a closer look open house financing your wpi education april 2009

A Closer Look Open House

Financing Your WPI Education

April 2009

Worcester Polytechnic Institute

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Agenda

Time lines – what do I need to do and when

Billing

Financing Options

Questions


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Time Lines – What do I need to do and When

June 23, 2009 – Non-WPI Awards information sheet due to the Office of Financial Aid. The sheets will be mailed home the first week of June.

July/August - Signed MPNs (Master Promissory Notes) & online entrance counseling for Federal Stafford and Perkins Loans

June 30, 2009 – Bills sent electronically to students.

July 31, 2009 – Fall 2009 bills due

August 23, 2009 – Orientation / move in day.


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Billing

Tuition Bills:

E-Bills sent twice a year (once per semester). Half of the annual cost is billed each semester. Fall bill sent late June with late July due date. Spring bill sent early December with early January due date.

Balance due = total charges for semester less ½ financial aid credits (loan fees deducted from proceeds) and other resources. Pending grants and loans appear as deductions from balance due initially. Actual proceeds from pending aid and loans may vary from estimated amount. May see changes on bills.

Federal Work Study and Federal Community Service Work Study funds cannot be deducted from bill. Paid directly to students for hours worked.

Billing

• WPI bills all students electronically. Cashnet is WPI’s vendor partner.

• Notification that bill is ready to be viewed will be sent to student at WPI email address and to anyone student sets up as authorized payer.

• Student needs WPI ID and PIN to login and set up authorized payer’s id, password, email address.

• Student and authorized payer can view bill, account activity, pay online through secure website.

• Can pay through MC/Discover/AMEX (2.75% convenience fee) online, electronic check (no fee), paper check in mail, wire transfers, 12-month pay plan (TMS), cash and check in person (2nd floor Boynton Hall).

• http://www.wpi.edu/+bill


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Billing

• Charges for:

Tuition (flat rate, overload may apply)

Fees (social fee and health fee)

Room

Meals

Health insurance – Massachusetts requires full-time students to be covered under qualified health plan, will be billed unless provide evidence of coverage, can do so online.

Damage and housing deposits

Miscellaneous fees (kits, late enrollment, late registration, late payment)


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Financing Options

Monthly Payment Plans:

Tuition Management Systems (TMS) www.afford.com/wpi

$100 Application Fee.

Can use in combination with loans, out-of-pocket payments.

Pay bill over 12 months starting in June. No interest.

Half of annual contract is credited to student account each semester.

Parent Loans:

Parent Plus Loan (Federal Loan for parents of undergraduate students)

Fixed interest rate of 8.5%.

Repayment starts month after 2nd disbursement.

Some deferment and forbearance capabilities

Apply at www.amsa.com


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http://www.afford.com/

http://www.amsa.com/

Financing Options continued • Federal student loans – delayed disbursement

– Perkins• Campus based revolving loan fund• ECSI is servicer• Students notified starting mid-summer to complete entrance counseling and

Master Promissory Note (MPN) online• Proceeds credited once all steps completed

– Stafford loans• Externally funded• Various lenders and servicers, can choose• Students notified starting early summer to choose a lender, e-sign Master

Promissory Note and complete Stafford Entrance Counseling• Proceeds credited once all steps completed and disbursement date reached.• Disbursement of funds delayed for first year students until late September but

students are allowed to take a credit for the loan on the fall bill


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Financing Options continued

Private Parent Loans:

Parent is applicant

Eligibility based on credit score

Payments start after 2nd disbursement

Interest rates and fees can vary

No prepayment penalties

Student may be considered a co-applicant.

Private Student LoansStudent is applicant

Payments deferred while student is in school

Accrue interest while deferred

Interest rates and fees can vary widely

No prepayment penalties

Typically requires a credit worthy cosigner


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Financing Options continued

How to choose a lender

Interest Rate

Borrower Benefits

Terms

Customer Service


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The Loan Process

How the process works:

Apply for private loans (parent or student) no later than mid-June to early July.

Many lenders currently have their applications for 2009-2010 available on their sites. Be aware of how long the

credit decision is good for, they can range from 60 – 180 days.

If at all possible, you should electronically sign your promissory note. Most lenders offer this capability.


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Loan Process

How the process works:


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Once the private loan has been approved and the WPI Office of Financial Aid receives the promissory note (electronically or hard copy), the loan will be certified.

The WPI Office of Financial Aid then electronically certifies the loan. This means we have to verify that the amount you are borrowing is equal to or less than the total cost of education less the total financial aid awarded.


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We will not certify a loan until it has been approved and the promissory note has been received by the lender.

Most loans are sent via EFT (electronic funds transfer) and are posted directly to the students account.

If students will need some of this money for books they can set up an “auxiliary cash account”. Since cash refunds cannot be issued to

students until at least two weeks into the academic period, this allows students to buy books without waiting for the refund.

If a loan program does not require certification by the school, we cannot allow the student to take credit for the loan. Since the proceeds are

mailed directly to the student, a payment needs to be made to the student’s account once the proceeds are received .

The Loan Process continued


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Thank You

For Joining Us Today

Questions?

a closer look open house financing your wpi education april 2009

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