Planning Ahead Can Save You Time & Money Funding Your Education Wisely Planning Ahead Can Save You Time & Money

College Dreams At some point hopefully you’ve dreamed of college, think back to those days and why you thought of that school – Indiana has lots of choices – maybe your dream school is listed above 2

Wrong Choices May Ruin Dreams College choice isn’t an easy process: Even if you file paperwork on time and get free money but chose the wrong school that could spell trouble OR If you pick the right school and get the free money but pick a bad loan, that could spell trouble 3

Questions Will Arise For many questions still arise, how to get started? How do I fund wisely? What steps do I need to take? ISM College Planning is here to help and here is how: 4

We’ll Help You Understand… Value and Cost of Postsecondary Education Choosing the Right Career & College for You Financial Aid Types & Sources The FAFSA How College Cost is Presented Social Media Next Steps 5

Value and Cost of Postsecondary Education TITLE SLIDE BLUE Value and Cost of Postsecondary Education

The Value of Higher Education Highlight the “more you learn – the more you can earn” concept of higher degree completed = higher potential earnings Also the higher the degree the lower the chance of being unemployed or to stay unemployed Source: Current Population Survey, U.S. Department of Labor, U.S. Bureau of Labor Statistics 7 Source: Bureau of Labor Statistics, Current Population Survey

Cost of Higher Education 70% of college graduates have college-related debt Average college related debt $35,200 50% are surprised by how much they owe Student Loan Debt has grown to $1.2 trillion as of June 2015 Fidelity, Cost-Conscious College Graduates - (https://www.fidelity.com/static/dcle/welcome/documents/Fidelity-College-Grad-Study.pdf) Federal Reserve Bank of New York – (http://www.newyorkfed.org/householdcredit/2015-q2/data/pdf/HHDC_2015Q2.pdf) 8

Choosing the Right Career and College for You

Choosing Your Career Investigate career options using free online tools Find out if a career is right for you Job Shadowing Volunteering Internships Website options for students to enter information about their likes/dislikes etc. and helps determine possible careers or majors to consider Key on accessing tools on our website 10

Choosing Your School College Navigator Factors to Consider Size Cost Location State, Region Suburban, Urban, Rural Size Degree and Major Options Religious Affiliation Helps to review possible college options and lots of other data on the schools regarding average costs, aid, enrollment, graduation, etc. Again reiterate link and more information on our website 11

Choosing Your School Wealth of Information Admissions Profile Average Cost by Income Ranges Graduates per Program Campus Safety Statistics Helps to review possible college options and lots of other data on the schools regarding average costs, aid, enrollment, graduation, etc. 12

The Right Choice The key is finding a school that offers the right major AND is a good fit! Changing majors or schools may add extra years to college, which means extra expenses Doing the upfront work with a better idea of majors and cost will help reduce the “extra” time in college thus reduce debt or out of pocket costs as well as time from actually entering the workforce and earning income. Mention the 15 to Finish campaign – 30/60/90 = more likely to graduate on time + less debt 13

Financial Aid Sources and Types

Sources of Funds Federal Government State Government College/University Private Donors Briefly highlight sources – as we break down the individual aid elements in future slides 15

Types of Financial Aid Gift Aid Self-Help Scholarships Grants Employment (Work Study) Savings Loans Highlight 2 main aid options: Gift aid (briefly mentioning difference between grants and scholarships as well as merit vs. need based awards) Self-help (briefly mentioning main elements as we discuss in further detail on other slides) 16

Scholarships Colleges & Universities Local & Community Need Based versus Merit Based Local & Community Private Businesses, Community Foundation, Civic Organizations, Church Groups, School Counselor, Place of Employment FREE National Search Sites All are other sources of funds – need to ask around and find all sources of funding available Outside awards are required to be reported regardless of whether they are sent to the student or directly to the school. Institutions are required to consider them in the student’s overall financial aid package. Schools typically use them to replace family contribution (EFC) first and to reduce any loans 17

Spend 2-4 hours per week searching for scholarships Scholarship Tips Create Scholarship Resume Get Organized Scholarship folder Sample essays Identify deadlines Balance Time Beware of Scams Planning is key and can be a family venture – work as junior can provide insight into what scholarship providers are looking for and give student time to add to their “scholarship resume”. Spend 2-4 hours per week searching for scholarships 18

Scholarships – Get Creative! There’s something for everyone! Have fun searching your favorite things. Scholarships not just for academics or performance type activities, but could be various fun activities. Picture of guy & girl are winner of the “Duck Tape Yourself for Prom” competition. Tux and dress are made of duck tape and they won a scholarship. 19

Grants Federal State College or University Federal Pell Grant (Max: $5,775) Federal Supplemental Educational Opportunity Grant (FSEOG) ($1k – $4k) TEACH Grant ($4,000) State 21st Century Scholars Frank O’Bannon Grant College or University Discuss federal grant programs Audience is of course 21st Century students, but can mention Frank O’Bannon programs as well (HEA and FOC) Reiterate that some institutions have grants they provide some of which may be need-based so student won’t know whether they qualify until after the financial aid award is created. 20

Work-Study & Savings Benefits of Work-Study Saving for College Money can be used for education related expenses to help keep debt down Money earned won’t count against you on your FAFSA the next year Gain experience and references Saving for College Investigate Savings Plan Options Set a savings goal Continue saving through college Work-study is another way to help fund education and cover books/supplies, etc. Also way of gaining experience and potential references. Mention how attitude and work ethic could impact future opportunities regardless of type of work study job obtained. Any time of saving even during college is important. Mention briefly the 529 plans and potential match of savings with grandparents or parents. i.e. Save so much per month out of student job, would they match? 21

Education Loans Federal Direct Loan (4.29%, 1.068% fee) Subsidized Unsubsidized Federal Parent Loan for Undergraduate Students (PLUS) (6.84%, 4.272% fee) Private Education Loans (Varies) Remember Loans MUST Be Repaid! Briefly highlight loan options – not too much detail but simply the options for students/parents in federal program first and private only if needed. Key is that these are loans that have to be repaid. (Interest Rate for loans disbursed on or after 7/1/15, Loan Fees for loans disbursed between 10/1/15 – 9/30/16) 22

Free Application for Federal Student Aid TITLE SLIDE BLUE Free Application for Federal Student Aid (FAFSA)

FAFSA.gov 24

The Importance of the FAFSA Free Application for Federal Student Aid (FAFSA) Currently the the Most Important form when applying for Financial Aid Basis for determining eligibility for: Federal Funds (Grants, Scholarships, Loans and Work Study) State of Indiana (Grants and Scholarships) Potential Institutional Funds (Need-Based) Determines EFC Key word is FREE – don’t pay to have this form completed 25

What is EFC? EFC = Expected Family Contribution. Two components: Parent contribution Student contribution Calculated using data from the FAFSA and a federal formula. Amount family can reasonably be expected to contribute to the student’s education. Stays the same regardless of college. Briefly discuss what the EFC is 26

How College Cost is Presented

Net Price Calculators Provide estimates of Financial Aid Packages to help families make informed decisions Cost of Attendance – Gift Aid (Grants & Scholarships) = Net Price Colleges are required to include a net price calculator on their website Describe the NPC concept and what it provides to families as a potential estimate of aid available at various schools. 28

Net Price Calculators http://collegecost.ed.gov/netpricecenter.aspx 29 Website to find the NPC for any school since sometimes they are hard to find on individual school websites 29

Sample net price calculator data from an Indiana public institution 30

Expected Salary & Debt Impact Investigate your expected salary Hoosier Hot 50 Jobs Understand the impact of borrowing Student Loan Game Plan Can review potential salary for particular degrees and student loan game plan helps to bring all the pieces together to see the potential impact of college debt on future monthly budget. 31

Simple Comparisons School A School B Cost of Attendance*   School A School B Cost of Attendance* Federal Gift-Aid State Gift-Aid Institutional Gift-Aid Other Gift-Aid Work-Study Loans Direct Subsidized Direct Unsubsidized PLUS Loan Private Loan Total Loans Other * Includes Tuition, Room and Board, Supplies, and Other Costs Need to compare aid offers to make sure you understand the bottom line costs. Free money versus out of pocket and loan debt Easy option is to simply create a spreadsheet. 32

Remember to include your EFC when comparing college costs Comparison Tips Federal aid typically the same but may vary State aid varies based on school type and grant program Institutional aid varies from school to school Review the impact of housing options on both cost and aid Remember to include your EFC when comparing college costs 33

Social Media

Professional Online Presence Appropriate email address, such as firstname.lastname@gmail.com. Review social media accounts removing inappropriate material and anything that may be misinterpreted. Be engaging and personal 35 20

Evaluation of Scholarship Applicants When reviewing a scholarship applicant’s online presence, the scholarship providers look for the following information: To determine whether the applicant demonstrates good judgment (58%) Provocative or inappropriate photographs or remarks (58%) Illegal activities, such as underage drinking and use of narcotics (50%) To get to know the applicant better (42%) Survey of 300 National Scholarship Providers Association (NSPA) members who provide more than $1 Billion in scholarships 36

Evaluation of Scholarship Applicants Scholarship providers review online content 25% of scholarship providers selected an applicant 33% denied an applicant a scholarship 37

TITLE SLIDE BLUE Next Steps

ISMCollegePlanning.org 39

We’ll Help… Provide us with your Name and E-Mail and we’ll provide you with advice on… Investigating the right career path Choosing the right college Searching for scholarships Completing financial aid forms, and more! Get started now at: ISMCollegePlanning.org Remind we will help and how they can contact us 40

What do I do now? Stay in touch with school counselor Register for and take SAT and/or ACT Begin scholarship searches Pay attention to applications & deadlines Go on campus visits Attend college fairs Briefly highlight things they can be doing – some we have discussed already but others like Campus Visits and College Fairs are good resources to find out more about the various college options 41

ISM on Social Media Facebook Twitter Others www.fb.com/ISMCollegePlanning Twitter @ISM_CollegePlan Others Instagram – www.Instagram.com/ISMCollegePlanning Pinterest - www.Pinterest.com/ISMCollegePlan 42

TITLE SLIDE BLUE Outreach@ISMCollegePlanning.org 317-715-9007