Financial Aid & Money Management

Agenda Federal Student Aid Process Payment Plan Options Importance of Financial Literacy GradReady and Budgeting Helpful resources

Free Application for Federal Student Aid (FAFSA) www.fafsa.ed.gov 2019/2020 FAFSA available now! Must be completed every year FAFSA completion tips provided in margin for all FAFSA questions

Federal Student Aid ID (FSA-ID) www.fsaid.ed.gov; students need FSA-ID to sign FAFSA and loan documents electronically FSA-ID requirement replaces former FAFSA PIN process

Materials Needed to Complete FAFSA Student demographic information Student 2017 federal tax return information (if required to file; otherwise W-2 info will be used) Spouse demographic information (if applicable) Student 2017 federal tax return information (if applicable and required to file; otherwise W-2 info will be used) Marital status is at the time of FAFSA filing

Awarding Aid Direct costs = tuition, fees, room, and board Indirect costs = books, transportation, and personal expenses Cost of Attendance (COA) = direct costs + indirect cost allowances COA represents max amount of aid student can receive from any source

Federal Work Study (FWS) FWS is awarded on a first-come, first-serve basis Receive paycheck for hours worked On-campus and off-campus options available Job listings found on jobs.uc.edu Eligibility determined by data provided on FAFSA

Federal Loans Federal Direct Unsubsidized Loan Federal Direct Graduate PLUS Loan Everyone that completes the FAFSA is eligible for federal loan money, regardless of income

Federal Direct Unsubsidized Loan Unsubsidized loan = Interest accrues annually for life of the loan 6.60% variable-fixed interest rate for graduate students (2018/2019 rate) New rate for each new loan, but rate for each loan is fixed for life of the loan Repayment begins six months after enrollment drops below ½ time status

Unsubsidized Loan Limits Be aware of annual and lifetime maximum loan limits: Annual Unsub grad limit = $20,500 Lifetime grad loan limit = $138,500

Federal Direct Graduate PLUS Loan Based on credit approval 7.60% variable-fixed interest rate for graduate students (2018/2019 rate) Interest accrues/compounds annually for life of loan Repayment begins 60 days after loan is fully disbursed Borrower has option to defer repayment until they graduate or enrollment drops below ½ time status

Private Loans Loans borrowed through a private lender (bank, credit union, etc.) Things to consider: Interest rate Credit-based (debt-to-income vs. adverse credit) Repayment terms and options More information available at www.financialaid.uc.edu/loans/altloans

Tuition Payment Plan Option if financial aid does not cover costs or as an alternative to loan borrowing Helps prevent late fees and registration holds for otherwise unpaid bills Requires timely monthly payments Information available at www.onestop.uc.edu

Loan Deferment for Undergrad Loans A deferment is a postponement of repayment Student must maintain at least ½ time enrollment status

Importance of Financial Literacy $1.48 TRILLION in total U.S. student loan debt About 40% of this was used to finance graduate and professional degrees Average monthly student loan payment (for borrowers 20-30 years old): $351 Combined average undergraduate and graduate debt by degree: MBA = $42,000 (11% of graduate degrees) Master of Education = $50,879 (16%) Master of Science = $50,400 (18%) Master of Arts = $58,539 (8%) Law = $140,616 (4%) Medicine and Health Sciences = $161,772 (5%) https://www.youtube.com/watch?v=1WfwPbVW3wA

GradReady A free service to UC students with engaging videos and tools for specific help with: Paying for college Money management Student loan repayment UC.GradReady.com

Where Do I Go From Here? Meet all application deadlines Investigate other sources of aid Utilize available resources Borrow as little as possible

One Stop Student Services Center Questions? One Stop Student Services Center 513-556-1000 onestop@uc.edu