Prospera Credit Union (https://myprospera.com) is a local credit union that now serves a four-county area and is strong enough to provide you with everything you need, yet small enough to know you personally and care about your and your family's prosperity. When you choose Prosepra, you become a member, not just a customer. Part of a family. A family that works together for everyone's benefit. Prospera Credit Union's history dates back as far as 1934, when it was officially opened for business under the Banta Credit Union name. Over the years, the number of people eligible to join was expanded to include nearby counties and communities. In 2002, the name was changed to Prospera, but, our basic promise to our members has always been the same. What's your LIFEstage? We provide personal, tailored guidance that leads to prosperity for all our members. (https://myprospera.com/lifestages) Starting On Your Own Singles Couples Parenting Young Children Parenting with Teenagers Empty Nesters Retireees Divorce Widow / Widower Our services include: Home Loans, Home Loan Rates and Current Mortgage Rates Home Equity Loans Auto Title Loans as well as Boat and RV Loans Credit Cards Personal Loans Protection Plans Loan Appllications Free Bill Pay Interest Bearing Checking Overdraft Protection Automatic Overdraft Transfer Team and Club Community Checking Share Savings CDs, IRAs & Money Markets Checking, Savins, CD and Money Markets Investment Products and Services Business Rates Auto Calculators Mortgage Calculators Looking for a way to contact us? Please call us at 920-882-4800 or fill out the below contact form on our website (https://myprospera.com/contact-us) Come visit us at one of our four locations: Appleton Branch - 4830 N. Ballard Rd. Appleton, WI 54913 Neenah Location - 934 S. Green Bay Rd. Neenah, WI 54956 Menasha Location - 849 Warsaw St. Menasha, WI 54952 Darboy Location - N9660 County Rd. N Appleton, WI 54915

1. December 10th, 2014
Facilitator:
Shonna Prickette
Training & Development Manager
Presented By:

2. INTRO
 Introductions
 Eat cookies to stay awake!
 PAW
 Supporting local paper companies
 Sources are cited; sites are sourced
 Ask questions!
 I’ll provide education, not advice
 Present the facts, your options, & the process
of student financial aid so that you’re prepared
to make decisions when that time comes.

3. Source: Bureau of Labor Statistics; Current Population Survey, unpublished tables, 2012
visual.ly/why-go-college

4. Source: Carnevale, Anthony P., Jayasundera, Tamara, and Cheah, Ban. (2012). The College Advantage: Weathering the
Economic Storm. Georgetown University: The Center on Education and the Workforce.

6. $$ SAVED MONEY $$
$$ FREE MONEY $$
Scholarships & Grants
$$ BORROWED MONEY $$
Federal or Private Loans

7. Source: Sallie Mae; Go to: http://news.salliemae.com/research-tools/america-pays-2013
for this study & more information on how America pays for college.

10.  Start early, save whatever you can
 It’s not too late to start now
 Keep saving as long as you can
 Encourage good spending habits
 Change your spending habits
 College = Financial Independence
 GET ADVICE ON HOW TO SAVE*

11. $100 = Initial Deposit
+ $50 = Monthly Deposit
X .15% = Interest Rate
X 18 = Years of contribution
$10,900 (Actual) + $150 (Interest)

12. $100 = Initial Deposit
+ $50 = Monthly Deposit
X 3% = Interest Rate
X 18 = Years of contribution
$10,900 (Actual) + $3800 (Interest)

13. Standard Savings
Money Market Savings
CD (Certificate of Deposit)
Traditional IRA
Roth IRA
Custodial Account (UGMA/UTMA)
Educational Savings Bonds

14.  Named for tax code
 Savings product tied to mutual funds
 Return is based on performance of the market
 Can be used only for higher education expenses
 Each state has their own 529 Plan
 WI 529 Plan is called Edvest or Tomorrow’s Scholar
 WI residents receive state income tax deduction for
contributions up to $3000 per child, per year
 DIY & Advisor plans offered
 Earnings can be exempt from WI & Federal tax
 You can use ANY state’s 529 plan
 No income limits
 Contribute up to $350,000 per child

15.  Named for Senator who pushed through Congress
 Savings product tied to mutual funds/securities
 Return is based on performance of the market
 Qualified distributed earnings are federal income tax free
 No state income tax benefits
 Can be used for elementary, secondary, or higher
education expenses (K – grad school)
 Not available to high income families
 $220K max joint income/$110K max single income
 Contribute up to $2000 per beneficiary, per year

16. I have $_____ per month to
save for my child’s education.
What do you recommend?
I’ve been putting $____ into
a _____ to save for my
child’s education. Do you
have any other
recommendations?

17. INSTITUTIONAL
GOVERNMENT
PRIVATE

18.  Do your best in school
 SAT/ACT scores are important
 Colleges you apply to will offer “merit”
scholarships with your financial aid package
 Start looking for private scholarships early
 Junior year of high school
 Do your research to find the best fit
 Ask questions
 Use your time wisely

19. USE YOUR RESOURCES!
 Guidance Counselor
 On-line Databases contain info on millions of
scholarships worth BILLIONS of dollars
 Cfffoxvalley.org (Local)
 Salliemae.com/scholarships
 Studentaid.ed.gov/scholarship
 Careerinfonet.org/scholarshipsearch
 College Financial Aid Office

20.  Be smart about the applications you complete
 Watch the deadlines
Based on terms of the scholarship
 No need! (the best part)

21. Federal Pell Grant
Undergrad, up to $5,730 (2014-2015 award year)
Fed Supplemental Ed Opportunity Grant (FSEOG)
Undergrads with exceptional financial need, up to $4,000
TEACH Grant
 Elementary or secondary school teacher
 Must teach full-time in a designated teacher shortage area
 4 year commitment, up to $16,000
Iraq & Afghanistan Service Grant
 Parent passed away as a result of military service after 9/11

22. Federal Work Study
 Guaranteed employment while you’re in school
 On campus – usually work for your school
 Off-Campus – usually private NPO or public agency
You will earn at least minimum wage
 Employer must pay you directly, once a month
 Important considerations:
 Will work interfere with studies or sports?
 Do I want to work while in school?
 Could I get a higher paying part-time job elsewhere?

23. What is a federal student loan?
 Money from the government that’s repaid WITH
INTEREST
 Helps you pay for educational expenses at an eligible
college, tech school, vocational school, or grad school
Who gets aid?
 Every student, regardless of age or family income
 Must meet some basic eligibility requirements
 14 MILLION students currently receive aid
How much aid is available?
 More than $150 BILLION is available every year

24. WHY FEDERAL STUDENT LOANS?
 Lower interest rates
 Flexible repayment options
 Longer repayment terms
 Tax-deduction of interest paid
 Student can borrow to build credit
When considering the options to borrow for a
college education, it’s recommended that you
exhaust federal funds BEFORE private loans!

25.  KNOW YOUR COLLEGE
 KNOW YOUR EMPLOYMENT OUTLOOK
 UNDERSTAND THE FINANCIAL AID OPTIONS
 KNOW YOUR FINANCIAL AID OUTLOOK

26.  WHAT IS THE “COST OF COLLEGE”?
 Education expenses might include any of the following..
 Tuition
 Room & Board
 Supplies, books, & equipment
 Child care expenses
 Transportation
 Personal PC
 Lab fees

27.  COLLEGE AFFORDABILITY & TRANSPARENCY
CENTER
 US Department of Education
 www.collegecost.ed.gov
1. College Scorecard
2. College Navigator
3. Net Price Calculator

28.  COLLEGE SCORECARD
 Basic, quick information
 Enter the name of the college to see:
 Average Net Price (Cost)
 Graduation Rate
 Loan Default Rate
 Median Borrowing

29.  COLLEGE NAVIGATOR
 National Center for Education Statistics (US D.O.E)
 In-depth analysis
 Enter the name of the college to see:
 Tuition, fees, net price, & financial aid
 Faculty, enrollment, ethnicity, & gender
 Programs, majors, varsity athletic teams
 Crime stats

30.  NET PRICE CALCULATOR CENTER
 Links to Net Price Calculator on college site
 Enter the following info for personalized analysis of
your cost & an estimated financial aid package:
 ACT/SAT scores, GPA, & high school rank
 Student Tax info
 Parents Tax info
 Family Assets

31.  OCCUPATIONAL OUTLOOK HANDBOOK
 Bureau of Labor Statistics Bls.gov/oco
 Guide to career info on hundreds of occupations
 Highest median pay for 2012
 Projected # of new jobs
 Projected growth rate
 Job Category

32.  HOW MUCH CAN A STUDENT BORROW?
 How much you get depends on:
 Financial Need
 Cost of Attendance
 Enrollment Status (F/T vs. P/T)
 There are limits:
 Annual (per year)
 Aggregate (total)
 The limits depend on:
 Year in school
 Dependant Status

33.  HOW MUCH AID WILL WE RECEIVE?
 Must complete Free Application for Federal Student Aid
(FAFSA) for official eligibility
 Fafsa4caster.ed.gov
 Early eligibility indicator
 For anyone not ready to file an official FAFSA
 Provides an estimate

34.  The FAFSA determines your eligibility for
federal loans, grants, work-study, & some
state & institutional aid.
 It’s the ONLY way to apply for federal financial aid
 It’s REQUIRED if you want federal financial aid
 Completed online at fafsa.gov
 Complete ASAP after Jan. 1 of the year you’ll start
school b/c some aid is awarded on a first-come,
first-served basis

35.  The Student Aid Report (SAR) summarizes
the info you provided on the FAFSA & will
contain your Expected Family Contribution
 SAR is returned 3-10 days after FAFSA is submitted
 Review the SAR carefully to make sure it’s correct
 Colleges listed on your FAFSA will also receive your
SAR
 From this point, stay in contact with your college’s aid
office as they will put together your aid package

36. Expected Family Contribution (EFC) is
calculated based on the info you reported on
the FAFSA, according to a legal formula
 How much are you expected to contribute
 EFC will appear on your SAR
 Income, assets, family size, & # attending college are
considered in the formula
 EFC is used to determine need for federal student aid
• Cost of attendance – EFC = Financial Need

37.  Colleges that accept you for admission will
send an award letter detailing the financial
aid package you’re being offered
 Award letter shows COMPLETE aid package
 This is all grants, scholarships, loans, & work-study
offered from state, federal, & institutional sources
 Evaluate the aid package paying close attention to
loan interest rates, fees, & repayment terms

38. “I’d recommend applying to 3-4 schools, even if you’re SURE you
know where you want to go. It might cost a little to apply but you’ll
get a better comparison of what different colleges offer for financial
aid. Then, don’t take the first offer on your aid package. Negotiate
with the financial aid office if you feel the offer could be better.
Colleges will compete for your student!
What’s the worst they can say?”

39. WHAT IS A LOAN?
 A loan is a borrowing agreement made between two
parties, where one party lends money to another party who
agrees to repay the borrowed money on specific terms,
with interest.
 A loan is made up of 2 components:
 PRINCIPAL = Original amount borrowed
 INTEREST /FEES = Expenses paid by the borrower
Interest is calculated (compounded) monthly. With
student loans, the interest can be paid right away, or
CAPITALIZED (added to the unpaid principal).

40. WHAT IS A SUBSIDIZED LOAN?
 “Subsidized” means the US Dept of Ed. pays
the loan interest during certain time periods
 You’re in school ½ time
 During your grace period
 During periods of deferment
 “Unsubsidized” means you are responsible
for the loan interest during ALL periods
 Interest accrues as soon as the loan is disbursed
 You can choose to pay the interest right away
 You can choose to capitalize the interest

41. WHAT’S A LOAN ORIGINATION FEE?
 Basically, a processing fee
 Some federal loans have origination fees
 Fee is subtracted from the loan amount before
disbursement
 Your loan is $1,000 with a 1% origination fee
 $1000 (amount borrowed) - $10 (1%
origination fee) = $990
 $1000 is the amount you pay back

42. Loan = $5000 (Disbursed 9/2015), No Origination Fee,
5% Interest Rate, Subsidized thru 1/2020
$5000 (Principal)
- $0 (Origination Fee)
$5000 (Amount disbursed on 9/2015)
$5000 (Value of Loan)
X $0 (Monthly Interest accruing @ 5%)
$0 (Monthly interest added for 54 months)
= What you owe in Jan, 2020 (+ interest)

43. Loan = $5000 (Disbursed 9/2015), 1% Origination Fee,
5% Interest Rate, Unsubsidized, Interest NOT capitalized
$5000 (Principal)
- $50 (1% Origination Fee)
$4950 (Amount dispersed on 9/2015)
$5000 = Value of loan
$21 = Monthly interest charge @ 5% APY
54 = Number of months you make this payment
$1145 = Total interest paid over 54 months
= What you owe in Jan, 2020 (+ interest)

44. Loan = $5000 (Disbursed 9/2015), 1% Origination Fee,
5% Interest Rate, Unsubsidized, Interest capitalized
$5000 (Principal)
- $50 (1 % Origination Fee)
$4950 (Amount dispersed on 9/2015)
$5000 = Value of loan
$21+ = Monthly interest charge @ 5% APY
54 = Number of months interest capitalizes
$1258 = Total interest capitalized over 54 months
= What you owe in Jan, 2020 (+ interest)

45. FEDERAL PERKINS LOAN:
 Awarded for exceptional financial need
5% Fixed Annual Interest Rate
Unsubsidized
No Origination Fee
$5,500 per year limit ($27,500 maximum)
 Student is the borrower
 College is the lender
Funds applied to college “bill” first with a refund
issued for excess funds

46. FEDERAL DIRECT SUBSIDIZED LOAN:
 Also known as: Stafford Loan
 Awarded to students with financial need
Undergrad students only
4.66% Fixed Annual Interest Rate (As of 7/1/14)
Subsidized
1.073% Origination Fee (As of 10/1/14)
Maximum Eligibility Period is 150% of the
published length of your academic program
 School determines eligibility
 Student borrows; US Dept of Education lends

47. FEDERAL DIRECT UNSUBSIDIZED LOAN:
 Also known as: Stafford Loan
 No requirement to demonstrate financial need
Undergrad & grad students
4.66% Fixed Annual Interest Rate (As of 7/1/14)
Unsubsidized
1.073% Origination Fee (As of 10/1/14)
 School determines eligibility
 Student borrows; US Dept of Education lends

48. FEDERAL DIRECT LOAN LIMITS:
 Subsidized & Unsubsidized combined
 YEAR 1 = $5,500 (up to $3,500 can be Subsidized)
 YEAR 2 = $6,500 (up to $4,500 can be Subsidized)
 YEAR 3 = $7,500 (up to $5,500 can be Subsidized)
 YEAR 4+ = $7,500 (up to $5,500 can be Subsidized)
AGGREGATE LIMIT = $31,000 (up to $23,000 Subsidized)

49. WHAT ABOUT THE REST?
$12,000 (Annual Net Cost of Attendance)
- $2,000 (Perkins Loan)
- $4,500 (Stafford Loan)
- $1,000 (Private Scholarships)
- $1,000 (Work-Study)
= $3,500 (REMAINING BALANCE)

50. FEDERAL DIRECT PLUS LOAN:
 Used to borrow the remainder of cost for education
 Parent is likely the borrower
Approval based on credit history
 No need to demonstrate financial need
7.21% Fixed Annual Interest Rate (as of 7/1/14)
4.292% Origination Fee
Borrow up to 100% of cost of attendance
No aggregate limits
 Unsubsidized
 US Dept of Education is the lender
 Loan cannot be transferred to student

51. SMART OPTION STUDENT LOAN:
 Used to borrow the remainder of cost
 Student & Cosigner are likely the borrower
Approval based on credit history
 No need to demonstrate financial need
5.74-11.85% Fixed Annual Interest Rate
2.25-9.37% Variable Annual Interest Rate
NO Origination Fee
Borrow up to 100% of cost of attendance
 Unsubsidized
 Sallie Mae is the lender
 Cosigner release = Loan can be
transferred to student

52. HOME EQUITY LOAN OR LINE OF CREDIT:
 Also known as: Second Mortgage
 Borrowing against the equity in your home
 Used to borrow any of the of cost of education
 Homeowner is borrower
Loan cannot be transferred to student
No need to demonstrate financial need
 Rates are low right now
Interest paid may be tax-deductible
May incur closing costs

53. To accept, sign the award letter and return it to
the school for processing.
 The financial aid office at your college will guide
you thru the paperwork which includes signing a
promissory note, (you PROMISE to repay your loans
according to the terms)
 College is required to provide entrance counseling

54.  Loan funds will be “disbursed” in at least 2
installments
 Most student loan funds will go directly to the college
or come directly from the college
 College will use aid money first to pay for tuition,
fees, room, board, and other expenses on your
student account. If any aid money remains, you will
receive the funds by check

55. Before loan money is disbursed, you may cancel
all or part of your loan by notifying the school.
 After the loan is disbursed, you may cancel all or part
of the loan within certain time frames
 Promissory note will explain procedures for
cancelling loans

56.  For MOST student loans, you are not required to
make payments during certain periods
 While enrolled in school
 During periods of forebearance
 During “grace period” after graduation:
• Perkins = 9 months
• Stafford = 6 months
Unsubsidized loans start to accrue interest as soon as the loan
is disbursed which will be capitalized onto the principal,
unless you choose to pay the interest charges while in school!

57.  Standard
Fixed monthly payment, $50 minimum, 10-year term
 Graduated
Monthly payment starts low & increases, 10-year term
 Extended
Fixed or graduated payments
Must have more than $30,000 in Direct Loans
25-year term
 Income Sensitive or Contingent
Income-based repayment options

58. Student loans are LEGAL obligations!
Student loans are borrowed money that MUST
be repaid just like car loans & home
mortgages. You MUST repay a student loan
ever if your circumstances become difficult.
Non-payment of student loans has serious
consequences (legal default on a loan) and
will negatively affect your credit rating.

59.  Repayment schedule from loan servicer
Exit counseling will be provided at graduation
When first payment is due
Number of, amount of, & frequency of payments
You will be notified if your servicer changes
 The loan is YOUR responsibility!
Make payments regardless of receiving billing notices
You must pay even if you aren’t getting reminders
Notify your loan servicer of all change of addresses

60.  National Student Loan Data System:
www.nslds.ed.gov
Dept of Ed’s central database for student aid
Access & retrieve your student loan data
 Repayment Estimator
www.studentloans.gov

62. Shonna Prickette
Training & Development Manager
Shonna.prickette@myprospera.com 920-882-4801
Jeff Garrett
Licensed Financial Consultant
Jeff.garrett@myprospera.com 920-882-4780

63.  FINANCIAL AID PROCESS INFOGRAPHIC
 studentaid.ed.gov/prepare-for-college/checklists/#checklists
 “FUNDING YOUR EDUCATION – Guide to Federal
Student Aid” Document
 Studentaid.ed.gov/resources
 Checklists to begin preparing (K-12th grade)
 Studentaid.gov/prepare-for-college/checklists
 Edvest & Coverdell Savings Plans
www.edvest.com
www.edvest.com/learn/compare.shtml

64.  Scholarship Opportunities:
– Careerinfonet.org/scholarshipsearch
– Salliemae.com/scholarships
– Studentaid.ed.gov/scholarship
 College Scorecard, College Navigator, and Net
Price Calculator
– Collegecost.ed.gov
 Labor Statistics Occupational Outlook Hndbk
– Bls.gov/oco

65.  Free Application for Federal Student Aid
– Fafsa4caster.gov
– FAFSA.gov
 Sallie Mae Smart Option Student Loan
– Contact your financial institution
 National Student Loan Data System
– nslds.ed.gov
 Repayment Estimator
– studentloans.gov