at Aurora University Presents: WHY FINANCIAL LITERACY IS - - PowerPoint PPT Presentation

Heather McKane Dean of Student Financial Services at Aurora University Presents:

WHY FINANCIAL LITERACY IS IMPORTANT

Why College Students Drop Out

38% 28% 13% 9% 5%4% 3% Financial Pressures Academic Disqualification Poor Social Fit Family Support Health Problems Distance From Home Mental/Emotional issues

Look at college as a rational investment, not a coming-of-age ritual where money is no object.

• Zac Bissonnette, Debt-Free U (2010)

Time, Money, and Energy

Free Application for Federal Student Aid & Financial Aid Timeline

What can I do before January 1?

• FAFSA4caster
• Apply for Admission
• Apply for PIN
• Research the process
• Net Price Calculators

AU’s Net Price Calculator

What can I do after January 1?

File FAFSA A.S.A.P!

A need analysis formula established by Congress determines a student’s Expected Family Contribution; using information reported on the FAFSA.

Expected Family Contribution

What? Why? Where?

A comparative measure

• f how much a family can

be expected to contribute

• ver the course of an

academic year Used to determine a student’s eligibility for most federal and state assistance Shown on the Student Aid Report (SAR)

EFC

Step 1: File the FAFSA

• www.fafsa.ed.gov
• File as soon as possible after January 1
• AU School Code: 001634

Step 3: Receive & Review Your Award Letter

• Determine an estimate of your Out-of-Pocket

Step 4: Return All Requested Paperwork to College

Aid Processed

Step 2: Review your Student Aid Report

• Make any necessary corrections

Scholarships, Need-Based Grants, & Veteran Benefits

AU Merit Scholarships

Freshman

Renewable, merit-based scholarships awarded to full-time freshmen based on cumulative high school GPA and ACT scores

Transfer

Renewable, merit-based scholarships awarded to full-time transfer students based on cumulative transfer GPA

• T.P. Stephens - $12,500
• Board of Trustees - $10,000
• James E. Crimi Presidential - $9,500
• Deans’ Scholarship - $8,500
• AU Opportunity Grant- $7,000
• AU Promise Grant- $2,000
• Presidential Transfer - $7,000 **
• Deans’ Transfer - $6,500 **
• Spartan Transfer - $5,000
• AU Transfer Grant - $2,500

** An additional scholarship of $1,500 is added for those with a membership in Phi Theta Kappa

Other AU Scholarships/Grants

• Advent Christian Endowed Scholarship
• Alumni Legacy Grant
• Aurora University Family Discount
• Dunham Scholarship
• Future Educators of America (FEA)
• Music and Theatre Scholarship
• Out-of-State Resident Grant

Need-Based Grants

State

• Illinois MAP Grant

Federal

• Pell Grant
• Federal Supplemental Educational Opportunity

Grant (SEOG)

Institutional Grants

• Need-based grants awarded to students with need

not met by State and/or Federal grants

VA Benefits

• Office of Financial Aid is the certifying office for:

 Ch.30 (Montgomery GI)  Ch. 33 (Post 9-11)  Ch. 35 (Dependent)  Any other chapter of VA benefits

• What we need from students:

 Copy of DD-214 OR  Certificate of Eligibility (COE)

Yellow- Ribbon Participant

VA Contact Information: www.gibill.va.gov/1-888-442-4551

Student Employment

The Office of Student Employment

• More than 350 students employed on campus
• More than 30 departments hire student workers
• Many different types of on-campus employment
• pportunities:

 Clerical/Data Entry  Event Set-Up  Bookstore/Library  Food Services

www.aurora.edu/admission/financialaid/student-employment

Contact Information

Location: Eckhart Hall–Room 106 E-mail: studentjobs@aurora.edu Phone: 630-844-6880

Federal Work-Study

A need-based employment program that provides on- and off-campus jobs to students

A completed FAFSA is required The availability of funds is limited; priority deadlines may apply Compensation is at least the current federal minimum wage (Max 15 hrs/wk) The student is paid by the college bi-weekly

Communities In Schools

• Off-campus, after school program through the

area school districts and the City of Aurora

• Over 260 AU students are employed with this

program

▫ Participate in activities and experiences in the following subject areas:

 Academics (math, reading, science)  Enrichment “hands-on” activities  Fine and performing arts  Homework help/tutoring  Recreations and sports  Socialization

Benefits of Working On Campus

• Earn extra money
• No gas required - you can walk to your job
• Great way to meet new people
• Enhances skills for your future career
• Build your resume
• Increase networking skills
• See how a college campus is operated from the

inside

Loans

Direct Loan Programs

• Low-interest loan the student takes out on

his/her own behalf

• The FAFSA must be completed
• Repayment begins 6 months after the student

graduates, leaves school, or falls below half-time enrollment

Subsidized vs. Unsubsidized

• Financial Need

 Subsidized = need-based  Unsubsidized = non need-based

• Payment of Interest

▫ Subsidized

 Federal government pays while student is in college and during grace/deferment periods.

▫ Unsubsidized

 Payment is always student’s responsibility.

Stafford Loan Limits

* Dependent Aggregate Loan Limit = $31,000 (no more than $23,000 in Subsidized loans) * Independent Aggregate Loan Limit = $57,500 (no more than $23,000 in Subsidized loans)

Dependent (no PLUS denial) Independent (or Dependent w/ PLUS denial Subsidized Unsubsidized Subsidized Unsubsidized Freshman $3,500 $2,000 $3,500 $6,000 Sophomore $4,500 $2,000 $4,500 $6,000 Junior $5,500 $2,000 $5,500 $7,000 Senior $5,500 $2,000 $5,500 $7,000

Federal Loan Programs, 2011-12

• U. S. Department of Education

Type Grace Rate

Perkins

Subsidized 5% Fixed 9 Months

Stafford*

(2011-2012)

Subsidized 3.4% Fixed 6 Months Unsubsidized 6.8% fixed 6 Months

PLUS

Credit-based 7.9% fixed Within first 60 days

*Note: New Stafford Loans (both subsidized and unsubsidized) for Graduate students have a fixed interest rate of 6.8% through 2013.

All federal student loan borrowers must complete and sign a Master Promissory Note (MPN), agreeing to repay: As with any debt, you are responsible for paying your loan even if you:

Know What You’re Signing

did not complete school cannot find a job in your field of study feel that you did not receive the educational services you purchased

loan funds interest

Alternative Loans

• Not federally insured
• Competitive, variable interest rates

▫ Most are based on prime + premium (lender determines)

• Undergraduates must have credit-worthy

cosigner

• Student must contact lender directly

Outside Scholarships

• Where to search
• What to do before applying
• Completing the process
• Avoid scams
• Follow up

www.aurora.edu Financial Aid Additional Resources

Scam Alert!

fafsa.com VS fafsa.gov

fafsa.com

fafsa.gov

Get your hands on up-to-date, accurate and trusted sources of information to learn what you need to know.

Trusted Web Sites

KnowHow2GOIllinois.org WhatsNextIllinois.org CollegeIllinois.org FederalStudentAid.ed.gov FAFSA.gov PIN.ed.gov CollegeNavigator.ed.gov

Still Puzzled?

Here are some common scenarios:

Unlike Wal alma mart rt, Schools do not price match.

In Out

Special Circumstances

1) Loss of Income/Benefits 2) Separation/Divorce of Student or Parents 3) Death/Disability of Parent/Spouse 4) Major Medical Expenses Paid 5) Tuition Paid at Private Elementary, Middle and/or High Schools 6) Other

How to Determine Out of Pocket

Direct Costs (Tuition, room and board)

• Gift assistance (Scholarships/Grants)
• Loans

Out of pocket expense “GAP”

(Plus books and miscellaneous expenses)

Fall Spring Total Estimated Semester Hours 15** 15** SCHOLARSHIPS/GRANTS AU Opportunity Grant $3,250.00 $3,250.00 $6,500.00 *IL MAP Grant (EST) $2,484.00 $2,484.00 $4,968.00 Federal PELL Gant $350.00 $350.00 $700.00 Federal SEOG Grant $642.00 $642.00 $1,284.00 LOANS*** Direct Sub Stafford Loan $1,750.00 $1,750.00 $3,500.00 Direct Unsub Stafford Loan $1,000.00 $1,000.00 $2,000.00 Award Total $9,476.00 $9, 476.00 $19,952.00 * Award amount and eligibility are subject to change pending action by the Illinois General Assembly and/or your actual semester hour enrollment per semester . ** Please notify the financial aid office if your semester hours and/or living arrangements differ from our estimate. This can be done by fax, telephone, in writing, or by email at: finaid@aurora.edu. *** Your loan disbursement dates have been pre-determined by AU based on your semester or module enrollment and/or eligibility. Please watch for your loan disclosures statement which provides your estimated disbursement dates and amounts. This statement will be provided to you by the U.S. Department of Education. Earnings under the FWS program should NOT be included when determining the balance you may owe, as paychecks are given directly you. Student Employment FWS Allocated $750.00 $750.00 $1,500.00

How to Determine Out of Pocket

Questions?