Federal Credit Union                Paying for College                    Kelsey Balcaitis                    March 21, 20...
COLLEGE COSTS:     The Good, The Bad, The Uglyaplusfcu.org       Federal Credit Union   800-252-8148
THE UGLYaplusfcu.org   Federal Credit Union   800-252-8148
Cost of College                      Tuition                      + Fees                    + Housing                     ...
Cost of College, 2011-12SOURCE: The College Board, Trends in College Pricing 2011, Figure 1.  aplusfcu.org                ...
2011-2012 College Costs                        In-State 4           Out-of-              4 Yr. Private          Public 2 Y...
Graduating and In DebtAvg. student loan debt is on the rise                                                2010:          ...
THE BADaplusfcu.org   Federal Credit Union   800-252-8148
Little Glimmers• Between 2005-06 and 2010-11, federal grant  aid to undergrad and grad students  increased by 141%• Betwee...
Little Glimmers• In 2010-2011, $227.2 billion in financial aid  was distributed to undergrad and graduate  students in the...
Little Glimmers• Average net tuition and fees for in-state  students only increased by about $170 in  2011 dollars        ...
Little GlimmersSOURCE: The College Board, Trends in College Pricing 2011, Figure 7.aplusfcu.org                           ...
THE GOODaplusfcu.org   Federal Credit Union   800-252-8148
Is it even worth it? Yes.aplusfcu.org   Federal Credit Union   800-252-8148
Is it even worth it?                     Lifetime Earnings Relative to High School Graduates    Earnings Ratio            ...
Is it even worth it?• In 2008, median family income:   • Bachelor’s degree $101,099   • High School diploma $49,414• Non-f...
SHOW ME THE MONEYaplusfcu.org        Federal Credit Union   800-252-8148
No Right Way                                      Source: How America Pays for                                           C...
FINANCIAL AIDaplusfcu.org      Federal Credit Union   800-252-8148
Federal Student Aid• Money from the Federal Government to help pay  for a postsecondary education• Covers expenses such as...
Other Financial Aid• Can get money from other sources:  • State grants  • Institutional grants  • Scholarships  • Private ...
FAFSAaplusfcu.org   Federal Credit Union   800-252-8148
FAFSA?• FREE Application for Federal Student Aid• Online and paper versions               fafsa.ed.govaplusfcu.org      Fe...
Why FAFSA?• Only way to receive federal financial aid  • Federal Stafford Loans  • Grants  • Work-study• Collects informat...
FAFSA Timeline• Begin anytime after  January 1st of the  student’s senior year  and while in college• Need to complete  be...
What Students Will Need• Social Security Number or Alien Registration  Number• Driver’s License or equivalent• Prior year’...
Financial Aid Process1. Complete the FAFSA after January 1.   • Check school specific deadlines   • Fill out as soon as po...
EFCExpected Family Contribution               Cost of Attendance          -    Expected Financial Contribution            ...
TYPES OF AIDaplusfcu.org     Federal Credit Union   800-252-8148
Recent Changes• Student lending changes• Passed with the Health Care Bill in  March 2010• Eliminates the “Middle Man”   • ...
Types of Aid                           Borrowed                            Money                           Financial      ...
Borrowed Money• Loans   • Subsidized   • Unsubsidized   • PLUS   • Perkinsaplusfcu.org    Federal Credit Union   800-252-8...
Private LoansPros                       Cons• Can give a student       • Cannot consolidate  additional money if        wi...
Grants•   Tax free cash award•   Need based•   Does not need to be paid back•   Various sources including Federal    and S...
Grants1. Federal Pell Grant2. Federal Supplemental Education   Opportunity Grant (FSEOG)3. Teacher Education Assistance fo...
Merit Based Aid• Scholarships• Sources:   • Schools   • Employers   • Activities/Clubs   • Location   • Othersaplusfcu.org...
ScholarshipsEach year, we awardnine $1,000 scholarshipsto high school andcollege students.Application period isDec 2011 – ...
Work Study• Jobs usually on campus• Minimum wage• Jobs in student’s field  of study• Getting a job is not  guaranteed, sti...
American Opportunity Tax Credit• Expands the Hope Credit• Extended until December 31, 2012• Four years of post-secondary e...
Other Tax Benefits•   Lifetime Learning Credit•   Tuition and Fees Tax Deduction•   Student Loan Interest•   Learn more:  ...
DURING SCHOOLaplusfcu.org      Federal Credit Union   800-252-8148
Keeping Your AidSatisfactory Academic Progress• Required to keep financial aid• Elements:   • GPA Requirement      • ACC: ...
AFTER GRADUATIONaplusfcu.org        Federal Credit Union   800-252-8148
Your Rights and ResponsibilitiesYour Rights                       Your Responsibilities• Details of your loan            •...
It’s Time to Pay• Grace Period:  • Time between graduation, dropping below half-    time, or leaving school and when you n...
Repayment Options•   Standard•   Graduated•   Extended•   Income-Sensitive•   Income-Contingent•   Income-Based           ...
Consolidation  Combine multiple federal   student loans to a new Consolidation Loan with one      monthly payment.aplusfcu...
Pros and ConsPROS                       CONS• One monthly payment      • Increase length of• Lower monthly              re...
Should You?1. List your current student loans, include   balance, interest rate, and monthly   payment.2. Total your month...
Trouble Paying• Deferment     • Temporary suspension of loan payments for       specific situations     • Ex: reenrollment...
QUESTIONS?                   Kelsey Balcaitis                kbalcaitis@aplusfcu.org               facebook.com/aplusfcuap...
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Paying for College - ACC Spring 2012

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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.
  • Paying for College - ACC Spring 2012

    1. 1. Federal Credit Union Paying for College Kelsey Balcaitis March 21, 2012aplusfcu.org Federal Credit Union 800-252-8148
    2. 2. COLLEGE COSTS: The Good, The Bad, The Uglyaplusfcu.org Federal Credit Union 800-252-8148
    3. 3. THE UGLYaplusfcu.org Federal Credit Union 800-252-8148
    4. 4. Cost of College Tuition + Fees + Housing + Food + Books + Transportation + Miscellaneous Cost of Collegeaplusfcu.org Federal Credit Union 800-252-8148
    5. 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. 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. 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. 8. THE BADaplusfcu.org Federal Credit Union 800-252-8148
    9. 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. 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. 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. 12. Little GlimmersSOURCE: The College Board, Trends in College Pricing 2011, Figure 7.aplusfcu.org Federal Credit Union 800-252-8148
    13. 13. THE GOODaplusfcu.org Federal Credit Union 800-252-8148
    14. 14. Is it even worth it? Yes.aplusfcu.org Federal Credit Union 800-252-8148
    15. 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. 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. 17. SHOW ME THE MONEYaplusfcu.org Federal Credit Union 800-252-8148
    18. 18. No Right Way Source: How America Pays for College 2011, Sallie Maeaplusfcu.org Federal Credit Union 800-252-8148
    19. 19. FINANCIAL AIDaplusfcu.org Federal Credit Union 800-252-8148
    20. 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. 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. 22. FAFSAaplusfcu.org Federal Credit Union 800-252-8148
    23. 23. FAFSA?• FREE Application for Federal Student Aid• Online and paper versions fafsa.ed.govaplusfcu.org Federal Credit Union 800-252-8148
    24. 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. 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. 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. 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. 28. EFCExpected Family Contribution Cost of Attendance - Expected Financial Contribution Financial Needaplusfcu.org Federal Credit Union 800-252-8148
    29. 29. TYPES OF AIDaplusfcu.org Federal Credit Union 800-252-8148
    30. 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. 31. Types of Aid Borrowed Money Financial Aid Package Earned Gift Money Moneyaplusfcu.org Federal Credit Union 800-252-8148
    32. 32. Borrowed Money• Loans • Subsidized • Unsubsidized • PLUS • Perkinsaplusfcu.org Federal Credit Union 800-252-8148
    33. 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. 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. 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. 36. Merit Based Aid• Scholarships• Sources: • Schools • Employers • Activities/Clubs • Location • Othersaplusfcu.org Federal Credit Union 800-252-8148
    37. 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. 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. 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. 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. 41. DURING SCHOOLaplusfcu.org Federal Credit Union 800-252-8148
    42. 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. 43. AFTER GRADUATIONaplusfcu.org Federal Credit Union 800-252-8148
    44. 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. 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. 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. 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. 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. 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. 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. 51. QUESTIONS? Kelsey Balcaitis kbalcaitis@aplusfcu.org facebook.com/aplusfcuaplusfcu.org Federal Credit Union 800-252-8148
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