1. Resources for Every Stage of Federal Student Aid
Financial Literacy
Resources for Every Stage of Federal Student Aid
Note: This presentation was originally prepared in 2015 and updated / reviewed in 2016 and You may add or delete content to/from it. However, you must ensure that any edits made to this work and/or any uses of this work are done in a manner that furthers the goals of the U.S. Department of Education.

2. Agenda Comparison shopping Apply for aid Budgeting Managing debt
Introduction
The value of college
What students don’t know
What is financial literacy?
Financial literacy tools and resources
Comparison shopping
Apply for aid
Budgeting
Managing debt
Staying informed

3. The Value of a Degree
Looking at the earnings over a lifetime, even if students have to take on some debt, it can be made up with increased future earnings. Research has shown college grads on average make $1 million more in their lifetime than those without a college education.
Not all monetary benefits
CDC (Centers for Disease Control and Prevention) 2012 report found people who earn a college degree on average live 9 years longer than those who don’t graduate from high school and have lower rates of chronic disease and poverty.
Georgetown U’s Center on Education and the Workforce reported in April 2015 that job opportunities for college-educated workers have grown, and college graduates produce more than ½ of the country’s economic value
Over the course of a lifetime, the average worker with a bachelor’s degree will earn approximately $1 million more than a worker without a postsecondary education
By 2020, an estimated two-thirds of job openings will require postsecondary education or training
Department of Education, National Center for Education Statistics. Digest for Education Statistics. Bureau of Labor Statistics. Current Population Survey.
[2]  Carnevale, Anthony P. "The Economic Value of College Majors Executive Summary 2015." Georgetown University Center on Education and the Workforce, McCourt School of Public Policy (2015): 1-44.

4. Borrowing: The Knowledge Gap
When students first enrolled in school, they may have had an idea of how much they expected to borrow in student loans. After finishing, did they end up borrowing more or less than they initially anticipated?
This information might be helpful as students consider borrowing. Federal Student Aid conducts surveys of their borrowers in order to better understand their needs.
I would have taken out just enough and not the maximum amount
I would pay interest as I went
Pay some early on loans
Rethink how to spend my loan
Take more classes per semester to cut down on cost
I would borrow less, have a better understanding of loan repayment options, and not accept refund checks to make my loan smaller
Find out exactly how much I am borrowing
Found other resources and researched how much education would cost
Get a loan counselor
SOURCE: FSA survey of borrowers in grace, 2013.
SOURCE: FSA survey of borrowers in grace, 2013.

5. Why Financial Literacy?
FSA Borrower Survey Question: Q: If you could go through the process of financing your education all over again, would you take the same actions or make a change?
Students need information about financing their education before choosing a school and borrowing money to attend

6. What is Financial Literacy?
“The ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well being.”
2008 Annual Report, President’s Advisory Council on Financial Capability

7. Financial Literacy Resources…
can help build financial capability to make smart choices about college access, completion, and promote lifelong financial health
Next page summarizes Federal Student Aid resources

8. Deciding whether or not to go to college, where and what type of school to apply to, and how to pay for it is the beginning of the many financial choices students are faced with.

9. College Scorecard
The College Scorecard is available on the Department of Education’s website. This tool takes all schools in the country which accept federal funding (federal student loans) and allows them to be easily searched in one place The tool allows students to select majors, states, size of the institution, even school mission and religious affiliation. collegescorecard.ed.gov
The interactive College Scorecard (released Sept 2015) provides students and families the critical information they need to make smart decisions about where to enroll for higher education. It highlights key indicators about the cost and value of institutions across the country to help students choose a school that is well-suited to meet their needs, priced affordably, and is consistent with their educational and career goals.
The College Scorecard provides students and families with clear information through an interactive tool that lets them choose among any number of options based on their individual needs – including location, size, campus setting, and degree and major programs. Each Scorecard includes five key pieces of data about a college: costs, graduation rate, loan default rate, average amount borrowed, and employment.

10. College Scorecard (cont.)
Results show all schools that meet the selected criteria. Each school is broken down to show how it stacks up against national averages, in cost, graduation rate and salary after attending. Clicking on “View More Details” brings up even more statistics students can use to compare potential schools.
The scorecard compares key school characteristics to national averages

11. Comparison Shop: College Navigator
Resources on this website are also available in Spanish
College Navigator provides a direct link to nearly 7,000 college and career schools. This site contains searchable data to assist students and their parents in the school selection process. Cost and graduation rates are important characteristics to consider, but there are many other important variables such as programs of study, enrollments, and housing, just to name a few.
The website will allow you to search for schools by:
location
degree type and length
cost
Program of study
Entrance requirements
Students can combine multiple elements to customize their search.

12. Comparison Shop: Net Price Calculator
AVAILABLE AT: Net Price Calculator
Net price calculators are available on school websites. This on-line tool is intended to provide estimated net price information for current and prospective students and their families, based on what similar students paid in a previous year. This net price calculator allows you to enter basic information about your household size and income. Then it generates an estimate what it will cost to attend the institution, after taking in to account estimated grants and scholarship aid. College Navigator provides a link to the Net Price calculator for each school.
AVAILABLE AT:
Net Price
Calculator

13. Comparison Shop: College Cost Center
The College Cost Center sponsored by the U.S. Department of Education provides links to valuable resources such as College Navigator, College Scorecard, Net Price Calculator and other data relating to state spending and veterans benefits.
AVAILABLE AT: College Affordability and Transparency Center

14. AVAILABLE AT: College Affordability and Transparency Center
Apply for Aid: FAFSA
Federal Student Aid provides financial aid in the form of loans, grants, and federal work study funds. Completing the Free Application for Federal Student Aid (FAFSA) is the first step in applying for federal grants, and loans. Remember, the first word in FAFSA is “FREE” – there’s no need to pay anyone for help to complete the FAFSA. Look for free FAFSA completion workshops offered by area high schools, colleges and community organizations to get help completing the FAFSA.
Students should NEVER assume they will not be eligible to receive federal student aid! This application provides access to largest source of college funding, and schools will also use it to determine eligibility for institution-based financial aid.
Provide some basic information and the FAFSA4caster will estimate eligibility for federal student aid. Estimate will be shown in the "College Cost Worksheet" where users can also provide estimated amounts of other student aid and savings that can go towards their college education.
Available in Spanish
AVAILABLE AT: College Affordability and Transparency Center

15. Apply for Aid: FAFSA
Completion time averages 32 minutes
Real-time help available by phone at FED-AID or via on-line chat
Determines families’ ability to contribute to cost of attendance

16. Apply for Aid: Financial Aid Shopping Sheet
“Know Before You Owe!”
The Financial Aid Shopping Sheet is a standardized award letter that helps students better understand the amount and types of financial aid they qualify to receive at each school. It lays out the total cost of attendance including tuition, fees, and other expenses. The form also breaks out each type of aid a student may be eligible to receive:
Grants and scholarships, which don’t have to be repaid
Self help aid, which may be earned through a Federal Work Study job
And school recommended loan amounts for students and parents
Additionally, the financial aid shopping sheet provides information on the median total loan debt for students attending a particular school. This can help students understand how much debt they may have after graduation, and the loan repayment calculator will help you estimate what your monthly payment could look like.
The Financial Aid Shopping sheet is not mandatory, although many schools provide it, and others are in the process of adopting it.
More information on the financial aid shopping sheet is available at: College Cost

17. The Value of Budgeting StudentAid.gov
Budgeting is key to successfully managing finances while in college or career school, and is not something that should be overlooked.
Budgeting can help student’s keep track of expenses, know how much they have to spend each month, and help save towards financial goals.
Budgets are not one-size fits all. Students should choose the method that works best for their personal situation - can write a budget on paper or use a mobile app.
Budgeting can help plan and manage day to day expenses that can lead to a manageable financial life!
Can relieve stress and help you meet academic goals too!
(video can be shown – 2 minutes)
StudentAid.gov

18. Money Management Checklist
No student wants to interrupt his or her education because
of financial problems. This checklist provides useful money management tips.

19. Budgeting & Borrowing: FACT Tool
Expenses
Funds
FACT provides useful financial information to help students understand good money management and loan repayment obligations. It can be accessed with or without student loan login information.
It is important to understand the total cost of attendance, and how to budget resources in order to avoid financial difficulties which may interfere with completing programs of study.
Financial Awareness Counseling Tool (FACT) link:
FACT

20. Other Borrowing Resources
Federal Loans First
Understand differences between federal and private loans
Federal vs. Private Loans
Borrow Smart
Free money first.
Consider accepting less loans than offered
Deciding on Loans
Federal Student Aid offers students low cost borrowing options and flexible repayment options. If possible, students should avoid using private loans to pay for school. Before borrowing, students should ALWAYS make sure to take the time to understand the terms of the loan, repayment options, and estimated monthly payment amounts.
Financial aid award letters may include loans. Students are not required to borrow all of the money offered in loans. Awards should be reviewed with financial aid counselors to help determine borrowing needs. It’s not always bad to borrow but it’s important to make wise borrowing choices!

21. Loan Repayment Lessons
Borrowers MUST repay their loans, regardless if they complete their education
Federal loans have various repayment plans and other options
-Income-Based & Graduated Repayment Plans
-Deferment, Forbearance, Loan Forgiveness, Consolidation
The impact of not repaying can be detrimental to future borrowing and financial opportunities
An understanding of Repayment obligations starts as soon as students are considering borrowing money and they should look at how much will need to be repaid on a monthly basis prior to agreeing to borrow money.
Next page shows how to do that.

22. Managing Debt: Repayment Estimator
Repayment plans and loan payment calculators are available at: Repayment Calculator

23. Staying Informed: StudentAid.gov

24. Staying Informed: Social Media
Facebook
Twitter
Important to stay in touch whether its via the Federal Student Aid website (StudentAid.gov) or via Twitter or Facebook. Federal Student Aid offers many valuable tools and resources to help students before, during, and after school.
YouTube

25. Staying Informed: FSAIC
The Federal Student Aid Information Center (FSAIC) operates a toll-free hotline to provide comprehensive assistance in English and Spanish on:
General information about federal student aid (Title IV programs)
FAFSA applications
FAFSA corrections
Student loan history
CALL OR VISIT AT:
FED-AID ( )
studentaidhelp.ed.gov

26. Staying Informed: Publications
The office of Federal Student Aid provides publications, fact sheets, online tools, and other resources
Many publications as well as studentaid.gov are available in English and Spanish.
Publications are available in alternate formats such as Braille.
Language assistance may be requested for Department information that is available to the public.
These services are available free of charge.
Call USA-LEARN or or write to:
U.S. Department of Education
Information Resource Center
LBJ Education Building
400 Maryland Ave, S.W.
Washington, DC 20202
AVAILABLE AT: StudentAid.gov/resources

27. Federal Financial Literacy Information
Money Smart
My Money
Consumer.gov
Many other FREE federal financial literacy resources are available
Federal Reserve Education
Consumer Financial Protection Bureau