Frequently Asked Questions and Answers

A: Financial aid awards are based on need, with "need" defined as the difference between the cost of attending Yale and the ability of the student and the student's family to pay this cost. Yale considers the financing of a student's education to be the responsibility of the student, the student's parents, and the student's spouse (if married). The goal of the financial aid program is to provide qualified students with the financial assistance they need to attend Yale without it posing an overly burdensome financial hardship.

This policy has long been a cornerstone of the Yale's "need blind" admissions process.

By selecting students based on their merits, without regard to their financial circumstances, we are able to enroll a student body of exceptional quality and diversity.

A fixed amount of money is available for financial aid. In some cases, policies to distribute financial aid funds are set by federal agencies and cannot be changed by Yale. In other cases, the school's Financial Aid Policy Committee can determine policy.

A: Yes, a formula is used: Budget - Resources = Need = Financial Aid. This approach works well to determine awards that are fair and equitable.

Budget = total cost of attending the School of Medicine for one year, including tuition, room/board, travel, health insurance and all other expenses.

Resources = money available from the student and the student's family (usually parents)

Need = difference between the total budget and total available money

Financial Aid = total of educational loans and scholarship funds awarded to the student.

To summarize: First the student's budget is determined, followed by the student's available resources. "Need" is calculated by subtracting the resource amount from the budget. Finally, a financial aid award is determined, consisting of a mixture of loans and scholarship funds equal to the student's total need.

A: Tuition is set each year at a level proposed by the provost of the university in consultation with the dean of the School of Medicine, and ultimately approved by the Yale Corporation, the governing body of Yale University. Other items in the student budget (room and board, personal transportation, health insurance charges, student fees, and other expenses) are determined by various officials within the School of Medicine and the University.

A: Financial information is gathered from three principal sources: The Need Access Application (including parental financial information); the Free Application for Federal Student Aid (FAFSA) for students who are US citizens or permanent residents; or the CSS International Application for those who are not US citizens or permanent residents, and the Yale School of Medicine Financial Aid Application. Based on all this information, an "available resources" figure is calculated. This figure includes two components: the student's contribution and the student's family's contribution.

A: For the 2006-2007 academic year, need up to $17,000 is met with educational loans.  This amount is called the "base loan." Beyond the $17,000 base loan threshold, need is met with Yale scholarship funds. This approach assures that students with higher levels of need are awarded more scholarship money, while guaranteeing that all students will have their needs met. Please note that the base loan may change each year.

A: Most School of Medicine scholarship funds come from income generated by the school's endowment. Over the years, donors, including alumni, faculty members, and other friends of the school, have contributed to the financial aid program.

A: Students may receive scholarships specifically defined to cover their education costs, such as the MD/PhD program, an Armed Forces Scholarship, the National Health Service Corps Scholarship or Jack Kent Cooke Scholarship. Such scholarships increase the student's available resources, which in turn decreases the student's need. This means the total financial aid award must be decreased by the scholarship amount.

Scholarships from other outside sources will reduce first the parental contribution and then the loan obligations in the financial aid package, starting with the highest interest-rate loans. Only after all loan obligations have been eliminated, will the outside scholarship affect the Yale scholarship award.

A: Most of the information received by the financial aid office is date-stamped, coded in the database management system, and placed in the student's file on the day it is received. However, some correspondence may be misplaced. The best way to avoid this problem is to take the following steps when submitting financial aid forms:

• Enter the student's name and Social Security number at the top of every form.
• Be sure to use the correct financial aid office mailing address
  Office of Financial Aid
  Yale School of Medicine
  367 Cedar St.
  New Haven, CT. 06510

• Be sure the correct educational institution has been entered when completing the Need Access form for the Supplemental Needs Analysis.  
• Be sure the correct FAFSA federal institution code number has been entered in section Step Six, lines 86-97 (MED = E00450, PA = E00447)

A: Complete the FAFSA form on the FAFSA website. List all the schools you want to receive the results.

A: If either the student or the student's parents don't contribute the amount of money specified in the financial aid award, this money may be replaced with unsubsidized loans up to the entire amount of the annual budget.

A:   We make an enormous contribution to the financial support of our students - more than $4 million annually in scholarship funds. It is important that this money be used fairly to meet the real financial needs of our students. If financial aid awards were based only on the resources of students, without taking parental resources into consideration, the needs of students from more affluent families would likely be on par with the needs of students from less affluent families. Since the amount of scholarship money we have is finite, eliminating parental resources from the financial aid formula would result in less scholarship support for students with the greatest real need. This, in turn, would reduce the school's ability to attract a diverse and talented student body.

A: Because students and parents are jointly responsible for the cost of education, financial aid applicants must provide FAFSA and Supplemental Needs Analysis forms from each parent, along with copies of their federal income tax returns and W-2 Forms for the previous year.

A: Except under special circumstances, the parent's refusal will not be accepted by the Office of Financial Aid.  However, students will be able to borrow from the Stafford Loan Program (subsidized and unsubsidized), and market-rate loans will also be available. Under these circumstances, students would not be eligible for Yale scholarship funds or School of Medicine loans.

A: If parents have been divorced for several years, and the student can provide documentation that the non-custodial parent is not accessible, the Office of Financial Aid will waive the requirement for financial information from this parent. Acceptable forms of documentation include a notarized letter from a credible source, such as a lawyer, clergy member, physician, or social worker.

A: As an independent student, you may cover unmet financial need with a subsidized Stafford Loan, unsubsidized Stafford Loan, Perkins Loan, or through market-rate loan programs.

A: According to Federal Student Financial Aid, all graduate and professional school students are considered independent for Title IV funds (subsidized Stafford and/or unsubsidized Perkins loans).

According to the Department of Health and Human Services, no student is considered independent under any circumstances for Title VII funds (Primary Care Loans and Loans for Disadvantaged Students).

For School of Medicine funding, a student is not considered independent simply because he/she hasn't been supported by his/her parents. 

A: Copies of income tax returns submitted to the Internal Revenue Service, including Form 1040 (if submitted), as well as copies of all schedules completed for the IRS. If either Form 1040A or 1040EZ was submitted, copies of those forms must be provided. If no tax return was filed, a statement of earnings and documentation of earned income must be provided. In all cases, W-2 Forms are required.

A: All resources available to a student must be considered when determining financial aid. The spouse might be wealthy, and it would be unfair to other students if that wealth were not considered in calculating financial aid. The goal of the financial aid program is to meet "real" need.

Note: The spouse's presence in the calculation doesn't always result in an increased expected contribution. For financial aid purposes, the spouse's salary will be reduced by the costs associated with employment, educational loan payments, living expenses, child care expenses, and health insurance. After making these deductions, sometimes the amount of the spouse's expected contribution is negative. In these cases, this amount will be added to the student's budget, thereby increasing eligibility for financial aid.

A: Living expenses of student and spouse incurred during the academic period will be considered, provided that documentation of all expenses (including rent, food, utilities, etc.) for both households is submitted. An affordable contribution amount will then be determined, in accordance with federal regulations. Students should contact the financial aid office before assuming that they will not be eligible for aid because they are married. This assumption is often incorrect.

A: Financial aid for the Yale student will be determined as if that student were single. However, if the couple filed a joint income tax return, a copy must be submitted.

A: No, but this is a Yale Health Plan policy issue and is not under the control of the School of Medicine. We recommend that you contact that office directly.

A: Subsidized Stafford Loans, Unsubsidized Stafford Loans, Perkins Loans, Graduate Plus, Yale School of Medicine Loans, Loans for Disadvantaged Students, and various private lender loans. Each type of loan has its own requirements and features, and it is helpful to be aware of the differences.

A: The process is complicated because each loan program has its own requirements, many of which are set by federal agencies. The Office of Financial Aid is available to assist at every step of the way. The goal is to help students find the best combination of Stafford, Perkins, Yale, and other educational loans. If private lender loans are needed, the Office of Financial Aid has researched the lenders to determine which offer the best rates, the lowest fees, and the best service. The following information should help:

• Stafford Student Loans: The Stafford Student Loan has maximum annual limits of $40,500 for medical students and $20,500 for physician associate students. The subsidized and unsubsidized interest rates are the same, but the subsidized interest will be paid for you by the federal government to your lender.  The unsubsidized interest will accrue, and is your responsibility to repay it either while in school or once you go into repayment.

  You can qualify for the subsidized Stafford by demonstrating need as determined from information provided on the FAFSA form. The amount of unsubsidized Stafford is the total budget less subsidized Stafford less other financial assistance.

• Subsidized Stafford Loans: The subsidized Stafford Loan has an interest rate of 6.8 percent.  The interest will accrue on this loan and is paid by the federal government on your behalf.  Because many sources for the Stafford Loans are available, a list of recommended lenders will be provided. Applying for a subsidized Stafford Loan is easy, because students who complete a Master Promissory Note in their first year of borrowing don't have to complete the form again (unless they wish to change lenders).  
• Unsubsidized Stafford Loans: The unsubsidized Stafford Loan has an interest rate of 6.8 percent (compare to private loans, below).  This loan also accrues simple interest while in school, rather than compound interest, which means there is no capitalization or interest added to the principal. Unlike the subsidized Stafford, you will be responsible for the interest as it accrues.  The Stafford Master Promissory Note works for both subsidized and unsubsidized Stafford Loans.
• Graduate Plus:  Graduate Plus Loans have a fixed interest rate of 8.5 percent.  This loan also accrues simple interest while in school, rather than compound interest, which means there is no capitalization, or interest added to the principal. Unlike the subsidized Stafford, you will be responsible for the interest as it accrues. 
• Perkins Loans: Perkins Loans have a fixed interest rate of 5 percent, and no interest accrues while the student is in school. In addition, a nine-month deferment is available upon graduation. This loan also qualifies for the Economic Hardship Deferment (see below). This loan has recently added a Master Promissory Note, which cuts down on the applicant's annual paperwork.  
• Yale School of Medicine Loans: Qualified students may receive a Yale School of Medicine Loan. Interest does not accrue while the student is in school; there is an automatic six-month grace period after graduation; and repayment may be deferred for up to two years during residency. The University is looking into creating a Master Promissory Note for Yale loans.
• Private Lender Loans: For those who need to borrow from private lenders, the Office of Financial Aid has researched interest rates, fee charges, and quality of service among several available sources. Some private lenders are looking into Master Promissory Notes.

A: A Master Promissory Note is a contract the student signs when taking out federal loans, including a Stafford Loan, Graduate Plus, Perkins Loan and Loans for Disadvantaged Students. The Master Promissory Note also covers federal loans the student may receive for future enrollment periods. It is a legally binding agreement that the borrower signs promising to repay the loan, with interest, in installments. It may be signed either in writing or electronically.

A: Most lenders have information on the web. If you don't know if your lender is on the web, go to Google.com and enter the name of your lender.  Because you must choose a lender in order to take advantage of the Stafford, Graduate Plus or private lender loans, we have listed some tips on selecting a lender.   

Selecting a Lender

Although many terms and conditions for federal loans are the same for all participating lenders, there are certain factors you should consider before making your choice:   

Customer Service

Since you are about to enter into what may be a long-term relationship, it is important that you choose a lender with a demonstrated record of excellent customer service.

Borrower Benefits

The term "borrower benefits" refers to financial incentives provided by lenders to reduce the price of a loan over time. These benefits fall into two categories, front end and back end, and they vary from lender to lender.

Front-End Benefits

Mandatory front-end fees for the Federal Stafford Program include a 1 percent federal default fee and a 1.5 percent origination fee. This means you would only receive 97.5 percent of your Stafford Loan proceeds.

There are lenders who will waive these fees on Stafford Loans, allowing you to receive 100 percent of the loan proceeds.

Federal PLUS Loans

These loans include a 1 percent federal default fee and a 3 percent origination fee. Thus, you would only receive 96 percent of your PLUS Loan proceeds. Some lenders waive the 1 percent federal default fee on PLUS loans, allowing you to receive 97 percent of the loan proceeds.

Back-End Benefits

These incentives may include a reduction in the interest rate or a rebate applied to the principal loan balance. When making your choice, compare the back-end benefits and ask the following questions:

• What is the actual (calculated) benefit, and how much money will I save?
• Is it easy to qualify for the savings?
• Does the benefit begin immediately without restrictions, or does it go into effect after a certain number of consecutive on-time payments?
• Must I sign up for ACH (automatic withdrawal or "auto debit" from a savings or checking account) in order to qualify for the benefit?
• How could I lose the benefit (thereby losing the savings), and once lost, can I regain the benefit?

NOTE: If you choose to consolidate your loans upon repayment, the borrower benefits wouldn't apply.

When we send you your financial aid award, we will give you information to help you choose a lender who will look out for your best interests, but it is up to you to choose the lender. We have listed the lenders who are most often used by our students.  You may use one of these or choose someone else. We will process all loans.

Any Lender listed in Yale School of Medicine literature has been chosen in accordance with the Yale Code of Conduct for Student Lender Relationships.  We select lenders based on an annual survey sent to all lenders we are interested in or who have demonstrated that their services should be reviewed.  We also take into consideration the personal experiences of our students and staff in the Office of Financial Aid.  

• Information we ask on our survey includes:
• Are you a full service lender, meaning you provide all loan types, including Stafford, Grad Plus, private lender loans and medical residency and relocation loans?
• Do you lend to international students?
• Do you look at the origination or default fees for Stafford Loans?
• Do your borrower benefits reduce the cost of the loan?
• Are there deferment and/or forbearance on the loans for medical residency?
• What is your interest capitalized policy? (We look for lenders who don't capitalize the loan until the student goes into repayment.)
• What special benefits or borrower benefits do you offer? How do they aid the student?
• How easy is your application process -- Can a student apply on line?  Is the application easy to find? How simple or complicated is it to fill out?
• How quickly will the student receives his/her funds?
• How long does it take to get the loan approved?
• How long does the credit check take?
• How easy is it for the school to certify and receive the funds on loans taken by the students?
• Does the school have to process paper certifications?
• Once the loan has been processed, how long does it take for the funds to be sent to the school? 
• Do you participate in Electronic Funds Transfer?
• Do you sell your loans to other services or lenders who change the terms and conditions of the loans?

Monitoring lender performance

Once a lender has been selected for inclusion on our lender list, it is monitored during the year for performance and availability. The person in charge of monitoring lender performance is our

Director of financial aid. Any problems the staff in the financial aid office experience with a lender is reported to the Director. Positive responses by lenders on behalf of students are also reported.  

Criteria applied in judging lender performance

We send a questionnaire to all lenders to determine whether they belong on our list.  We also use past performance and student evaluations.

A: Yes. We will process any loan for any lender the student wishes to use. 

A: Yes.  Any time your financial situation changes, your financial aid award is subject to change.  Examples of items that will impact your financial aid award are:

• You or your parents have a significant change in income.  If, for example, one of your parents retires during the academic year, you should notify the financial aid office.  This may decrease the amount assessed as a parental contribution and increase your scholarship eligibility.  
• You list on your application that you and a sibling will be enrolled in school for the upcoming academic year, but it turns out that only you are enrolled.  This would increase the parental contribution and decrease your scholarship eligibility.
• If you receive research funds, the amount you receive is considered a resource and will reduce your scholarship eligibility.

Any time your financial situation changes, you must notify the Office of Financial Aid   The information will be reviewed and, if necessary, an adjustment to your award will be made.

A: Yes. Adjustments (if necessary) will be made on the basis of the actual information listed on the income tax return submitted later with the financial aid application.

A: The interest rate for Stafford Loans is based on the prevailing Treasury Bill (T-Bill) rate. Since T-Bill rates fluctuate, the Stafford Loan interest rate may change each year. The interest is simple interest, which means that interest accrues only on the original amount of the loan until repayment begins.

For Stafford Loans taken on or after July 1, 2006, the interest rate will be 6.8 percent for the life of the loan.

A: As of April 1, 2006, no student who is enrolled in school may consolidate his/her loans. 

A: Repayment begins on the first day after the grace period ends.  Each loan type has its own terms and conditions.  Check the promissory note for more information. If you have questions on the grace period, contact the lender or the Office of Financial Aid for details.  Payments may be postponed by taking advantage of the Graduate Fellowship Deferment, or Forbearance.

Graduate Fellowship Deferment

• Based on borrower's participation in an eligible fellowship program.
• Both borrower and program meet certain criteria (details in Office of Financial Aid).
• Unlimited for Stafford if eligibility requirements are met.
• Borrowers are eligible if still in residency, but called "fellow" by residency program.
• Borrower's promissory note should include provisions applicable to other loans.  

Forbearance

• Adjustments may be made when borrower is experiencing financial difficulty, or as a medical resident.
• Borrower must apply for forbearance.
• Forbearance normally extends for 6 to 12 months.
• Forbearance provisions vary by loan type.
• Maximum forbearance is three years.  

Other important facts about deferment and forbearance:

• In forbearance, interest accrues and may be capitalized on all loans, including subsidized loans.
• In deferment, interest will accrue on unsubsidized Stafford, but interest will be deferred on subsidized Stafford Loans.
• Mandatory forbearance for residents is available on Stafford Loans for up to three years of residency.
• During mandatory forbearance on Stafford Loans, borrowers may either stop payments or reduce the payment amount.
• Neither forbearance nor deferment will hurt the borrower's credit rating.

A: Yes, but this would be a forbearance, not a deferment. Forbearances granted for personal reasons may be as short a few months or as long as three years.

A: Students with extra money at the end of the semester should pay down interest (on any type of loan) that accrued while in school. Then, if money remains, students should reduce the principal on their highest-interest loan. This can be done directly through the lender or through the Office of Financial Aid. The Office of Financial Aid should be notified if a student uses extra money to reduce the outstanding principal on any loans.

A: We provide this type of information in our entrance interview material. Contact the Office of Financial Aid.

A: Several joint degree programs are available to medical students. The MD/PhD program normally takes at least six years to complete. Other joint degree programs normally take a year less than taking the two degrees separately (an exception is the MD/MPH). For purposes of tuition charges and financial aid administration, each school is responsible for a specific number of semesters. Eligibility for student loans during a joint degree program depends on the length of the program.

MD/PhD (jointly offered with the Yale Graduate School of Arts and Sciences)

MD/PhD students pay 3.5 years (7 semesters) of tuition to the School of Medicine and 2.5 years

(5 semesters) to the Graduate School of Arts and Sciences. The MD/PhD program is funded by the National Institutes of Health (NIH) and Yale University. You can get information about costs, tuition support, and stipends from the Office of Financial Aid and the MD/PhD Office.

MD/JD (jointly offered with the Yale Law School)

During the 6-year program, MD/JD students pay 3.5 years (7 semesters) of tuition to the School of Medicine and 2.5 years (5 semesters) to the Law School. Costs and financial aid awards for each of the 12 semesters will depend on the school of enrollment for that semester.

The MD portion of the program is funded by the School of Medicine, and the JD portion by the Law School. Costs and financial aid policies of each school apply during their respective semesters of responsibility.

MD/MPH (jointly offered with the Yale School of Public Health)

Students in the 5-year MD/MPH program must meet the admissions requirements of the one-year Master's Degree Program in Public Health (http://publichealth.yale.edu/admissions/jointdegree.html).

MD/MPH students begin as MD students and complete the MPH curricular requirements during their 5th year. MD/MPH students pay one half of the School of Medicine tuition during the year they attend EPH. The MD portion of the program is funded by the School of Medicine and the MPH portion by the School of Public Health. Costs and financial aid policies of each program apply during their respective semesters of responsibility.

MD/MDiv (jointly offered with the Yale Divinity School)

During the 5-year program, MD/MDiv students pay 3.5 years (7 semesters) of tuition to the School of Medicine and 1.5 years (3 semesters) to the Divinity School. The MD portion of the program is funded by the School of Medicine and the MDiv portion by the Divinity School. Costs and financial aid policies of each school apply during their respective semesters of responsibility.

MD/MBA (jointly offered with the Yale School of Management)

During the 5-year program, MD/MBA students pay 3.5 years (7 semesters) of tuition to the School of Medicine and 1.5 years (3 semesters) to the School of Management. The MD portion of the program is funded by the School of Medicine and the MBA portion by the School of Management. Costs and financial aid policies of each school apply during their respective semesters of responsibility.

A: A student's decision to take a 5th year must first be approved by the Associate Dean for Student Affairs. Once approved, the student meets with the Director of Financial Aid to discuss the different ways in which tuition charges can be billed for the extra year and to discuss health insurance arrangements. The financial impact of each tuition option will be explained. After a decision regarding tuition charging has been made, the student must complete a Tuition Specification Form and submit it to the Office of Financial Aid. Students must be enrolled at least half-time to be eligible for financial aid.

Extended-study tuition options

Students not taking a full course load but attending at least one class at Yale or elsewhere and/or doing an approved research project toward the thesis requirement will be charged according to one of the options listed below.

  Option #1

• Full tuition for four consecutive years
• No tuition for the 5th year, which would be treated as the "extra" year in this option
• $400 registration fee for the 5th year
• Student responsible for health-care costs in 5th year

  Option #2

• Full tuition for each year the student is enrolled in fulltime studies
• $400registration fee for the year in which the student is not enrolled fulltime
• Student responsible for health care costs in "extra" year

This option is often chosen when the "extra" year is the 3rd or 4th year. Students are not eligible for scholarship aid in the year in which the registration fee is paid, but are eligible for loans to cover expenses. If research funds are received during the 5th year, that money will be used to cover the cost of that academic year.

  Option #3 - Split Tuition

• ½ tuition for two consecutive years, including the "extra" year
• ½ of $400 registration fee in each of these two years
• Yale Health Plan coverage will be billed at the student rate because the student is considered at least half time.

A: Students not attending classes or working toward the requirements of the MD degree at Yale or elsewhere will be charged a $400 registration fee for that year and will not be eligible for financial aid. All loans will go into repayment during the leave of absence. Students must make all necessary payments to avoid defaulting on loans. Students enrolled in another school during their leave of absence from the School of Medicine should secure any loan deferments to which they are entitled.

Students who are in default at the time they return from LOA status to fulltime status at the School of Medicine are not eligible for any form of financial aid.

Students on leave of absence are responsible for their own health insurance costs.

A: We recommend the Financial Aid Handbook, which is available online at http://www.medfinaid.yale.edu.

A: The Financial Aid Office sends emails to students whenever a scholarship becomes available for which medical students might be eligible.  We also send out emails reporting the interest rates for Stafford Loans, which are set on July 1 each year.

As for new laws affecting student loans, the most pertinent recent development has been the Reauthorization of the Higher Education Act (http://www.tgslc.org/pdf/CRS_Report_2004.pdf).

Stafford Loans are no longer allowed to be consolidated if the holder of the loan is a student. The Stafford interest rates are now fixed at 6.8 percent, and total Stafford Loans has changed from $38,500 to $40,500.  The subsidized portion of the loan remains $8,500, and the unsubsidized portion increased to $22,000 for medical students and $12,000 for physician associate students.  The GradPlus Loan has been added. The loan is available up to the cost of the education less any other financial assistance.  The interest rate is 8.5 percent, and this loan can be included in loan consolidation after graduation.  It may also be used to determine the economic hardship eligibility.

Q: Who determines what factors are taken into consideration when calculating financial aid and the details of financial aid algorithms?

A: The parameters for most calculations are determined at the federal level by Student Financial Aid and the Need Access Group. In some cases, those calculations are made by the Financial Aid Policy Committee of the School of Medicine.

Students should raise questions about financial aid policy with either the Director of Financial Aid or the Associate Dean for Admissions and Financial Aid. Both will bring students' questions to the attention of the Financial Aid Policy Committee.

A: Students who have access to resources (including both their own and their parents' contributions) equal to the entire annual budget would not be eligible for financial aid.

A: Precise boundaries are difficult to define. Many factors are used to determine what parents are expected to provide. Income, assets, family size, and the number of family members enrolled in institutions of higher education are all taken into consideration.  

Family Size:

This means the number of family members living in the same household who are claimed as exemptions on the parents' federal income tax return. Relatives (such as grandparents) living outside the home, who are not claimed as exemptions, are not included, even if they are supported by the parents. Adult children who have finished their education and are capable of working and are not claimed as exemptions are not included.

Family members enrolled in institutions of higher education:

Family members who are enrolled at least half time are considered to be "family members in college" for purposes of financial aid. Using formulas provided by Federal Student Financial Aid and Need Access, an estimate is made of how much the family can contribute, based on family size and the number of family members in school.

Divorce or separation

In cases of parental divorce or separation, both parents are expected to provide information on financial aid applications. While divorce or separation may affect the extent to which one or both parents can contribute, it does not absolve either parent of this obligation. The policy for determining the financial need of students whose parents are divorced or separated is derived from the principle upon which the need of all students is determined. That is, both parents (and step-parents) are responsible for the educational expenses of their children to the extent that they are financially capable.

Parental income:

This is perhaps the single most important, and most often misunderstood, factor in determining the parental contribution.  For the purpose of institutional need analysis, "income" means the family's total annual income (taxable and non-taxable).

Taxable income:

This includes wages or salaries, interest, and dividends. It can also include other income sources, such as business/farm profit, pensions, annuities, rents, royalties, trust income, and other forms of taxable income.

For those who own businesses and/or rental properties, depreciation on anything associated with the business or rental property (real property, automobiles), and some percentage of other forms of expenses (half the allowance for car and truck expense, wages paid to dependent children, and non-cash benefits, such as automobile use and insurance coverage) are added back to income in financial aid calculations. Other types of losses, such as capital losses and losses carried forward from prior years, are also added back to income.

One-time additions to income:

Annuity or pension which have been paid out and then rolled over to another annuity or pension, are examples of one-time additions to income. These are considered an exchange of assets and are not included in income.

Untaxed income:  

Non-taxable income is included under certain circumstances. This could be limited to Social Security benefits, veterans' benefits, and welfare or child support. Also taken into account: voluntary annual contributions to tax-deterred savings or retirement plans, housing and other living allowances, untaxed portions of pensions or annuities, workers compensation, and other forms of untaxed income or benefits.

Allowances (deductions) from income:

Once income is established, certain non-discretionary expenses or allowances are deducted for the purpose of calculating financial aid. These include:

• Federal income tax
• State and local taxes
• Mandatory retirement payments (e.g., Social Security)
• Medical/dental expenses not covered by insurance up to a certain level
• Employment allowance in single-parent households or when both parents work
• Basic family maintenance allowance, which varies by family size

After these allowances have been subtracted from the total income (taxable and non-taxable), the need formula assumes that a portion of remaining income can be used for educational expenses. That portion increases as the remaining income increases, ranging from a low of 5 percent to a high of 20 percent of all taxable and nontaxable income used in the analysis. For higher-income families, the percentage may go above 20 percent.

Parental assets:  

Assets play a part in determining the parental contribution. Assets used in the formula include:

• Savings
• Equity in real estate, including the family home
• Investments of all types (e.g., trusts, annuities, etc.)
• A portion of the net value of a business or farm

The current market value of real estate will rarely be considered lower than its purchase price, and national real estate appreciation multipliers are often used to project market value. For family-owned businesses and farms, accumulated depreciation, loans from shareholders, capital stock, and retained earnings are not considered liabilities in calculating the net value of these assets.

Automobiles and consumer goods are not included as assets, nor is the value of the parents' primary retirement fund. Debts are subtracted from asset values to determine net worth, but the only debts used are those against the assets themselves or those over which the family has no control, such as medical expenses. Consumer debt and debt of choice do not apply.

An amount called the "asset protection allowance," which increases as parents age, is subtracted from the total net worth, thereby reducing the parents' expected contribution from assets. In general, this allowance will reduce the expected contribution from parents by 2 percent to 5 percent of net worth.

Total Parental Contribution:

After all of these factors have been taken into consideration, the parents' contribution from income is added to the contribution from assets, resulting in a total parental contribution figure. This figure is then divided by the number of family members enrolled in institutions of higher education to yield the expected parental contribution for the School of Medicine.

A: The amount of financial gifts should be no more then the total of expected student and parental resources and private lender loans.

A: There is a link to a useful calculator on the Office of Financial Aid website (http://www.finaid.org/calculators/finaidestimate.phtml). It helps you calculate an estimated contribution from both the student and the student's family. These figures can then be used to determine eligibility for Yale scholarships as well as eligibility for Stafford Loans. You can find the instructions on how to complete this form on the Office of Financial Aid website.  

A: This relates to how home equity is taken into consideration in calculating resources. Here's how it works:

Single Family House: If income is less than $100.000, home equity for a single-family house is not considered in calculating a student's (or parents') contribution from assets.

Multi-Family House: Because a multi-family house is defined as a business, home equity is considered, regardless of income. It is considered an asset because rent is collected, and the student (or the student's parents) must include the rent as income on tax returns.

A: The cost of buying a car may not be added to a student's budget, according to Federal Student Financial Aid, however,  the School of Medicine increases third- and fourth-year standard student budgets to cover transportation and other costs associated with rotations.

A: Federal Student Financial Aid considers all graduate and professional school students to be independent. It doesn't matter how the tax return is filled out. Students can be listed either as independent or dependent on their parents' tax returns without it affecting their financial aid.

A. Below is the Yale School of Medicine policy on how we incorporate earnings into the financial aid award:

In-School Earnings

In accordance with Federal Regulations, the Medical School is required to create a Standard Student Budget.  The reason is that all students should be treated equally except under special circumstances.  Special Circumstances include Medical Expenses not covered by the Health Insurance or emergency need such as a family illness that requires the student to travel home more than usual.   Once the Standard Student Budget is established for the School and Class a student will attend, the Financial Aid Award is calculated based on Need only.  The Financial Aid Office calculates Need by subtracting the Expected Family Resources from the Standard Student Budget.  All Need is covered by scholarship and/or loans.  On some occasions, the need also has a component from   in-school earnings.

Students can earn money while enrolled at the Yale School of Medicine.  All income earned during the academic year by a student must be reported to the Financial Aid Office, no matter what the source.  The Financial Aid Office incorporates the earnings into the financial aid award for the period of enrollment that a student earns the funds.

Funding Sources

Funding can come from a variety of sources.  The student can receive funding from Yale University, Federal Funds or Research Grants.  Examples of where the funds come from are as follows:

Yale University

• Teaching Assistant
• Resident Monitors
• Working with the Audio Visual Department
• Individual projects.
• Working on special projects for the Dean(s)
• Working for Admissions
• Working for Professors

Federal Government

• Armed Forces Scholarship Program
• National Health Service Corps
• MD/PhD program.

Research Grants

• One Year Research
• Short term Research where they are paid by the quarter.

Impact on Financial Aid Award

When the Financial Aid is calculated for an academic period, the amount of earning a student will have during the period of enrollment is taken into consideration when determining how much they can contribute towards their education.

Known Prior to Original Financial Aid Award

When calculating the Original Financial Aid Award, if the amount of funding or earnings a student will be receiving during that academic year period is available and/or known to the Financial Aid Office, it is incorporated into the original Financial Aid Award.

Known After Original Financial Aid Award

When calculating the Original Financial Aid Award, if the amount of funding or earnings a student will be receiving during that academic year period is not available and/or not known to the Financial Aid Office, it will not appear on the original Financial Aid Award.

Once the Financial Aid Office is advised of the income, either through the Research Office, Business Office or other sources, it will be incorporated into the Revised Financial Aid Award.

You may choose to have the "Income" earned while you are enrolled replace the Total Resources expected from your and your family or reduce the loans already listed in your Financial Aid Award.

Because the Federal Expected Family Contribution is calculated based on Base Year Income, if we do use the funds earned during the academic year the funds are earned, we will make the necessary adjustments to income on the FAFSA and recalculate the Federal Expected Family Contribution by the amount of earnings per individual.

Example: 

The examples listed below are based on a Third Year Student on a 12-month Budget.  The student is receiving an additional $5,000 in a research. 

The adjustments do not change your Financial Aid Award.  The adjustments shift the components of your Revised Financial Aid Award.

Revised Award 1

The "Income" earned reduces the Total Resources required from the student and their family.

Revised Award 2

The "Income" earned the amount the student borrows in loans.

* Total Resources is the amount shown on your Financial Aid Award as the Federal Expected Family Contribution, Institutional - Student Expected Contribution and Institutional - Parental Index

A: A student who receives financial assistance for more than the items billed to the tuition account may get a refund by contacting the Yale Student Financial Services.  Receiving the refund can happen on one of two ways:

The Student Financial Services Office (SFS) will either issue a check in the student's name, or have the funds deposited directly into the student's checking account. Students must confirm their choice of refund method by sending an email to SFS at rfund@yale.edu

SFS will issue a check within three days of the student's request. The check can be picked up at the SFS Office at 246 Church St., New Haven.

Students who prefer direct deposit must complete the SFS direct deposit form and send it along with a blank check marked "void." After SFS has processed the form, students may then send an email requesting that all funds be deposited. The deposit will occur within 48 hours.

A: Tuition pays for the administration and execution of the educational program, including the teaching salaries of course and clerkship directors and teaching faculty. Tuition covers less than half of these teaching costs. The rest is made up by funds from the Dean's Office. Tuition also covers administrative costs, including the Offices of Student Affairs, Education, Financial Aid, Admissions, Student Research and Multicultural Affairs.

A: Answering this question would require information that has not been systematically collected by the School of Medicine. This sounds like a good topic for a financial seminar sponsored by the Committee of the Well Being of Students.

A: If all students provided all required parental information, and if they and their parents provided all the funds expected of them in the School of Medicine's financial aid calculations, and if the students didn't spend more than the Standard Student Budget each year, no student would ever need to borrow more than the "base loan" amount in a given year. (The base loan level for 2007-2008 is $17,000). This means that no student should graduate with more than four times the base loan in debt.  

There are two reasons that some students graduate more than $100,000 or even $200,000 in debt. One is that some students don't provide parental information, which means they are not eligible for scholarship funds. The second reason is that some students and their parents choose not to provide "expected contribution" funds. If the family is affluent and the expected contribution is high, the student would not qualify for scholarship funds in Yale's need-based system. In both cases, the students would have to replace the missing "expected contribution" funds with loans, possibly borrowing as much as $50,000 or more each year.

Both the absolute level of student debt and debt disparity among students are issues that will be discussed by the Financial Aid Policy Committee.

A: Perkins Loans are not divided by class. Any qualifying student who needs a Perkins Loan is given one in the financial aid package, as long as funds are available. The only qualification is that financial need be greater than $8,500.

A: Federal Student Financial Aid has established an annual cap on unsubsidized Stafford Loans for individuals, but the cap would not have been relevant in this case. In the example above, the student or the student's family must have decided to withhold $9,500 in "expected contributions" specified in the student's financial aid award. If all expected contributions had been provided, the student's need would be met without resorting to private loans. Since the student decided to borrow more than his/her demonstrated need, and since federal loans can only be used to meet demonstrated need, he/she was not eligible to borrow the last $9,500 in unsubsidized Stafford Loans.

Unsubsidized Stafford Loan Borrowing Caps for Individual Students

 Medicine

Physician Associate

A: The average contribution from families providing parental information is $8,617.  The average contribution from families not providing parental information is $13,897. The average contribution from all families is $10,336.

A: The Office of Financial Aid helps students with budgeting while they are in school and advises them on how to choose and work with a financial planner after they graduate. In addition, the Committee on the Well Being of Students sponsors a series of financial workshops, which address many important planning and debt-related issues.

Other useful resources include the Financial Aid Entrance Interview, Financial Aid Handbook, the Financial Aid Exit Interview Book, and various online and print resources on managing personal finances, including Suze Orman's The Road to Wealth.

A: Information about the budget items necessary for those enrolled at the School of Medicine is provided each year by the Office of Financial Aid. Information about what is needed for our graduates when they move into residency programs is not yet available. 

A: Debt can be paid off in as few as three years or in as many as 30. The average is around 10 years. An enterprising student can repay the debt in three to five years after entering repayment.

A: Yes, there are many debt repayment programs. This list is subject to change each year.  For more current information, go the AAMC website for Residents. Here are some debt repayment programs:

• Alaska Medical Exchange Program
• Arizona Loan Repayment Program
• Arizona National Health Service Corps Loan Repayment Program
• Arkansas Physician Grant Recruitment and Retention Program
• California National Health Service Corp State Loan Repayment Program
• Colorado Health Professional Loan Repayment Programs
• Connecticut Loan Repayment Programs
• Delaware State Loan Repayment Program
• Georgia State Loan Repayment Program
• Illinois National Health Service Corps Loan Program
• Iowa Loan Repayment Program
• Louisiana State Loan Repayment for Physicians, Dentist and Midlevel
• Maine Loan Repayment Program
• Maryland Loan Repayment Program for Primary Care Physicians
• Massachusetts Loan Repayment Program
• Massachusetts State Loan Repayment Program
• Michigan Essential Health Provider Program
• Minnesota State Loan Repayment Program
• Minnesota National Health Service Corps Loan Repayment Program
• Minnesota Rural Mid Level Practitioner Loan Repayment Program
• Minnesota Rural Physician Loan Repayment Program
• Minnesota Urban Physician Loan Repayment Program
• Missouri Physician Loan Repayment Program
• Montana Rural Physician Incentive Program
• Nebraska Loan Repayment Program
• Nevada Health Service Corp Loan Forgiveness Program
• New Hampshire Primary Loan Care Repayment Program
• New Jersey Primary Care Loan Redemption Program
• New Mexico Medical Education Loan Repayment Program
• New York Regents Physician Loan Forgiveness Award Program
• North Carolina Loan Repayment Program - Physicians
• North Carolina Loan Repayment Program
• North Carolina Community Practitioner Program
• North Dakota Midlevel Practitioner Loan Repayment Program
• North Dakota Physician Loan Repayment Program
• Ohio National Health Service Corps Loan Repayment Program
• Ohio Physician Loan Repayment Program
• Oklahoma Family Practice Resident Rural Scholarship Loan Program
• Oklahoma State Loan Repayment Program
• Oregon Rural Health Services Program
• Pennsylvania Primary Health Care Practitioners Loan Repayment Program
• Rhode Island Health Profession Loan Repayment Program
• South Dakota National Health Service Corp State Loan Repayment Program
• South Dakota Physician Tuition Reimbursement Program
• South Dakota Midlevel Tuition Reimbursement Program
• Tennessee Health Access Incentive Program: Incentive Program: Loan Repayment for Physicians
• Tennessee Health Access Incentive Program: Incentive Grant: Loan Repayment for Physician Assistants
• Texas Physician Education Loan Repayment Program
• Utah Health Care Workforce Financial Assistance Program
• Vermont State Loan Repayment Program
• Vermont Freeman Physician Educational Loan Repayment Program
• Virginia National Health Service Corp Loan Repayment Program
• Virginia Physicians Loan Repayment Program
• Washington State Loan Repayment Program
• Wisconsin Health Care Provider Loan Assistant Program
• Wisconsin Physician Loan Assistance Program
• Armed Forces Loan Forgiveness Programs
• National Health Service Corps Loan Forgiveness Program
• National Institutes of Health (NIH) Aids Research Loan Repayment Program
• National Institutes of Health (NIH) Clinical Research Loan Repayment Program for Individuals from Disadvantaged Background
• National Institutes of Health (NIH) General Research Loan Repayment Program
• National Institutes of Health (NIH) Clinical Research Loan Repayment Program
• National Institutes of Health (NIH) Pediatric Research Loan Repayment Program

A: The only program available at this time is the Peace Corps, which does not repay the debt, but does allow participants to defer loan payment for up to three years while doing Peace Corps work.

A: Not unless the country itself has a program to support young doctors in this way.

A: A School of Medicine loan forgiveness program is not yet available, but it is one of several ideas under consideration.  Other alternatives that would accomplish the same goal (i.e., reducing debt) are to raise more money for scholarship support and to establish a debt ceiling for students.

A: Your best source is the Financial Aid Bulletin, which is available at www.medfinaid.yale.edu. Click on "Book & Bulletin" in the menu on the left of the Office of Financial Aid home page. In addition, Financial Aid Director Pamela J. Nyiri is available to answer your questions. Issues related to financial aid policy should be brought to the Financial Aid Policy Committee through the committee's chair, Dr. Richard Belitsky.