This document provides information about paying for college, types of financial aid, the financial aid process, managing credit cards, credit reports and scores, budgeting, and benefits programs. It discusses the average costs of attending public and private colleges, the types of financial aid including loans, grants, scholarships, and work study. It also outlines the eligibility requirements for federal aid and the steps to complete the FAFSA form. The document provides tips for managing credit cards, understanding credit reports and credit scores, calculating net worth, creating a budget, budget tips, and information on benefits programs in Texas.

1. Financial Literacy & Capabilities
Houston Community College Financial Literacy and Capabilities
Prosper Chapter 4

2. Paying for College
Houston Community College Financial Literacy and Capabilities
Module pt. 2

3. How much financial aid can
I receive?
Paying for College
Have you ever asked these questions?
How will I pay?
How much will it cost?
?
?
?

4. The average cost of attending a 4-year public
college (including tuition, fees, room, and board) in-
state is more than $17,000 per year?
The average cost of attending a 4-year public
college (including tuition, fees, room, and board) out-
of-state is more than $29,000 per year?
The average cost of attending a 4-year private
college (including tuition, fees, room, and board) is
more than $38,000 per year?
Did you know?
The Cost of Education

5. Types of Aid pg. 254
Loans
Must be repaid
with interest 6
months after
graduating.
Subsidized- do
not accrue
interest while in
school
Unsubsidized
accrue interest
while in school.
Acquired
from public
and private
sources does
not have to
be repaid.
Money
earned while
working on
campus,
does not
have to be
repaid.
Loans Grants
Money
you do
not
have to
repay,
usually
need
based
and first-
come
basis.
Scholar-
ships
Work
Study

7. Are you Eligible for Federal Aid?
• Demonstrate financial need?
• Have high school diploma or
GED?
• Enrolled in an eligible degree
program?
• Citizen of U.S. with a SS#?
• Making satisfactory academic
progress?
• Male registered with Selective
Service?
• Any drug convictions?

8. Complete the FAFSA to begin the financial aid process (fafsa.ed.gov).
The FAFSA

9. • The cost of school
• - your EFC(Expected family
contribution)
• = Your financial need (award)
Your Financial Aid is Determined
by

10. Your college creates a financial award
You accept Funds are applied
Student Aid Report Created
Sent to you and your college
Complete the FAFSA
The Govt. processes
The Financial Aid Process

11. Pay Off As Quickly As Possible!

12. • Repaying your loans on
time is the key to a
strong financial future. If
you default (do not pay)
on your loans it can ruin
your credit score.
• Student loans cannot be
removed by bankruptcy
and can follow you up
to 30 years.
Repay Your Loans!

13. • The Financial Aid Website
• Financial Aid TV is a 24/7 website where you can
find answers to financial aid questions.
• http://hccs.financialaidtv.com
• The Student Services Hotline, call the hotline for
immediate assistance with any student services issue
including financial aid!
• 713.718.2000
• option 1 for Student Services/ option 2 for financial aid
Access the Financial Aid
Department

14. • Research college tuition rates and estimate
how much it will cost to complete college
degrees at specific institutions.
• University of Texas costs (tuition & fees only)= $4,908
per 12 semester hours
• University of Houston costs (tuition & fees only)=
$4,601 per 12 semester hours
• Baylor University costs (tuition & fees only)= $17,073
per 12 semester hours
•
Activity

15. Smart Credit
Houston Community College Financial Literacy and Capabilities
Module pt. 3

16. What is a Credit Card?

17. •Are money you have to pay
•back.
•They can help pay for
•necessities and
•emergencies.
•They can help you establish
•your credit history.
Credit Cards

18. • Watch for changes in fees and interest rates
• Your credit score can affect your rates
• Avoid cards with annual fees
• Know grace periods and payment due dates
• Protect your card with signature and “see ID”
• Make more than just minimum payments
• Keep your balance under 35% of the limit
• Seek reputable counseling if in trouble
• Only use one general purpose credit card
• Avoid High Interest Loans-Pay Day, Title Loans
Tips for Managing Credit Cards

19. Credit Report + Credit Score= Credit History
Your Credit History is

21. What Does Your Credit Score Say?

22. Fico Score
Range (Best to
Worst)
Average
Interest Rate
Estimated
Monthly
Payment
Estimated Total
Interest
760-850 5.78% $879.00 $166,440
700-759 6.00% $900.00 $174,000
660-699 6.28% $927.00 $183,720
620-659 7.09% $1008.00 $212,880
580-619 8.58% $1162.00 $268,320
500-579 9.49% $1261.00 $303,960
The Impact of Your FICO Score on Home Buying Pg. 259

23. • Get a credit card, use it, and keep the balance
low (lower than 30% of limit).
• Get a loan and repay it (biggest impact).
• Dispute old negative charges.
• Ask for a credit limit increase and do not use it.
• Check your credit annually.
https://www.annualcreditreport.com
Ways to Improve Your Credit Score

24. Budgeting
Houston Community College Financial Literacy and Capabilities
Module pt. 4

25. • Assets are possessions that have value, generally
increase in value, or provide a return. Wealth
building assets earn money or increase in value.
Accumulating assets can help build wealth.
• Liabilities are money you owe.
• Asset?
Calculate your net worth
Assets- liabilities= net worth (wealth)
Assets vs. Liabilities

26. • Budgeting allows you to save money, plan for the
future, and understand where your money is going.
• Use the simulation below to see how living without a
budget can impact your life.
•http://playspent.org/
Why Budget?

27. • Texas has various programs that can provide food,
medical assistance, free tax filing, and other support
services.
• Visit the link below to determine if you are eligible for
any benefits and find help with applying.
• http://www.thebenefitbank.org/QuickCheck
Texas Benefit Bank

28. • 1. Determine your monthly income.
• 2. Determine how much you spend monthly on must
haves, wants, and savings/debts.
• 3. Reduce your spending of much haves to no more
than 50% of your income. Reduce your wants to no
more than 30% of your income. Reduce your debts to
no more than 20% of your income and save or invest
the rest!
• View pg. 260-261
Budgets help you save money and understand where your
money is going.
Creating a Budget?

29. • Be disciplined.
• Use the 72-hour wait rule to make purchases.
• Watch the small purchases you make often.
• Avoid payday loans!
• Don’t take cash advances on your credit cards!
• Buy used products.
• If you can’t keep up with your bills, contact
your lender.
Budget Tips

30. • Stick to your budget over the time
• specified by your instructor.
• Report your savings at the end of the
• specified time period.
After creating your budget
Budget & Savings Activity

31. • After you have completed all of the content
in the financial literacy and capabilities unit;
please wait until the final 3 weeks of your
course to take the survey at the link below.
• https://www.surveymonkey.com/s/6QH6QFZ
Financial Literacy & Capabilities
Survey