Women & Money Financing College

Financing College Typical Ways to Pay Cash – write the check Grants/Scholarships/Work Study/Summer Job Loans Combo - Most Common

Paying For College Shop for Scholarships/Grants: 10-20% Summer Jobs 10-20% Work Study and/or Job during school 10-25% Live Inexpensively Save 20% Buy Used vs new Save 15% Borrow the Rest

Real Costs of College 2017 Real Costs: CSU UC Public Private Tuition: $ 6,000 $12,300 $45,000 R&B 12,400 14,500 15,000 Books, Fees etc 1,500 1,500 1,550 Gas &Travel 1,000 1,000 1,000 Your Upkeep 1,000 1,000 1,000 Basic Fun 2,000 2,000 2,000 Advanced Fun 3,000 3,000 3,000 Sorority Stuff 2,000 2,000 2,500 Computer/Cell 1,000 1,000 1,000 MISC 1,000 1,500 1,000 TOTAL EST: $28,500 $38,800 $70,500

Public or Private School? It depends on you: Plan or no Plan? Potential Career Field School Resources Alum Resources & Network College Major Specialty Internships Industry Reputation Persistence

Types of Loans Private Institutions: Banks – Wells Fargo, Bank of America, Sallie Mae etc Private Individuals – Friends or Family Federal Direct: Interest Rates Range from 3.5-8% Ford, Stafford, Perkins - $ 5.500/year limit Direct Plus – Based on Need 7.9%

How to Apply Fill out your FAFSA – Early - Deadline: March - Sept FAFSA Forecaster Then go to the Loan web site or your school web site Choose a supplier and the type of Loan Download the Loan Application Send the supporting information with the App Make sure your school is linked to/from the lender

Two Keys: The Rate and the Term The 411 About Loans Two Keys: The Rate and the Term The Interest Rate: What it will cost to use their money The lower the better: Current rate range 3.5% to 8% The Terms: How long you can pay it back The shorter the term the higher the monthly payment but the lower the total cost The longer the term, the lower the monthly payment but the higher the total cost

True Cost of A loan Loan Amount $ 100000 Interest Rate 6.8 % Totals Months in Repayment 120 (10 Years) Monthly Payments $ 1150.80 Interest Payment $ 38096.00 Total Loan Payment $ 138096.00 Totals Months in Repayment 300 (25 years) Monthly Payments $ 694.07 Interest Payment $ 108221.00 Total Loan Payment $ 208221.00

True Cost of A Loan Loan Amount $ 100,000 Interest Rate 5 % Totals Months in Repayment 120 Monthly Payments $ 1060.66 Interest Payment $ 27279.20 Total Loan Payment $ 127279.20 Totals Months in Repayment 300 Monthly Payments $ 584.59 Interest Payment $ 75377.00 Total Loan Payment $ 175377.00

Make sure the Loan Terms Support your Needs The Truth About Loans Make sure the Loan Terms Support your Needs Make sure you can: Prepay without penalty Watch out for “fees” – like points, application Delay/Extend payments until after graduation Consolidate the loans into one big loan at a lower rate Apply for special terms for Hardship – Lost job

Loan Strategies Borrow the least amount possible Start with a longer loan term - but accelerate payback Swap your loans for cheaper interest rates Most school loan interest can be tax deductible Look for Other tax credits like the American Opportunity Credit or Military Pay off your school loans through a home refinance at a lower interest rate