Financing Your College Education Miss Buehrle

1. Financing Your College EducationMiss Buehrle

2. How to? • How to Responsibly Finance Your College Education • Video

3. Investing in your Future • Financial Aide available: • The government has financial aide programs, each state has their own financial aid, colleges offer aid packages, private organizations offer money as well through scholarships. • Helpful Tip: • Limit your debt to TWO-THIRDS of the annual salary you expect to make in your first year of work. If it’s getting to high consider a work study (library, rec, etc.) or an outside job. Ex. $26,000 debt for a job that pays $40,000 a year.

4. Consider the Cost • Tuition and fees • Books and supplies • Room and board • Transportation • Personal expenses • Net Price Calculator - U of Akron

5. How Will I Pay for College? • Hearing/thinking about college funding can be overwhelming, so how in the world will I afford it?

6. How to Apply for Financial Aid • The FAFSA can be filled out online or in paper form. • Some schools may want you to also fill out the financial aid profile. This provides more information than FAFSA. • Keep copies of your records • Take your time when filling it out. • Submit the FAFSA after January 1st. (So start working on it in December!) The deadline is May 1st. • Wait for your student aid report (SAR) this shows your estimated family contribution (EFC). Check to make sure it is correct.

7. FAFSA • Remember you must fill out a new FAFSA every year. • Call the financial aid department of your prospective school for expert advice. • Mr. Endress and Mr. Rotunda will be hosting a FAFSA information session night. • Financial Aid Night – January 21 – 7:00 PM in Rm. 256 • FAFSA Website

8. Award Letters • Each college that accepts you will send a letter telling you how much aid and what type of aid you’ve been offered (usually in March). • Evaluate your offers and ask yourself: how much of each aid package is gift aid ( doesn’t need repaid) how much is a loan?

9. Award Letters Continued • Sign the award letter and complete the forms. Let the other schools know of your decision. • If you’re not happy with your award, ask the financial aid office to review your application again.

10. Sample Award Letter Dear Student: Congratulations on your acceptance to Pine Manor College! We are pleased to offer you the following financial assistance for the 2010-2011 academic year based on your status as a full-time student living On Campus.

11. What does all this mean? • Do I have to accept all the aid that has been given to me? • How do you know what loans/aids to choose from?

12. Types of Loans/Grants • Pell Grant • These grants, which do not have to be repaid, help eligible undergrad students. There has to be a high need to receive this grant. • Federal Supplemental Educational Opportunity Grant (FSEOG) • Need based grants administered by individual schools. Awards vary from year to year. Students should apply as early as possible.

13. Loans/Grants Continued • Stafford Loans • Low interest loans for undergraduates and graduate students. Students in approved vocational, technical and trade schools are also eligible. • Two Types • Subsidized • Unsubsidized

14. Stafford Loans • Subsidized Stafford Loans • Need based loans. The borrower doesn’t pay interest on the loan while in school. He or she usually begins paying on the loan 6 months after finishing college. • Unsubsidized Stafford Loans<--- Stay away! • Available to students regardless of family income. Borrower will accrue interest while in school and during any deferments.

15. Loans/Grants Continued • Parent Plus Loans • Given by individual schools to parents who fit the need-based requirements. This is a loan the PARENT takes on. • Federal Work Study • Provides on campus and off campus jobs to qualified students. Individual colleges provide these programs. • ROTC Scholarships • Joining Reserve Officer Training and receive full tuition in return for military service after graduation. • The Montgomery G.I. Bill • The government contributes to the educational fund of military service members. Contributions can be as much as 10,000 dollars.

16. Loans to Avoid • Unsubsidized Loans • Interest begins to accrue DURING college. • Accrue: the ability for something to accumulate/grow over time. • Private Loans (Banks) • Often have VERY high interest rates. • These loans are also hard to consolidate once you begin repaying them.

17. Requirements for Federal Aid You must: • Have financial need • Have a high school diploma or GED • Be enrolled at least half-time in an eligible program • Be a U.S. citizen or eligible noncitizen • Have a valid Social Security number • Progress satisfactorily in your studies • Not have defaulted on a federal loan

18. Institution Programs • Some schools offer several payment plans or installment plans. This allows you and your family to spread college costs over a longer period. These also allow families to purchase future tuition at a discounted price. • Americorps • Federal program allowing students to work in exchange for college funds • Cooperative Educational Program (Co-Ops) • Students alternate full time work with full time study

19. Borrowing for College • If you accept the loans be sure you understand: • Loan application procedure • Interest rate and total amount you will owe • Any additional fees you must pay • When you must begin repaying • Deferment or grace period stipulations/terms *Some colleges will hold loan exit interviews, either individually or in a large group, to go over this information with you before you graduate.

20. Tips: • The last loan you ever want to default on is a school loan. • One of the only types of loans the government/courts WILL NOT forgive! • Watch your credit card and any other debt. • Working while in school is a great way to lower any college or other debt • Continue to look for outside scholarships: STVM guidance website

21. In Conclusion: • Be a smart consumer: make sure the education your paying for will get you the job you want. • Go to collegeboard.org to research more information on how to “Pay for College”