4. Cost of College
Tuition
+ Fees
+ Housing
+ Food
+ Books
+ Transportation
+ Miscellaneous
Cost of College
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5. Cost of College, 2011-12
SOURCE: The College Board, Trends in College Pricing 2011, Figure 1.
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6. 2011-2012 College Costs
In-State 4 Out-of- 4 Yr. Private Public 2 Yr.
Yr. Public State 4 Yr.
Public
Published $8,244 $20,770 $28,500 $2,963
Tuition and
Fees
Change from 8.3% 5.7% 4.5% 8.7%
2010-2011
Average Total $17,131 $29,657 $38,589 NA
Charges*
Change from 6.0% 5.2% 4.4% NA
2010-2011
* Includes tuition, fees, room and board Source: College Board, Trends in College Pricing 2011
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7. Graduating and In Debt
Avg. student loan debt is on the rise
2010:
$25,250
2008:
$23,200
And don’t forget:
2004: $3,200 in credit
$18,650 card debt!
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9. Little Glimmers
• Between 2005-06 and 2010-11, federal grant
aid to undergrad and grad students
increased by 141%
• Between 2005-06 and 2010-11, savings to
taxpayers through federal tax credits and
deductions for education increased by
108%
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10. Little Glimmers
• In 2010-2011, $227.2 billion in financial aid
was distributed to undergrad and graduate
students in the form of grants, Federal Work-
Study, federal loans, and federal tax credits
and deductions.
• In 2010-2011, students borrowed around $7.9
billion in loans from state and private
sources.
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11. Little Glimmers
• Average net tuition and fees for in-state
students only increased by about $170 in
2011 dollars
Grant aid,
Published federal
Net Tuition
Tuition education
tax credits
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12. Little Glimmers
SOURCE: The College Board, Trends in College Pricing 2011, Figure 7.
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14. Is it even worth it?
Yes.
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15. Is it even worth it?
Lifetime Earnings Relative to High School Graduates
Earnings Ratio
Source: Education Pays 2010, College Board
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16. Is it even worth it?
• In 2008, median family income:
• Bachelor’s degree $101,099
• High School diploma $49,414
• Non-financial benefits
• Better health and quality of life
• Access to employer paid benefits
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17. SHOW ME THE MONEY
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18. No Right Way
Source: How America Pays for
College 2011, Sallie Mae
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20. Federal Student Aid
• Money from the Federal Government to help pay
for a postsecondary education
• Covers expenses such as tuition and fees, room and
board, books and supplies, and transportation
• Three main categories:
• Grants
• Work-study
• Loans
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21. Other Financial Aid
• Can get money from other sources:
• State grants
• Institutional grants
• Scholarships
• Private loans
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23. FAFSA?
• FREE Application for Federal Student Aid
• Online and paper versions
fafsa.ed.gov
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24. Why FAFSA?
• Only way to receive federal financial aid
• Federal Stafford Loans
• Grants
• Work-study
• Collects information about the student
and his/her family to determine need
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25. FAFSA Timeline
• Begin anytime after
January 1st of the
student’s senior year
and while in college
• Need to complete
before colleges’
deadlines
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26. What Students Will Need
• Social Security Number or Alien Registration
Number
• Driver’s License or equivalent
• Prior year’s Federal Tax returns*
• Prior year’s untaxed income records*
• Prior year’s bank statements*
• Prior year’s business and investments records*
• Federal Student Aid PIN*
• pin.ed.gov
*for students and parents
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27. Financial Aid Process
1. Complete the FAFSA after January 1.
• Check school specific deadlines
• Fill out as soon as possible!
2. Review the Student Aid Report (SAR).
• Includes your Expected Family Contribution
(EFC)
3. Review award letters.
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28. EFC
Expected Family Contribution
Cost of Attendance
- Expected Financial Contribution
Financial Need
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30. Recent Changes
• Student lending changes
• Passed with the Health Care Bill in
March 2010
• Eliminates the “Middle Man”
• Borrow directly from the Federal
Government
• Increases Federal Grant Money
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31. Types of Aid
Borrowed
Money
Financial
Aid
Package
Earned Gift
Money Money
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32. Borrowed Money
• Loans
• Subsidized
• Unsubsidized
• PLUS
• Perkins
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33. Private Loans
Pros Cons
• Can give a student • Cannot consolidate
additional money if with federal loans
needed • Not backed by
government
• Potentially higher
interest rate
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34. Grants
• Tax free cash award
• Need based
• Does not need to be paid back
• Various sources including Federal
and State governments, or institution
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35. Grants
1. Federal Pell Grant
2. Federal Supplemental Education
Opportunity Grant (FSEOG)
3. Teacher Education Assistance for
College and Higher Education
(TEACH)
4. Iraq and Afghanistan Service Grant
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36. Merit Based Aid
• Scholarships
• Sources:
• Schools
• Employers
• Activities/Clubs
• Location
• Others
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37. Scholarships
Each year, we award
nine $1,000 scholarships
to high school and
college students.
Application period is
Dec 2011 – Feb 2012
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38. Work Study
• Jobs usually on campus
• Minimum wage
• Jobs in student’s field
of study
• Getting a job is not
guaranteed, still need
to apply
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39. American Opportunity Tax Credit
• Expands the Hope Credit
• Extended until December 31, 2012
• Four years of post-secondary expenses
• Covers Qualified Tuition and Related Expenses
• Includes course materials: books, supplies, and
equipment needed for a course of study
• Do not have to purchase these from the
institution
• Up to $2,500 (40% of the credit is refundable, up to
$1,000)
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40. Other Tax Benefits
• Lifetime Learning Credit
• Tuition and Fees Tax Deduction
• Student Loan Interest
• Learn more:
• http://www.irs.gov/pub/irs-pdf/p970.pdf
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42. Keeping Your Aid
Satisfactory Academic Progress
• Required to keep financial aid
• Elements:
• GPA Requirement
• ACC: 2.0 cumulative
• Completion Rate Requirement
• ACC: must complete 67% of all hours
attempted
• Maximum Time Frame
• ACC: 150% of the published length of the
academic program enrolled in
Source: ACC Financial Aid
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44. Your Rights and Responsibilities
Your Rights Your Responsibilities
• Details of your loan • Sign a promissory note
• Grace period • Make payments on
• Loan repayment time
schedule • Continue to pay while
• Change in loan waiting for forbearance
servicers or deferment approval
• Receive entrance and
exit counseling
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45. It’s Time to Pay
• Grace Period:
• Time between graduation, dropping below half-
time, or leaving school and when you need to
begin paying back your loan
• Direct Stafford Loans: 6 months
• Perkins Loans: 9 months
• PLUS Loans: no grace period
• Called to active military duty for >30 days: grace
period is delayed
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46. Repayment Options
• Standard
• Graduated
• Extended
• Income-Sensitive
• Income-Contingent
• Income-Based From: http://pythagoreanism.com/debt-
downgrade-student-loan-bubble/
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47. Consolidation
Combine multiple federal
student loans to a new
Consolidation Loan with one
monthly payment.
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48. Pros and Cons
PROS CONS
• One monthly payment • Increase length of
• Lower monthly repayment
payment • Increase amount paid
in interest
• May lose loan specific
benefits
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49. Should You?
1. List your current student loans, include
balance, interest rate, and monthly
payment.
2. Total your monthly payments.
3. Look at your budget. Can you afford all
your payments?
4. Use the online consolidation calculator to
see the benefit of consolidation.
loanconsolidation.ed.gov
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50. Trouble Paying
• Deferment
• Temporary suspension of loan payments for
specific situations
• Ex: reenrollment in school, unemployment, or
economic hardship
• Forbearance
• Temporary postponement or reduction of
payments for a period of time because of
financial difficulty
• Interest accrues no matter what type of loan
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51. QUESTIONS?
Kelsey Balcaitis
kbalcaitis@aplusfcu.org
facebook.com/aplusfcu
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Editor's Notes
Also, Paying for College can cover a wide variety of topics, so is there anything more specific you’d like me to address? I was thinking along the lines of applying for Financial Aid, budgeting tips for college students, costs of college, and then how to handle loans and more after graduation. But I’m happy to tailor it to cover what you were hoping I’d discuss.
This chart shows how tuition changes over one year. For a 4 year public university, such as UT, average tuition has gone up by 6.5%. When you look at the entire cost of college, it has gone up almost 6%, just in one year. This rise in tuition prices is not expected to change.
Shows average annual earnings for adults under age 65 based on their education
Better healthLower poverty and unemployment ratesPositive perceptions of healthLower smoking rates More likely to enjoy employer sponsored benefits and pension plans
Applying for federal aid is free You do not have to pay anyone to help you complete the form
Federal aid can be used to cover expenses such as tuition and fees, room and board, books and supplies, and transportation. Have to fill out a FAFSA to get the aid though. Who gets aid? demonstrate financial need Be a us citizen Valid SSN
Can apply online or with a paper application. Online speeds up the process.
Financial comes in three main forms: gift money, earned, and borrowed.
Borrowed money is loans. These are the four major federally backed kinds of loans. Subsidized: While student is in school, government pays the interest on the loan, once student graduates, interest starts to accrueUnsubsidized: Interest accrues as soon as the loan is made, PLUS: Parent loans, parents have to go through a credit check to get the loan. Student loans do not require a credit check. Perkins: made by a school to a student with exceptional financial need
Not backed by the governmentIncreased popularity as school costs have risen and federal student lending has slowed25% per year growth in loan volume (and rising)
Grants are the best kind of aid: FREE and do not need to be paid back. But you can’t get a Federal Grant unless you fill out a FAFSA.
Effective Fall 2011 Federal regulations require all financial aid recipients to maintain satisfactory academic progress in a course of study leading toward a degree or certificate. Failure to meet one or more of the established standards of Satisfactory Academic Progress (SAP) will make a student ineligible for financial aid. Financial Aid SAP status includes all previous academic history, even if the student did not receive financial aid. Statuses are updated at the end of each semester, including summer. It is the student’s responsibility to monitor academic progress. Although the Financial Aid Office attempts to send students correspondence informing them of their status, students who do not meet the standards will be ineligible for financial aid even if they do not receive correspondence. Elements of Financial Aid Satisfactory Academic Progress:Grade Point Average (GPA) RequirementStudents must maintain a 2.0 cumulative GPA on all hours attempted at ACC: GPA calculatorCompletion Rate RequirementStudents must complete 67% of all hours attempted at ACC: Completion Rate Calculator.Maximum Time FrameStudents receiving financial aid must complete their program of study within a reasonable time frame. The maximum time frame is 150% of the published length of the academic program or certificate (to include all transfer credit hours). Limited developmental coursework will not be counted in the maximum time frame. Example: Associate of Science Degree in Physics = 64 hours x 150%= 96 hours 96 hours is the maximum that can be attempted with financial aidConsequences of not meeting Satisfactory Academic Progress (SAP):In the following provisions, “warning” or “suspension” means financial aid warning or suspension, not academic warning or suspension. Financial Aid Warning – The first time that a student fails to meet the SAP standards of a cumulative 2.0 GPA and 67% completion rate, he or she will be placed on financial aid warning status. The student will remain eligible for financial aid for one semester during the warning period. Financial Aid Suspension – If, after being placed on financial aid warning status, a student fails to meet the SAP standards of a cumulative 2.0 GPA and 67% completion rate, he or she will be placed on Financial Aid Suspension and will immediately lose financial aid eligibility.Maximum Time Frame Suspension – If a student fails to meet the Maximum Time Frame standards, he or she will be placed on Maximum Time Frame Suspension and will immediately lose financial aid eligibility.Failure to meet one or more of the established financial aid standards of satisfactory academic progress will make a student ineligible for financial aid. Students who have their financial aid revoked due to the failure to meet the SAP standards will remain ineligible until such time that they are able to meet the cumulative financial aid SAP standards. Those students will be responsible for payment of their own tuition and fees.