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Advanced Level

Paying for Higher Education


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Receiving a Higher Education

Plan Ahead!

Eight times as many


students drop out of
degree and
certificate programs
due to finances and
debt than grades!

What are other pros and cons of higher education?


Take Charge Today– August 2013 – Paying for Higher Education – Slide 2
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

Reduce Costs by Planning Ahead


What are ways you can reduce the total cost of higher education?

Take Charge Today– August 2013 – Paying for Higher Education – Slide 3
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

Academic Advisors

Imani has learned that a bachelor’s and professional degree to


become a lawyer could cost as much as $301,118
Your mission: Explore ways to help Imani pay for her education
Take Charge Today– August 2013 – Paying for Higher Education – Slide 4
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
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Imani’s Plan

Anticipated total cost: $241,458

Anticipated total cost: $178,294

Anticipated total cost: $95,536

Take Charge Today– August 2013 – Paying for Higher Education – Slide 5
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

Imani’s Total Anticipated Cost

“Through careful research, I’ve been able to


get the potential cost of my dream career
from $301,118 down to $95,536. That would
make my debt-to-income ratio 11.7% if I take
20 years to repay loans. But this is still a LOT
of money…”
What can Imani do to lower her total cost even more?

What methods can Imani use to pay for her education?


Take Charge Today– August 2013 – Paying for Higher Education – Slide 6
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Three Types of Higher
Education Financial Aid

Higher Cost

Money you do not


have to repay
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Money You Do Not Have to Repay

Take Charge Today– August 2013 – Paying for Higher Education – Slide 8
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

Scholarships
Typically an application process
May have requirements before, during, and after the scholarship is awarded

Can be based on…

Take Charge Today– August 2013 – Paying for Higher Education – Slide 9
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

Scholarship Sources

You should never


have to pay for a
scholarship - watch
for scams!

What are sources of scholarships in your community?


Take Charge Today– August 2013 – Paying for Higher Education – Slide 10
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

Imani’s Potential Scholarships

Your mission: work in small groups to


identify at least three scholarships Imani is
eligible for based on her special
circumstances and extra-curricular activities

Take Charge Today– August 2013 – Paying for Higher Education – Slide 11
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

Grants
Tax-exempt financial aid

Take Charge Today– August 2013 – Paying for Higher Education – Slide 12
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

Federal Student Grants

Examples:
•Federal Pell Grant
•Federal Supplemental Educational Opportunity Grant
•Teacher Education Assistance
Take Charge Today– August 2013 – Paying for Higher Education – Slide 13
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

Work-Study

Take Charge Today– August 2013 – Paying for Higher Education – Slide 14
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

Low-Cost Financial Aid


Federal Student Loans
Characteristics include:

Eligibility determined by FAFSA application


Take Charge Today– August 2013 – Paying for Higher Education – Slide 15
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

Types of Federal Loans


Highest
Interest Rates

Lowest
Interest Rates Take Charge Today– August 2013 – Paying for Higher Education – Slide 16
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

High-Cost Consumer Loans


Private Loans

You pay 100% of the


interest – often a
higher rate than a
federal loan

Take Charge Today– August 2013 – Paying for Higher Education – Slide 17
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

FAFSA Forecaster

FAFSA Forecaster = free financial aid calculator that


provides an early estimate of federal student aid eligibility

Your mission: work in small groups


using the FAFSA Forecaster to estimate
Imani’s potential financial aid and expected
family contribution
Take Charge Today– August 2013 – Paying for Higher Education – Slide 18
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Free Application for Federal
Student Aid
(FAFSA)
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Why Everyone Should Complete


the FAFSA…
Gives you access to the largest source of financial aid!

Take Charge Today– August 2013 – Paying for Higher Education – Slide 20
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

To Receive Federal Student Aid, You


Must…

Age, race and field of


study do not impact
Take Charge Today– August 2013 – Paying for Higher Education – Slide 21
eligibility
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

When Do I Fill Out the FAFSA?


As soon as it is available!
Some aid is awarded on a first come, first served basis

The FAFSA Form must be completed each academic year!


Take Charge Today– August 2013 – Paying for Higher Education – Slide 22
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

Who Decides How Much Aid I Will


Receive?

Take Charge Today– August 2013 – Paying for Higher Education – Slide 23
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

Need-Based Aid
Awarded if you have financial need and meet other criteria

Expected Family
Cost of Contribution –
Attendance – estimate of the
parents’ and/or Financial
amount it will
student's ability to Need
cost you to go
to school contribute to post-
secondary expenses

Does not change between


post-secondary institutions
Take Charge Today– August 2013 – Paying for Higher Education – Slide 24
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

Non-Need-Based Aid

Examples: Direct Unsubsidized Loan and Federal PLUS Loan

Take Charge Today– August 2013 – Paying for Higher Education – Slide 25
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

FAFSA Application Process


Determine Dependency Status

FAFSA website has a checklist to help you determine your


dependency status Take Charge Today– August 2013 – Paying for Higher Education – Slide 26
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

FAFSA Application Process


Create a Personal Identification Number (PIN)

If filing as a dependent – student and parent/guardian need a PIN


Take Charge Today– August 2013 – Paying for Higher Education – Slide 27
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

FAFSA Application Process


Gather Required Documents

If filing asa grant


Funded by a from
dependent
Take Charge America,-Inc. documents are
to the Norton School of Family and needed
Consumer Sciencesfor student
Take Charge Today– August 2013 – Paying for Higher Education – Slide 28
Take Charge and
America Institute at theparent/guardian
University of Arizona
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FAFSA Application Process


Complete the FAFSA

Organize information in advance by completing the


“FAFSA on the Web” worksheet Take Charge Today– August 2013 – Paying for Higher Education – Slide 29
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

FAFSA Application Process


Sign and Submit

Take Charge Today– August 2013 – Paying for Higher Education – Slide 30
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
FAFSA Application Process
2.3.5.G1

Review Your Student Aid Report

Take Charge Today– August 2013 – Paying for Higher Education – Slide 31
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

FAFSA Application Process


Determine Your Aid Eligibility

Take Charge Today– August 2013 – Paying for Higher Education – Slide 32
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

FAFSA Application Process


Compare Aid Packages
Evaluate aid offered by each school to determine
which is the most affordable
1. DETERMINE THE NET PRICE

2. EVALUATE STUDENT LOANS


◼ Understand what you are responsible for paying and by when
3. ONLY ACCEPT WHAT YOU REALLY NEED
Take Charge Today– August 2013 – Paying for Higher Education – Slide 33
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

FAFSA Application Process


Support is available!

Take Charge Today– August 2013 – Paying for Higher Education – Slide 34
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
When It’s Not Free Money!
Student loans must be repaid!
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If You Default on Your Student Loan…

Take Charge Today– August 2013 – Paying for Higher Education – Slide 36
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

If You Find Yourself in Trouble…

Take Charge Today– August 2013 – Paying for Higher Education – Slide 37
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
2.3.5.G1

Your Goals:

Take Charge Today– August 2013 – Paying for Higher Education – Slide 38
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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