Salem CyberSpaceCollege Success Program

Basics to College and College Financing

Tonight’s ProgramI. Introductions and SponsorsII. What do you know? What do you

want to know? PrequizIII. Basics to Understanding CollegeIV. Timeline to Important Dates V. Getting into College and Staying

ThereVI. Intro to Financing College

A. ScholarshipsB. WorkstudyC. Federal and Private Loans

How Much Do You Know About College?

How many choices for college are there within 2 hours of Salem, MA?

A.)25 B.) 55 C.) 99 D.) 2002

A semester of Community College in Massachusetts costs…

A.)500 B.) 1,000 C.) 5,500 D.) 12,000

The US Department of Higher Education says ____ of free Scholarship and Grant is available every year. A.) $10,000 B.) $50,000 C.) $999,000 D.) 1 billion

The most difficult part of college is A.) Money B.) Time to study C.) Space to study D.) A,B & C

 

 True False It is possible to get 100% of your college education financed by scholarship, grant and loan.

 

True False It is necessary to take an exam, have high grades and pay full money to go to College in the USA.

 

After This Session You Will :

• Understand Different Types of Colleges

• Learn important strategies to Prepare for College

• Know 10 ways to be successful in College

• Understand 3 ways to Finance College

• Learn about National and Local Scholarships and helpful websites to find them

• Understand basic information about Federal and Private Loans

What Do I Want To Know?Understanding Basics about Preparing for College and College Options

Strategies for Success

Scholarships and Loans to Help Pay for College

What is College? What are my Options?

Traditional College or University (4 years)[Live on Campus, Commute to Campus, Online]

College or University Transfer Program

(Last 2 years of College)

College Courses(pay per credit)

Technical Training

(6 weeks to 18 months)

Community College (2 years)

Private Institute(varies)

College Admission Requirements

Academic Readiness

The Person: Who Are You?

College Entrance Exams

Academic Readiness

• Grades• Many scholarships require 3.0 GPA+

• Courses (AP, Honors vs. Regular)• Transcript showing Variety, Improvement

• Interests, Organizations, Community Service, Experience

The PersonWritten Essay

oDescribe a Significant Experience in your Life

o Person of Influence or ImportanceoPersonal Background related to a

Character Value InterviewsCitizenship Experiences in your Life Organizations/ Interests Community Service Work – no more than 10 hours per week

College Entrance Exams• SAT 1: 3 areas of study (Math, Critical Reasoning, Writing)

• ACT (alternative to SAT1): Individual Subjects (Math, Reading, Science, etc)

• SAT 2 – Subject tests required for the more competitive schools

• AP Tests – Can earn $$ and college credit

Studying for the TestTest Strategy - Learn how to take the testReview subject material prior to the testTake SAT study groups

Most High Schools have SAT ElectivesSalem CyberSpace offers free classes for

Salem residentsSome private SAT study companies may offer

low-income discountsInternet –many free study resources onlineSAT study software availableSign up for College Board – junior year.

Timeline for Success

Honors Classes

Join Clubs

Identify Interests

Experience

Leadership

Honors Classes

Join another club or school organization

Begin Community Service

PSAT – Oct

Resume

PSAT - Oct

SAT & ACTExams (Jan, March, May, June)

AP Classes

Research Colleges

Meet with Guidance

Campus Visits

AP Classes

Top 5 choices

Prepare College Essay

Letters of Recommendation

Take SAT Subjects

Community Service

Scholarship Essay

Deposit

Scholarship interviews

Renew Scholarship

Mentors

Support (TRIO)

Class Registration

Student Assistant Center

Tutoring

SUCCESS

Structure and Support for Success

What Type of Support Do you Need to Succeed?

Obstacles

Success

Job and Career

Staying There

Getting In

Family Responsibilities

Work Too Many Hours

Things to Avoid in order to Successfully Enter College

Things to Avoid in order to Successfully Enter College

Solution

1. Not Studying Enough for Classes/ Exams

Organization and scheduling

2. Missing Deadlines Use a Deadline Scheduler

3. Not Doing Community Service

Sign up for volunteer work

4. Not joining groups or clubs

Sign up for two clubs in your interest area

Things to Avoid Solution

1. Put things off, ignore the feeling of being overwhelmed.

Find a mentor

2.Not studying enough for classes and exams

Join study groups, get tutoring See student services

3. Family obligations, watching little sister instead of going to class

Talk to advisors who can help let your family understand how the college courses function

4. Working too many hours and getting behind in homework and not talking to professors

Find a advisor, communicate with your professor and people who understand how to get back on track, cut your hours

Things to Avoid to Successfully Stay in College

Financing College

Scholarships, Grants, Loans

Defining Basic Financing OptionsSaving Money and Earning InterestScholarship: International / National/

LocalGrantsLoan: Federal/ Private

Subsidized Unsubsidized

Cost of College- Saving vs. Loan

Finance Options: UPlan

ScholarshipsMoney Given for College based on an

affiliation, academic or special interest achievement. You do not have to pay back. Providers are companies, professional groups, ethnic associations, publications, community organizations, private donors.

Normal Requirements 2.5 or 3.0 Grade point Average or

Special Skills in another areaCommunity ServiceSpecial InterestsLeadership roles

National Scholarships

Local Scholarships

1. Hispanic College Fund (Feb 16th)

1. City Board of Commissioners of Trust Funds

2. Lulac: League of United Latin American Citizens

2. Stephen Philips Memorial Scholarship (April 30)

3. Ronald McDonald Charities (HACER)

3. Christian Herter Memorial Scholarship (March 1)

4. Bill Gates Millennium Scholars (Jan 10th)

4. NSCC Presidential Scholars Program (after 9 credits are earned)

5. La Unidad Latina 5. State School Alumni Association Award (April)

6. Best Buy (2.5 GPA) 6. Rotary Club

7. Yawkey Scholar Program (Feb 15th)

7. The Robert P. Buck Alexander DMD Merit Scholarship

8. MALDEF: Mexican American Legal Defense Fund (2.5 GPA)

8. High School Booklets/ Local Banks

Sign Up for FastWeb

WWW.FASTWEB.COM

After completing a comprehensive profile, FastWeb will notify you of scholarships available to you based on your grades and background.

GrantsMoney awarded to attend College because

you meet a specific financial need or belong to a special group. You may be granted the money without all the competitive achievements. You may have to commit to certain guidelines throughout your receipt of this fund. This is money you will not have to pay back.

Pell Grant

Loans

Loan Basics and Federal Loans

Loan Basics• Loans are a promise.

– You promise to repay the principal plus the interest.

– The principal is the original amount you borrow.

– Interest is the amount that a lender will charge you to use the borrowed money.

• Loans can provide help. – Education loans are a resource to help you

meet college expenses, establish credit in your name, and become financially responsible.

• Loans are a responsibility.– You must repay your loan whether or not

you find employment, complete your degree, or achieve your salary goal.

Subsidized and Unsubsidized Loans

What is a Subsidized Loan?

What is an Unsubsidized Loans?

Important Steps to the FAFSA Application

• Complete the FAFSA—the required application used to determine your eligibility for federal financial aid. (online or PDF www.fafsa.gov)

• File taxes as soon as you can so you can complete the FAFSA right after the January 2012 enrollment cycle

• New in 2011! Students and parents who have submitted their IRS tax return will be able to view and transfer their information over to the FAFSA application.

Preparing for the 2011-2012 FAFSA

Student Information(spousal information required if married)

– Social Security card

– Driver’s license

– Alien registration or permanent resident card (if not U.S. citizen)

– 2010 W-2 form(s)

– 2010 federal income tax return(s)

– 2010 untaxed income records

– Current financial statements

– FSA PIN for FOTW

Parent Information(for dependent students)

– Social Security card(s)

– 2010 W-2 form(s)

– 2010 federal income tax return(s)

– 2010 untaxed income records

– Current financial statements

– FSA PIN for FOTW

FAFSA on the Web Worksheet can help too.

After your FAFSA Application is Processed

• You will receive your SAR after your FAFSA is submitted—via e-mail within 3–5 days with a valid e-mail address or via postal mail within 7–10 days if no valid e-mail address.

• Double-check your SAR for accuracy and submit corrections.

• SAR provides you with your EFC, which is the contribution that the school believes you (and your parents, if you are a dependent student) can make toward your education.

• The school uses your EFC to calculate the amount of federal student aid you are eligible to receive.

Types of Federal Student Loans

• Perkins loan– School awards students with demonstrated

need.– Funded through the school from a limited

pool of money.

• Stafford loan (subsidized and unsubsidized) – Previously funded through lenders or the U.S.

Department of Education (ED), but as of July 1, 2010, only funded through ED.

– Subsidized Stafford loans are need based; unsubsidized Stafford loans are not need based.

• PLUS loan– Previously funded through lenders or ED, but

as of July 1, 2010, only funded through ED.– PLUS loans are not need based.

UMASS Amherst ScenarioTuition: $12,612Room and Board: $9514Books: $1,000Fees: $600Total: $23,700Over 4 years: $97,000 (assumes 2%

increase by 2012)

Paying for UMASSType Interest Rates Yearly

AmountAmount over 4 years

College Grants Not applicable $10,000 $40,000

Federal Grants Not applicable $5,500 $22,000

Scholarships Not applicable $2,000 $ 8,000

Maximum Stafford Loans Subsidized

6.8% $3500, $4500, $5500, $5500

$19,000

Stafford Loan Unsubsidized

6.8% $2,000 $ 8,000

Total $ 97,000

Assumptions: Graduate in 4 years, family is eligible for maximum federal financial aid (EFC=0)

Loan RepaymentTypical Scenario – UMASS

Type Interest

Total loans

# months to repay

Monthly payments – year one

Total interest

Total loan payments

Stafford

6.8% $27,000

120 (10 yrs)

$310/mo $10,285 $37,285

Assumptions:• Start repaying 6 months after graduation• Graduate college in 4 years

Typical High-End Private ScenarioCongratulations You Just Got Accepted to

Boston UniversityTotal Tuition: $39,314Total Room and Board: $12,700Fees: $600Books: $1,000Total Cost/Year: $53,614Total Cost over 4 years: $214,416

Paying for Boston UniversityType Interest Rates Yearly

AmountAmount over 4 years

College Grants Not applicable $20,000 $80,000

Federal Grants Not applicable $5,500 $22,000

Scholarships Not applicable $10,000 $40,000

Maximum Stafford Loans (subsidized)

6.8% $3500, $4500, $5500, $5500

$19,000

Stafford Unsub 6.8% $2,000 $ 8,000

Perkins 5% $3,000 $ 3,000

Plus Loan 7.9% $10,500 $42,000

Total $214,000

Assumptions: Graduate in 4 years, family is eligible for maximum federal financial aid (EFC=0)

Consequences of Default If you default:You must immediately repay the entire unpaid amount of your

loan.You may be sued, all or part of your federal and state tax

refunds and other federal or state payments may be taken, and/or your wages garnished so that your employer is required to send us part of your salary to pay off your loan.

You will be required to pay reasonable collection fees and costs, plus court costs and attorney fees.

You may be denied a professional license.You will lose eligibility for other federal student aid and

assistance under most federal benefit programs.You will lose eligibility for loan deferments.We will report your default to national consumer reporting

agencies (credit bureaus).

Thank You for Attending Program

For more information please contact Jesenia Tejada at Salem CyberSpace 978-740-6667