1. Chapter 5
Life After High School

2. Before you Begin Beware and Be Wise Start with the END in MIND
Understand the long term impact of student loans.
Americans know owe over 1 trillion dollars in student loan debt
Average debt is $27, per undergraduate degree
Government makes in excess of $40 billion yearly on student loan interest
Start with the END in MIND
Identify reasons for not taking on debt to fund your education.
Cash-Flow Your College Education
Is this possible? Dave says yes.
Develop a plan to attend college without acquiring debt.
Demonstrate how to apply for financial aid.
Education Options for the 21st Century
Identify education requirements, training and cost for your career choice.
Analyze post-high school education and career training options.

3. Key Terms
FAFSA-(Free Application for Federal Student Aid) Form that is completed annually by current and prospective students to determine their eligibility for financial aid.
Grant-A form of federal or state financial aid that does not need to be repaid.
Scholarship-A form of financial aid that does not need to be repaid.
Work study-Program that allows students to work part time while continuing their studies.

4. Agree or Disagree
I have a good idea as to what college I want to attend after graduation. Cost was a major factor in that decision?
I believe it is possible to go to college debt free.
Everyone uses student loans to attend college. I don’t see any reason I should be different.
I have considered other 21st century educational options for my career of choice.
I have discussed with my parents how we plan to cover the expense of my college education.

5. Beware and Be Wise
What are you current goals for educating yourself after high school?
How do you plan on paying for these goals?
Beware of the “Student Loan Myth”
Student Loans are not an award.
There is no such thing as good debt.
These loans start repayment 6 months after you are out of school no matter what.
Millions of people can’t afford to make their student loan payment each month.

6. Types of Student Loans Direct Subsidized Direct Unsubsidized Loans:
The U.S. Department of Education pays the interest on a Direct Subsidized Loan while you’re in school at least half-time, for the first six months after you leave school (referred to as a grace period*), and during a period of deferment (a postponement of loan payments).
Direct Unsubsidized Loans:
You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).
Current Interest Rates
3.86 Undergraduate
5.41 Graduate

7. Assignment
Complete “How Much Does College Really Cost Assignment”

8. Start With the End in Mind
Don’t steal from your future
I trillion dollars in outstanding student loan debt in America
85 billion dollars of this is past due
Only 37% of students pay these loans back without postponing or becoming delinquent
That means 63% had to postpone payments or became delinquent on repayment
30% of student loan borrowers end up dropping out of school
41% of borrowers fall behind in the first five years.
With all these warnings why are so many students borrowing so much to pay for college?
Read “I regret going to college when and how I did” pp. 110
How can starting with the end in mind motivate you to avoid taking out loans and acquiring credit card debt?
Why is student loan debt described as “stealing from your future”

9. Cash Flow Your College Education
Plan Ahead
Be prepared to budget while in college and have an idea of what is needed each month to live in college. Start thinking about it now.
Know where you want to go and how much it is going to cost. You also need to know how you are going to pay for it. Not just your parents but you.
Get good grades. Grades can do more than just get you into school, they can get you free money for school.
Shop Around
6 schools or less
Prestige does not always equal money and happiness
Community college
State versus out of state

10. Take Advantage of Aid FAFSA Explore grants Research Scholarships
Fill it out, its worth a try.
Explore grants
Free Money
Check with counselors; FAFSA may open up grant opportunities.
Research Scholarships
Another form of free money
Scholarships given for academics, club participation, community involvement, local business scholarships exist, Student specific scholarships for almost everything you can think of
Check with counselors office
Millions each year go unclaimed in scholarship and grant money simply because it wasn’t applied for.

11. Education Options for the 21st Century
Trade School
traditionally distinguished from two-year junior colleges and four-year universities by their goal to impart job-specific training and education to students who are typically bound for blue-collar jobs in the workforce
Business, barber, welders, mechanics, aviation field, Real estate etc.
ITT Tech, DeVry, Automotive Career College, Kaplan University
Certification
These programs provide specific skills needed to work in a specific field. Can be found at community colleges, online, or through government funded programs
Associate degree
Two Year degree
Starting a Business
Military
Offers free education after a certain amount of service

12. Todays Assignment View Section 3.1, 3.2, 4.1
Complete “How Much Does College Really Cost”