Hs presentation 1415 part 3
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Hs presentation 1415 part 3 Hs presentation 1415 part 3 Presentation Transcript

  • PRESENTER USC LANCASTER USC Lancaster Kenneth T. Cole Director of Financial Aid
  •  Education as an Investment  Calculating College Costs  Reading an Award Letter  Comparing Colleges by Costs and Awards  Determining How Much You Should Borrow
  • Tuition & Fees Room & Board Books & Total Supplies Annual Cost 4 Year Cost (assuming 7% increase/year) USC Lancaster (2 year Public) $6,252 $6,840 $1600 $14,692 $71,000 York Tech. (2 year Tech) $3,496 $7,200 $1,200 $11,896 NA USC Columbia (4 year Public) $10,168 $6,556 $1600 $18,324 $81,000 Clemson Univ. (4 year Public) $12,668 $7,228 $1090 $20,986 $93,000 Coker College (4 year Private) $22,200 $6,950 $1,000 $30,150 $130,000
  •  Median Annual Salary for workers with ◦ ◦ ◦ ◦  No HS Diploma $13,000 High School Diploma $21,079 Associate’s Degree $30,937 Bachelor’s Degree $40,166 About $20,000 a year for a Bachelor’s Degree Source: U.S. Census Bureau's annual survey comparing earnings with education levels. Based on 2005 year data. “Study Shows Higher Salaries for College Grads”, by Howard Schneider; Washington Post Staff Writer Thursday, March 15, 2007; 10:00 AM
  •  What is the cost of education? ◦ 2 year degree $29,384 ◦ 4 year degree $81,000 ◦ Not considering what Financial Aid might pay  What you could earn in 30 ◦ Without a School Diploma ◦ With a 2 year Degree ◦ With a 4 year Degree  years? $632,370 $928,110 $1,204,498 What the degree is worth? ◦ 2 year degree $266,356 ◦ 4 year degree $491,128  College is an Investment that has a 600% return
  • Is 4 years of hard work worth $500,000 to you?
  •  Notification: ◦ Paper Award Letter ◦ E-mail notification (with secure link) Most award information is now online  You should:  ◦ Read Awards Terms and Conditions ◦ Accept loans if you want them ◦ Complete additional forms:  State Grant Affidavits  Student Loan Promissory Notes and Entrance Counseling  Work Study Job Applications and Interviews
  •  4 parts ◦ ◦ ◦ ◦ Estimated Cost of Attendance (COA or Budget) Expected Family Contribution (EFC from FAFSA) Calculated Need Awards         Award name 1st Term award Amount 2nd Term award Amount Total Award Amount Enrollment Status used for award (usually full-time) Total Term Awards Total Yearly Awards Summer is usually not included in initial award.
  • Need Calculation Cost of Attendance Tuition & Fees $17720 Estimated Cost of Attendance $17720 Expected Family Contribution $ 1000 Need $16720 Books & Supplies $1320 Total Awards* $14100 Room & Board $7100 Unmet Need $ 2620 Transportation $1800 PELL Fall Fall Spring Amount Enrollment Amount Status $2300 12 (full) $2300 Spring Total Enrollment Award Status 12 (full) $4600 Decision (Accept/ Decline) na LIFE $2500 12 (full) $2500 12 (full) $5000 na Sub Loan Unsub Loan* $1750 12 (full) $1750 12 (full) $3500 $1000 12 (full) $1000 12 (full) $2000 Award $6500 * Unsub loans can be used to “offset” the EFC. So, in this case only $1000 of the Unsub loan was counted against Need.
  •   Give you an example of an “average” student’s costs and awards who is similar to you. It will ask: ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦  If you are filing a FAFSA Your age Your living arrangements Your state residency status Your marital status If you support any children Number of people in your Household Of those, the number attending college Family Income Range It will give you: ◦ Estimated Cost of Attendance (COA) ◦ Estimated Total Grants ◦ Estimated Net Price (COA-Estimated Grants)  It does NOT tell you: ◦ What YOU are really eligible for ◦ What YOU will really pay
  •  You must determine seven things: ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ Actual Expenses Living/Transportation Expenses Cost of Attendance (COA or budget) Family Contribution (EFC) Need Total Aid Offered Unmet Cost (budget less scholarships and grants) Loans Remember: Tuition, Fees, Books and Dorms are usually only charged 1 semester at a time. You may need to calculate
  •  Actual Expenses include: ◦ ◦ ◦ ◦ Tuition Fees Books Supplies Tuition Offset: ◦A scholarship/grant provided from institutional funds towards the cost of Tuition and Fees. ◦Large expensive colleges often offer an “offset” based on your academics and/or need. ◦These are usually Institutional awards that reduce the costs before other aid applies. ◦Tuition Offsets reduce Actual Expenses
  •  Living/Transportation Expenses: ◦ ◦ ◦ ◦ ◦ ◦ ◦ Room (dorm; apartment, deposits, utilities) Board (meal plan, eating out, cooking, snacks) Personal (laundry, toiletries, clothing, furniture) Emergencies (car repairs, medical issues, clothing) Daily Travel (bus fare; bike; insurance, gas, parking) Vacation Travel (car, flights, gas, food) Cost of Attendance (budget): ◦ Actual Expenses + Living/Transportation Expenses ◦ Need: ◦ Cost of Attendance - Family Contribution = Need ◦ Need limits grants, work-study and subsidized loans
  •  Total Aid Offered  Scholarships (except Tuition Offsets)  Grants (except Tuition Offsets)  Loans (you have a choice to accept or decline these)  Workstudy (student must work to earn this money)  Cost of Attendance – Scholarships & Grants= Unmet Cost  Unmet Cost is your actual “out of pocket expense”  Options: ◦ Student Loans  to pay one time fees, or keep in savings for monthly bills ◦ Working a Job  to cover monthly bills and save for up coming big bills  Family Support  College savings plans, car insurance, gas money, food, etc…
  •  Total Resources=  Federal Pell Grant  State Scholarships  Scholarships from Sponsors (those not from colleges)  Federal Loans ($5500 as Freshman)  Savings Plans  Cash and other assets  For Each College, determine:  Cost of Attendance – Total Resources = Unmet Cost of College  Subtract Institutional Grants and Scholarships = Actual Cost  Use that to compare and determine which college you can afford.
  • Will you need to borrow a student loan? Example of a fairly inexpensive school Tuition + Fees + Books + Supplies $6000 + $500 + $1200 + $120 Scholarships Only Need Grants Only Actual Costs Need Grants and Scholarships $7,820 $7,820 $7,820 LIFE - $5,000 $5,000 $0 Pell - $5,550 $0 $5,550 Lottery - $0 $0 $950 Unmet Costs $0 $2,820 $1,320
  •  Calculate your anticipate Loans ◦ Determine how much you must borrow each year ◦ Add 20% to the total  12% for cost increases  8% for accrued loan interest ◦ This is how much you will have borrowed at this college. ◦ The undergraduate loan limit is $31,000 ◦ You can also borrow private student loans, but it is discouraged.
  •  Your debt-to-income ratio can be a valuable number -some say as important as your credit score. It's exactly what it sounds: the amount of debt you have as compared to your overall income.  Lenders look at this ratio when they are trying to decide whether to lend you money or extend credit.  Monthly Debt payments/ Monthly income=DTI  You want to keep your “DTI” below 36%
  • If you borrowed $31,000 in student loans,  your monthly payments would be $400; and  if you paid a typical house payment of $1000 and a typical car loan of $400 monthly; and  if you wanted to maintain a DTI of no more than 36% (to keep good credit); then,  you would need a monthly income of about $5000, or about a $60,000 annual income.  Your student loan would therefore be about 51% of your annual income.  Hence, we recommend... 
  • Don’t borrow More in student loans than half of your anticipated annual income for your career!
  •  Research your career field: Career ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ Starting Income Rec. Limit Attorney: $100,000 $50,000 Software Developer: $92,000 $46,000 Finance Manager: $85,000 $42,500 Construction: $70,000 $35,000 Mechanical Engineer: $65,000 $32,500 Operations Manager: $60,000 $30,000 Human Resources Manager:$60,000 $30,000 Bank Manager: $55,000 $27,500 Executive Assistant: $47,000 $23,500 Accounts Payable Specialist:$37,000 $18,500
  • Thank you for your attention! Contact Us! USC Lancaster Kenneth Cole  BY MAIL: PO Box 889 Lancaster, SC 29721  BY PHONE: (803) 313-7068  Visit Us: 127 Starr Hall, Hubbard Drive  BY WEB: http://usclancaster.sc.edu/ A presentation like this is available at the USC Lancaster Financial Aid Office Website