Financial Aid Guide

A medical education is a true investment with the expectation of enhanced earning power in the future. Until now, you have been encouraged to focus on your intellectual challenges, broadening your horizons, enjoying learning and becoming a person who will be engaged in analytic dialog with your surroundings throughout your life. At a minimum, you already assumed a temporary sacrifice of earning capacity while an undergraduate student, and for some, also added some indebtedness incurred in funding that phase of your education. In medical school, you will continue to suspend your earning capacity and more than likely incur educational debt as you continue to invest in yourself and future.

It is important that as a medical student you thoroughly understand the economics of your own personal situation. A large number of entering medical students have never been involved in financial arrangements that incur substantial debt. Your medical education is one of your biggest economic challenges and the prospect of indebtedness can be a source of considerable anxiety. It helps to remember that you are investing in yourself and your future. Faith in your proven abilities will allow you to handle the assumed total educational indebtedness in a way that is both matter of fact and does not constrain your prospects for the future.

Now is the time to develop good, basic fiscal skills, and a clear understanding of future goals and obligations as you pass through this phase of your education. If you have not already done so, it would be helpful to employ some simple budgeting techniques and a method of recording monthly expenditures. This will enable you to review your expenses so that as yearly requests for assistance are made, you can do so with a realistic understanding of your true financial need. Throughout your medical education, Student Financial Services will offer formal and informal opportunities to acquire and nurture the skills to make sound decisions about loans and indebtedness that align with your principles and which will aid in your professional development.

This reference guide for present and prospective medical students provides information about financial aid programs available to medical students attending the IU School of Medicine. It is important to recognize that it costs considerably more to provide a quality medical education than what the student actually pays in tuition. Unlike the non-resident medical students, every resident medical student attending IU School of Medicine benefits from the subsidies provided by the state of Indiana. In addition, the school benefits from supportive organizations and its many generous friends and alumni who assist in making a medical education affordable for all students.

The purpose of financial aid programs is to assist medical students whose personal and/or family resources are not sufficient to meet the total cost of their medical school education. Any medical student who requires financial support other than through personal and/or family resources will find this guide useful. Student Financial Services works closely with medical students in identifying and understanding the funding sources available.

Medical students who require financial assistance are also encouraged to utilize the guide in efforts to identify and apply for non-school sources. The limited resources available through scholarships limit the school’s ability to offer significant help and many medical students turn to borrowing through the federal loan programs. Private loans are generally the main source of funding for international students and fourth year medical students who need additional funds to cover residency relocation expenses.

An estimated cost of attendance for determining financial aid eligibility is provided and serves as an estimated perspective of cost. It is possible to personalize the financial aid budget further by completing a Professional Judgment Appeal Form (PJAF) to include the purchase of a computer or include childcare expenses. In the fourth year, the inclusion of residency interview expenses as well as away rotation expenses are allowed. The form gives students the option of increasing the COA for items not included in the standard financial aid budget. Any adjustment to the standard cost of attendance allows for additional borrowing.

The medical student living allowance portion of the financial aid budget is established each year by IU Indianapolis. Tuition is determined by the school and recommended to the IU Board of Trustees for approval. The COA includes tuition, fees (set by the medical school and IU), books/supplies and a reasonable living allowance. All medical students are given a standard COA based on a nine month academic year while 3rd and 4th year medical students have an additional COA period for the summer term. Federal guidelines dictate that the school must use the standard or adjusted financial aid budget when determining federal financial aid eligibility and awarding financial assistance.

The COA maintains a manageable level of debt. Your own individual COA may be somewhat lower than the institutional COA. As a result, we advocate borrowing only what you personally need to maintain a comfortable basic existence. The COA allows for a realistic standard of living based on the Bureau of Labor Statistics. To work within the COA living allowance (housing, personal and transportation), medical students must make some very specific lifestyle choices. Students must live within the limits of the institutional budget, and should set spending priorities to do that. Non-discretionary items such as books, tuition and fees should be allocated first with discretionary items last. We encourage students to get into the habit of budgeting.