Cost of attendance and the “L-Word” JUMP 2018

objectives SWBAT identify different types of financial aid, including student loans SWBAT differentiate between cost of attendance and out of pocket costs SWBAT analyze different financial aid packages and make responsible borrowing decisions based on the information they receive SWBAT understand ROI (return on investments) (1 minute)

SWBAT identify different types of financial aid What are the 4 types of financial aid shown in this sample financial aid award letter? Types of Financial Aid: Grants Scholarships Loans Work-Study (2 minutes for scholars to work; 2 minutes to explain)

SWBAT identify different types of financial aid Scholarships Grants Loans Work Study Definition Advantages Disadvantages (5 minutes to research and record answers on board; 5 minutes to discuss whole group) Emphasize: Work study amount is an estimate. Students have to apply for jobs and work to receive a paycheck. Scholarships can come from the institution or outside agencies. Most scholarships will require students to maintain a certain GPA to continue receiving money Grants will usually be tied to parents’ income There are several types of loans (parent, subsidized, unsubsidized, and private) that we will not have time to differentiate today Divide class into 4 groups. Each group is responsible for choosing one recorder to record the definition, pros, and cons onto this chart (project onto whiteboard)

SWBAT differentiate between cost of attendance and out of pocket costs (2 minutes to T-P-S; 2 minutes to explain) Have scholars think-pair-share and choose a college to attend solely on cost. After scholars share out, explain that school B costs more, but offers more aid, and is less expensive out of pocket

SWBAT differentiate between cost of attendance and out of pocket costs The published cost to attend the school, which includes: Tuition Housing Food Books Fees Transportation How much of the COA you actually have to pay after deducting scholarships and grants. Total amount you will take out in student loans and pay out of pocket directly to the school (2 minutes) When considering a school’s cost, do not be discouraged by the COA. Research the average out of pocket cost instead.

IT IS NOT GOOD TO TAKE OUT STUDENT LOANS FOR COLLEGE SWBAT make responsible borrowing decisions based on the information they receive IT IS NOT GOOD TO TAKE OUT STUDENT LOANS FOR COLLEGE (30 seconds to move; 2 minutes to discuss in groups; 2 minutes per group to convince people to switch sides) Have one scholar read the statement aloud Students move to the left side of the room if they agree with the statement; to the right if they disagree. Students who are neutral stay in the middle. Have scholars in each group explain why they chose a side, and attempt to persuade the people in the middle to choose their side. I AGREE I DISAGREE

The bottom line about student loans… With the cost of college rising, most people need student loans. Student loans allow you to pursue a college education without having to pay for your entire tuition in full. With a college degree, you improve your chances of finding well-paying, stable employment. Just like you would borrow money for a car or a house, borrowing money for school is not bad as long as you are responsible. So what does it mean to borrow responsibly? 1 minute

SWBAT make responsible borrowing decisions based on the information they receive As you are watching the video, write down what things you should consider when deciding to borrow money for school. Total amount to be borrowed (all 4 years) Is the school a good fit? What is your career path? 5 minutes Play video. Ask scholars to share their responses to the question Elaborate on what scholars say

Borrowing responsibly – let’s do one together Step 1: Calculate how much the student will take out in loans over 4 years (1000+3500+2000) x 4 = $26,000 Step 2: Estimate the student’s salary after graduation Police Officer: Averages $61,270/year Step 3: Decide whether this student should accept this loan or not Yes – This student will likely be able to pay the loans back because they will be making much more than their monthly loan payments. Student’s Prospective Career: Police Officer (5 minutes)

Borrowing responsibly – Work in pairs Student’s Prospective Career: Teacher Step 1: Calculate how much the student will take out in loans over 4 years $20,289 x 4 = $81, 156 Step 2: Estimate the student’s salary after graduation Teacher: Average Salary $48,890/year Step 3: Decide whether this student should accept this loan or not No – This student will struggle to pay back these loans because the total cost far exceeds how much they will make a year. They should seek a less expensive school or a more lucrative career. (5 minutes)

Borrowing responsibly – Work in pairs Student’s Major: Information Technology Step 1: Calculate how much the student will take out in loans over 4 years $11,225 x 4 = $44,900 total Step 2: Estimate the student’s salary after graduation IT Manager Avg. Salary: $84,865 Step 3: Decide whether this student should accept this loan or not Yes. The student will be making much more than the cost of the loan. Over time, the payments should be manageable. (5 minutes)

Planning To Meet College Costs The costs of a college education have more than doubled in the last ten years. In addition to the escalating cost of tuition, add approximately $4,500 in annual costs for room and board, fees, books, and transportation. Paying for college is a manageable feat and the earlier parents start saving for college, the more flexibility and choice they will have. Ideally, parents should start saving for their children's college education when they are born.

Return On Investment (ROI) If you are entering college for the very first time, or are going back to school to pursue a master’s degree, it is important to consider your education’s return on investment ROI.

(7-10 minutes)