Student Loans by the #s Total U.S. student loan debt $1.48 trillion Americans with student loan debt 44.2 million Average student loan debt for 2016 college graduates $37,172 Average monthly student loan payment $351 studentloanhero.com

71% of college graduates from 4-yr colleges have student loan debt 66% of graduates from public colleges have loans – average debt of $25,550 75% of graduates from private colleges have loans – average debt of $32,300 88% of graduates from for-profit college have loans – average debt of $39,950 80% federal loans/20% private loans studentloanhero.com

2016 College Graduates Average Loan Debt = $37,174 Monthly Loan Payment = $416.88 Repayment begins 6 months after graduation 10 years – 120 monthly payments Cumulative Payments = $50,025.01 Total Interest Paid = $12,851.01

How Much Debt Can I Afford? Calculate the maximum you can allow yourself to borrow based on your future career choice Experts recommend student loan payments should not exceed 10% of future monthly income Estimate your future income by visiting Bureau of Labor Statistics website: https://www.bls.gov/ooh/occupation-finder.htm Ask students what they think the average salary is from some careers they are considering – throw out prizes/candy for those that participate Registered Nurse $68,450 Computer Programmer $79,840 Mechanical Engineer $84,190 Elementary School Teacher $55,490 Accountant $68,150

The impact my Student Loan Payment has on my life choices Calculate your 10% debt amount based on future income at: www.wellsfargo.com/student/calculators/debt What’s the real bottom line? $45,000 a year = $2,000 take-home a month Now, how does this look? Rent/utilities Food/groceries Transportation Student loan payment Credit card payment Oops!! $103 left /month? $957 $220 $300 $120 (less than $4/day) Budget is another opportunity for student involvement – ask them to guess costs before displaying them Rent average $957 – this is from rentcafe.com. Studio Apartment in Mpls (one bedroom = $1,209) Food/groceries $220 - 6% for groceries and 5% for dining out usatoday.com Transportation – this varies – includes car payment, insurance, gas, maintenance Student Loan Payment – Will vary based on your debt load – This is for $26,500 which is around a 4yr state college student loan debt average. * putting that extra $100 towards your student loan will reduce your loan repayment by 3 years and save $1,000s of dollars Credit card payment - $100. Average credit card debt is currently $3,000. Using a calculator on bankrate.com that would be a minimum monthly payment of $120 – taking 116 months (almost 10 years) to pay off for a total repayment of $4,810 What about cell phone, renters insurance, movies, etc.????

Alternatives to Student Loan Debt Pay as you Go Tuition Payment Plans Summer/school year earnings School Selection 2yr for generals and then transfer to 4yr Look at residency requirements Scholarships, Scholarships and more Scholarships! www.tuitionfundingsources.com High school career/college center

Scholarship Search Tips Create a designated email account to help manage your scholarship applications Keep track of usernames, passwords and scholarship deadlines Focus on local and college scholarships 1st and national scholarships 2nd When looking into college scholarships, ask EVERYONE! Admissions counselor, financial aid counselor, department head, clubs, student organizations, coaches Follow the scholarship directions EXACTLY

Scholarship Search Tips Con’t Letters of Recommendation: Line up your contacts willing to write letters of recommendation ahead of time so you have a go- to list of 5-10 Give your contacts a 2-3 week notice of deadlines Give your contacts details about the scholarship and your qualifications so they can tailor their letter

Scholarship Search Tips Con’t Essay: Make a list of your accomplishments for all four years of high school (academics, sports, clubs, arts, volunteer work, church work, etc.) to serve as a handy reference tool Write the core of an essay that you can use repeatedly, then add to and customize for each scholarship Be personal and passionate – make a connection with the reader

Scholarship Search Tips Con’t Create a Scholarship Club with friends to share resources and divide the research work Apply for scholarships early and often and keep applying – high school freshmen through college graduates If you earn a scholarship, determine if it is renewable If renewable, what are the renewal criteria? (minimum GPA, minimum enrollment, what if I change my major, my college, my living arrangements?) If not renewable, how will I replace this scholarship money next year? (new scholarships, loans, work?) Also be aware that scholarships may impact your financial aid award. If it does, it usually reduces your loan.

Questions?