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Paying for Investing in Your College Education

Discover the benefits of a college education, including higher earning potential, lower unemployment rates, improved job satisfaction, and a healthier lifestyle. Learn about the different types of financial aid available, including grants, scholarships, work-study programs, and loans. Find out how to lower the cost of attendance through smart financial decisions and strategies.

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Paying for Investing in Your College Education

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  1. Paying for Investing in Your College Education

  2. College is an Investment

  3. Benefits of a College Education College graduates are likely to make $22,000 more per year than high school graduates. Over a lifetime, that is almost one million dollars more! $1,000,000

  4. Benefits of a College Education Less likely to be unemployed Greater job satisfaction/like your job more Healthier More likely to vote, give blood, volunteer and exercise!

  5. Cost of AttendanceEvery college & university has an “Average Cost of Attendance” -- you can find it on their website.

  6. Calculating Average Cost of Attendance Tuition and fees + Room and board + Books and supplies + Transportation and personal expenses ---------------------------------------------------------- = Cost Of Attendance

  7. What is the actual cost? Cost of Attendance – Financial Aid _________________ Net Price

  8. Types of Financial Aid

  9. Financial Aid Gift aid • Grants • Scholarships Self-help aid • Employment/Work-study • Student loans

  10. Grants Free gift assistance from the government or college to cover education costs Does not need to be paid back

  11. Scholarships Freemoney from various sources for college expenses Does not need to be paid back Students must apply for each scholarship individually

  12. Work-Study Provides part-time employmentto college students (may be on or off campus) Encourages civic education or work related to your program of study Work study jobs will accommodate your class schedule Work study is available for students with financial need

  13. Employment Students can work off campusto earn money to pay for college Over 70% of college students work while attending school* *Source: Georgetown University’s Center on Education and the Workforce.

  14. Savings Plan Earn to Learn: Students save &In-State University provides a savings match.  For every $1 saved, the In-State University will match with $8 – up to $4000 You save +University gives = TOTAL $500 + $4000 = $4500

  15. Loans Financial Assistance that must be repaid The U.S. Department of Education offers low interest loans to eligible students • Subsidized: Based on financial need, student does not pay interest while in school • Unsubsidized: interest starts to accrue immediately – even while still in school Proceed with Caution – read the fine print!

  16. Parent Loans Parent Direct PLUS loan (FAFSA) • If you are a parent borrower, you’ll generally be expected to start making payments on your Direct PLUS Loan once your loan is fully disbursed (paid out). • A Direct PLUS Loan made to a parent cannot be transferred to the child. You, the parent borrower, are legally responsible for repaying the loan. Private student loans for parents

  17. FAFSAFree Application for Federal Student Aid

  18. What is FAFSA? Acronym for Free Application for Federal Student Aid An on-line form – fafsa.gov Determines eligibility for federal grants, low interest loans and work-study (some private scholarships also use FAFSA information to determine eligibility) Always FREE for you to complete You must apply in senior year of high school and again every year of college Takes about 30 minutes to complete Requires parents’ income/tax information

  19. College Student Examples

  20. College Student #1 $26,000 (Cost of Attendance at In-State University) $5,815 Grants (Max Pell) $4,000 Work Study $11,500 Scholarships • $6000 President’s Scholarship • + $500 Kiwanis Scholarship • + $5,200 (assorted other scholarships, inc.Zombie Apocalypse & Make Me Laugh Scholarships) $4,500 E2L savings account (Max) $0 Out of pocket & no loans

  21. College Student #2 $26,000 (Cost of Attendance at In-State University) $5,500 Grants $2,750 Scholarships $4,000 Work-study $13,750 Loans $0 Out of pocket* *Loans will be required to be paid back once a student in not enrolled full time

  22. College Student #3 $15,000 (Cost of Attendance at community college) $5,815 Grants (Max Pell) $7,800 Value of room and board at parent’s home $3,800 Work-Study (Max) $2,415 to help parents with expenses, or to save for university

  23. College Student # 4 $67,800 (Cost of Attendance at Harvard University, includes $900 for travel between AZ & MA) $63,200 Harvard Scholarship because parents earn <$65,000 per year & have few assets) $4,600 Harvard Student Work Opportunities $0 Out of pocket & No Loans

  24. Lowering the cost of attendance Earn/apply for scholarships • Academics, ACT/SAT scores, athletics, clubs, volunteer work, etc Complete the FAFSA Live at home/with roommates Rent books/buy used books Be creative with transportation (bike, carpool, parking pass) Work while in school Reduce spending (personal items, entertainment, etc.) Take a full course load, plus Take each required course once (don’t fail!!) Choose the right college • 2+2 plan, 4-year with renewable offer, etc.

  25. Our Stories

  26. Let’s review

  27. Review 1. What does COA stand for? 2. What does FAFSA stand for? 3. Why should you and your family complete the FAFSA if you are eligible to apply? 4. What kind of financial aid does not have to be paid back? 5. What kind of financial aid must be paid back? 6. What are some ways to reduce the Cost of Attendance?

  28. Discussion Time

  29. Discussion What would you tell someone who says he is not going to college because he can’t afford it? How can a college education help you in the future? Who at your school will be able to help you apply for financial aid and/or scholarships?

  30. Questions ?

  31. Thank you for listening Please answer the questions on the hand-out and turn it in as your Ticket Out the Door!

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