UTHSC FLIGHT Newsletter July 2017 by University of Tennessee Health Science Center

FLIGHT

JULY 2017

FINANCIAL LITERACY INFORMATION FOR GRADUATE/PROFESSIONAL HEALTH STUDENTS OF TODAY

INSIDE THIS ISSUE Tax-Advantaged Accounts. . . . . . . . . . 1 Federal vs. Private Student Loan. . . . 1 Debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 How to Budget. . . . . . . . . . . . . . . . . . . . 2 Disbursement and Refund. . . . . . . . . . 2 One-on-One Counseling . . . . . . . . . . . 3 The FLIGHT Program. . . . . . . . . . . . . . 3 Scholarships . . . . . . . . . . . . . . . . . . . . . . . 3

FINANCIAL AID

One Stop Shop 901.448.7703

Gloria Dobbs Counselor, College of Health Professions gdobbs1@uthsc.edu Skype: glor.dob90 Phyllis Faulkner Counselor, College of Pharmacy pfaulkn1@uthsc.edu Debra Bolton Counselor, College of Medicine dhall48@uthsc.edu Janice G. Maddox Literacy Coordinator and Counselor, College of Graduate Health Sciences and College of Dentistry jmaddox9@uthsc.edu Skype: janice.maddox3 Samuel Matheny Executive Director of Financial Aid and Retention samuel.matheny@uthsc.edu Paulette Moore Associate Director of Financial Aid and Counselor for College of Nursing pmoore8@uthsc.edu Skype: lette.bee60 Debra Bolton Counselor for Medicine dhall48@uthsc.edu

PREPARE FOR MAJOR LIFE EXPENSES WITH TAX-ADVANTAGED ACCOUNTS by Nathaniel Sillin

College tuition, a new pair of glasses and retirement may seem unrelated, but the tax law says otherwise. By knowing how and where to save your money, you could pay for each of these expenses with tax-advantaged – or in some cases income-tax-free – money. Individual Retirement Agreements (IRAs) and 401(k)s are perhaps the two most well-known examples of these types of accounts. But they’re not alone. With educational and medical expenses in mind, consider the following types of accounts and how you might be able to use one to help yourself or your family. Read more at Practical Money Skills. Bottom Line: Paying for higher education, covering medical-related expenses and saving for retirement are three important financial goals. Incorporating tax-advantaged accounts into your long-term plan could be a win-win for your wallet. You might be able to save money now by lowering your tax bill and lower your effective costs later by withdrawing and using the money for qualified expenses.

FEDERAL VS. PRIVATE STUDENT LOAN

UTHSC awards a limited amount of federal and state funding to students. To bridge the gap between this limited assistance and a student’s full cost of attendance, additional financial assistance can be obtained by applying for a Federal Graduate/Parent PLUS loan or a private bank (alternative) loan. Federal Graduate/Parent PLUS and Private loans are based on creditworthiness, ability to repay and may require a co-signer. Read more at: Federal vs. Private Additional Funds Request Forms 1

FLIGHT

JULY 2017

DEBT

Debt can cause uncertainty. Whether it’s national or personal, shortterm or long-term, debt rarely carries good connotations. However, being in debt doesn’t have to be permanent. With discipline and good management, it’s possible to get yourself back on solid financial ground. Some may see taking out a loan as free money – funds that allow you to purchase what you want when you want it, with no immediate consequences. However, debt can quickly spiral out of control and have a lasting impact on your financial well-being. If you find yourself in debt, don’t panic; there are steps you can take now to start improving your financial health. A few factors are important to consider as you evaluate your debt. Is a portion considered “good debt,” such as a student loan to pay for college? Do some loans have significantly higher interest rates than others? After taking questions like these into consideration, you also need to calculate exactly how much money you owe and start a savings plan to pay it back. Finally, once you’ve started getting yourself out of debt, you can begin rebuilding your overall financial health and get yourself back in good standing. Don’t wait to deal with debt. The longer you procrastinate, the more money you will eventually owe. The problem may seem overwhelming now, but the sooner you get started, the better off you’ll be. Start tackling your debt now with our tips and resources below.

START YOUR QUICK QUIZ AT PRACTICAL MONEY SKILLS.

HOW TO BUDGET

7 Steps That Will Help You Build a Budget That Works is one of our popular budgeting resources. Tens of thousands of people use it every year to learn money management basics, budget planning and how to develop a personal or household budget that works. Below are three easy ways to access it. View Online Download Fillable Form Download Printable PDF

DISBURSEMENT AND REFUND

After a student has accepted their financial aid and has registered their coursework for the term, their financial aid will show as “anticipated aid” on their student bill about 4–6 weeks before the start of the term. Financial aid will officially pay a student’s bill a few days before the start of the student’s courses (which might not be the start of the term). A student should review their coursework they have registered for in Banner Self-Service to determine when their first course starts to determine when their financial aid will pay. Financial aid must first pay a student’s tuition and fees each term. If excess funds remain after paying these expenses, the student is sent a financial aid refund to help them pay for their books and living expenses. Financial Aid refunds are disbursed to the student’s financial institution on or just before the student’s first day of classes. Please note that it can take a few days for a financial institution to make these funds available to the student. The student should make sure that they are signed up for direct deposit as that ensures the quickest way for the student to receive a financial aid refund.

FINANCIAL AID