1. Personal Finance Section Paying for Education

2. Personal Finance Section Learning how to finance your tuition is an education in itself? By the time you finish paying for college, you may have shelled out enough money to buy a luxury car, a small yacht, or perhaps even a house. That does not count the cost of graduate school or professional school.

3. Personal Finance Section The earning power of your education will affect you the rest of your life. The short-term sacrifice is generally worth the potential long-term gain.

4. Personal Finance Section Decisions, Decisions  The average cost of tuition at public and private universities more than doubled between 1985 and 2000, while average salaries rose only about 12%.  Tuition is the cost of enrolling in courses.  Costly fees have been added to university costs.  Financial aid rose to meet increased the need, but in term of loans, not scholarships.

5. Personal Finance Section Types of School you may want to attend  What school do you want to attend? Why? Can you find the educational resources that you want at a less-expensive public school, not a private university. Private universities are more expensive than public universities. But private schools are more generous with financial aid.

6. Personal Finance Section Types of School you may want to attend  How much does location matter to you? Tuition costs vary by region of the country. Schools in the Southwest region are cheaper. Most expensive schools are in the East.  How much debt do you want to incur? Don’t take on more debt that you can handle after graduation.

7. Personal Finance Section Each year, millions of dollars are available for college bound students to have access to. Three major types of financial aid available  1. Grants and Scholarships Based on academic ability or athletic ability. There are lots of “Free Money” available through Pell Grants, Fed. Supplemental Educational Opportunity Grants, and etc. Companies sometimes offer scholarships to employees children. Many scholarships available for all fields of study – if you know what you want to major in. Reserve Officer’s Training Corps is available to all military branches.

8. Personal Finance Section Three major types of financial aid available  Work-Study Programs College students work their way through school. Many colleges offer work-study programs that provide on-campus jobs for students receiving financial aid. Most of these programs are federally funded.  Loans Students and parents can apply for college loans. Most college loans have a low interest rate and a generous repayment schedule. Most loans do not become due until you graduate or quit attending school.

9. Personal Finance Section One simple equation that will cut through the confusing information about financing.  Total Cost – Total Aid = What you OWE  The idea is to reduce the amount you’re going to owe by applying for as many sources of aid as possible. Most students qualify for some kind of financial aid.

10. Personal Finance Section  How much you receive depends on the following criteria Income - your income and your parents Number of college students in your family Family assets and expenses Available pool of aid at the school you plan to attend Number of students applying for aid in a given year and their financial need compared with yours.

11. Personal Finance Section Types of Lenders  1. Federal Government/Department of Education  2. Private Sources – Banks or Financial Institutions offer regular commercial loans for education. These loans carry higher interest rates than federal loans.  OR   Ooops Wrong Banks!

12. Personal Finance Section Types of Lenders  1. Federal Government/Department of Education  2. Private Sources – Banks or Financial Institutions offer regular commercial loans for education. These loans carry higher interest rates than federal loans. OR

13. Personal Finance Section A word to the wise – PAY UP – repay your student loans. Computerization and more vigorous collection efforts are resulting in more cheaters getting caught and penalized. If you run into trouble repaying your loans, call your lender, who can help you workout a manageable repayment plan.

14. Personal Finance Section Applying for Financial Aid  Required Forms – You have to complete the Free Application for Federal Student Aid (FAFSA) to qualify for any government aid.  Other forms are required to get aid  Required Documents Proof of income – W-2 Mortgage statements Proof of financial hardships – i.e. high medical expenses

15. Personal Finance Section Tip:  If you have savings, use it to pay off any debts you may have before applying for aid. You don’t get a break for having high credit card debt, but you will be expected to contribute about 1/3 of all savings. So us your savings first to pay down your debt.

16. Personal Finance Section Review:  What are some of the ways that students deal with skyrocketing tuition costs?