The document provides an overview of financial aid options available for college students, including grants, loans, and savings plans, highlighting the importance of financial assistance in attending college. It discusses the various types of loans, eligibility criteria for federal financial aid, and common misconceptions about expected financial contributions. Additionally, the document offers practical tips for saving and financing education, emphasizing the need for early planning and awareness of deadlines.

1. Affording College Now
Module Four: Financial Aid
From the Author of
“College Without Ramen Noodles”
Saunders Learning Group, Newton, KS

2. 1. Why College
2. Cost of College
3. Saving and Investing for college
4. FINANCIAL AID
5. Making College Affordable
Saunders Learning Group, Newton, KS

3. Paying for College
Saunders Learning Group, Newton, KS
Options Might include:
Past Income
• Savings
• College Savings plan (429 plans)
• Brokerage accounts (investments)
• CDs
Present Income
• Salary
• Payment Plans
• Gifts
Financial Aid
• Grants
• Loans
• Work Study
• Tax Benefits
Future Income
• Loans
• Home Equity
• Other

4. Ability to Pay For College
Saunders Learning Group, Newton, KS

5. Financial Aid Overview
For most college students, the difference in being able to attend college or
not is financial assistance of some kind, yet 37% of all aid comes in the
form of loans that must be paid back with interest.
Source: The College Board, 2013 Trends in Student Aid.
Saunders Learning Group, Newton, KS
TOTAL AID IN 2012-13
$185.1 BILLION

6. Growth in Student Aid
The total amount of aid available to students is increasing at a slower pace than the cost of going to
college, but there is often many sources of aid available.
Saunders Learning Group, Newton, KS

7. Sources of Student Aid
Student aid sources include federal loans, grants, work study and tax credits.
Saunders Learning Group, Newton, KS

8. Reality Check
Many families of college aged kids expect more free money for college
from grants and scholarships than they are likely to receive.
Saunders Learning Group, Newton, KS

9. Federal Financial Aid Eligibility
The Free Application for Federal Student Aid (FAFSA) is used to determine your Expected Family
Contribution (EFC). This is the amount parents and students are expected to pay directly from their
income and savings.
Saunders Learning Group, Newton, KS

10. How Savings Effects Financial Aid
Savings count far less than current income when determining your
Expected Family Contribution (EFC) for federal financial aid purposes. Do
not saving for college in the name of your child.
529 PLAN ADVANTAGE
A 529 plan in the parent’s
name has much less of an
impact on financial aid
eligibility than custodial
accounts.
Saunders Learning Group, Newton, KS

11. Types of Loans for College
Subsidized
Stafford Loans
For undergraduate students with
documented financial need. The
government pays interest while the
student is in college.
Unsubsidized
Stafford Loans
For undergraduate and graduate
students regardless of financial
need. The government does not
pay interest while the student is in
college.
Saunders Learning Group, Newton, KS
Parents PLUS
For Parents only. Available from a
limited number of banks.
Perkins
For Students with high need at some
colleges
Grad PLUS
For graduate students only.
Private Education
Loans
For graduate students only.

12. Soaring Loan Debt
Student loan debt has sored in recent years, with the average student graduating with $29,000 in
loans.
Saunders Learning Group, Newton, KS

13. Loan Use
• Parent Loan for Undergraduate
Students:
– Unsubsidized
– Dependent students ONLY
– Credit check is required
– Limits
• College cost – Fin. Aid = PLUS Loan
• FAFSA is required
Saunders Learning Group, Newton, KS

14. Loan Use
ACADEMIC LEVEL
Saunders Learning Group, Newton, KS
INDEPENDENT
STUDENT LOAN
LIMITS
DEPENDENT
STUDENT LOAN
LIMITS
First Year
Undergraduate $2,625.00 $4,000.00
Second Year
Undergraduate $3,500.00 $4,000.00
Third Year & Beyond
Undergraduate $5,500.00 $5,000.00
AGGREGATE
LOAN LIMIT $23,000.00 $46,000.00

15. Paying for Education
• Do you really need a loan?
– Emergency Loans for financial aid
recipients
• Works like an advance until your
Financial Aid is disbursed
• Borrow up to $500, interest free
• $2 Processing fee
Saunders Learning Group, Newton, KS

16. Paying for Education
• Estimated Cost of Attendance (Annual)
Saunders Learning Group, Newton, KS
Living with
Parents
Living Away
from Home
Fees (full time resident) $3,062.00 $3,062.00
Bks & Suppl. $1,260.00 $1,260.00
Food & Housing $3,240.00 $8,616.00
Transportation $990.00 $990.00
Misc./Personal $2,304.00 $2,304.00
TOTAL $10,856.00 $16,232.00

17. Tax Breaks for College
There is some good news, tax credits, tax-deferrals and deductions are still
available.
Saunders Learning Group, Newton, KS

18. Apply for Financial Aid
• Complete FAFSA at
www.fafsa.ed.gov
• Needed for:
– Scholarships
– Grants
– Employment Opportunities
– Loans
Saunders Learning Group, Newton, KS

19. Students using Financial Aid
• Apply for Direct Deposit
– You will avoid long check pick-up lines in
University Cashiers
– You will have quick & safe access to your
money
• What’s required?
– Checking/savings account number
– Bank routing number
Saunders Learning Group, Newton, KS

20. Top Ten Tips
1. Start saving for college early
2. Scholarships – Never pay a fee for
scholarship searches, you can do
this
3. Know and meet deadlines for
financial aid
4. Make sure you get good value ,
college is an investment
5. Live at home, start at community
college
6. Take summer classes, finish in
three years
7. Take more classes @ same cost
(some colleges)
8. Work part-time
9. Company and Community groups
for scholarships
10. To keep your Scholarship, keep
your grades up.
Saunders Learning Group, Newton, KS
Web sites:
1. www.fastweb.com
2. www.collegeboard.com
3. www.wiredscholar.com
4. www.finaid.org
5. www.fafsa.ed.gov
6. www.petersons.com
7. www.supercollege.com

21. QUESTIONS?
Saunders Learning Group, Newton, KS

22. Summary of Book
Saunders Learning Group, Newton, KS
College Without Ramen Noodles
A simple plan to Affording College
By Floyd Saunders
Available for all eBook readers
ISBN: 13: 978-0-9824019-2-7
Book summary: College Without Ramen
Noodles; A Guide to Affording College. This highly
readable guide provides college students and their
parents with dozens of ways to make college a
reality. In fact, use enough of these tips, and you
may keep college debt at zero.
Author Floyd Saunders has spent the last 20 years
helping his five kids get post-secondary education
using many of the options highlighted in this book.
Mr. Saunders even tells you some good reasons why
you might be better off with an alternative to a
college degree. Regardless of your circumstances,
this book offers valuable information as you
consider going to college

23. About the Author
Saunders Learning Group, Newton, KS
• Floyd Saunders is a writer with an extensive
background in the financial services industry,
having worked across the industry in retail,
commercial, investment banking, insurance, tax
preparation and financial planning.
• He has taught personal financial courses for
Baker University and has taught extensively for
the American Institute of Banking. He has also
taught at St. Mary’s College, Lake Tahoe
Community College and Mt. Diablo College.
• He is the author of: Figuring Out Wall Street,
College Without Ramen Noodles, Banking on
Mutual Funds and Annuities, Introduction to
Securities Markets, Investing in Securities and
Family Financial Freedom.
Author Contact
email: floyd.saunders@yahoo.com
Blog: www/floydsaunders.com
Twitter @floydsaunders
Sideshare: http://www.slideshare.net/FloydSaunders
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