The Berkeley MFE.pdf - Master of Financial Engineering Program

THE BERKELEY MFE PROGRAM
Fees & Costs
Luca Barone
MFE 05
Exotic Credit Derivatives Sales Strategist
F.I.C.C.
Previous degree:
Masters in Economics and Finance
Luiss Guido Carli University, Rome
“The theory we learned from Professor
Mark Rubinstein and his colleagues
deals with state-contingent claims, the
elementary particles of ‘nuclear financial
economics.’ This theory is especially
useful for practitioners because it provides
a production technology for duplicating the
payoffs of any contingent claim by using
an appropriate dynamic strategy. It can
also be used to solve the inverse problem
of inferring risk-neutral probabilities from
the simultaneously observed prices of
options and other derivatives.”
Each year UC Berkeley’s Financial Aid
Office estimates the average cost for a
graduate student during the academic
year. This budget is the basis for determining
financial aid eligibility. You may
use the chart below (adjusted for a
12-month program) to estimate the cost
of attending the MFE Program. As these
official figures are averaged for all UC
Berkeley students, actual costs, especially
housing costs, may be higher.
Tuition $49,725*
University Health Insurance $2,415*
Living Expenses $27,500*
Books, Supplies $3,750*
Total Estimated Expenses $83,390
(12 months)
*all costs are subject to change
Computer Costs
MFE students are required to have their
own powerful laptop computer. Various
manufacturers offer students discounts
at the Scholar’s Workstation, the campus
computer store. To contact the Scholar’s
Workstation, call 510-642-8424 or visit
www.tsw.berkeley.edu.
Financial Aid
The MFE Program does not offer scholarships
or grants. All assistance is in the
form of loans which must be repaid
beginning six months after graduation.
Due to the nontraditional academic
calendar of the MFE Program, students
must file two loan applications for the
full MFE Program.
MFE Spring Term 2008 and
MFE Winter Term 2009
• Students who are US citizens or
permanent residents apply for
federal loans using the Federal
Application for Federal Student
Aid (FAFSA). The FAFSA is available
at www.fafsa.ed.gov. For the spring
and summer 2008 terms, students
should complete the 2007-08 FAFSA
at their earliest convenience.
For the fall 2008 and winter 2009
terms, students should file the
2008-09 Renewal FSFSA, beginning
January 1, 2008.
• International students can apply for
a private loan to cover the entire 12-
month academic period. Applications
for private loans can be filed at any
point within the academic year; however
you must first accept admission
to the Haas School before applying for
a private loan. Information and application
instructions are available at
www.haas.berkeley.edu/mba/finaid/
prvtmba.htm.
Federal Direct Loans
US citizens and US permanent residents
can finance their education through the
Federal Direct Loan Program. Up to
$20,500 for every semester (equal to two
MFE terms) may be borrowed. Students
demonstrating financial need can borrow
$8,500 of this amount as a subsidized
loan (no interest is charged while the
student is in school) and $12,000 in an
unsubsidized loan (interest is charged
while the student is in school). Those who
do not demonstrate financial need can
borrow the full $20,500 in an unsubsidized
loan.
Eligibility is based on student status and
cost of education as determined through
the FAFSA process, not credit history. The
interest rate on direct subsidized loans
is fixed at 6.8% for the life of the loan.
Repayment is made over a 10- to 25-year
term with no prepayment penalty.
Visit www.ed.gov/DirectLoan/about.html
for updates.
Private Loans
Students may apply for private loans,
which are offered based on creditworthiness,
not financial need. You
should obtain copies and verify accuracy
of your credit reports before applying
for a private loan. The interest rates on
these loans are usually higher, so
students typically pursue this option last.
International students may qualify for
private loans if they meet the requirements
listed at www.haas.berkeley.edu/MBA/
finaid/International%20Chart.pdf. Through
private loans, a student can borrow up to
the annual cost of education for two
terms of the MFE calendar, which
includes living expenses and registration
fees. Repayment of private loans typically
begins six months after graduation or
dropping below half-time enrollment.
Applications for private loans are
available at the Haas Financial Aid Office
(www.haas.berkeley.edu/MBA/finaid/
prvtmba.htm).
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