Career & Financial Management How to Pay for College Career & Financial Management

What will it cost? Tuition and fees Room and board Books and supplies Personal expenses College cost calculator

Where are you going? 2-year college 4-year state school 4-year out-of-state school 4-year private school

FAFSA Free Application for Federal Student Aid File online at www.fafsa.ed.gov File every year beginning October 1st Deadlines vary by college Be careful: Priority deadlines! Estimate using FAFSA Forecaster http://www.fafsa4caster.ed.gov

Before You File… Social Security Number Driver’s License W-2 Forms Prior-year tax return Bank statements For both you and your parents

Student Aid Report (SAR) Expected family contribution (EFC) Sent to schools you designate Determines your financial aid package

Financial Aid Package Scholarships Grants Work-study programs Student Loans

Scholarships Do not need to be repaid Based on merit or achievement National programs College sponsored programs Local programs Guidance office or financial aid office www.fastweb.com www.finaid.org

Grants Do not need to be repaid Based on financial need Federal Pell Grant Educational Opportunity Program (EOP) HEOP for NYS Residents NYS Tuition Assistance Program (TAP)

Work-Study Programs Based on financial need At least minimum wage College sets maximum hours Food service, book store, library Resident Assistant (RA) Graduate or Teaching Assistant

Loans Federal Perkins Loan (subsidized) Federal Stafford Loan (two types) subsidized and unsubsidized Parent Loan for Undergraduate Students (PLUS) Private Loans Federal Perkins loan (subsidized)-government pays interest while in college; defer principal until 9 months after finishing or leaving college (interest is a fixed rate) Federal Stafford Loan (2 types): (interest is also a fixed rate) Subsidized-government pays interest while in college; defer principal until 6 months after finishing or leaving college Unsubsidized-borrower pays interest while in college; defer principal until 6 months after finishing or leaving college Parent and private loans-must be re-paid with interest while attending college (interest is a fixed rate)

Loan Terminology Subsidized Unsubsidized Fixed rate Deferred payment interest paid by government while in college Unsubsidized interest paid by borrower Fixed rate cap on interest rate Deferred payment start repayment after college

Loan Forgiveness Programs Volunteer Service Teaching Legal Service Medical Service Military Service Visit finaid.org for more information

Federal and Non-Profit Programs SUNY STEM Scholarship SMART Scholarship TEACH Grant AmeriCorps Peace Corps Volunteer in Service to America (VISTA) Teach for America TEACH Grant-receive $2000 per semester (undergraduate and graduate school) if you are majoring in a high-need field and agree to teach in a low-income school during 4 out of 8 years after graduating. Must maintain a 3.25 GPA. Some high-need fields are math, science, ESL, special education, reading. The US Department of Education has a list of low-income schools and high-need fields separated by states. AmeriCorps-For every 12 months of service, you can earn up to $7500 in stipends plus a Segal AmeriCorps Education Award of $4725 ($5350 in 2010). Some colleges and universities will match your AmeriCorps Education Award. Peace Corps-apply for deferment of loans while in the corps; earn 15% partial cancellation of loans for each year of service (up to 70%) VISTA is now a branch of AmeriCorps-Provide 1700 hours of volunteer service and receive up to $4725 as either a Segal AmeriCorps Education Award or post-stipend Teach for America-a non-profit organization dedicated to educational equality; founded by Wendy Kopp as part of her Princeton undergraduate thesis, providing teachers for low-income communities. College graduates must apply, (pretty competitive, elite school/college grads.) serve for 2 years, receive teacher training, competitive salary plus loan deferment (may be some built-in loan forgiveness)

Military Recruiting Programs Attend a Military Academy Reserve Officers’ Training Corps (ROTC) Army, Navy, Air Force, Marines, Coast Guard National Guard and Reserves Montgomery GI Bill Yellow Ribbon Program Visit finaid.org for an overview of programs

Loan Forgiveness Programs Benefits Drawbacks Save money Build a résumé Gain experience Travel/meet new people Provide a public service Commitment Takes time Defer career plans Location of jobs May not earn much

American Opportunity Tax Credit Up to $2,500 per year First 4 years of undergraduate study Qualified expenses only Receive a 1098-T Form from College Refundable credit Be careful combining 529 with AOTC Go to irs.gov for more information Student Aid and Fiscal Responsibility Act of 2009: Higher Pell Grant scholarships $5,550 in 2010 Lower interest rates on subsidized federal student loans More access to Perkins loan program Shorter, simpler FAFSA forms American Opportunity Tax Credit: $2500 tax credit over 4 years of undergraduate study Replaces the Hope Tax Credit (1st 2 years , $700 increase in credit)

Lifetime Learning Tax Credit Up to $2,000 per year No limit on the number of years Undergraduate or graduate studies Not a refundable credit Go to irs.gov for more information

Savings Plans for Parents 529 College Savings Plans Parent owns account State tax deductible contributions Can only be used for education UTMA Accounts Child owns the account Can be used for more than education Coverdell Education Savings Account

Other Funding Options for Parents IRA (Individual Retirement Account) Home-equity Loans