Financial Aid for College

Financial Aid Think about your costs and the affordability You can’t graduate from a college you can’t afford to stay long enough to earn your degree Before borrowing, consider what you can afford to repay after graduation (research salaries) Avoid money mistakes – make a budget

Understand the Costs College prices vary, do your research Many pay less than published rates Cost of attendance includes both Direct – Tuition, fees, room & board (billed by school) Indirect – Books, supplies, transportation, misc

Step 1: Know Your Options Grants – do not need to be repaid Federal and state governments Colleges Financial need Scholarships – do not need to be repaid Merit – talents, abilities, affiliation with special groups Work Study – employment On campus, higher paying than minimum wage, work around student’s schedules Loans – must be repaid, last resort, principal + interest

Step 2: Search for Scholarships Begin researching your junior year to see what you’ll be eligible for Beef up your resume for activities scholarship committees look for Academics – GPA, ACT/SAT test scores Activities – school and community Volunteerism More on this in November

Step 3: Apply for Financial Aid FAFSA required for any type of federal financial aid and many types of state and college aid. www.fafsa.gov – it’s FREE! Student/Parent meeting September 14, 6:30PM, OHS Auditorium Complete after October 1 for the following fall start date. Seniors you should fill out October 1. Workshop dates at OHS on October 5 5-8PM, November 17 8-10AM, 5-7PM, February 28 5-7PM

Step 4: Review SAR (Student Aid Report) Receive after you file your FAFSA Generate by the US Department of Education Check for accuracy and mistakes Verification of information may be requested, random

Step 5: Compare Award Letters You’ll receive award letters from each college you’ve been admitted to and that has received your FAFSA Read carefully, award letters are subject to change Know the difference between what has to be repaid and what does not

Step 6: Make an Informed Decision Even with financial aid you may not be able to cover costs, consider: Budget Change your lifestyle – “wants vs needs” Payment plan with Financial Aid Office Part-time job Rethink your plan Consider different school Begin at community college Live with relatives, free Shorten your college time by starting early or taking heavy loads

Step 7: Borrow Wisely, Only What you Need Know if you’ll be able to pay off your loans after you graduate Will interest accrue while you’re in school Will payments be deferred until after graduation You shouldn’t borrow more than the starting salary for the career you intend to pursue after college

Loan Comparisons Loan amount $20,000 Payback 10 years (120 months) Interest 4.29% Monthly Payment $205.26 +100 +300 Total Payment $24,630.98 $22,828 $21,603 Interest paid $4,630.38 $2,828 $1,603 Repayment shorted by 3 years 9 months 6 years 5 months

Step 8: Finalizing Your Financial Aid Notify each institution Discuss payment plan if needed Complete student loan documents, if required