Paying for College - ACC Spring 2012

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Presentation for ACC Students. From Spring 2012.

Presentation for ACC Students. From Spring 2012.

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  •  Also, Paying for College can cover a wide variety of topics, so is there anything more specific you’d like me to address? I was thinking along the lines of applying for Financial Aid, budgeting tips for college students, costs of college, and then how to handle loans and more after graduation. But I’m happy to tailor it to cover what you were hoping I’d discuss.
  • This chart shows how tuition changes over one year. For a 4 year public university, such as UT, average tuition has gone up by 6.5%. When you look at the entire cost of college, it has gone up almost 6%, just in one year. This rise in tuition prices is not expected to change.
  • Shows average annual earnings for adults under age 65 based on their education
  • Better healthLower poverty and unemployment ratesPositive perceptions of healthLower smoking rates More likely to enjoy employer sponsored benefits and pension plans
  • Applying for federal aid is free You do not have to pay anyone to help you complete the form
  • Federal aid can be used to cover expenses such as tuition and fees, room and board, books and supplies, and transportation. Have to fill out a FAFSA to get the aid though. Who gets aid? demonstrate financial need Be a us citizen Valid SSN
  • Can apply online or with a paper application. Online speeds up the process.
  • Financial comes in three main forms: gift money, earned, and borrowed.
  • Borrowed money is loans. These are the four major federally backed kinds of loans. Subsidized: While student is in school, government pays the interest on the loan, once student graduates, interest starts to accrueUnsubsidized: Interest accrues as soon as the loan is made, PLUS: Parent loans, parents have to go through a credit check to get the loan. Student loans do not require a credit check. Perkins: made by a school to a student with exceptional financial need
  • Not backed by the governmentIncreased popularity as school costs have risen and federal student lending has slowed25% per year growth in loan volume (and rising)
  • Grants are the best kind of aid: FREE and do not need to be paid back. But you can’t get a Federal Grant unless you fill out a FAFSA.
  • Effective Fall 2011 Federal regulations require all financial aid recipients to maintain satisfactory academic progress in a course of study leading toward a degree or certificate. Failure to meet one or more of the established standards of Satisfactory Academic Progress (SAP) will make a student ineligible for financial aid. Financial Aid SAP status includes all previous academic history, even if the student did not receive financial aid. Statuses are updated at the end of each semester, including summer. It is the student’s responsibility to monitor academic progress. Although the Financial Aid Office attempts to send students correspondence informing them of their status, students who do not meet the standards will be ineligible for financial aid even if they do not receive correspondence. Elements of Financial Aid Satisfactory Academic Progress:Grade Point Average (GPA) RequirementStudents must maintain a 2.0 cumulative GPA on all hours attempted at ACC: GPA calculatorCompletion Rate RequirementStudents must complete 67% of all hours attempted at ACC: Completion Rate Calculator.Maximum Time FrameStudents receiving financial aid must complete their program of study within a reasonable time frame. The maximum time frame is 150% of the published length of the academic program or certificate (to include all transfer credit hours). Limited developmental coursework will not be counted in the maximum time frame. Example:      Associate of Science Degree in Physics  = 64 hours x 150%= 96 hours                        96 hours is the maximum that can be attempted with financial aidConsequences of not meeting Satisfactory Academic Progress (SAP):In the following provisions, “warning” or “suspension” means financial aid warning or suspension, not academic warning or suspension. Financial Aid Warning – The first time that a student fails to meet the SAP standards of a cumulative 2.0 GPA and 67% completion rate, he or she will be placed on financial aid warning status. The student will remain eligible for financial aid for one semester during the warning period. Financial Aid Suspension – If, after being placed on financial aid warning status, a student fails to meet the SAP standards of a cumulative 2.0 GPA and 67% completion rate, he or she will be placed on Financial Aid Suspension and will immediately lose financial aid eligibility.Maximum Time Frame Suspension – If a student fails to meet the Maximum Time Frame standards, he or she will be placed on Maximum Time Frame Suspension and will immediately lose financial aid eligibility.Failure to meet one or more of the established financial aid standards of satisfactory academic progress will make a student ineligible for financial aid. Students who have their financial aid revoked due to the failure to meet the SAP standards will remain ineligible until such time that they are able to meet the cumulative financial aid SAP standards. Those students will be responsible for payment of their own tuition and fees.

Transcript

  • 1. Federal Credit Union Paying for College Kelsey Balcaitis March 21, 2012aplusfcu.org Federal Credit Union 800-252-8148
  • 2. COLLEGE COSTS: The Good, The Bad, The Uglyaplusfcu.org Federal Credit Union 800-252-8148
  • 3. THE UGLYaplusfcu.org Federal Credit Union 800-252-8148
  • 4. Cost of College Tuition + Fees + Housing + Food + Books + Transportation + Miscellaneous Cost of Collegeaplusfcu.org Federal Credit Union 800-252-8148
  • 5. Cost of College, 2011-12SOURCE: The College Board, Trends in College Pricing 2011, Figure 1. aplusfcu.org Federal Credit Union 800-252-8148
  • 6. 2011-2012 College Costs In-State 4 Out-of- 4 Yr. Private Public 2 Yr. Yr. Public State 4 Yr. PublicPublished $8,244 $20,770 $28,500 $2,963Tuition andFeesChange from 8.3% 5.7% 4.5% 8.7%2010-2011Average Total $17,131 $29,657 $38,589 NACharges*Change from 6.0% 5.2% 4.4% NA2010-2011* Includes tuition, fees, room and board Source: College Board, Trends in College Pricing 2011aplusfcu.org Federal Credit Union 800-252-8148
  • 7. Graduating and In DebtAvg. student loan debt is on the rise 2010: $25,250 2008: $23,200 And don’t forget: 2004: $3,200 in credit $18,650 card debt!aplusfcu.org Federal Credit Union 800-252-8148
  • 8. THE BADaplusfcu.org Federal Credit Union 800-252-8148
  • 9. Little Glimmers• Between 2005-06 and 2010-11, federal grant aid to undergrad and grad students increased by 141%• Between 2005-06 and 2010-11, savings to taxpayers through federal tax credits and deductions for education increased by 108%aplusfcu.org Federal Credit Union 800-252-8148
  • 10. Little Glimmers• In 2010-2011, $227.2 billion in financial aid was distributed to undergrad and graduate students in the form of grants, Federal Work- Study, federal loans, and federal tax credits and deductions.• In 2010-2011, students borrowed around $7.9 billion in loans from state and private sources.aplusfcu.org Federal Credit Union 800-252-8148
  • 11. Little Glimmers• Average net tuition and fees for in-state students only increased by about $170 in 2011 dollars Grant aid, Published federal Net Tuition Tuition education tax creditsaplusfcu.org Federal Credit Union 800-252-8148
  • 12. Little GlimmersSOURCE: The College Board, Trends in College Pricing 2011, Figure 7.aplusfcu.org Federal Credit Union 800-252-8148
  • 13. THE GOODaplusfcu.org Federal Credit Union 800-252-8148
  • 14. Is it even worth it? Yes.aplusfcu.org Federal Credit Union 800-252-8148
  • 15. Is it even worth it? Lifetime Earnings Relative to High School Graduates Earnings Ratio Source: Education Pays 2010, College Board aplusfcu.org Federal Credit Union 800-252-8148
  • 16. Is it even worth it?• In 2008, median family income: • Bachelor’s degree $101,099 • High School diploma $49,414• Non-financial benefits • Better health and quality of life • Access to employer paid benefitsaplusfcu.org Federal Credit Union 800-252-8148
  • 17. SHOW ME THE MONEYaplusfcu.org Federal Credit Union 800-252-8148
  • 18. No Right Way Source: How America Pays for College 2011, Sallie Maeaplusfcu.org Federal Credit Union 800-252-8148
  • 19. FINANCIAL AIDaplusfcu.org Federal Credit Union 800-252-8148
  • 20. Federal Student Aid• Money from the Federal Government to help pay for a postsecondary education• Covers expenses such as tuition and fees, room and board, books and supplies, and transportation• Three main categories: • Grants • Work-study • Loansaplusfcu.org Federal Credit Union 800-252-8148
  • 21. Other Financial Aid• Can get money from other sources: • State grants • Institutional grants • Scholarships • Private loansaplusfcu.org Federal Credit Union 800-252-8148
  • 22. FAFSAaplusfcu.org Federal Credit Union 800-252-8148
  • 23. FAFSA?• FREE Application for Federal Student Aid• Online and paper versions fafsa.ed.govaplusfcu.org Federal Credit Union 800-252-8148
  • 24. Why FAFSA?• Only way to receive federal financial aid • Federal Stafford Loans • Grants • Work-study• Collects information about the student and his/her family to determine need aplusfcu.org Federal Credit Union 800-252-8148
  • 25. FAFSA Timeline• Begin anytime after January 1st of the student’s senior year and while in college• Need to complete before colleges’ deadlinesaplusfcu.org Federal Credit Union 800-252-8148
  • 26. What Students Will Need• Social Security Number or Alien Registration Number• Driver’s License or equivalent• Prior year’s Federal Tax returns*• Prior year’s untaxed income records*• Prior year’s bank statements*• Prior year’s business and investments records*• Federal Student Aid PIN* • pin.ed.gov *for students and parentsaplusfcu.org Federal Credit Union 800-252-8148
  • 27. Financial Aid Process1. Complete the FAFSA after January 1. • Check school specific deadlines • Fill out as soon as possible!2. Review the Student Aid Report (SAR). • Includes your Expected Family Contribution (EFC)3. Review award letters.aplusfcu.org Federal Credit Union 800-252-8148
  • 28. EFCExpected Family Contribution Cost of Attendance - Expected Financial Contribution Financial Needaplusfcu.org Federal Credit Union 800-252-8148
  • 29. TYPES OF AIDaplusfcu.org Federal Credit Union 800-252-8148
  • 30. Recent Changes• Student lending changes• Passed with the Health Care Bill in March 2010• Eliminates the “Middle Man” • Borrow directly from the Federal Government• Increases Federal Grant Moneyaplusfcu.org Federal Credit Union 800-252-8148
  • 31. Types of Aid Borrowed Money Financial Aid Package Earned Gift Money Moneyaplusfcu.org Federal Credit Union 800-252-8148
  • 32. Borrowed Money• Loans • Subsidized • Unsubsidized • PLUS • Perkinsaplusfcu.org Federal Credit Union 800-252-8148
  • 33. Private LoansPros Cons• Can give a student • Cannot consolidate additional money if with federal loans needed • Not backed by government • Potentially higher interest rateaplusfcu.org Federal Credit Union 800-252-8148
  • 34. Grants• Tax free cash award• Need based• Does not need to be paid back• Various sources including Federal and State governments, or institutionaplusfcu.org Federal Credit Union 800-252-8148
  • 35. Grants1. Federal Pell Grant2. Federal Supplemental Education Opportunity Grant (FSEOG)3. Teacher Education Assistance for College and Higher Education (TEACH)4. Iraq and Afghanistan Service Grantaplusfcu.org Federal Credit Union 800-252-8148
  • 36. Merit Based Aid• Scholarships• Sources: • Schools • Employers • Activities/Clubs • Location • Othersaplusfcu.org Federal Credit Union 800-252-8148
  • 37. ScholarshipsEach year, we awardnine $1,000 scholarshipsto high school andcollege students.Application period isDec 2011 – Feb 2012 aplusfcu.org Federal Credit Union 800-252-8148
  • 38. Work Study• Jobs usually on campus• Minimum wage• Jobs in student’s field of study• Getting a job is not guaranteed, still need to applyaplusfcu.org Federal Credit Union 800-252-8148
  • 39. American Opportunity Tax Credit• Expands the Hope Credit• Extended until December 31, 2012• Four years of post-secondary expenses• Covers Qualified Tuition and Related Expenses • Includes course materials: books, supplies, and equipment needed for a course of study • Do not have to purchase these from the institution• Up to $2,500 (40% of the credit is refundable, up to$1,000)aplusfcu.org Federal Credit Union 800-252-8148
  • 40. Other Tax Benefits• Lifetime Learning Credit• Tuition and Fees Tax Deduction• Student Loan Interest• Learn more: • http://www.irs.gov/pub/irs-pdf/p970.pdfaplusfcu.org Federal Credit Union 800-252-8148
  • 41. DURING SCHOOLaplusfcu.org Federal Credit Union 800-252-8148
  • 42. Keeping Your AidSatisfactory Academic Progress• Required to keep financial aid• Elements: • GPA Requirement • ACC: 2.0 cumulative • Completion Rate Requirement • ACC: must complete 67% of all hours attempted • Maximum Time Frame • ACC: 150% of the published length of the academic program enrolled in Source: ACC Financial Aidaplusfcu.org Federal Credit Union 800-252-8148
  • 43. AFTER GRADUATIONaplusfcu.org Federal Credit Union 800-252-8148
  • 44. Your Rights and ResponsibilitiesYour Rights Your Responsibilities• Details of your loan • Sign a promissory note• Grace period • Make payments on• Loan repayment time schedule • Continue to pay while• Change in loan waiting for forbearance servicers or deferment approval • Receive entrance and exit counselingaplusfcu.org Federal Credit Union 800-252-8148
  • 45. It’s Time to Pay• Grace Period: • Time between graduation, dropping below half- time, or leaving school and when you need to begin paying back your loan • Direct Stafford Loans: 6 months • Perkins Loans: 9 months • PLUS Loans: no grace period • Called to active military duty for >30 days: grace period is delayedaplusfcu.org Federal Credit Union 800-252-8148
  • 46. Repayment Options• Standard• Graduated• Extended• Income-Sensitive• Income-Contingent• Income-Based From: http://pythagoreanism.com/debt- downgrade-student-loan-bubble/aplusfcu.org Federal Credit Union 800-252-8148
  • 47. Consolidation Combine multiple federal student loans to a new Consolidation Loan with one monthly payment.aplusfcu.org Federal Credit Union 800-252-8148
  • 48. Pros and ConsPROS CONS• One monthly payment • Increase length of• Lower monthly repayment payment • Increase amount paid in interest • May lose loan specific benefitsaplusfcu.org Federal Credit Union 800-252-8148
  • 49. Should You?1. List your current student loans, include balance, interest rate, and monthly payment.2. Total your monthly payments.3. Look at your budget. Can you afford all your payments?4. Use the online consolidation calculator to see the benefit of consolidation. loanconsolidation.ed.govaplusfcu.org Federal Credit Union 800-252-8148
  • 50. Trouble Paying• Deferment • Temporary suspension of loan payments for specific situations • Ex: reenrollment in school, unemployment, or economic hardship• Forbearance • Temporary postponement or reduction of payments for a period of time because of financial difficulty • Interest accrues no matter what type of loanaplusfcu.org Federal Credit Union 800-252-8148
  • 51. QUESTIONS? Kelsey Balcaitis kbalcaitis@aplusfcu.org facebook.com/aplusfcuaplusfcu.org Federal Credit Union 800-252-8148