HelpingStudents

Every Step of the Way

School Name

Steps of the Day

STEP 1 Why Financial Literacy?

STEP 2 Be Prepared: Questions to Consider

STEP 3 Paying for School

STEP 4 Budgeting

STEP 5 Resource to Help: GradReady

STEP 6 NEXT STEPS

STEP 1

Why FinancialLiteracy?

Unemployment Rates

Provided by U.S. Bureau of Labor Statistics, February 2013

Median Income

Provided by U.S. Census Bureau of Labor Statistics, 2013

$33,652

$24,544

$37,804

$40,404

$57,616

Median Income: Distributes income into two equal groups, half having income above that amount, and half having income below that amount.

Average Annual College Tuition & Fees

$3,264Public Two-Year(in-state student)

Provided by College Board Advocacy and Policy Center, 2013 Dollars

$21,706Public Four-Year

(out-of-state student)

$8,893Public Four-Year(in-state student)

$30,094Private Four-Year

Student Loan Debt

Provided by trends.collegeboard.org

Average Debt–to-Median Income

Provided by Iowa College Student Aid Commission Annual Survey of Financial Aid and U.S. Census Bureau of Labor Statistics, 2013

$33,652

8%

9%

7%

6%

Debt-to-income Ratio

As of September 2012

8.0%Private Four-Year

14.2%Private Two-Year

National Three-Year Cohort Default Rates

Provided by Federal Student Aid

20.9%Public Two-Year

9.3%Public Four-Year

1. Individuals with higher levels of education earn more and are more likely than others to be employed.

2. Education comes at a cost.

3. Be aware & make smart financial decisions – so the odds are ever in your favor.

Why Financial Literacy?

My School

0.0%Last 3 YR CDR

$0,000Average Student

Loan Debt

$0,000Tuition & Fees

STEP 2

Be Prepared:Questions to

Consider

Who is my servicer?

Questions to Consider

What type of loans do I have?

Questions to Consider

How much have I borrowed and

how much interest has

accrued?

Questions to Consider

Once graduated, how much will I have borrowed?

Questions to Consider

What will my monthly student

loan payment be?

Questions to Consider

STEP 3

Paying forCollege

Need for Financial Aid Equation

Cost ofEducation

(Tuition, Fees, & Living Expenses)

Family Contribution

Need for Financial Aid

Qualifications for Financial Aid

• Demonstrate financial need• Be a U.S. citizen or an eligible noncitizen• Have a valid Social Security Number (with the exception of students

from the Republic of Marshal Island, Federal State of Micronesia, or the Republic of Palau)

• If male between the ages of 18 and 25, be enrolled with Selective Services

• Maintain satisfactory academic progress in college or career school• Not be in default on a federal student loan and now owe money on a

federal student grant• Have a high school diploma or a General Education Development

(GED)

Applying for Student Loans

1. Complete Free Application for Federal Student Aid (FAFSA) at fafsa.ed.gov

2. Review your Student Aid Report (SAR)

3. Review and accept your Award Letter

4. Complete your Master Promissory Note (MPN) at studentloans.gov

5. Participate in Direct Loan Entrance Counseling at studentloans.gov

• Check the National Student Data System by going to nslds.ed.gov

• Calculate your future loanrepayment even while in school by using the Repayment Estimator at studentloans.gov

Take Charge

STEP 4

Budgeting

The What and Why of a Budget

A budget is a money plan that designates future income to go towards expenses, savings, and debt repayment.

What is a budget?

The What and Why of a Budget

• Regulate the amount of money you have to spend

• Determine how to spend future money• Help stay out of financial trouble

Why should I make a budget?

Steps to Creating a Budget

1. Assess your personal and financial situation.

2. Set personal and financial goals.

3. Create a budget for fixed and variable expenses based on projected income.

4. Monitor current spending.

5. Compare your budget to what you have actually spent.

6. Review financial progress and revise budgeted amount.

Maintaining Your Budget

1. Become a good consumer• Get the most bang for your buck

2. Exercise willpower and self-control• Live like a student now so you don’t have to later

3. Develop a good record-keeping system• Follow “Steps to Creating a Budget”

4. Evaluate your budget regularly• Make sure to review your budget once a month

STEP 5

Resourceto Help:GradReady

My Account

• See results of baseline test, topic quizzes, and final exam• Track progress as tools are used• Navigate directly to topics• Easily understand what’s completed and what remains

Dashboard

• Each section offers an easy to navigate path• User friendly layout supports engagement

Money Skills

A robust learning center complete with video tutorials, printable reference materials, and Frequently Asked Questions.

An interactive worksheet students and families use to track cost of attendance and any known funding sources to determine if a funding gap exists.

Financing Plan

An interactive tool that provides insight into how manageable future student loan payments might be for borrowers.

Debt-O-Meter

An interactive spreadsheet that allows students to create a monthly record of projected and actual income and expenses.

Budget

Electronic Loan Counselor (ELC)

• Walks you through the process of implementing a repayment strategy

• Gives you real-time information about your loans

• Provides a single organized view of your student loans

Create a Strategy

• Shows how different payment plans affect loan cost

• Helps create a repayment strategy that fits your situation

• Provides resources needs to implement a plan

STEP 6

NEXT STEPS

NEXT STEPS

1. Log into schoolname.gradready.com

2. Complete the Financing Plan

3. Log into nslds.ed.gov to see existing loan information

4. Enter your loan information (existing & future) and potential income into the Debt-O-Meter

5. Create a frugal Budget that minimizes your dependence on student loans

For more information:

Presenter’s NamePosition Title

Email AddressPhone Number

School Name

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