1. Theme 8: Financing College

2. Why go to college? College graduates make more money?

3. Paying for College: Your Role
You have the primary responsibility to pay for higher education.
Alternatives?
The role of financial aid is to offer assistance to families who need help paying for college
Who?
Main players:
Students
Parents

4. So how do people do it??
Sallie Mae- 2012

5. 5 Types of Student Aid
Gift aid, such as grants and scholarships: free money that does not need to be repaid.
Scholarships and grants can be academic, athletic, income-based or sociocultural
Work-study jobs: Part-time student employment jobs which let you earn as you learn.
Work study is based on your family’s income and is filled on a 1st come 1st serve basis
Student loans: Money that is repaid over several years, usually with interest.
Student loans may be taken out by the student or the parent
Education tax benefits: such as the Hope Scholarship tax credit, which is money you get by filing a federal income tax return, even if you don’t owe any taxes.
Military student aid: such as ROTC and the GI Bill, where you earn money for your education in exchange for service in the United States Armed Forces.

6. So which is the best type of student aid?
Grants and scholarships are better than student loans because you don’t have to pay them back!
Some funds are awarded based on financial need (the difference between the costs and ability to pay)
Some funds are based on academic, artistic or athletic merit or other skills and activities
Some funds are based on unusual criteria
Creating a prom costume out of duct tape
A scholarship for left-handed students

7. Paying for College= The Bottom Line
Cost of Attendance/Budget
Billable (Tuition, Room and Board, Fees)
Non Billable (Books, Personal Expenses, Travel Expenses)
(Subtract)- financial aid you receive
(Equals) = Your cost/What you will need to pay

8. Comparing Net Prices Sticker Price Net Price
Missouri Public School (MIZZOU)
$10,459
$8,158
Missouri Private School (Drury)
$24,905
$21,506
Private School-New England (Harvard)
$45,278
$15,742

9. Ted Talks: How Student Loans Exploit Students for Profit- Sanjay Samuel