Planning For College Wisely FAFSA Planning For College Wisely

What is FAFSA? 1. This is aid from the federal government to help pay for college. 2. It is intended to make up the difference between what your family can afford to pay and the cost of college. 3. All families are expected to contribute something to the cost of school. This is called the Expected Family Contribution- EFC 4. More than ½ of the students in college currently receive some sort of aid.

Types of Aid 1. Loans 2. Grants 3. Scholarships 4. Work Study

What are Loans? ~ Loans are borrowed money from the government that must be repaid after the student has graduated from college. ~ This type of loan has a much lower interest rate than what you would borrow from a bank or private loan lender. ~ There are 2 types of loans. Most common for undergraduates is a Federal Perkins Loan and a Stafford Loan.

What are Grants? ~ This a a gift of money that a student does not have to pay back to the government. It is given to students with great financial need. ~ 3 Types: Federal, State, & College ~ Federal Pell Grant ~ WI Higher Education Grant ~ Individual colleges have access to award grant money to help tuition costs

Scholarships 1. State sponsored scholarships such as: the All State Scholar award 2. Colleges award scholarships based on academic, athletic, or other talent criteria. 3. Community scholarships such as the Elks, Kiwanis, and PTA organizations. 4. Some private affiliations such as: members of clubs, employers, or union organizations.

Work Study? ~ This is an opportunity to gain employment on your college campus. ~ The federal government provides the money to the campus for student employment. ~ This is an opportunity to pay for regular occurring expenses during the school year. ~ It is a great way to get connected to campus resources right away.

When & how do you apply? ~ High school students fill out the application in January of their senior year. ~ This is an electronic application and can be accessed any time after January 1st. www.fafsa.gov ~ This is based on the idea all students should have access to higher education regardless of how much money you have.

What are the costs? 1. Tuition and Fees, which includes: Housing Meal Plan Transportation Books & Supplies Miscellaneous Living Expenses This all encompasses Cost of Attendance (COA)

Budgeting 1. Be mindful of the costs and your ability to pay back your loans after you graduate. 2. All colleges have a Net Price Calculator to help estimate your cost of attendance. This helps to create your budget. 3. Use a financial aid planner tool to help with this. Allows you to see the whole process of borrowing and how you are responsible for it.

Tools to use for budgeting 3 options to estimate federal aid for cost of attendance 1. The Net Price Calculator: this is an option on all college/university web sites 2. FAFSA4caster 3. Collegeboard Financial Planner: www.collegeboard.com/student/pay/index.htm l