Entrance Ticket Based on yesterday’s lesson, what are the costs and benefits of attending private vs public schools? How does Rhode Island compare to the rest of the country?

Agenda 1) Options to Pay for College 2) Comparing Public and Private Loans 3) Fastweb Activity 4) Exit Ticket

Options to Pay for College

Key Terms Full tuition = all tuition paid “Full ride” = everything paid Loans: need to be paid back Grants/scholarships: do not need to be paid back Financial Aid: based on financial need Merit Aid: based on achievement (e.g. grades/test scores)

Federal Aid Largest source of financial aid; based on financial need Types: Grants (Pell = up to $5730/year and SEOG = up to $4000/year) Loans (Perkins and Stafford Loans) Subsidized loans are awarded to low-income students and do not require student to pay interest Unsubsidized loans require payment of interest Work-study (jobs that help you earn an income)

State Aid Smaller source of aid, based on financial need In RI, comes from the Rhode Island Higher Education Assistance Authority Awards range from $250 - $500

School Aid Depending on the school, can be the largest source of aid; based on financial need and merit Amount schools have usually depend largely on size, wealth, and rank of school For example, the best private schools offer the best financial aid packages

Private Aid Private banks can be a source of student loans if federal loans are not enough (typically have much higher interest rates than federal loans) Non profit organizations and corporations may offer competitive merit-based scholarships Ex) Ex)

COMPARING PUBLIC AND PRIVATE LOANS

Perkins Loans vs. Stafford Loans 5% Fixed interest Rate Subsidized through graduation Limited funds available; only for students with significant financial need 4.29% Fixed Interest Rate Can be subsidized, if eligible The “going rate” for the loan will vary by year (see next page)

Changing Interest Rates (***4.29% in 2015-2016)

Private Loans (Ex. )

Assignment / HW Create a fastweb.com account Fastweb is a free resource that connects you to scholarships that you qualify for Write down any scholarships you already qualify for and how much they are worth (minimum = 3)

Exit Ticket What are 4 sources of financial aid available to you in RI? Be specific. (don’t say “the bank”)