As a recipient of federal student aid, you have certain rights you should exercise, and certain responsibilities you must meet. Knowing what they are will put you in a better position to make decisions about your educational goals and how you can best achieve them.

• General Student Rights and Responsibilities
• Perkins Loan Borrowers Rights and Responsibilities
• Health Professions Student Loan (HPSL) and Loans for Disadvantaged Students (LDS) Rights and Responsibilities

Good Money Management

Good money management means doing more with less. Therefore, planning and budgeting must be the basis in money management. At the time when the student financial aid budget is made, you should plan the expenses that you will incur during the budget period and your personal budget should be made. This will ensure that you do not use all of your financial aid money within the first few months of receiving it.

Your budget should ensure that you would be able to meet all of your obligations with your available resources. As you plan your budget for the academic year - and you must plan for the entire year - consider the two types of expenses you will have. Fixed expenses, such as tuition and fees, which will not vary. Variable or flexible expenses, such as personal expenses, books and supplies which you can control. To develop a budget, you should do the following:

• List all of your sources of income.

• List your entire fixed expenses.

• List all of your variable or flexible expenses.

The difference between your total expenses and your income is discretionary income. This you should strongly consider adding to your regular savings to use for unplanned extras. If you do not have a discretionary income after subtracting your expenses from your income, you should re-evaluate your expenses. Try the following money saving tips:

• When selecting your housing, consider reasonable cost housing; a roommate could share the expenses.

• Preparing meals for yourself can save money, especially if you shop for bargains and use the special savings coupons that are available.

• Consider public transportation or car-pooling.

• Purchase used books and equipment; soft back rather than hardback; sell your old books; conserve on notebook paper - write on both sides.

• Control your personal expenses by controlling your lifestyle. When buying clothes, check discount and sale racks and factory outlets. Consider inexpensive entertainment; haircuts and styles from a beauty or barber school.

• Avoid purchases with "plastic money' and other types of installment buying.

• Remember that budgeting is a process that must continually be reviewed as you proceed through the academic year. Expect and prepare for the unexpected. Be prepared to adjust as you go.

Debt Management

The key to debt management is borrowing conservatively. It is advisable to borrow the absolute minimum amount necessary and from the best possible source. You must give special attention to the management of your personal and educational debts as your financial future depends on it. Do not let your debt become "easy money" while going to school. If you cannot repay your student loans and default, you will be turned over to a collection agency, you may be sued and credit bureaus will be notified of your default.

It is also important that you keep accurate records of all debts you incur for your education, together with information concerning loan terms such as deferments and monthly payments.

In summary, for good money and debt management, you should understand the following:

• Learn how to convert any loan obligation to monthly repayment installments over a fixed repayment period.

• Become familiar with the aggregate impact of the discharge of debt on future income.

• Understand that your spouse is legally, equally liable for any education debt.

• When debt payment obligations create cash flow problems, you should learn what resources are available for refinancing or otherwise managing the problem, and the costs inherent in these procedures.

• Learn money management techniques: how to budget and monitor the budget, how to keep appropriate records, how to balance a checkbook, and how to maintain summaries of financial obligations.

• Become familiar with fiscal management resources personnel, such as bankers, certified public accountants, investment firms, financial planning consultants and business management consultants. They will be of help to you in the future. Also familiarize yourself with fiscal management terms and jargon.

• Become aware of the changing health profession marketplace and become familiar with some of the basic concepts of marketing. For most health professionals, an era of competition in the marketplace has begun.

• Become familiar with the costs of establishing a practice, the resource personnel necessary to implement the practice, and the financial obligations of combining educational debt with practice set-up costs.

• Become aware of the entrepreneurs to be avoided, such as unscrupulous insurance salesmen, and those who deal in loans without signature.

• Understand the obligations to responsibly discharge debt in a timely fashion and the negative impact on the public confidence in all health professionals, if this is not accomplished. Moreover, failure to meet these responsibilities may not only jeopardize individual credit ratings, but also the availability of loan money from collections for all students in the health professions.

For more information contact:

Meharry Medical College
Student Financial Aid
1005 Dr. D.B. Todd Jr. Blvd

Nashville, TN 37208
(615) 327-6826
finaid@mmc.edu