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Launch - Financial Aid

Finding your way to the college money tree can be tricky, but we're here to explain the branches.
by

UNC Launch

on 13 January 2014

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Transcript of Launch - Financial Aid

Financial Aid
Harvesting the Money Tree
Loans
Work Study
What is work study?
What can I do?
Why Work-Study?
How Loans Work
Subsidized Loans
Unsubsidized Loans
Private Loans
Federal Grants
What is a grant?
Institutional Grants
Grants
Pell Grant - largest Federal grant
Offers up to $5,500 per year
Based on your financial "need"
Federal Supplemental Educational Opportunity Grant
Offers up to $4,000 per year
Given to those with
greatest "need"
Smaller Grants
Provided by your individual school
Can meet some or all of your need
Never needs to be repaid

Provided by the
Federal Government
or your college

Offered by banks and other institutions
Usually have higher interest rates
than Federal Loans
Must apply on your own
Variable rates often change!
Example: Discover Student Loans
Fixed rates as low as 6.79% APR
Variable rates as low as 3.25% APR
0% interest as long as you're in college
No interest until at least 6 months after you graduate.
Perkins Loan
Offers up to $5,500/year
5% fixed interest rate post-graduation
Direct Loan
Offers up to $7,500/year
3.4% fixed interest rate post-graduation
Similar to private loans
Administered by the Federal Government
Interest accrues as soon as you take
out the loan.
Direct Loan
Offers up to $7,500/year
6.8% fixed interest rate
PLUS Loan
Can cover remaining cost of attendance
7.9% fixed interest rate
Borrow from a lender
Pay back principle + interest owed
Generally monthly installments
Work-Study is a program funded by the Federal Government, administered by the college.

The Federal Government provides your school with a certain amount of funding
Each department offers jobs to students that qualify for work-study.
You qualify through the FAFSA and if your school has enough funding to provide it
Jobs vary from tutoring local elementary students, working in an office on campus, working in a library, etc.
There is a maximum amount of money you can make from work-study, depending on the school and the student.
Each school creates their own pay scale for work-study students
Your Right to an Education
"We have an obligation and a responsibility to be investing in our students and our schools. We must make sure that people who have the grades, the desire and the will, but not the money, can still get the best
education possible."

- Barack Obama
Who Should Apply?
You!
US Citizens or Permanent Residents
High School Graduates/GED
Valid Social Security Number
Males Registered for Selective Service
Who gives out financial aid?
The Federal Government
Your College or University
Private Donors and Corporations
Financial aid can be:
Need-based
Merit-based
Combination of both
How do I apply for financial aid?
FAFSA
CSS Profile
Run by Federal Government
Free to apply
Based on Taxes
Required for Financial Aid
College Board
$25 + $16/School
Fee Waivers Offered
More In-Depth
Not required by all schools
What will I need?
1040 Tax Forms
Social Security Number
Tax Returns
W-4 Forms
Medical Information
Your Parents
When is it due?
Early Decision
Fill our CSS by mid-November
Fill out FAFSA after January 1
Regular Decision
Fill out both by March 1
Check each school's website!
Earlier is always better.
When will I know?
After your college decision is released, generally by mid-April
In 2011, the Federal government gave out $157 billion in student aid and $848 billion in federal loans.

79% of full-time undergraduate students received some form financial aid., worth an average of $12,700.
How much does college cost?
Average Public School: $15,600
Average Private School: $32,000
COA Includes:
Tuition and Fees
Room & Board
Books & Supplies Transportation
Scholarships
Estimated Family Contribution
The amount that your family can reasonably be expected to contribute.
Parent Contribution + Student Contribution
Stays constant, regardless of your college
Calculated using income and financial data
Can vary from year to year based on family finances
Online estimate: www.fafsa4caster.ed.gov
So what is financial "need?"
"Cost of Attendance" = COA
Need = COA - EFC
This is the amount of support that you'd receive ideally, but not all schools meet 100% of need. To meet your need, you'll be given a package of grants, loans, scholarship, and/or work study.
Federal Loans
Opportunity & Costs
Merit vs. Need
Where do I find them?
Questions to Ask
So I have my financial aid...
Now what?
Compare financial aid packages between schools
Consider future impacts
Talk to the Financial Aid Office if necessary
Discuss it with your parents!
What will I get?
Grants
Scholarships
Loans
Work Study
Your High School and Community
Merit-based scholarships
Need-blind
Based on academic achievement, service, extracurriculars, etc.
Need-based scholarships
Factors in financial need, academic achievement, and other factors.
Requires FAFSA and/or CSS Profile
Provided directly by your college
Ask your school counselor
Look online
Fastweb.com
Scholarships.com
Ask your parents or friends
Based on FAFSA
Better repayment plans than private loans
Loan forgiveness for students pursuing teaching or public service
Separated into two categories:
Subsidized
Unsubsidized
You need to borrow $40,000, and you want to pay it back over 20 years.
Compare your monthly payments for a 9% private loan, a 6.8% unsubsidized loan, and a 3.4% subsidized loan.
How will I repay my loan?
What will my monthly payment be?
What are the deferment policies?
Do I need a cosigner?
Is the rate adjustable or fixed?
Work-study can provide:
A valuable job experience
A source of income
A convenient job located on campus
Be sure to:
Understand what you want from work-study (interesting or easy?)
Be pro-active in finding a job as soon as school starts.
What will it look like?
Cost of Attendance: $44,000
Expected Family Contribution: $20,000
Need Met (Varies): $24,000 or 100% of need



Institutional Grant - $13,000
Federal Direct Subsidized Loan - $5,500
Federal Work-Study - $2,700
Federal Perkins Unsubsidized Loan - $2,000
Scholarship - $800
Total: $24,000
For example, UNC offers to cover 65% of your need through school grants, but 100% of your need if you qualify for Carolina Covenant.
What do they give me?
Principle - amount borrowed at start
Interest Rate - percentage of loan amount that you're charged for borrowing
Deferment - delay payments
1. Press [APPS], [Finance], [TVM Solver]
N = Number of Payments
I% = Interest Rate
PV = Present Value (Amount Borrowed)
PMT = Monthly Payment
FV = Future Value (Amount Paid)
P/Y = Payments/Year
C/Y = Same as P/Y (Generally 12)
3.Leave one unknown value blank
4.Press [Alpha][SOLVE]
On Your Calculator
What's the difference?
Full transcript