If you have a student headed to college in the fall, you’ll need to start putting together a plan to pay the college bill. We’ve created a presentation below that walks through all of your options, as well as explaining your financial aid, the college waitlist, and the timeline of the next few months.
It’s important to understand the differences among all of your college loan options. This presentation provides guidance on comparing interest rates, calculating total loan cost, and what to read in the fine print.
Preparing for college with middle schoolersLisa Allard
If you have a student in middle school, now is a great time to think ahead toward college. We’ve put together a roadmap to direct your steps and give you the information and tools you need to stay on track.
We’ve put together a brief presentation to explain the language you’ll encounter when borrowing a college loan, how to differentiate between lenders, and ways to make sure you borrow wisely.
If you’re beginning repayment on a student loan soon (or know someone who is), it’s important to understand the process and to stay on track. Keeping up to date with student loan payments is necessary to build a solid credit history and maintain strong financial health.
College is a significant investment. Is it really worth the cost? We’ve put together some information that answers that question, and also sheds light on how to save (and why).
If you have a high school senior starting to receive college acceptances, congrats! The admissions process is a long road, and your family is nearing the end of it. But one of the most important steps – figuring out how to pay the college bill – still needs to be completed.
If you have a student headed to college in the fall, you’ll need to start putting together a plan to pay the college bill. We’ve created a presentation below that walks through all of your options, as well as explaining your financial aid, the college waitlist, and the timeline of the next few months.
It’s important to understand the differences among all of your college loan options. This presentation provides guidance on comparing interest rates, calculating total loan cost, and what to read in the fine print.
Preparing for college with middle schoolersLisa Allard
If you have a student in middle school, now is a great time to think ahead toward college. We’ve put together a roadmap to direct your steps and give you the information and tools you need to stay on track.
We’ve put together a brief presentation to explain the language you’ll encounter when borrowing a college loan, how to differentiate between lenders, and ways to make sure you borrow wisely.
If you’re beginning repayment on a student loan soon (or know someone who is), it’s important to understand the process and to stay on track. Keeping up to date with student loan payments is necessary to build a solid credit history and maintain strong financial health.
College is a significant investment. Is it really worth the cost? We’ve put together some information that answers that question, and also sheds light on how to save (and why).
If you have a high school senior starting to receive college acceptances, congrats! The admissions process is a long road, and your family is nearing the end of it. But one of the most important steps – figuring out how to pay the college bill – still needs to be completed.
If you have a student headed to college in the fall, you’ll need to start putting together a plan to pay the college bill. We’ve created a presentation below that walks through all of your options, as well as explaining your financial aid, the college waitlist, and the timeline of the next few months.
MEFA's presentation outlines the things families need to know about paying their college bill. Learn about financial aid (and types), and how to select a college loan.
If you have a child going to college next year, chances are you’ll be applying for financial aid. The FAFSA, which is the main application for college financial aid, becomes available on October 1st this year, giving you the opportunity to submit the form much earlier than in previous years. Most colleges have financial aid due dates set in February or March, so you have plenty of time to apply. But make sure to check the deadline at every school your student may attend next year – you can find that on each college or university’s financial aid website. It is crucial for you to apply for financial aid on time.
Show students how they can be better candidates for college scholarships by taking the tough classes, building a quality activities resume, earning good grades, and performing well on the ACT/SAT.
High School and College Planning for Younger Students Parent WebinarCollegeBoardSM
The College Board hosted a webinar to share information with parents about how to help 8th, 9th, and 10th graders plan for college. The webinar was hosted by Lacey Bonner at the College Board. Learn more at collegeboard.org/parents.
Need to borrow a loan to pay for college? Follow these tips to learn loan terminology, how to select the best loan, and what you should do to borrow wisely.
Searching and Applying for Scholarships Parent Webinar 2019CollegeBoardSM
The College Board hosted a webinar to share information with parents about how to help your child search and apply for scholarships. The webinar was hosted by Priscilla Rodriguez at the College Board. Learn more at collegeboard.org/parents.
The College Board hosted a webinar to share information with parents and class of 2021 students about how the college application process has and hasn't changed during the pandemic. The webinar was hosted by Connie Betterton at the College Board and featured Vern Granger from University of Connecticut, Nikki Danos from Forest School, and Seth Allen from Pomona College.
Paying for College: FAFSA, Financial Aid, and More Parent WebinarCollegeBoardSM
The College Board hosted a webinar to share information about paying for college. The webinar was hosted by Dean Bentley from the College Board and featured MorraLee Keller from NCAN and Tom McDermott from Johns Hopkins University. Learn more at collegeboard.org/parents.
MEFA's presentation outlines the things families need to know about paying their college bill. Learn about financial aid (and types), and how to select a college loan.
If you have a child going to college next year, chances are you’ll be applying for financial aid. The FAFSA, which is the main application for college financial aid, becomes available on October 1st this year, giving you the opportunity to submit the form much earlier than in previous years. Most colleges have financial aid due dates set in February or March, so you have plenty of time to apply. But make sure to check the deadline at every school your student may attend next year – you can find that on each college or university’s financial aid website. It is crucial for you to apply for financial aid on time.
Show students how they can be better candidates for college scholarships by taking the tough classes, building a quality activities resume, earning good grades, and performing well on the ACT/SAT.
High School and College Planning for Younger Students Parent WebinarCollegeBoardSM
The College Board hosted a webinar to share information with parents about how to help 8th, 9th, and 10th graders plan for college. The webinar was hosted by Lacey Bonner at the College Board. Learn more at collegeboard.org/parents.
Need to borrow a loan to pay for college? Follow these tips to learn loan terminology, how to select the best loan, and what you should do to borrow wisely.
Searching and Applying for Scholarships Parent Webinar 2019CollegeBoardSM
The College Board hosted a webinar to share information with parents about how to help your child search and apply for scholarships. The webinar was hosted by Priscilla Rodriguez at the College Board. Learn more at collegeboard.org/parents.
The College Board hosted a webinar to share information with parents and class of 2021 students about how the college application process has and hasn't changed during the pandemic. The webinar was hosted by Connie Betterton at the College Board and featured Vern Granger from University of Connecticut, Nikki Danos from Forest School, and Seth Allen from Pomona College.
Paying for College: FAFSA, Financial Aid, and More Parent WebinarCollegeBoardSM
The College Board hosted a webinar to share information about paying for college. The webinar was hosted by Dean Bentley from the College Board and featured MorraLee Keller from NCAN and Tom McDermott from Johns Hopkins University. Learn more at collegeboard.org/parents.
‘천송이 코트’ 로 상징되는 정부의 금융 규제완화 바람은 올초 금융 위원회의 「창조 금융 활성화 비전」 발표 (2015 년 1 월 27, 29 일) 를 기점으로 하여 본론으로 접어든 형국이다. ▶ 규제의 틀을 사후 규제로 전환하고 ▶ 온라인 금융 관련 규제를 정비하며 ▶ 핀테크 사업 성장을 위한 재정적, 제도적 지원을 주요 내용으로 하고 있다. 「금융 거래 비대면 실명 인증」과 같이 시급하게 선결되어야야 할 대표적인 규제들이 아직 건재함에도 불구하고, 핀테크는 올해의 테마주로 선정될 정도로 이미 성장해 있다. 지불-결제 분야는 삼성, 애플, 구글 등 글로벌 IT 공룡들의 각축장이 됐고, 정부의 규제 완화 노력이 진행됨에 따라서 인터넷 전문 은행, 클라우드 펀딩, 금융정보 빅데이터 기반 서비스 등이 차례로 선을 보일 것으로 전망된다.
The is the presentation lesson from Language Open Learning Learn English Grammar Course 2.
http://languageopenlearning.com/en/learn-english-online/grammar-course-2
There are lots of online lessons and its free to register and learn English with Language Open Learning.
http://www.LanguageOpenLearning.com
Learn about:
Early FAFSA timeline
Types of financial aid
Financial aid process and formulas
Tracking your students’ FAFSA completions
EducationQuest updates
The college financial aid process can seem complex, but when you break it down into pieces, it makes a lot of sense. Our slides below offer straightforward and simplified financial aid facts, and we’ve included numerous links that lead to further information and resources. Once you understand the basics, you’ll be able to easily navigate the process.
College is a life-changing event – for students and parents alike – and so much about it has changed since today’s parents were college students themselves. This presentation was designed to help parents of college-bound students understand the ever-changing college landscape and help them navigate it with confidence.
Saving for college is so important. And an easy way to make sure you're saving regularly is to set up automatic deposits from your bank account into your 529 college savings account. It's easy to set up and will guarantee that you save each month. Follow the steps in this presentation to set up your own automatic college savings deposits.
If you need to borrow for college costs, make sure you first understand education loan terminology as well as the steps you should take to borrow wisely. Our presentation covers what you need to know.
If you’re graduating this May, or looking to advance in your career, you may have graduate school in mind. A graduate degree can provide a valuable boost to your resume and give you a leg up as you search for jobs. But it’s important to take cost into mind before you decide to head back to school - make sure to find a program that’s compatible with your career goals and affordable. We know the price tag for graduate programs can be significant, so we’ve pulled together a summary of different options to help you pay for school. From fellowships to tax credits to federal grants, you’ll find something that can help reduce your out-of-pocket costs in our slideshow below.
Is the CSS/Financial Aid PROFILE on your mind? The PROFILE is a financial aid application required by over 400 colleges, universities, and scholarship programs, so if you have a child applying to college, there’s a good chance you’ll need to complete it. Like the FAFSA, the PROFILE asks questions about family income, assets, and household members. It requires more details than the FAFSA, and has its own registration process.
If you’re a parent or mentor to a high school senior, now’s the time to get serious about applying to college. From essays to campus visits to letters of recommendation, you and your student will need to stay organized and on schedule. We’ve put together a presentation below that covers the entire process. Read through to find out how to build the college list, the different application options, where to find free resources, and everything else you need to know.
The U.Plan Prepaid Tuition Program offers benefits unlike any other savings vehicle. By saving money in the U.Plan, you’ll be locking in today’s rates for college tuition and mandatory fees at every Massachusetts college and university in the U.Plan network. That means the rise in college tuition won’t affect you, and your savings will be used to pay for college at 2016 rates. And if your child doesn’t attend a U.Plan school, you’ll receive your full savings back, with interest calculated at CPI and no penalty, right when your child heads off to college. It’s a powerful and fail-proof savings opportunity.
The college application process can be overwhelming for high school juniors and seniors, as well as their families. This seminar provides a detailed overview of the entire process, including current trends in admissions, how to build a college list, the various components of the college application, and basics about financial aid.
We’ve put together a set of slides to walk you through the FAFSA. You’ll find out helpful information about completing the application, as well as screenshots of each section.
Learn all of the nuts and bolts of the CSS/Financial Aid PROFILE, a financial aid application required by over 400 colleges and universities across the country.
Find a detailed overview of the entire college admissions process, including current trends in admissions, how to build a college list, the various components of the college application, and basics about financial aid.
Did you know that September is College Savings Month? One of our goals at MEFA is to make sure that families have the best possible information on saving for college.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
3. Be Informed About Merit-Based vs. Need-Based Aid
Merit-Based Aid
•Awarded in recognition of student achievements
(academic, artistic, athletic, etc.)
•Awarding criteria differs from school to school
•Often has requirements for renewal (grades, volunteering, etc.)
Need-Based Aid
•Awarded based on each family’s financial eligibility
•Determined by a standardized formula
•Includes most federal, state, and institutional (college) aid
4. Understand Your Financial Aid Awards
•Learn about types of aid:
– Grants/Scholarships
– Work-study
– Loans
•Sources: federal, state, &
colleges
•Financial aid award letters look
different!
•Accept all or part of your aid
by May 1st
This example is an estimate only.
5. Federal Direct Student Loans
•Every student who submits the FAFSA is eligible for them
•The student is the borrower and there’s no credit check
•Annual limits: $5,500 freshman year $6,500 sophomore year
$7,500 junior year $7,500 senior year
•Fixed interest rate changes annually: 4.29% for 2015-16
•Two types:
– Subsidized: Interest accrues after student leaves school
– Unsubsidized: Interest accrues immediately
•1.068% fee deducted from the loan amount
•Promissory Note & Entrance Counseling requirements:
•No payments due on interest or principal while in school
•Several repayment options
6. Verification
•Colleges verify data on financial aid applications
•Students are selected by the Dept. of Ed or the college
•Students must comply to receive financial aid
•Families submit additional documentation:
– IRS Data Retrieval Tool
– Tax Return Transcript
– Verification Worksheet
– Asset Account Statements
•Some schools use IDOC
7. If You Have Not Applied For Aid
•Federal & state financial aid is still available
– File the FAFSA for federal and state aid
– The Massachusetts financial aid deadline is May 1st
•Many college financial aid deadlines have passed
•Interest-free payment plans are open to all
•Anyone may apply for private loans
8. A Word About the Waitlist
•Some schools have a very long waitlist
•You must submit an enrollment deposit at another school
– This is usually non-refundable
•Accepted off the waitlist usually means minimal financial aid
•Steps to take when on the waitlist:
– Formally accept your spot on the waitlist
– Write a short note to the admissions counselor
– Update the school with recent grades and awards
– Keep in touch with the school over social media
9. Calculating the Balance Due
College charges:
– Tuition
– Fees
– Room
– Board/Meal Plan
– Health Insurance
Don’t forget incidentals:
– Books
– Transportation
– Laptop
– Personal expenses
Use MEFA’s My College Cost Calculator
to compare the balance due at each of
your accepted schools
College charges - financial aid & enrollment deposit = balance due
10. An Example: Paying the Balance Due
Balance Due $20,000
Past Income (Savings)
Student Savings -$1,000
Parent Savings -$4,000
Present Income (Current Wages)
Parent Contribution to Payment
Plan
-$5,000
Future Income (Private College Loans)
Education Loan -$10,000
$0
11. Past Income: Savings
•529 College Savings Plans
•Prepaid Tuition Plans
•Savings Bonds
•Stocks
•CDs
•Parent Bank Accounts
•Student Bank Accounts
•Other Investments
Many families use savings to pay a portion of the college bill:
12. Utilizing Savings from the U.Plan and U.Fund
U.Plan Prepaid Tuition Program
– U.Plan Distribution Request Forms will be mailed in April
– Questions?
• Email info@mefa.org
• Call (800) 449-MEFA (6332), option #1
U.Fund College Investing Plan
– Visit fidelity.com/saving-for-college/529-plan-distributions to:
• Obtain a 529 College Investing Plan Distribution Form
• Set up BillPay® to send funds directly to the college
– Questions?
• Call (800) 544-2776
13. Present Income: Salary
•Pay over 5 to 12 months
•No interest charges or credit requirements
•Minimal enrollment fee
•Great option to minimize borrowing
•Plans typically begin in May, June, or July
•Contact the college for more information
Consider using an interest-free monthly payment plan
14. Future Income: Private Loans
Be a wise borrower when considering private loans
•Know your credit history
•Borrow only what you need
•Think in terms of total enrollment (4+ years) and total debt
- Consider the post-graduation monthly repayment
•Consider major/career, employment rates, & starting salary
•Understand:
- Fixed vs. variable interest rate
- Repayment timeline
- Who is the primary borrower?
•Attend our Comparing Loan Options Webinar
- Thursday, June 2nd @ noon
- Tuesday, July 12th @ noon
15. Create a Financing Strategy
Use MEFA’s Loan Payment Calculator to determine your monthly
payment and total loan cost on an undergraduate MEFA loan
16. The Benefits of Education Loans
MEFA Undergraduate Loan
•Fixed interest rates
•Starting at 4.99%
(APR 6.13% - 6.51%)
•For MA residents attending
college anywhere or students
attending college in MA
•Family loan: student and
parent or other credit-worthy
borrower are co-borrowers and
share responsibility
•Credit-based
•Multiple repayment options
•Origination fee: 4%
Federal Direct Parent Loan (PLUS)
•6.84% fixed interest rate
•Requires filing the FAFSA
•Parent (either one) or custodial
step-parent is the borrower
•Credit-based
•Repayment begins in spring
semester or after graduation
•Origination fee: 4.272%
17. Timing: Paying Your Bill
•Fall semester bill sent in June or July
•Fall semester bill due in July or August
•Apply for private loans at least 2 weeks before the bill deadline
•Set up payment plans according to the college schedule
18. Use the Financial Aid Office as a Resource
Learn about your financial aid
•Know your financial aid renewability criteria (financial, academic)
•Understand how your private scholarships are treated
Ask about special considerations
•Is it possible to appeal your award?
•What if you have changes in family circumstances?
Find out additional details
•Get information on Open House and Orientation programs
•Ask about additional financial resources
•Use every avenue
Review the Financial Aid Office website
•Set up an in-person meeting with the financial aid counselor
•Call the Financial Aid Office
19. What’s Next?
•Pay your enrollment deposit by May 1 (if required)
•Make plans to attend Orientation
•Create a plan as a family to pay the balance due
•Utilize MEFA as your resource
– Sign up for MEFA emails to stay on track
– Use tools on mefa.org: webinars, calculators, videos
– Take advantage of one-on-one counseling with the MEFA team
• Phone: (800) 449-MEFA (6332)
• Email: info@mefa.org
20. Connect with MEFA on Social Media
Another great place to get your questions answered!
Introduce yourself and share your background
Let families know you’ll be speaking on making the college decision and how to pay the college bill
Provide the timeframe: presentation will be approximately 1 hour followed by a Q&A
Let families know if you’ll be taking questions throughout or just at the end
Let families know that this is a presentation timely for seniors in high school and their families
Remind families to complete the evaluation following the presentation
Tell families that the slides to this presentation can be found online on mefa.org/Events
Encourage the audience to give themselves a round of applause for getting through this process - they are almost there!
Describe two main categories of financial aid:
Merit-based:
Awarded in recognition of student achievement
Only some colleges award merit aid
Awarding practices vary significantly from college to college
Discuss some of the ways students may have needed to apply for merit aid: a separate application, essay, nomination, etc.
Discuss how students may lose academic merit awards if they don’t meet GPA requirements
One example from MA: John & Abigail Adams Scholarship:
Non need-based
Based on high 10th grade MCAS score
No application: winners are notified in fall of senior year
Covers tuition (NOT fees) at MA public colleges & universities
Must be MA resident and U.S. citizen or eligible non-citizen
Must submit the FAFSA (even though it’s not need-based)
Students must maintain a 3.0 GPA for renewability
Don’t mention this at private high schools, as private high schools are not required to take the MCAS
Most other financial aid is need-based: awarded based on the financial & household information the family reported on the financial aid applications and based on a standard formula
Most of the financial aid on the financial aid award letters will likely be need-based
Forget the EFC – what matters now is what you received in financial aid.
It’s not what the college costs. It’s what the college costs YOU.
Award letters differ by institution
Your award may still be an estimate, pending receipt of your completed tax information
You will need to apply for financial aid EVERY YEAR
May or may not show full cost of attendance
Will list types of aid student is eligible to receive
You may accept or decline any components of the financial aid award
Negotiating/asking a school to reconsider the aid
Grants and Scholarships:
May be federal – Pell, Federal SEOG
May be from the State (can mention osfa.mass.edu for more info):
Adams, Mass Grant, Mass Tuition Waivers, Gilbert Grant
May be Institutional: merit or need-based, or a combination of the two.
Get information about criteria for renewability
Review differences between merit and need-based awards
PRIVATE/OUTSIDE SCHOLARSHIPS
WORK-STUDY:
A job on campus that is partially or fully funded by the federal government or the institution
Is NOT applied to the bill; rather, is earned every pay period
The amount on the award letter is the maximum the student can earn; students who don’t work will not receive the funds
Often possible to find an on-campus job if not offered work-study
LOANS:
For federal student loans (Federal Direct Loan or Perkins Loan), the student is the sole borrower – more info on student loans next in the presentation
The PLUS Loan is not aid; it is a credit-based loan offered as an option to pay balance – families may pay their balance any way they wish - will discuss options and more info on the PLUS later in the presentation.
Federal loan options should ALWAYS be considered first.
Go over details and limits for students
Student will need to complete entrance counseling and sign a promissory note
Many repayment options for borrowers, including one that can be tailored to the student’s income. Forgiveness provisions for certain professions. See StudentLoans.gov for details.
IF YOU HAVE NOT YET APPLIED FOR AID, it is still possible to go through the process and have your child take advantage of low-cost federal loans. File the FAFSA.
Interest rates listed are for 2015-16 academic year loans. Rates are set annually to the 10-Year Treasury Note + 2.05% and will not exceed 8.25%.
2016-17 rates will be announced in May
What is reasonable student loan debt? Seven in 10 seniors (69%) who graduated from college in 2014 had student loan debt, with an average of $28,950 per borrower.
$27,000 maximum 4-year eligibility = standard repayment of approximately $300/month for 10 years
Mention additional Unsub for PLUS denials as well.
Fees are deducted from loan amount: Fees for Direct Loans: 1.068% for Student DL
Two types: Subsidized & Unsubsidized – have the same interest rate
Can also mention possibility of NIL and Perkins and PLUS on award letters.
Families will receive notification of verification from colleges
Some families cannot use the IRS Data Retrieval Tool:
Married individuals who file married filing separately or head of household tax returns
Change in the marital status after the end of tax year
Amended Tax Returns
Foreign Tax Returns (even if U.S. return is also filed)
Filers with Tax ID Number (TIN)
FAFSA and tax return address do not match
Families can download a tax return transcript immediately by using the Get Transcript tool on IRS.gov. PDF’s are currently not available and are mailed. Takes 5-10 days.
May be selected for Verification from some schools and not others
IDOC is a scanning service used to collect tax documents from families as part of the college verification process. It is run by the College Board and used by many colleges that require the CSS/Financial Aid PROFILE.
Many families may not yet have applied for aid
Can still apply for loans and Pell Grants even if it’s past the college’s deadline. Deadline for Massachusetts financial aid programs is May 1st.
Borrow federal student loans first
Adams and Koplik Scholarships require you to file the FAFSA
More and more students are being waitlisted. A Center on Higher Education Reform study on the 2012-13 admissions cycle showed that some schools (Bates College and U of Richmond) waitlisted as many as 40% of applicants (Washington Post)
43% of schools use a waitlist
Percentage is higher for highly selective schools: 63% (NACAC State of College Admission)
But only 25% on average are accepted off the waitlist (Boston Globe, 5/2/14)
Some schools have more students on the waitlist than accepted
Students usually have to accept their place on the waitlist
The EFC is now irrelevant. What matters now is the cost of college minus the aid received.
Remember this is a 4-year expense
Don’t forget to deduct federal loan fees and check with college to see if there are any other fees that can be waived.
How to pick a school? Look at the bottom line cost and figure out what you can afford from there.
MEFA has a terrific tool, the My College Cost Calculator, located on MEFA.org, to help you determine direct costs.
***PULL UP THE CALCULATOR ONLINE and do an example here.
You will be able to line up as many as six different colleges, list aid packages and calculate the balances due for direct costs. You can print your results.
Click on graphic to show how the cost calculator works. Sample #’s to use: Private College A: Direct Costs-Tuition($34K), Fees($500), Room & Board ($13,300), Health Insurance ($1600 if not waived); Grants/Scholarships- Pell ($2,000), SEOG ($1,000), State Grant ($500), Institutional Grant ($20K), Outside Sch. ($2K); Loans- Sub $3,500, Unsub. $2,000; Savings- $1,000. Public College B: Direct Costs-Tuition($900; Zero w/ Adams Sch.), Fees($6K), Room & Board ($4800), Health Insurance ($1300 if not waived); Grants/Scholarships- Pell ($2,000), SEOG ($0), State Grant ($500), Institutional Grant ($0), Outside Sch. ($2K); Loans- Sub $3,500, Unsub. $2,000; Savings- $1,000..
One confusing aspect of college bills is understanding the difference between direct costs and indirect costs.
DON’T FORGET TO WAIVE HEALTH INSURANCE IF ALREADY COVERED. Explain process to waive costs via Bursars office.
ALSO, realize that many colleges now only e-bill, and that often students will need to grant rights to parents/others to view the bill due to FERPA.
The financial aid office gives you an estimate of your indirect costs.
If your student is living off campus, you will see an allowance for rent in there. If commuting, an estimate will be included for those expenses.
Realize that these are not hard and fast figures and that your totals may vary.
There are opportunities for saving here. Students can opt to rent books on some campuses, or may already own a laptop for example. They may have options for less expensive housing or smaller meal plans if they won’t be eating all their meals on campus.
Families decide the best plan to meet the balance due at the college based on their own personal finances.
The options fall under three major categories: past, present, and future income.
Families don’t need to choose just one option (past, present, or future income) to pay the balance due, and combination plans can save money in the long run.
Past Income: savings or other investment such as college saving plans
Present Income: Explain payment plan, i.e., owe $1,000? pay $100 per month for 10 months. Better than ANY loan
Future Income: borrowing loans. This will be in addition to student loans that are offered in the financial aid award. If families are considering financing any portion of the student’s education, they should take advantage of federal student loans first
Families need to be thinking about a long-term plan when deciding what options to use. This includes the total number of years the student plans to be enrolled as well as multiple children who plan to attend college
Colleges who use institutional methodology often expect the student to contribute from savings and/or summer work. Students are able to contribute to the payment plan along with the parents.
For families who are not receiving aid, you can still use these same steps. You will not be able to subtract aid, but if you have private scholarships be sure to subtract them from direct costs.
Further details will be provided on the next slide regarding withdrawing funds from a U.Plan or U.Fund, should you have one.
When to use 529 funds? Divide among all 4 years? Use all of it the first year to delay borrowing? Family decision.
Save NOW for younger students. And can even save until the fall for your HS senior.
Steps to use your U.Plan Savings:
Distribution Request Forms will be sent to you in April; return to MEFA to access savings.
MEFA sends college notification of amount in June, once MEFA receives the form back
Funds are applied directly to the bill in August.
Family receives a confirmation letter from MEFA indicating the amount sent to the college.
The family makes the decision of how to allocate college savings funds (evenly over 4 years, most in the first year, etc.)
Using your U.Fund Savings:
How and when can I take distributions from the account?
You can withdraw money from your 529 account for qualified educational expenses such tuition, room and board, books, and supplies. Funds can be sent directly to the college, yourself or a third party, such as a payment plan.
(You may NOT take loans against your 529 account. Note: Withdrawals for non-qualified expenses may incur federal income tax and a 10% federal penalty tax.)
You have several ways to withdraw money (take a distribution) from your 529 account:
Complete the College Investing Plan Distribution form (PDF)
Pay college bills online by enrolling now in Fidelity BillPay® for 529 accounts.
Call a Fidelity representative at 800-544-2776
1099-Q for tax reporting purposes. Additional documentation (college invoice, statement, receipts) may be required by the IRS to verify that such payments are qualified.
What is Fidelity BillPay® for 529 accounts?
Fidelity BillPay for 529 accounts is a free online service that allows you to make single and recurring payments to colleges, tuition payment services, the account owner, or the beneficiary. To learn more, view the Fidelity BillPay for 529 Accounts demo.
A minimum $2,500 balance is required to activate the service. If you do not meet the minimum balance requirement within 60 days of enrollment, the service will be cancelled automatically, and you will be required to re-enroll in the future.
Think of your financing strategy and all 4 years.
A payment plan can be an important cash flow tool that can help minimize borrowing
In general, a monthly payment plan allows parents to make monthly payments instead of a lump-sum semester payment.
Parents should receive information about the school’s monthly payment plan in the student’s financial aid award letter or subsequent mailing from the school.
Parents may need to sign up for the plan and begin making payments up to 2 or 3 months prior to the beginning of the semester (check with individual school).
Some independent high schools (St. Joe’s Prep., BC High, Phillips Andover) have payment plans- you may be using one already
Colleges are a business. This is a business decision for your family.
Annualcreditreport.com – free annual credit reports
Acknowledge that most families in the audience will have to borrow in some capacity; College education is a good investment, much like a home - not expected to pay in one lump some
Debt considerations: do not just sign on the dotted line. These are ideas to consider when deciding how much to borrow
Consider the factors to look at when choosing loans
Many colleges put together a list of recommended lenders to help families with their parent loan research
Refer to average loan debt stats when talking about the primary borrower and how much debt is reasonable for a student to absorb on his or her own. Factor in post-graduation monthly repayment. Seven in 10 seniors (69%) who graduated from college in 2014 had student loan debt, with an average of $28,950 per borrower.
Primary borrower – explain parent loans vs. student loans
Point to the Be a Wise Borrower sheet available at the seminar tonight
Where to find loans? Look at school’s financial aid website. Your own bank, credit union.
Let families know that they can shop for loans within a 30-day period and it will only count as one “hit” on their credit, because it’s obvious that they’re shopping for one item
We’ll offer two webinars on Comparing Loan Options – a helpful presentation giving families information to help them make a decision on private loans. Families can register on mefa.org/Events
Thursday, June 2nd @ noon
Tuesday, July 12th @ noon
Use Hyperlink in graphic to demonstrate live MEFA’s Loan Monthly Payment Plan calculator to determine the true cost of borrowing a loan.
MEFA always recommends a combination strategy: use a no-interest monthly payment plan for at least part of the balance if planning to borrow
FOUR WAYS TO PAY A $20,000 BALANCE DUE
Most people will consider a monthly payment plan, loan, or combination of the two to cover the balance due:
1) Sign up for an interest-free monthly payment plan, divide payments over 10 months for nominal fee (around $65-80). This would be $2,000 per month for 10 months = $0,000 (pay no interest, use no savings – best way to finance if you can afford it).
2) Borrow the full $20,000. For example, a MEFA Undergraduate Loan with 10-Yr Immediate Repayment 4.99% while in school, with a 4% origination fee, and with 4 yrs til graduation would be $223/month while in school and $228/month after school
3) Customized combination plan: let’s say you can afford more than $250 per month (loan option) but not the full $2,000 per month (payment plan) you can use a combination plan based on your budget. If you determine that $700 is a reasonable monthly payment, you could do a combination plan to keep debt levels low:
$575 per month in a monthly payment plant ($5,750 total)
Approx. $122 per month in a MEFA Undergraduate Loan with 15-Yr Immediate Repayment ($14,250 at fixed rate of 5.39% while in school and 6.24% out of school and 4% disbursement fee) (payment goes up to $127/month after school)
4) No disposable income? Consider deferred loans
MEFA UG Loan- Rate starting at 4.99% (for 10-Yr Immediate Repay)
Who’s Eligible: MA residents going in or out of state and students from across the U.S. attending a Massachusetts college or university
Most states do not have this benefit
No tiered pricing – all qualified borrowers receive the same rate
MEFA’s sole purpose for over 30 years has been to provide low-cost college financing for students
Provides stable and predictable monthly payments
Many repayment options help families pick a loan that best fits their needs
Reference the Be a Wise Borrower Loan Chart
You can apply for a MEFA Loan beginning April 1st. The PLUS credit check lasts 180 days.
PLUS: 6.84% interest rate and 4.272% origination fee
Interest rates listed are for 2015-16 academic year loans. Rates are set annually to the 10-Year Treasury Note + 4.60%.
2016-17 rates will be announced in May/June
Even though the FAFSA is not required for a MEFA loan, families should still file to borrow their maximum under student loans
Additional $4,000 (FR & SO) or $5,000 (JR & SR) per year in Unsub if the parent is denied a PLUS.
Funds are sent directly to the school
Apply for the whole year, not just one semester
Can borrow the full COA minus Financial Aid
Remember to multiply any annual borrowing by 4 years
There are other options to pay for college – home equity loan, credit cards, borrowing from retirement funds – but be sure to understand all implications of using one of these methods before doing so
Point out the timeline in the folder and point out:
Bill arrival for both semesters
Bill deadline for both semesters
When to reapply for financial aid
*Remind families to waive the health insurance if covered under a parent’s plan
Work-study recipients should expect information from the college regarding employment late summer or at the start of the term
Electronic bills – students have to give parents access – most schools are now using e-billing
Loans – borrow the amount for the full year – money is sent to the school – describe the loan process
The college admitted you, so they want to help you find a way to afford it
Ask what is required to renew the financial aid in future years
Find out how scholarships are treated
Special circumstances: you may be able to appeal your award (meaning, ask for additional financial aid): Some colleges can provide some (small) additional grant funding if you ask. Some may require you to present a reason for the needed additional funds, which may include a recent job loss or family expense, such as a medical bill or home repair. You also may have had a one-time increase in your income in the past year, which raised your income unrealistically
Contact your financial aid counselor to ask for additional funds. You will need to submit documentation of your situation
If a housing deposit is due, make sure to pay that as well.
Families can also research online textbook sites.
What to do if you’re on the waitlist.
Stress to families how active MEFA is on Twitter and Facebook, and that we have several helpful videos on YouTube.
Also mention to families that we answer questions on Facebook and Twitter, and it’s helpful for families to see the questions of others and the answers from MEFA, so we encourage using that avenue.
Take any questions from the audience and let attendees know you will stay after to answer individual questions on financial aid award letters