A Closer Look Open House Financing Your WPI Education April
2009
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Worcester Polytechnic Institute 2 Agenda Time lines what do I
need to do and when Billing Financing Options Questions
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Worcester Polytechnic Institute 3 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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Worcester Polytechnic Institute 4 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 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.
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Billing WPI bills all students electronically. Cashnet is WPIs
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 payers 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 (2 nd floor Boynton Hall). http://www.wpi.edu/+bill
Worcester Polytechnic Institute 5
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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) Worcester Polytechnic Institute 6
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Financing Options Monthly Payment Plans : Tuition Management
Systems (TMS) www.afford.com/wpiwww.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
2 nd disbursement. Some deferment and forbearance capabilities
Apply at www.amsa.comwww.amsa.com Worcester Polytechnic Institute
7
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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 Worcester Polytechnic Institute 8
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Financing Options continued Private Parent Loans: Parent is
applicant Eligibility based on credit score Payments start after 2
nd disbursement Interest rates and fees can vary No prepayment
penalties Student may be considered a co-applicant. Private Student
Loans Student 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 Worcester Polytechnic Institute 9
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Financing Options continued How to choose a lender Interest
Rate Borrower Benefits Terms Customer Service Worcester Polytechnic
Institute 10
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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. Worcester Polytechnic Institute 11
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Loan Process How the process works: Worcester Polytechnic
Institute 12 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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Worcester Polytechnic Institute 13 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 students account once the proceeds are received. The
Loan Process continued
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Worcester Polytechnic Institute 14 Thank You For Joining Us
Today Questions?