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Paying for Higher Education.pptx
- 3. Take Charge Today– August 2013 – Paying for Higher Education – Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Pros Cons Plan Ahead! Eight times as many students drop out of degree and certificate programs due to finances and debt than grades! What are other pros and cons of higher education?
- 4. Take Charge Today– August 2013 – Paying for Higher Education – Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Scholarships Grants Work-study programs College savings plans Student loans
- 5. Take Charge Today– August 2013 – Paying for Higher Education – Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 70% of college seniors graduated with debt from student loans. The average debt load was $37,172. The average monthly payment was $351. 44 million borrowers = $1.5 trillion
- 6. Take Charge Today– August 2013 – Paying for Higher Education – Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Delinquency- when a borrower does not pay a student loan payment on time After 90 days, loan provider will report delinquency to the three national credit reporting bureaus Default- after a period of delinquency, a condition where the loan provider issues: ▪ Entire balance of loan is due ▪ Wages are garnished ▪ Income tax refunds withheld ▪ Court
- 7. Take Charge Today– August 2013 – Paying for Higher Education – Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Choose a repayment plan Request a change of due dates Debt consolidation- combining multiple loans into one Deferment- postponed payments until a later date with no interest Forbearance- postponed payments but interest still accrues Loan forgiveness- student loan balances are canceled and no longer need to be repaid Government or non-profit organizations Teachers
- 8. Take Charge Today– August 2013 – Paying for Higher Education – Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 STUDENT LOAN RULE OF THUMB: Don’t borrow more money for all the years of your postsecondary education than you expect to make during your first year of employment.
- 9. Take Charge Today– August 2013 – Paying for Higher Education – Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Start saving early! Take advanced placement courses or pass college-level exams Avoid needing remediation classes in college Begin career pathway planning early Live at home Work part-time Attend a community or junior college first Consider in-state and public universities Carefully evaluate the cost of attendance and financial aid packages What are ways you can reduce the total cost of higher education?
- 10. Take Charge Today– August 2013 – Paying for Higher Education – Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Meet Imani: About to graduate from high school Imani’s Goal: Become a lawyer or politician Imani has little saved to pay for higher education Based on Imani’s grades and college entrance placement scores she may need remediation courses Imani has learned that a bachelor’s and professional degree to become a lawyer could cost as much as $301,118 Your mission: Explore ways to help Imani pay for her education
- 11. Take Charge Today– August 2013 – Paying for Higher Education – Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 1. Go out-of-state to earn a two-year associate degree, bachelor degree and professional degree 2. Attend in-state schools to earn her associate and bachelors, degrees while living at home; go to an out-of-state college for a professional degree 3. Go to in-state schools for all degree programs Anticipated total cost: $241,458 Anticipated total cost: $178,294 Anticipated total cost: $95,536
- 12. Take Charge Today– August 2013 – Paying for Higher Education – Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 “Through careful research, I’ve been able to get the potential cost of my dream career from $301,118 down to $95,536. That would make my debt-to-income ratio 11.7% if I take 20 years to repay loans. But this is still a LOT of money…” What can Imani do to lower her total cost even more? What methods can Imani use to pay for her education?
- 13. Take Charge Today– August 2013 – Paying for Higher Education – Slide 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 What is the benefit of having a fixed interest rate loan? Direct Subsidized Loan Vs. Direct Unsubsidized Loan Who qualifies for a Direct Plus Loan?
- 14. Private loans Federal Student Loans Scholarships, Grants, Work-study Earnings Money you do not have to repay Higher Cost
- 15. Take Charge Today– August 2013 – Paying for Higher Education – Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 You do not have to repay if all requirements are met Scholarships Grants Work-study Earnings
- 16. Take Charge Today– August 2013 – Paying for Higher Education – Slide 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Who you are Examples: gender, race, military background What you do Examples: academic achievements, interests, community service What your plans are Example: your certificate or degree program Typically, an application process May have requirements before, during, and after the scholarship is awarded Can be based on…
- 17. Take Charge Today– August 2013 – Paying for Higher Education – Slide 17 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Guidance Counselors Financial Aid Office Employer Clubs and Organizations Affiliations Potential Major or College What are sources of scholarships in your community? You should never have to pay for a scholarship - watch for scams!
- 18. Take Charge Today– August 2013 – Paying for Higher Education – Slide 18 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Your mission: work in small groups to identify at least three scholarships Imani is eligible for based on her special circumstances and extra-curricular activities
- 19. Take Charge Today– August 2013 – Paying for Higher Education – Slide 19 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Sources • Non-profits • Foundations • Corporations Purpose • For specific projects • Reports typically required to donor Tax-exempt financial aid
- 20. Take Charge Today– August 2013 – Paying for Higher Education – Slide 20 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Who • Typically awarded to students with financial need How • Complete the Free Application for Federal Student Aid (FAFSA) Examples: • Federal Pell Grant • Federal Supplemental Educational Opportunity Grant • Teacher Education Assistance
- 21. Take Charge Today– August 2013 – Paying for Higher Education – Slide 21 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Provides part-time jobs to students with financial need Administered by the school (eligibility determined by FAFSA) Earnings may be used to help pay educational expenses
- 22. Take Charge Today– August 2013 – Paying for Higher Education – Slide 22 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Lower and fixed interest rates Generous repayment plans No prepayment penalties No credit checks (except for PLUS Loans) Characteristics include: Eligibility determined by FAFSA application
- 23. Take Charge Today– August 2013 – Paying for Higher Education – Slide 23 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 PLUS Loan - Loan is unsubsidized (you pay all interest) - Offered to graduate students and parents of undergraduate students Direct Unsubsidized Stafford Loan - Financial need is not required - Borrower is responsible for all interest costs Direct Subsidized Stafford Loan – Must demonstrate financial need - U.S. Dept. of Education pays the interest while you are in school and during grace and deferment periods Federal Perkins Loan - Must demonstrate financial need - Your school is the lender Lowest Interest Rates Highest Interest Rates
- 24. Take Charge Today– August 2013 – Paying for Higher Education – Slide 24 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Sources Depository Institutions State Agencies Higher Education Institutions You pay 100% of the interest – often a higher rate than a federal loan
- 27. Take Charge Today– August 2013 – Paying for Higher Education – Slide 27 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1
- 28. Take Charge Today– August 2013 – Paying for Higher Education – Slide 28 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1
- 29. Take Charge Today– August 2013 – Paying for Higher Education – Slide 29 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Determines how much your family can afford to contribute Applies to a variety of types of post- secondary institutions Determines what types of aid you qualify for Used by states and post-secondary institutions to determine aid Gives you access to the largest source of financial aid!
- 30. Take Charge Today– August 2013 – Paying for Higher Education – Slide 30 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Be a U.S. citizen or documented legal resident Be a high school graduate or have a GED Males 18-25 must be registered with the Selective Service Be enrolled or accepted to an eligible post- secondary program Confirm that you are not in default on a federal student loan Confirm that you will only use the money for educational purposes Have no drug convictions while receiving aid Maintain satisfactory academic progress Age, race and field of study do not impact eligibility
- 31. Take Charge Today– August 2013 – Paying for Higher Education – Slide 31 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 FAFSA Forecaster = free financial aid calculator that provides an early estimate of federal student aid eligibility Click below to give it a try
- 32. Take Charge Today– August 2013 – Paying for Higher Education – Slide 32 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Federal • October 1, 2022 • June 30, 2023 State • Date listed on FAFSA website Post-secondary • Contact the financial aid office deadline information As soon as it is available! Some aid is awarded on a first come, first served basis The FAFSA Form must be completed each academic year!
- 33. Take Charge Today– August 2013 – Paying for Higher Education – Slide 33 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Amount determined by post-secondary institution Your Expected Family Contribution Your Year in School Your Enrollment Status The Cost of Attendance at your post-secondary Institution
- 34. Take Charge Today– August 2013 – Paying for Higher Education – Slide 34 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Awarded if you have financial need and meet other criteria Cost of Attendance – amount it will cost you to go to school Expected Family Contribution – estimate of the parents’and/or student's ability to contribute to post- secondary expenses Financial Need Does not change between post-secondary institutions
- 35. Take Charge Today– August 2013 – Paying for Higher Education – Slide 35 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Cost of Attendance Financial Aid Awarded Non-Need Based Aid Examples: Direct Unsubsidized Loan and Federal PLUS Loan
- 36. Take Charge Today– August 2013 – Paying for Higher Education – Slide 36 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1
- 37. Take Charge Today– August 2013 – Paying for Higher Education – Slide 37 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Important to know whose information must be reported Dependent – must report your and your parent/ guardian's information Independent – must report your and your spouses (if applicable) information FAFSA website has a checklist to help you determine your dependency status
- 38. Take Charge Today– August 2013 – Paying for Higher Education – Slide 38 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 What it is • Four digit number used to identify you on the FAFSA website How it is used • Used as your electronic signature (legally binding) How to get one • Created online at www.pin.ed.gov If filing as a dependent – student and parent/guardian need a PIN
- 39. Take Charge Today– August 2013 – Paying for Higher Education – Slide 39 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Identification Documents - Social Security Number, Drivers License, Alien Registration Card (if not a U.S. Citizen) Federal Tax Information from Previous Year - W-2s, Federal 1040 Forms, Foreign Tax Return Records of Untaxed Income from Previous Year - Child support, interest income, veterans benefits, etc. Current Asset Information - Bank statements, investments, real estate, etc. If filing as a dependent - documents are needed for student and parent/guardian
- 40. Take Charge Today– August 2013 – Paying for Higher Education – Slide 40 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Online at www.fafsa.ed.gov Answer all questions completely and accurately If you have not filed your taxes, estimate the amount and then update the FAFSA when tax information is available Identify between 1 and 10 schools An “IRS Data Retrieval Tool” is available to automatically complete your FAFSA Organize information in advance by completing the “FAFSA on the Web” worksheet
- 41. Take Charge Today– August 2013 – Paying for Higher Education – Slide 41 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Application not submitted until the confirmation page appears If you are a dependent, your parent/guardian must also sign Sign using your PIN
- 42. Take Charge Today– August 2013 – Paying for Higher Education – Slide 42 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 • Summary of the FAFSA data you submitted What it is • 3 days-3weeks after submitting the FAFSA When it will be received • Review closely and report any errors immediately What you need to do
- 43. Take Charge Today– August 2013 – Paying for Higher Education – Slide 43 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 • After reviewing the Financial Aid Offer, what question should you ask the financial aid representative regarding important information that is not available in the offer? • How much annual aid are you being offered that you do not have to pay back?
- 44. Take Charge Today– August 2013 – Paying for Higher Education – Slide 44 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 What is the estimated annual Cost of Attendance? How much annual aid are you being offered in that you do not have to pay back?
- 45. Take Charge Today– August 2013 – Paying for Higher Education – Slide 45 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Post-secondary institutions will determine your eligibility for aid Institution will send you an award letter outlining your aid package (must be eligible for aid and offered admission) Institution may request more information Must meet deadlines
- 46. Take Charge Today– August 2013 – Paying for Higher Education – Slide 46 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 1. Determine the Net Price Cost of Attendance Grants and Scholarships Net Price – amount you must pay Understand what you are responsible for paying and by when Evaluate aid offered by each school to determine which is the most affordable 2. Evaluate student loans 3. Only accept what you really need
- 47. Take Charge Today– August 2013 – Paying for Higher Education – Slide 47 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Free Application for Federal Student Aid www.fafsa.ed.gov Post-secondary Institution Financial Aid Office College Goal Sunday www.collegegoalsundayusa.org Federal Student Aid http://studentaid.ed.gov
- 48. Do you agree or disagree with the following statements? DISAGREE AGREE Or
- 55. Student loans must be repaid! Implications of Defaulting If You Are in Trouble… What You Can Do
- 56. Take Charge Today– August 2013 – Paying for Higher Education – Slide 56 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Your loan balance will be due in full, immediately You may be sent to collections and pay fees Your wages may be garnished and tax refunds seized Lose deferment and forbearance options Lose future eligibility for aid Your credit report will be negatively impacted affecting other financial areas
- 57. Take Charge Today– August 2013 – Paying for Higher Education – Slide 57 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Defer • Many lenders offer a grace period before you must begin paying Consolidate • Consolidate several loans into one loan that has a lower interest rate and monthly payment Renegotiate Repayment Terms • See if options are provided such as lower payments that increase over time or income- based payments
- 58. Take Charge Today– August 2013 – Paying for Higher Education – Slide 58 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona 2.3.5.G1 Complete the FAFSA to be eligible for financial aid Apply for as many scholarships as possible Never borrow more than you need Be sure you can afford to pay back your loan
- 59. The FAFSA: FACT or FICTION You must complete the FAFSA in order to receive o Financial aid from the federal government. o Financial aid from your state government. o Financial aid from many schools. Government aid may be used to pay for o Full-time attendance at 4-year colleges. o Full-time attendance at community colleges. • Full-time attendance at some tech and trade schools. The FAFSA includes financial information about o The student who will be attending school. o The student’s biological or adoptive parent(s). • The student’s stepparent with whom she/he lives. The FAFSA should be completed • No earlier than January 1 of the year before beginning college. • By a deadline that varies from state to state. • As early as possible to receive the maximum financial aid.