Financial Aid Options Work Study and Loans 12th Grade Advisory Activity UNIT 5: Financial Aid Options ACTIVITY 2: Work Study and Loans GRADE: 12 Opening: 5 minutes – The advisor begins by asking how many students currently or recently held jobs. Work study basically means having a job at a university. Specific jobs are designated for work study students, although the student usually still has to apply and can choose among different jobs.

Video: Luther College – Work Study Slide 2: The advisor says they will watch a short video and asks students to take notes on these questions: 1) What did the students say was valuable about their jobs? 2) How can work study strengthen your future career options? The advisor clicks on the picture, then clicks on the picture on the right side to play the Luther College– Work Study video. Click on the picture to access the video

Work Study Allows students to earn money Many students use this money toward tuition Students often are too busy at their job to study, however, some jobs allow students to study while working May be able to get a job related to your major It is very good for your resume Slide 3: The advisor reviews some details about work study opportunities at colleges: 1) Work study allows students to earn money for working at college. Many students use this money toward tuition. 2) Students often are too busy at their job to study. However, some jobs allow students to study while working. 3) Students may be able to get a job related to their major which is very good for their resume.

Loans Bank or college provides student specific sum of money Student signs a legal agreement to pay it back plus an additional sum (interest) over a specific timeline Slide 4: The advisor explains that many students end up taking out loans. Loans are when a bank or college provides a student a specific sum of money, and the student (and/or family) signs a legal agreement to pay it back over a specified amount of time. Loans can be a reasonable way to cover part of college costs, but they have to be paid back with an additional amount of interest, so it is very important to know the facts.

Video: How Can I Get A College Loan? Listen for: What are the 3 types of college loans described in the video? Slide 5: The advisor asks students to listen for the three types of college loans described in the Understand the Types of Federal Student Loans video, and clicks on the picture in the slide to play the video. Ask the students for the three types of loans (subsidized, unsubsidized, and direct plus), and any details they recall about each type. Unsubsidized loans incur interest charges while the student is in college, while the subsidized loans postpone the student’s interest obligation as long as they are in college at least half time. Direct Plus loans can be taken out by parents. (Click on the picture to play the video)

Federal v. Private Loans Slide 6: The advisor points out that private banks will make loans as well, but usually they have higher interest rates, need to be repaid while the student is in college, and can be harder to get.

Loans: Know Your Interest Rate and Repayment Obligation Talk with your school counselor Will help you with all different types of financial aid including loans Most students qualify for a low interest loan Know the interest rate Know when you have to start paying back the loan, and how much that payment will be Slide 7: The advisor makes sure students understand that they pay a price (interest) for the right to borrow the money, and end up paying back more than the actual amount of the loan. Low interest rates can save students thousands of dollars. Students are encouraged to talk with the school counselor for help with all different types of financial aid, including loans. The advisor summarizes by saying that the shorter the time period for repayment, and the lower the interest rate, the less additional expense to the borrower–the student. Closure: 2 minutes – The advisor explains that not everybody needs loans, but sometimes a student’s financial need changes while in college, so it is good for everyone to know about the options. Guidance counselors are a great resource for more information, and once they are accepted to a college, the college financial aid office can assist as well. In the next advisory they will discuss the FAFSA.