Conquering Financial Aid

If a man empties his purse into his head, no one can take it from him. An

investment in knowledge always pays the highest return. – Benjamin Franklin

Financial Aid Tips• Be an informed consumer• Start early!• File FAFSA :

• Keep copies of everything• Consider a combination of options

Required Applications

• Admissions applications

• FAFSA:

• Institutional Aid Application of the CSS Profile

Calculating the EFC (Estimated Family Contribution)

• Parent Contribution • Student Contribution

Calculating Need

• Cost of Education • EFC

Different Types of Financial Aid• Scholarships• Grants

• Pell Grant:

• Federal supplemental Educational Opportunity Grant:

• Federal work study• on or off-campus jobs• At least minimum wage

Different Types of Financial Aid

• Student loans

• Perkins Loan:

• Direct Stafford Loan (Subsidized):

Different Types of Financial Aid

• Direct Stafford Loan (Unsubsidized):

• Direct PLUS Loan:

Family Responsibility

• Direct Costs• Tuition• Fees• On campus housing• Meal plan

• Financial aid offered

Is this college affordable?

• A candid review of family resources is essential• Parents

• Students• Savings or investments• Summer or academic year earnings• Other resources

Is this college affordable?

To estimate your student loan payments, go to http://studentaid.ed.gov/repay-loans/understand/plans/

standard/comparison-calculator

Amount borrowed per

year

Total amount borrowed for 4

year degree

Interest rate (average)

10 year repayment:

Monthly minimum

Total cost

$5,500 (subsidized)

$22,000 3.4% $216.52 $25982.38

$5,500 (unsubsidized

$22,000 6.8% $253.18 $30381.21

$15,000 $60,000 6.0% $666.12 $79934.76

Completing the FAFSA online

1.) Paper Form or Electronically @ www.fafsa.ed.gov

2.) Get a PIN (personal identification number) at www.pin.ed.gov: electronic signature for both student and guardian

Completing the FAFSA online

2.) What you need:- Student driver’s license & social security card

Completing the FAFSA online

- Current bank statements- Business records- Record of assets (homes)- Records of investments

• stocks, bonds, CDs, Mutual Funds, Educational savings accounts, properties you don't live in, Trust funds

• NOT life insurance, tax deferred retirement plans (401K or IRAs or pensions), Farm you live on, small business of 100 or less employees

Completing the FAFSA online

3.) Who is considered a parent on the FAFSA?• Both parents are living and married to each other,

answer for both• Parent is widowed or single, answer for that

parent only• Parents divorced, answer for parent whom you

live with the most or the one who provided the most financial support

• Parent remarried, answer for both

Online StepsStep 1: Biographical Data

Step 2: Student Financial InformationStep 3: Student’s Dependency Status

Online StepsStep 4: Parent Data

Step 5: College Information• Up to 10 schools to receive your information

Step 6: Certifications and Signatures• Use PIN

Online Steps

Step 7: Submit• Print a copy for yourself

• If you used the previous year’s tax info, don't forget to file a correction form after your guardians’ have filed their taxes for this year

Financial Aid References

• College Board: www.collegeboard.org• Financial aid information: www.finaid.org• Largest Free Scholarship Search: www.fastweb.com• FAFSA on the web: www.fafsa.ed.gov• Department of Education: www.ed.gov/studentaid

Ways to reduce student debt

1.) Pay more than the minimum monthly payments- 10% of income

2.)Sign up for automatic online payments; you could get lower interest rates

3.) Be realistic about your spending4.) Consolidate Federal loans into one monthly

payment

Ways to reduce student debt

5.) Forbearance:

6.) Deferment:

Ways to reduce student debt

• Look into loan forgiveness

• Save during your loan grace period

• Change payment plans according to your income

• Pay off loans early