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Pop Quiz

Pop Quiz. What schools are you considering? List your top three options. What majors are you considering? (top 3) What careers are you considering? (top 3) How are you planning on paying for your education?. College costs are on the rise…. Financial Aid. The Economics of College….

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Pop Quiz

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  1. Pop Quiz • What schools are you considering? List your top three options. • What majors are you considering? (top 3) • What careers are you considering? (top 3) • How are you planning on paying for your education?

  2. College costs are on the rise…

  3. Financial Aid The Economics of College…

  4. What is federal Financial Aid? • The government offers NEEDS based assistance for college • You must demonstrate documented financial need. • There are private loans and aid available, this only deals with what’s available FEDERALLY

  5. Different Types • Grants • Do NOT need paid back • Needs based • Federal Pell Grant Maximum $5,550 • Federal Work Study • Part time work program to earn money while in school • Loans • They DO need paid back, with INTEREST • Different types

  6. Direct Stafford Loans • The main loan from the government • Advantages • Lower interest • Flexible repayment options • For four year school, community college, trade, career, or technical school • Borrow from the US Department of Education • Two types…Subsidized and Unsubsidized

  7. Direct Subsidized Stafford Loans • Based on need…school decides how much you get • Not charged interest while in school at least half time • 6 month grace period after you leave school • 3.4% interest rate

  8. Direct Unsubsidized Stafford Loans • Do NOT need to demonstrate financial need • School decides how much you get • Start collecting interest as soon as you get them • Pay the interest while in school, its cheaper • If you don’t pay the interest, the interest accrued is added to your principal, increasing the amount that you pay • 6.8%

  9. Parent PLUS • Parents have different types of loans. • Often, people under a certain age cannot get loans unless parents sign on as guarantors or take out a parent PLUS loan themselves.

  10. Max Stafford Loan Amounts…

  11. Repaying your loans! • 6 months before you begin repayment • Where do I access my loan information? • www.nslds.ed.gov • There are many different repayment plans and options

  12. Repayment Plans • Standard repayment • Fixed amount each month • Done in ten years • Higher monthly payments • Extended repayment • Fixed annual repayment over up to 25 years. • More than $30,000 in Direct loans to be eligible • Lower monthly payment, higher overall payment

  13. Repayment plans • Graduated Repayment • Start payments low, then increase every two years • Good if you think your income will grow over time • Income Based Repayment (IBR) • Based on income and family size • If you repay for 25 years and meet requirements, the balance of your loan could be cancelled

  14. Repayment Plans • Income Contingent Repayment (ICR) • Direct loans only • Flexibility to make payments without hardship • Every year, calculate new monthly payments • Your income, plus spouses, family size, and amount of loan • After 25 years in this plan, remaining balance is discharged

  15. Independent Student • An independent student is one of the following: at least 24 years old, married, a graduate or professional student, a veteran, a member of the armed forces, an orphan, a ward of the court, or someone with legal dependents other than a spouse.

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