1. FINANCIAL PLANNING FOR COLLEGE

2. WHY GO TO COLLEGE?

3. EARNINGS & UNEMPLOYMENT RATE FOR PEOPLE 25 YEARS AND OVER Unemployment rate in ’08 Level of education completedMedian earnings in ‘08 9.0%Less than a high school diploma$27,872 5.7%High school graduate, no college$39,780 5.1%Some college, no degree$45,968 3.7%Associate degree$47,320 2.8%Bachelor’s degree$68,172 2.4%Master’s degree$81,536 2.0%Doctoral degree$99,892 1.7%Professional degree$106,756 Source: Bureau of Labor Statistics, Current Population Survey, unpublished tables, 2009.

4. FACTORS TO CONSIDER WHEN CHOOSING A COLLEGE Degree Programs and Majors Does the school offer the courses and type of program I want? Admissions Requirements Do I have a high enough GPA, SAT & ACT scores, and enough extra curricular activities? High Quality Education How does this college rank in my area of study?

5. FACTORS TO CONSIDER WHEN CHOOSING A COLLEGE (CONT.) Participation in Federal Student Aid? Is the school an accredited college or university? Activities of Interest Does the school offer activities that interest you? Location How far away will I be from my home town? Cost Can I afford to go to school here?

6. FACTORS TO CONSIDER WHEN CHOOSING A COLLEGE (CONT.) Tuition Cost of taking a class Usually calculated as cost/credit hour Most classes are 3 credit hours, but it varies Room & Board Room: the cost of living on or off campus (dorm or apartment) Board: the cost of food on or off campus (cafeteria or not) Mandatory Fees and Expenses Books Laboratory fees, having a computer, etc. Specific to each school The cost of going to college:

7. FACTORS TO CONSIDER WHEN CHOOSING A COLLEGE (CONT.) Lifestyle Entertainment – sporting events, spring break, etc. Furniture – bed, couch, etc. Transportation Parking Pass or Bus Pass Traveling home and back Other costs of attending college…

8. FACTORS TO CONSIDER WHEN CHOOSING A COLLEGE (CONT.) The cost of going to college: Purdue Tuition: $8,638 Room & Board: $8,710 Exp. & Fees: $3,290 Total Per Year: $20,638 IU Bloomington Tuition: $8,613 Room & Board: $7,546 Exp. & Fees: $3,940 Total Per Year: $20,099 Ball State Tuition: $7,830 Room & Board: $8,052 Exp. & Fees: $3,758 Total Per Year: $19,640 $80,396 $82,552 $78,560

9. FACTORS TO CONSIDER WHEN CHOOSING A COLLEGE (CONT.) The cost of going to college: IUSB Tuition: $6,015 Room & Board: $6,769 Exp. & Fees: $6,074 Total Per Year: $18,885 Without Room & Board: $12,089 Bethel Tuition: $21,578 Room & Board: $6,250 Exp. & Fees: $2,160 Total Per Year: $29,988 Without Room & Board: $23,738 Brown Mackie Tuition: $9,966 Room & Board: $0 Exp. & Fees: $1,275 Total Per Year: $11,241 Ivy Tech Tuition: $3,090 Room & Board: $0 Exp. & Fees: $1,060 Total Per Year: $4,150 $48,356 w/o R&B $94,952 w/o R&B $44,964 $16,600

10. FACTORS TO CONSIDER WHEN CHOOSING A COLLEGE (CONT.) The cost of going to college: St. Mary’s Tuition: $29,616 Room & Board: $9,206 Exp. & Fees: $2,900 Total Per Year: $41,722 Notre Dame Tuition: $38,477 Room & Board: $10,370 Exp. & Fees: $2,450 Total Per Year: $51,297 Holy Cross Tuition: $18,700 Room & Board: $8,000 Exp. & Fees: $3,100 Total Per Year: $29,800 Without Room & Board: $21,800 $205,188 $166,888 $87,200

11. HOW ARE YOU GOING TO PAY FOR SCHOOL?

12. Money that you or your parents have been saving for college It’s not to late to start now. What types of accounts can you use to save up for college?

13. HOW ARE YOU GOING TO PAY FOR SCHOOL? Working during the summer Working during school If you work during the summer you can earn $3,000 to $5,000. By working during the school year you can make another $5,000 to $7,000. This could help you pay for tuition, room & board, or other expenses.

14. HOW ARE YOU GOING TO PAY FOR SCHOOL? Scholarships Are merit based financial rewards that can be used for Tuition, Room & Board, or other college expenses. Ask your Guidance Counselor at school or the Financial Aid office at the college you hope to attend for a list. Require persistence and hard work. Do not need to be paid back.

15. HOW ARE YOU GOING TO PAY FOR SCHOOL? Grants Are mostly need based financial rewards that can be used for Tuition, Room & Board, or other college expenses. Do not need to be paid back. 6 different types of Grants: Federal Pell Grant Federal Supplemental Educational Opportunity Grant (FSEOG) Academic Competitiveness Grant (ACG) National Science and Mathematics Access to Retail Talent Grant (National SMART Grant) TEACH Grant Iraq and Afghanistan Service Grant

16. GRANTS Federal Pell Grant Grant – does not need to be repaid Available to undergrad’s. Student may receive up to 2 consecutive maximum awards in a year if attending school year-round ‘10-’11: $609 - $5,550 Federal Supplement al Education Opportunity Grant Grant – does not need to be repaid Undergrads with exceptional financial need; Pell Grant recipients take priority; funds depend on availability at school $100 - $4,000

17. GRANTS Academic Competitive ness Grant (ACG) Grant – does not need to be repaid For Pell eligible students, at least ½ time in their 1 st or 2 nd year. Different requirements for 1 st & 2 nd year. 1 st Year: Up to $750 2 nd Year: Up to $1,300 National Science & Math Grant (SMART Grant) Grant – does not need to be repaid For Pell eligible students enrolled at least ½ time in their 3 rd or 4 th year, majoring in subject matter with at least 3.0 gpa. Up to $4,000

18. GRANTS Teacher Education Assistance for College or Higher Ed (TEACH) Grant – does not need to be repaid, unless fail to carry out the service obligation For undergrad or grad who are studying to be an elementary or secondary teacher, and commit to teach in the program for 4 years Up to $4,000 per year. Max $16k undergrad, $8k grad Iraq & Afghanistan Service Grant Grant – does not need to be repaid For students who are not Pell eligible whose parent or guardian lost their life as a result of military service in Iraq or Afghanistan after 9/11 Max is same as Pell Grant

19. HOW ARE YOU GOING TO PAY FOR SCHOOL? Work Study Money earned while attending school Do not need to be paid back. For Undergraduate and Graduate students. Can be on-campus work or off-campus work.

20. ONLINE RESOURCES www.FederalStudentAid.ed.gov www.FAFSA4caster.ed.gov www.college.gov www.Students.gov www.FAFSA.ed.gov

21. STUDENT LOANS

22. HOW ARE YOU GOING TO PAY FOR SCHOOL? Loans Borrowing money from government, school, bank, or other financial institution to pay for school. It is a loan, you will be charged interest and you will need to pay it back. Can typically borrow enough to cover Tuition, Room & Board, and other fees & expenses Different types of Loans: Federal Perkins Loan Subsidized Stafford Loan Unsubsidized Stafford Loan Parent PLUS Loan

23. HOW ARE YOU GOING TO PAY FOR SCHOOL? Loans Stafford and PLUS Loans can be borrowed directly from the US Department of Education. Called Direct Loans. You could also borrow the money from a private institution like a bank. “Federal Family Education Loan” or FFEL Even though these loans are with another company, the US Department of Education still guarantees them. Also…remember that Loans are your obligation to pay back. You cannot “erase” them even if you file bankruptcy.

24. HOW ARE YOU GOING TO PAY FOR SCHOOL? Loans Student Loans are usually applied for and borrowed each semester or each year. Because of this, you could finish school and have as many as 8 student loans, possibly more. You will have the option of consolidating these loans into one loan after you’re finished with school so that you only need to make one payment each month. You can only consolidate your loans one time, so it’s best to do it when you feel you won’t need to borrow any more for school.

25. TYPES OF LOANS Federal Perkins Loans Eligibility Award Amounts Interest Rates Lender/ Length of Pmt Under Graduate and Graduate Under Grad: $5,500 / yr, maximum of $27,500 Grad: $8,000 /yr, maximum of $60k Amount received depends on financial need, amount of aid, & availability at school. 5% Lender is your school Repay your school or its agent Up to 10 years to repay, depending on amount owed

26. TYPES OF LOANS Stafford Loans Eligibility Award Amounts Interest Rates Lender/ Length of Pmt Under Graduate and Graduate; must be at least ½ time Depends on grade level in school and dependency. Financial need is required for subsidized loans. Financial need not required for unsubsidized loans. 5.6% for subsidized; 6.8% for unsubsidized Lender is a bank or other financial institution. Between 10 & 25 years to repay. Subsidized Loans: you don’t pay interest while in school

27. TYPES OF LOANS PLUS Loans Eligibility Award Amounts Interest Rates Lender/ Length of Pmt Parents of undergrads; graduate students; good credit Student’s Cost of Attendance - Other Aid the Student Receives = Maximum Loan Amount 8.5% or 7.9%, can depend on institution Lender is a bank or other financial institution. Between 10 & 25 years to repay.

28. APPLYING FOR STUDENT AID

29. Do research online & with counselors Step 1 Get a PIN (pin.ed.gov) Step 2 Collect documents needed to complete FAFSA Step 3 Complete FAFSA Senior Year b/w 1/1 and 6/30 www.FAFSA.ed.gov Step 4 Receive Student Aid Report (SAR) Step 5 Follow up with the Financial Aid office Step 6 STEPS TO FEDERAL STUDENT AID

30. REPAYING YOUR LOANS

31. REPAYING YOUR STUDENT LOANS When do I start paying back my loans Federal Perkins Loans Grace period is 9 months after finish school Direct or FFEL Stafford Loans Grace period is 6 months after finish school Subsidized Loan: during the grace period you don’t have to pay any principal and you won’t be charged interest. Unsubsidized Loan: during the grace period you don’t have to pay any principal, but you will be charged interest.

32. REPAYING YOUR STUDENT LOANS How much time do I have to repay my student loans? Federal Perkins Loans Up to 10 years Direct or FFEL Stafford Loans It varies between 10 years and 25 years, depending on the repayment you choose

33. REPAYING YOUR STUDENT LOANS The payment schedule given to you is the baseline expectation. Set a goal to have your student loans paid off in a shorter time frame and make a higher payment to achieve that goal. If you graduate from college at 22 and it takes you 25 years to pay off you college, how old will you be when it’s paid off? 47! You’ll have kids of your own that will be school by then!