Personal Finance: Module 1 Lesson 2 Prepare for the Journey Section 2.2 – Show Me the Money!
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Transcript of Personal Finance: Module 1 Lesson 2 Prepare for the Journey Section 2.2 – Show Me the Money!
Personal Finance: Module 1 Lesson 2
Prepare for the JourneySection 2.2 – Show Me the Money!
Prepare for the Journey • Slide 2
Section 2.2 objectives
Students should be able to analyze price and financial components
of postsecondary programs;
understand the purpose, timeline, and information necessary to complete a FAFSA;
explore and compare the types of available assistance; explore ways to reduce the cost of attendance
and minimize student loan debt; and
learn about supplemental college support options.
Prepare for the Journey • Slide 3
Glossaries
The SmartStudent™ Guide to Financial Aid
Federal Student Aid Glossary
Prepare for the Journey • Slide 4
You can go!These students thought they couldn’t go to college:
You Can Go!TM is a trademark owned by the College Board, which was not involved in the production of, and does not endorse, this presentation. You Can Go!TM by the College Board. Copyright © 2012. The College Board. www.collegeboard.org. Reproduced with permission.
You Can Go!™ video
Prepare for the Journey • Slide 5
Cost of Attendance (COA)= Tuition – the price that an institution charges
for its instruction
+ Fees – additional charges that help the
institution offset the cost of providing student or administrative services
+ Living costs – includes housing and meals
(also called room and board), travel, personal expenses, books, school supplies, etc.
Prepare for the Journey • Slide 6
Average cost of attendance per year for undergraduates
Source: You Can Go!TM by the College Board. Copyright © 2012. The College Board. www.collegeboard.org. Reproduced with permission.
http://nces.ed.gov/collegenavigator/
Prepare for the Journey • Slide 7
Prepare for the Journey • Slide 8
Most students
pay far less than
the high prices
talked about in
the media.
You Can Go!™
“
”
Prepare for the Journey • Slide 9
Advertised price versus net price
The average advertised price
(also called sticker price) of one
year of tuition and fees for a
public four-year college is $8,240.
But the average net price
is just $2,490.
Prepare for the Journey • Slide 10
Net price calculator What is a Net Price Calculator?
An online tool that allows you to input some basic
personal and family information which in turn
gives you an estimate of how much your
education will cost at a particular institution
Videos to help explain
Net Price YouTube Video 1
Net Price YouTube Video 2
How to find a Net Price Calculator
CollegeNavigator
Prepare for the Journey • Slide 11
Tools to help lower college costs
1. Savings!
2. Work while in school
3. Scholarships
4. Grants
5. Federal work-study
6. Student loans–as a last resort
Prepare for the Journey • Slide 12
Savings–always the BEST way!
Savings Tools – to help you and your family save
for your education
FinAid Saving for College
Savings Calculator – online tool that gives you
an estimate of how much money you will need to
save for your postsecondary education
Savings Calculator
Prepare for the Journey • Slide 13
Work your way through
Meet Jonathan: You Can Go!™ Jonathan's story
Prepare for the Journey • Slide 14
Types of financial aid
Need-based aid is awarded to students who
demonstrate financial need as determined by
the government and the college they attend.
Merit-based aid is awarded to students
who demonstrate outstanding academic
achievement, remarkable characteristics,
or special talent in performing arts, athletics,
and other areas.
Prepare for the Journey • Slide 15
Scholarships
FREE Money – doesn’t have to be repaid!
May be awarded based on two things:
Merit Academics (grades, ACT/SAT scores, class standing)
Performance (sports, band, dance, leadership, etc.)
Program (math, science, education, etc.)
Various (first in family, disability, gender, religion, etc.)
Need (financial need)
Prepare for the Journey • Slide 16
Search for scholarships Finding and applying for scholarships
Institutional scholarships: UT–Knoxville
Top 5 scholarship search engines
10 Killer Tips for Scholarship Applicants
Attention students! There should never be
a charge to search for or apply for individual
scholarship awards.
Prepare for the Journey • Slide 17
College Board’s “Big Future”7 Things You Need to Know About Financial Aid
Prepare for the Journey • Slide 18
FAFSA: Gateway toStudent Financial Aid The Free Application for Federal Student Aid uses
information to determine eligibility.
If you are under 24 years old on the day your FAFSA is
filed, your parents will need to provide personal information.
FAFSA requires SS#, tax return, W-2, bank balance, and
untaxed or investment income information.
Entering false or misleading information on a FAFSA can
result in loss of student aid.
FAFSA on the Web
Prepare for the Journey • Slide 19
FAFSA: When and how to file First step: request a PIN before filing FAFSA.
Apply for a PIN
Begin filing in January!
Pay close attention to ALL FAFSA deadlines.
Student Aid Deadlines
File electronically via secure government site.
After you complete the FAFSA, you will receive
a Student Aid Report (SAR) with your EFC.
FAFSA Facts
Prepare for the Journey • Slide 20
Demonstrating financial need
Cost of Attendance (COA)
Estimated Family Contribution (EFC) Demonstrated Need
–
Prepare for the Journey • Slide 21
Demonstrating financial need
Simplified EFC
Assets are excluded if family receives income-based
government benefits and its Adjusted Gross Income
(AIG) is $49,999 or less.
Automatic Zero EFC
Calculates a zero EFC if family income is
$23,000 or less.
EFC Resources: EFC Formula EFC Calculator FAFSA4Caster
Prepare for the Journey • Slide 22
Grants: more free money
Need-based aid
Requires you to complete a FAFSA
Types of grants
State Tennessee Student Assistance Award
Federal (Pell Grant, Federal Supplemental
Education Opportunity Grant/FSEOG)
School or institution-based
Vanderbilt’s Expanded Aid Program
Prepare for the Journey • Slide 23
Federal work-study Need-based award
Requires a FAFSA
Part-time employment
Funds are limited!
Prepare for the Journey • Slide 24
Student LoansAn education or student loan is a debt that
must be repaid with interest!
Must sign a Promissory Note promising
to pay the money back
Interest rates for federal student loans
may be lower than regular consumer loans
Standard repayment term is 10 years
Student Loan Calculator
Prepare for the Journey • Slide 25
Student loan types Direct Student Loan – a student loan that is borrowed directly from
the Department of Education
Subsidized Stafford Loan – a direct loan based on financial need;
the government pays the interest while the student is in school
Unsubsidized Stafford Loan – a direct loan available to any student
(is not need-based), and the government does NOT pay the interest
Perkins Loan – a loan based on exceptional need
PLUS Loan – a private loan program offered to parents
Federal Student Aid Student Loan Information Page
Prepare for the Journey • Slide 26
Student loan terminology Default – if a borrower doesn’t make required loan payments for at least 270
days, this violates the loan agreement (risking payment in full due immediately)
Forbearance – if students experience temporary financial difficulty they may
request to stop loan payment for up to a year without penalty; however,
interest continues to be added
Deferment – students who need to take a temporary break from their studies
may request to postpone their loan repayment without interest until they can
return to school at least half-time
Loan consolidation – combines several smaller student loans into one big
loan with one lender and one payment
Need to talk to a real person?Call the Federal Student Aid Information Center at
1-800-4-FED-AID (1-800-433-3243) or 1-800-730-8913 (if hearing impaired)
Prepare for the Journey • Slide 27
Summary of the financial aid process
Types of Student Financial Aid
Prepare for the Journey • Slide 28
Additional financial assistance
TEACH Grant
Segal AmeriCorps Education Award
Montgomery GI Bill
Loan Forgiveness Programs
Academic Common Market
Prepare for the Journey • Slide 29
Tips to help lower costs
Start saving today!
Make high school count.
Enroll in a closer, smaller, public school.
Avoid borrowing money for living expenses.
30 Ways to Reduce College Costs
Prepare for the Journey • Slide 30
Financial aid scams Never give out personal information until you have done
an extensive background check on the company.
Ask the organization how it found you.
Never deal with any organization that has no physical location
(e.g. it only has a P.O. box, email, or web address).
Never send anyone money in any form.
Assume it’s a scam, walk away, or hang up whenever the
situation feels wrong or you feel pushed in any way.
Free $ for College for Dummies Cheat Sheet
How to Protect Yourself from Financial Aid Scams
Prepare for the Journey • Slide 31
Satisfactory Academic Progress = SAP
Must be enrolled in a degree
or certificate program
Required to maintain eligibility
for federal aid
Know your college’s SAP policy!
Always consult the financial aid office
before dropping a college course!
Don’t get caught with your SAP down!
Prepare for the Journey • Slide 32
For this project, the PR/Award Number is V215W100015
and the Department of Education is the funding agency.
This information is provided for the reader's convenience. Tennessee and U.S. Department of
Education are not responsible for controlling or guaranteeing the accuracy, relevance, timeliness, or
completeness of this information. Further, the inclusion of information or Web site address does not
reflect the importance of the organization, nor is it intended to endorse any views expressed, or
products or services offered.
Financial Education for College Access and Success