PCOM - Announcements

Financial Aid Announcements for July, 2008

New Law Could Add to Loan Debt Burden for Interns and Residents: Income
Based Repayment Plan to Replace Debt-to-Income Ratio:

During the Department of Education's third negotiated rulemaking session, it was determined that the current debt-to-income ratio used to qualify federal student loan borrowers for an economic harship deferment, would remain in effect only through June 30, 2009, and would be replaced on July 1, 2009 with an income-based repayment plan. Last fall, the Department of Education had confirmed its intent to retain the current debt-to-income ratio pathway for borrowers to qualify for an economic hardship deferment after it had been eliminated by the College Cost Reduction and Access Act (CCRA). The pathway is being eliminated because the 10-year cost of the program is $1.1 billion.

The Department expects the new income-based repayment plan to mitigate the adverse effect the elimination of the debt-to-income pathway would have on students. Under this plan, total loan payments will be capped at no more than 15 percent of the amount by which the borrower's adjusted gross income exceeds 150 percent of the poverty line applicable to the borrower's family size. The regulations codify a provision in CCRA that stipulates that for married borrowers filing separately, only the adjusted gross income of the borrower is included.

Economic hardship deferments are of great importance to interns and residents and it has been speculated that this change in regulations may lead to unafordable monthly payments on their loans or to forbearance.

Complete the 2008-2009 FAFSA:

FAFSA - All students can complete their 2008-09 FAFSA on the WEB or paper FAFSA on or after January 1, 2008. The online application is available at www.fafsa.ed.gov.

Institutional Need Based Funds - In order to be given consideration for need-based institutional funds, all students are required to complete the parental income section of the FAFSA. You must also provide the Financial Aid Office with a copy of your parents' 2007 income tax return and/or copy of their yearly statement of non-taxable income. Parental income provides additional information to establish need for the awarding of need based institutional funds. Please note that need based institutional funds are gift aid that does not have to be repaid.

Alternative Documentation: An application method is available for students who have not been supported by their parents prior to enrollment at PCOM. For example, students who are returning to school from the workplace, or who are married or have supported dependents may submit their own 2007 signed, federal tax return or non-taxable benefits with a cover letter of explanation, in lieu of providing parental financial information. The letter should tell the Financial Aid Office about the number of years you worked and/or about your household situation.

Student Aid Report (SAR) - Upon completion of your FAFSA, the Department of Education will send you an electronic notice to obtain your SAR. You may also access and print your SAR at www.fafsa.ed.gov. As soon as your receive your SAR, review the data for correctness and to determine if you have to supply additional information or documents to the Financial Aid Office.

Primary Care Loan (PCL) - Before PCL funds can be awarded, medical students who intend to borrow under the Primary Care Loan Program are are also required to report parental information on the FAFSA and to provide the Financial Aid Office with a copy of their parents' 2007 income tax return regardless of their dependency status.

PCOM's Title IV School Code for the Georgia campus and the Philadelphia campus is 015979.