1. Career & Financial Management
How to Pay for College
Career & Financial Management

2. What will it cost? Tuition and fees Room and board Books and supplies
Personal expenses
College cost calculator

3. Where are you going? 2-year college 4-year state school
4-year out-of-state school
4-year private school

4. FAFSA Free Application for Federal Student Aid
File online at
File every year beginning October 1st
Deadlines vary by college
Be careful: Priority deadlines!
Estimate using FAFSA Forecaster

5. Before You File… Social Security Number Driver’s License W-2 Forms
Prior-year tax return
Bank statements
For both you and your parents

6. Student Aid Report (SAR)
Expected family contribution (EFC)
Sent to schools you designate
Determines your financial aid package

7. Financial Aid Package Scholarships Grants Work-study programs
Student Loans

8. Scholarships Do not need to be repaid Based on merit or achievement
National programs
College sponsored programs
Local programs
Guidance office or financial aid office

9. Grants Do not need to be repaid Based on financial need
Federal Pell Grant
Educational Opportunity Program (EOP)
HEOP for NYS Residents
NYS Tuition Assistance Program (TAP)

10. Work-Study Programs Based on financial need At least minimum wage
College sets maximum hours
Food service, book store, library
Resident Assistant (RA)
Graduate or Teaching Assistant

11. Loans Federal Perkins Loan (subsidized)
Federal Stafford Loan (two types)
subsidized and unsubsidized
Parent Loan for Undergraduate Students (PLUS)
Private Loans
Federal Perkins loan (subsidized)-government pays interest while in college; defer principal until 9 months after finishing or leaving college (interest is a fixed rate)
Federal Stafford Loan (2 types): (interest is also a fixed rate)
Subsidized-government pays interest while in college; defer principal until 6 months after finishing or leaving college
Unsubsidized-borrower pays interest while in college; defer principal until 6 months after finishing or leaving college
Parent and private loans-must be re-paid with interest while attending college (interest is a fixed rate)

12. Loan Terminology Subsidized Unsubsidized Fixed rate Deferred payment
interest paid by government while in college
Unsubsidized
interest paid by borrower
Fixed rate
cap on interest rate
Deferred payment
start repayment after college

13. Loan Forgiveness Programs
Volunteer Service
Teaching
Legal Service
Medical Service
Military Service
Visit finaid.org for more information

14. Federal and Non-Profit Programs
SUNY STEM Scholarship
SMART Scholarship
TEACH Grant
AmeriCorps
Peace Corps
Volunteer in Service to America (VISTA)
Teach for America
TEACH Grant-receive $2000 per semester (undergraduate and graduate school) if you are majoring in a high-need field and agree to teach in a low-income school during 4 out of 8 years after graduating. Must maintain a 3.25 GPA. Some high-need fields are math, science, ESL, special education, reading. The US Department of Education has a list of low-income schools and high-need fields separated by states.
AmeriCorps-For every 12 months of service, you can earn up to $7500 in stipends plus a Segal AmeriCorps Education Award of $4725 ($5350 in 2010). Some colleges and universities will match your AmeriCorps Education Award.
Peace Corps-apply for deferment of loans while in the corps; earn 15% partial cancellation of loans for each year of service (up to 70%)
VISTA is now a branch of AmeriCorps-Provide 1700 hours of volunteer service and receive up to $4725 as either a Segal AmeriCorps Education Award or post-stipend
Teach for America-a non-profit organization dedicated to educational equality; founded by Wendy Kopp as part of her Princeton undergraduate thesis, providing teachers for low-income communities. College graduates must apply, (pretty competitive, elite school/college grads.) serve for 2 years, receive teacher training, competitive salary plus loan deferment (may be some built-in loan forgiveness)

15. Military Recruiting Programs
Attend a Military Academy
Reserve Officers’ Training Corps (ROTC)
Army, Navy, Air Force, Marines, Coast Guard
National Guard and Reserves
Montgomery GI Bill
Yellow Ribbon Program
Visit finaid.org for an overview of programs

16. Loan Forgiveness Programs
Benefits
Drawbacks
Save money
Build a résumé
Gain experience
Travel/meet new people
Provide a public service
Commitment
Takes time
Defer career plans
Location of jobs
May not earn much

17. American Opportunity Tax Credit
Up to $2,500 per year
First 4 years of undergraduate study
Qualified expenses only
Receive a 1098-T Form from College
Refundable credit
Be careful combining 529 with AOTC
Go to irs.gov for more information
Student Aid and Fiscal Responsibility Act of 2009:
Higher Pell Grant scholarships $5,550 in 2010
Lower interest rates on subsidized federal student loans
More access to Perkins loan program
Shorter, simpler FAFSA forms
American Opportunity Tax Credit:
$2500 tax credit over 4 years of undergraduate study
Replaces the Hope Tax Credit (1st 2 years , $700 increase in credit)

18. Lifetime Learning Tax Credit
Up to $2,000 per year
No limit on the number of years
Undergraduate or graduate studies
Not a refundable credit
Go to irs.gov for more information

19. Savings Plans for Parents
529 College Savings Plans
Parent owns account
State tax deductible contributions
Can only be used for education
UTMA Accounts
Child owns the account
Can be used for more than education
Coverdell Education Savings Account

20. Other Funding Options for Parents
IRA (Individual Retirement Account)
Home-equity Loans