along with what you borrow at DMU. Alternative loans have total student loan debt limits that range from $100,000 – $235,000 depending on your field of study. Be sure you know your prior and projected debt and the limit of the loan source.

4. Fees. Fees range from 0-9% depending on the loan, your field of study, credit and a cosigner. Make sure you read the fine print.

5. Interest. Interest rates are variable and based on credit. To find out the actual interest rate you will probably have to contact the lender.

6. Repayment. Make sure the repayment options are agreeable to you.

7. Consolidation. Alternative Loans are not eligible for federal consolidation loans

8. Ultimately you have to decide if an alternative loan is right for you. What is best for one student may not be the best for another.

Residency and Relocation Loans – Available to students in their final year of study. These alternative loans are designed to provide students with additional funds to help offset the expenses associated with travel and relocation costs for interviews, etc. These loans require a credit check and do not require the financial aid office to certify the application, so they do not count toward your student expense budget. Before you utilize one of these programs, please verify that you have exhausted eligibility in other financial aid programs.

Emergency Loans -Des Moines University has an emergency loan available to any student who faces a short term financial crisis. The business office will loan a student up to $1,000 and will deduct this amount from your next scheduled disbursement. Some restrictions may apply. Check with the accounting office for details.

Treatment of Late Awards

If a student received financial aid up to the budget and then receives a late award the entire package is recalculated. If possible 2^nd disbursements are lowered, if not the late award is sent to the lender to reduce the amount of loans.

Disbursement information

Federal regulations require that all loans be disbursed in two equal payments, one at registration and one halfway through the loan period. Disbursement and tuition due dates are distributed in registration packets, on the portal and on the DMU website http://www.dmu.edu/accounting/dodpmpadptdisbursementlinks.cfm. The lender will also send a notice of guarantee that has disbursement dates as well as approved loan amounts and interest rates. You can also contact the financial aid office or the accounting office. All funds are delivered directly to the business office. If there is a balance on your tuition account that amount is deducted from the loan proceeds and a refund is issued within three working days. Please note disbursement dates may vary each year of your program.

Refunds

Federal regulations require the University to calculate a possible return to the lender of Title IV federal financial aid you obtained for tuition and fees if you withdraw, are suspended, are dismissed or take a leave of absence of more than 180 days, before completion of the term for which you are registered. Return of funds calculations are based on the effective date of your withdrawal or leave of absence or the effective date of an administrative action. That is, any time your status changes from full time student, there could be a return of financial aid.

Financial aid included in these regulations is grouped under what is termed Title IV. (Federal Subsidized Stafford Loans, Federal Unsubsidized Stafford Loans and Federal Perkins Loans) Only Title IV financial aid funds are used to calculate a return of funds.

Each University program collects tuition and fees by academic term or by trimester (payment period). You receive financial aid by academic term or trimester. A return of funds calculation is based on how many days you actually spent in your current term or trimester (payment period). In specific terms, a return of funds calculation will be made if you change your status before you complete 60 percent of the term or trimester for which you have been charged tuition and fees. A change in your status after completion of 60 percent of the term or trimester (payment period) results in no refund. This method will apply regardless of whether you received financial aid or not.

MPH, MHA and Post Professional DPT have separate policies that cover dropping classes and refunds (see handbook for details). As with all programs a student must be at least half time to qualify for financial aid. If a student drops a class and becomes less than half time they lose financial aid eligibility. This includes borrowing and deferment.

Satisfactory Academic Progress

In order to maintain financial aid eligibility you must maintain satisfactory academic progress. Each program has its own satisfactory academic progress policies. Check your student handbook for details.

Dual Enrollment

Full-time students may register to take a course in one of the MPH, MHA, MSA, or MBS programs. If a student meets the eligibility requirements they can apply for admission into their selected program as a degree-seeking student. A student must be unconditionally accepted into the program to be eligible for financial aid. Student must have permission from the MPH/MHA program and the Dean of primary program. See handbook for details on dual enrollment for the degree program. If a student meets the criteria to be eligible for financial aid, it is available to cover the cost of additional tuition and books in the form of a DMU loan, there are no additional funds available for living expenses. Once accepted into the program, contact the Financial Aid Office to verify financial aid eligibility.

Directed Studies

Directed Studies (DO and DPM only) is a program that allows students experiencing academic difficulties the opportunity to reduce their course load (see student handbook for details). This program is designed to reduce course load yet maintain enough credit hours to remain full time. A student is still eligible for financial aid.

Less-than-half time (LHT)

Less than half time status students do not qualify for most forms of financial aid (including Stafford Loans). There may be an alternative loan available.

Leave of Absence

A student on an approved leave of absence (check student handbook for details) may be eligible for a tuition refund based on the date of the leave (see refund section for details). When a student returns from a leave a credit is placed on the tuition account for the amount of tuition the school retained. A student is eligible for financial aid but many factors dictate the amount and types of aid available. Contact the financial aid office for specific information prior to returning from leave.

Part I of NBOME and financial aid

DO students are required to pass level 1 of the NBOME boards. According to the handbook if you do not pass part one of the boards you will be placed on administrative leave of absence and not be allowed to start 3^rd year clinical rotations. As a result of being placed on leave you will not be eligible for 3^rd year financial aid until you pass part I and are taken off leave.

Repayment

You are required to begin repayment of Stafford Loans 6 months after you cease enrollment, regardless of the reason you left school. If you are required to do a residency or unable to make payments after your 6-month grace period, check with you lender about other options, including:

Deferment – Payments are suspended. Check Promissory note or with lender for details.
Forbearance – A period of time the lender may temporarily reduce or suspend payments. Contact lender for details.
Economic Hardship Deferment – May qualify for this deferment during residency or unemployment. Contact lender for details.

The following repayment options may be available to you:

Standard Repayment
Extended Repayment
Graduated Repayment
Income Sensitive Repayment
Consolidation

You should contact your lender/holder for details to determine what may be best for your situation.

Alternative loan programs may or may not have these options available. It is important to keep in touch with your lenders/holders to find the repayment option that best fits your needs.

There are many repayment calculators available on the web to help you determine what your estimated monthly payments will be. There are also charts available in the financial aid office.

If you have any questions or concerns about financial aid please contact the financial aid office.

February 28, 2007