Financing Your College Education 101: Scholarship Tips and Financial Aid

1. Financing Your College Education 101: Scholarship Tips and Financial Aid Karen Sweeney, Counselor Robertsdale High School Presented at Silverhill Town Hall, 8-5-10

2. College is Expensive!

3. Factors affecting cost: • In-state vsOut-of-state tuition rates • Public vs Private school • Starting at 2 yr vsStarting at 4 yr • Cost of university or college choice • Length of program; costs associated with major. • Living arrangements/Distance from home • Extra-curricular activities such as fraternity/sorority participation or study abroad This government sponsored website will help you compare universities using 2009-2010 data. http://nces.ed.gov/COLLEGENAVIGATOR/

4. Major sources of financing:(Other than your savings) • Federal government through FAFSA

5. FAFSA: Free Application for Federal Student Aid Types of aid available when you complete the FAFSA: • GRANTS – Money awarded does not have to be repaid. Available to lower income families. Some grants are awarded based on field of study in high need area*. Pell (currently $5500/yr), SEOG ($100-$4000), ACG ($750/$1300), *SMART($4K 3rd & 4th yrs), TEACH**(up to $4K/yr) **Not income dependent. • WORK STUDY – On campus job; at least minimum wage. • LOANS – Most must be repaid. Different terms depending on family income. The advantage of a student loan is that repayment is not necessary until after graduation. The student, not parent, signs for and is responsible for a student loan. Parent PLUS loans are available for parents with good credit wanting to borrow. Each family submitting the FAFSA will receive a dollar figure which is the amount the government expects each family to contribute per year toward schooling for that student: the EFC.

6. The Process ←EFC $$$ Financial Aid Award Letter $$$► EFC→ $$$ Submit FAFSA → ASAP after Jan. 1 Apply to colleges ◄Financial Aid Award Letter $$$

7. Major sources of financing:(Other than your savings) • Federal government through FAFSA • Universities & Colleges

8. University Scholarships are valuable!! All have ACT/SAT & GPA minimums. All accepted students who meet these minimums are guaranteed the award. This type of scholarship rewards individual effort over competition with peers. Most are renewable with success. Doing well in school is the best preparation for scholarships. Taking challenging courses (Honors level and/or AP) will help increase ACT/SAT scores. Taking the ACT in 10th grade is a good idea. Juniors (11th graders) need a solid ACT & GPA by the end of the year. Most university scholarships are awarded by Dec. 1 of senior year.

9. Major sources of financing:(Other than your savings) • Federal government through FAFSA • Universities & Colleges • IRS Tax Credit

10. American Opportunity Tax Credit Here are some key features of the credit: • Tuition, related fees, books, loansand other required course materials generally qualify. • The credit is equal to 100 percent of the first $2,000 spentand 25 percent of the next $2,000. • .The credit can be claimed for 4 years of undergraduate study. • The full credit is available for a single taxpayer whose modified adjusted gross income (MAGI) is $80,000 or less; (for married couples filing a joint return, the limit is $160,000 or less).The credit is phased out for taxpayers with incomes above these levels. • Even people who owe no tax can get an annual payment of the credit of up to $1,000 for each eligible student. See Publication 929, Tax Rules for Children and Dependents, for details.

11. Major sources of financing:(Other than your savings) • Federal government through FAFSA • Universities & Colleges • IRS Tax Credit • Local foundations, groups, & employers • National scholarships

12. For competitive scholarship selection: • Extra-curricular activities • Leadership experience • Work experience • Volunteer experience • Sports participation Reviewers are looking for well-rounded individuals who have a proven success record. Choose quality over quantity. Students will be asking teachers or sponsors for letters of recommendation. Character matters. Most scholarships are paid directly to the school of your choice in your college account.

13. Major sources of financing:(Other than your savings) • Federal government through FAFSA • Universities & Colleges • IRS Tax Credit • Local foundations, groups, & employers • National scholarships • ROTC Military College Programs

14. You’re a good candidate and it’s time to apply. Now what? • Submit your college application during the summer after your 11th grade year. Universities will not offer scholarships unless you are an accepted student. This process is over by Dec. 1st of your senior year for many 4 year schools. • Contact the college of your major. Many schools offer departmental scholarships in addition to university scholarships. • Sign up for scholarship searches. Create a new e-mail address to avoid the inevitable spam. • File the FAFSA as soon after Jan. 1 of your last year in high school. Parents will need to cooperate by completing tax forms early. December graduates should file NOW! • Have your resume in order. Complete your brag sheet for use by teachers when writing letters of recommendation. • DO NOT PROCRASTINATE!! Some applications are ridiculously simple; others must be started months in advance (i.e. ROTC). Start essays ASAP so you have plenty of time to include all your ideas & PROOFREAD! • Read the scholarship newsletter on the first day you receive it & take action. Almost all are internet accessible. • You can ask your parents to help with mailing & such but the application must be completed by YOU.

15. Never pay for college financial aid services: Unscrupulous individuals often rent hotel rooms & send out official-looking invitations through the mail. Cost is in the range of $300 - $1500. They guarantee financial aid, but everyone can get a loan – without their help! Never pay for filing the FAFSA. Don’t go to fafsa.com! The official website is www.fafsa.ed.gov.

16. Luckily, free expertsare available: Use the internet to search for information about colleges, scholarships, and financial aid. Contact your student’s high school counselor to set up an appointment to discuss plans and options. Ask questions of the admission counselors of the schools you are considering. As soon as you are accepted, make an appointment with your future school’s financial aid professional.

17. Everyone who wants to go to college can go. Low income students usually graduate debt free. A moderate debt is worth it if you trade that debt for a higher paying, more satisfying career. GI benefits are available for veterans and can now be transferred to family members. Some employers will pay for further training for a valued employee. Whatever you decide, if you don’t get further training after high school, you will only be qualified to do the job you get right out of high school. Sometimes you get lucky; usually not.

18. Happy Fishing! Financing your college education is a lot like fishing – if you don’t bait your hook & cast a line, you won’t catch a fish, but there are no guarantees either.