Paying for College: Financial Aid & Scholarships
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Transcript of Paying for College: Financial Aid & Scholarships
Paying for College:Financial Aid & Scholarships
Raul HinojosaSeptember 14, 2012
Why Major in Science and Engineering?
STEM (Science Technology Engineering and Math) Pays MoreSTEM careers are always in high demandSTEM careers are growingSTEM college internships pay very wellStudent loans are easier to pay with STEM degreesEngineering is a professional degree
Do not NEED MS/PhD to reach fullest career potentialMany Executives at STEM based industries have only a Bachelor of Science (BS – 4 year degree) in Engineering
Top 10 Paying 4-year degrees?4 Year Degree Starting
Median PayMid-Career Median Pay
1. Petroleum Engineering $97,900 $155,0002. Chemical Engineering $64,500 $109,0003. Electrical Engineering
(EE) $61,300 $103,000
4. Materials Science & Engineering $60,400 $103,000
5. Aerospace Engineering $60,700 $102,0006. Computer Engineering
(CE) $61,800 $101,000
7. Physics $49,800 $101,0008. Applied Mathematics $52,600 $98,6009. Computer Science (CS) $56,600 $97,90010. Nuclear Engineering $65,100 $97,800*Data from Payscale.com employee surveys
What About the Rest?Top 20 paying careers are Engineering or ScienceTop 39/50 careers require advanced Mathematics (at least some calculus)
*Data from Payscale.com employee surveys
How much will my education cost?Average Costs per Academic Year Regardless of Major
$14,000 for a Technical/Trade School$14,000 for 2-year Public$19,000 for 4-year Public In-State$31,000 for 4-year Public Out-of-State$35,000 for 4-year Private School
collegeboard.com
Cost BreakdownTuition & feesRoom & boardBooks & suppliesPersonal expensesTransportation
Costs in TexasSouthwest Texas Junior College
2 Yr PublicIn-stateTuition & fees
$2,081Room & board
$3,600Est. Personal
$745Transportation
$710Total $7,136
Univ. of Texas
4 Yr PublicIn-stateTuition & fees
$9,418Room & board
$10,112Est. Personal
$2,472Transportation
________$1,010Total $23,012
Univ. of Texas
4 Yr PublicOut-of-stateTuition & fees
$31,218Room & board
$10,112Est. Personal
$2,472Transportation
$1,010Total $44,812
Rice University
4 Yr Private
Tuition & fees$33,771
Room & board$11,750
Est. Personal$1,550
Books & supplies $800
Total $47,871
Post-College DebtIs not dependent on degree program at most public universitiesPrivate schools typically require more borrowingMore Science and Engineering degrees are available at 4-Year Public schools than any other type
Institution Level & Control
Percent Borrowing Cumulative Debt
4-year Total 66.5% $22,656 4-year Public 61.1% $19,839 4-year Private Non-Profit 70.6% $27,349 4-year Private For-Profit 97.0% $24,635
*Data from finaid.org/loans
Science & Engineering = Manageable DebtAssume average post-college debt: $22,656 Assume 7% interest for 10 years => $3156/yearAssume 40% of pay towards taxes and retirement
Degree Start pay
Take-Home Pay
% pay toward debt
Mid-Career Pay
Mid-Career Take Home Pay
% pay toward debt
Mechanical Engineering
$58,400 $35,040 9.0% $94,500 $56,700 5.5%
Computer Science
$56,600 $33,960 9.2% $97,900 $58,740 5.3%
Liberal Arts $37,800 $22,680 13.9% $63,200 $37,920 8.3%Humanities $34,900 $20,900 15.1% $57,800 $34,600 9.1%*Data from finaid.org/loans
Private
Agencies
Sources of Aid
Government
Federal& State
Institutional
(Varies bySchool)
Access to Financial AidFAFSA
Free Application for Federal Student AidUsed by federal government, state agencies, colleges, and some scholarship agencies to determine how much and what kind of aid you are eligible to receiveA snap shot of your finances
Student and Parent IncomeSavings and InvestmentsBenefitsState Tax Rates
FAFSA EligibilityHave a high school diploma or a General Education Development (GED) certificate Are working toward a degree or certificate in an eligible program Are a U.S. citizen, U.S. Permanent Resident with an Alien Registration Card, or an eligible non-citizen (refugee, asylum granted) Have a valid Social Security NumberSome states offer their own financial aid applications for students who do not meet these qualifications
FAFSA ProcessComplete online at www.fafsa.ed.govOnline FAFSA is processed in a few days versus a paper FAFSA that can take a few weeksGet a PIN number online www.pin.ed.govA new FAFSA application must be submitted for each academic yearOne application per student, not per familyCheck your college’s Priority Dates to get the best aid
Student Aid Report (SAR)Report that results from your FAFSA
Sent to students by mail or emailRetain for personal records
The SAR will include the Expected Family Contribution (EFC)
This information will be shared with your college
Additional RequirementsYou may be asked to provide additional documents by your college/university
Each college has its own financial aid deadline
Always contact the Financial Aid Office or your financial aid representatives at your college for assistance
How Financial Aid is DeterminedCOA: Total Cost of Attendance for one academic year at the student’s institution (varies by school)
EFC: Expected Family Contribution – the amount is determined on your FAFSA
COA – EFC = Need*
*This amount will vary at each school
Types of Financial AidBased on the Need, a student will receive a Financial Aid Package consisting of different forms of assistance
Gift (Free) Aid– Grants– Scholarships
Self-Help Aid– Work Study– Loans
Example: Financial AidCOA – EFC = Need$14,000 - $5,000 = $9,000 Need
Sample Financial Aid PackageInstitution scholarship$1,500State grant $3,500Work study $2,500Federal Loan $1,500
Total: $9,000
Students DO NOT have to accept the entire financial aid package. They can select the types of aid they want and seek additional funding elsewhere.
Other Sources of Aid
Private
Agencies
Government
Federal& State
Institutional
(Varies bySchool)
ScholarshipsAwarded based on merit, financial need, community service, academic achievements, etc.Sources
Non-Profits: Society of Hispanic Professional Engineers Foundation Hispanic College Fund Hispanic Scholarship Fund
Companies: Target, SouthwestColleges/Universities
Starting the SearchResearch for which scholarships you are eligible
It is never too early to start searching for scholarshipsAvoid organizations that charge fees for scholarship searches or that guarantee a scholarship = SCAMS
Keep a calendar of deadlinesReceived vs. Postmarked
Keep a notebook with contacts, requirements and instructions for each scholarship for which you will apply
Be Prepared, Students Should…Choose very carefully who will write a letter of recommendation for themWrite a detailed essay - achievements, strengths, goals, and how student plans to reach the goalsCreate and constantly update resumeRequest updated transcripts with enough time to mail outKeep an updated photograph that shows professionalism; some scholarships request a photo to print in award programs
Scholarship Selection ProcessLate or incomplete applications are eliminatedIneligible applications are eliminatedSelection Method
Essay, letter of recommendation and resume reviewedExamples of leadership, responsibility, focus, and motivation to succeed despite challenges are looked for in the essay
SHPE Foundation ScholarshipsGeneral Scholarships
Type: Merit-Based and Need-Based Scholarships
Amount: $1,000 - $3,000
Who Can Apply: High School Seniors, Undergraduates, Graduate students, and SHPE Professionals
Major: Science, Technology, Engineering, or Math (STEM fields)
Deadline: May 1
www.shpefoundation.org
* Goes directly to the student not the university
Navy ROTC ScholarshipProvides 4-Year ScholarshipsMonthly stipend from $250 - $400 each semesterOn graduation, two- and four-year College Program midshipmen may be commissioned ensigns in the Naval Service or second lieutenants in the Marine Corps Required to provide a minimum of four years service commitment to the U.S. NavyELIGIBILITY:
U.S. citizen or naturalized citizen 17 years old by September 1 of freshman year in college No older than 23 years old by June 30 Graduate from high school by August 1 of the year of applicationSAT/ACT Minimum Scores:
• SAT: 530 Critical Reading (CR) , 520 Math • ACT: 22 English, 21 Math
Apply and be accepted to an NROTC host college/university (If previously enrolled in college, may have a maximum of 30 semester credit hours)
DEADLINE: January 31
Additional ResourcesHispanic College Fund hispanicfund.org
Hispanic Heritage Foundation hispanicheritage.org
Hispanics Inspiring Students’ Performance and Achievement hispa.org
Hispanic Scholarship Fund hsf.net
MALDEF (Especially for non-US citizens) maldef.org
Scholarships For Hispanicsscholarshipsforhispanics.org
The SallieMae Fund thesalliemaefund.org