Please silence your cell phones! Thank you for being considerate to - - PowerPoint PPT Presentation

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Please silence your cell phones! Thank you for being considerate to - - PowerPoint PPT Presentation

Sep 09, 2022 514 likes •1.04k views

Please silence your cell phones! Thank you for being considerate to the people around you. The Path to Paying for College Click to edit Master title style Plan Ahead You are Here Higher Education Choices Four year college or university

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Please silence your cell phones!

Thank you for being considerate to the people around you.

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The Path to Paying for College

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Click to edit Master title style

You are Here

Plan Ahead

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Higher Education Choices

  • Four year college or university
  • Community College
  • Hospital school of nursing
  • Trade or technical school

sweb.com Collegeboard.com

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  • Please right click and duplicate slide.

2016: 4-year Public - $20k - $30k 4-year Private - $30k – over $60k 2030: 4-year Public - $40k - $60k 4-year Private - $92k - $130k

cost projector at www.finaid.org

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<50%

% of students who graduate within 4 years. (look at collegeresults.org).
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6-year grad rates

Schools will advertise 6-year graduation rates to make them look better. Collegeresults.org
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120

Number of credits usually required to complete a Bachelor’s Degree.
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12 x 8 =

96; this means a student is already 24 credits short (an entire year!) for their 4-year credential.
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SLIDE 12 The number of credits a student should consider taking MINIMALLY every semester to graduate on-time.
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  • EducationPlanner.org
  • MySmartBorrowing.org
  • Collegecost.ed.gov

» Net-price calculators » College Scorecards

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AFFORDABILITY

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ROI

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Think of ways to save

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Click to edit Master title style

Scholarships

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Increase your scholarship options

❖Organize important information that can increase your chances of

  • btaining scholarships!

❖Create a Resume ❖What makes you stand out?

❖ Besides grades, class rank, test scores

❖Document your information!

❖ Academics - courses, grades, GPA, class rank, test scores ❖ Personal/Performance – sports, music, art, achievements ❖ Extra Curricular Activities – jobs, hobbies ❖ Volunteerism, Community Activities, Employment
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Click to edit Master title style

FAFSA

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FAFSA.gov

Apply after October 1 (of senior year in hs) It’s the student’s application

  • Parent sections

2018-19 FAFSA will use 2016 tax information

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FSAID.ed.gov

  • Allows you to sign the FAFSA (as well as loan

documents)

  • The student and one parent (if the student is

dependent) will need an FSA ID Username and Password

  • DO NOT lose it; DO write it down – You will need to

file a FAFSA every year you are in postsecondary school

  • Need separate email addresses for student and

parent; make sure information is accurate (and identical to the information you file on your FAFSA)

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State Grant Form

First-time filers only Can also access at pheaa.org through Account Access
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Click to edit Master title style

Award Letters

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Sorting it all out….

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How much is gift aid? – I don’t have to pay it back. How much is self-help aid? – I will have to pay it back or earn it. What are the total costs and how much will I

  • we the

school?

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Where does the money come from?

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Gift aid (do not repay)

  • Pell Grant (max $5920)
  • SEOG
  • TEACH Grant
  • Iraq and Afghanistan

Service Grant

  • Americorps
  • GI Bill
For more information: studentaid.ed.gov, pheaa.org, or gibill.va.gov
  • PA State Grant (max $4300)

» (OH, DE, MA, VT, WV, and DC)

  • EAP
  • Chafee Grant
  • Blind or Deaf Beneficiary Grant
  • Postsecondary Educational

Gratuity Program

  • PATH
  • PA TIP
  • RTSS
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Self-help aid (must work to earn or repay)

  • Work Study

» Say “yes” to work study question on the FAFSA

  • Loans

» Federal Direct Stafford Loans » PLUS Loans » Private/Alternative Education Loans

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$37,000

Average student indebtedness for graduates of the class of 2016.
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What does a $1 million look like?

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What does $1 Trillion look like?

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Repayment Examples

It is estimated that you would need an annual salary of $44,928 to be able to afford this loan payment.

Source: finaid.org
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Repayment Examples

Source: finaid.org

It is estimated that you would need an annual salary of $22,264 to be able to afford this loan payment.

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Opportunity Cost

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Opportunity Cost

Source: bankrate.com

What if the student invested the extra $200 per month for 10 years instead into a Roth IRA?

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Opportunity Cost

Source: bankrate.com

What if they never invested another penny but saved it until retirement 40 years late (age 72).

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Direct Stafford Loans

StudentLoans.gov

Subsidized v. Unsubsidized Interest is currently 3.76% (adjusted annually); capped at 8.25% Fee is currently 1.069%

(if you borrow $5500, $5441.26 is applied to the bill)

Should try to pay interest on unsubsidized loans

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Direct Stafford Loans

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Direct Stafford Loans

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Parent Loan for Undergraduate Students (PLUS)

  • Parent borrows a loan for the student

»6.31% interest rate for 2016-17; interest capped at 10.50% »Up-front fee of 4.276% deducted at disbursement »May borrow full cost of education minus any aid »Credit Check is required »Can defer repayment while the student is enrolled, but as with unsubsidized loans, the interest does

  • accrue. Interest payments are encouraged.

»Apply @ StudentLoans.gov

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Click to edit Master title style

Decide

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Review and consider all of your

  • ptions. Sometimes the best fit is

not your first choice.

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Deciding

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What should you do now?

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Summer

Summer

  • Make up academic work
  • Take prerequisite classes
  • Job Shadow
  • Participate in summer

enrichment programs

  • Visit colleges
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Timeline

  • Apply for admission starting in September
  • f senior year in hs
  • Apply for financial aid starting October 1
  • f senior year in hs
  • Decide by May 1 of senior year in hs
  • Pay deposit
  • Billing in July for fall; Payment usually due in August

How are you going to pay the balance? Payment plans; PLUS or alternative loans; 529 Plan or other savings?

  • Has anything changed since you filed the FAFSA? (divorce, job

loss, death of parent)

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Use Your Resources

  • PHEAA.org
  • EducationPlanner.org & MySmartBorrowing.org
  • YouCanDealWithIt.com
  • MyFedLoan.org
  • PHEAA toll free: 800.692.7392
  • Federal Student Aid Info Center – 800.433.3243
  • FASFA.gov
  • StudentAid.gov – general financial aid info
  • StudentLoans.gov – information on federal loans
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Contact Information

Kim McCurdy

kmccurdy@pheaa.org