Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. ©...
-
Upload
malcolm-nichols -
Category
Documents
-
view
219 -
download
0
description
Transcript of Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. ©...
![Page 1: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/1.jpg)
Paying for collegeAnita Baldwin & Brenda Griffith
All credit products subject to qualification.© 2010, 2012 Wells Fargo Bank, N.A. All rights reserved. Member FDIC.Please note: this presentation cannot be altered in any way without first contacting Region Marketing. DO NOT DISTRIBUTE.
LocationDate goes here
![Page 2: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/2.jpg)
Quick Tips
Financing student education is one of the most important decisions that families make. Start early. Research your options to make an informed decision. If you miss a deadline, don’t give up. There are options. Your influence could impact your child’s/student’s financial future. Don’t assume that your child/student has the knowledge to take care
of everything.
2
![Page 3: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/3.jpg)
What are my family’s options?
There are many options that families use to pay for college expenses.
3*Typically offered through the institution
Income Savings Financial aid Tuition payment plan* 529 Plans Federal student loans Private student loans Investments Home equity Lines of credit
![Page 4: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/4.jpg)
What’s the best option?
The best choice is different for every family and individual situation. What’s right for you doesn’t have to be just one option—
a combination of aid, savings, loans and income might be the right choice.
Some things to consider: What’s your financial situation today? Will the amount in savings or your 529 plan cover the entire cost,
or will you need more? How much of the cost do you want to cover, and how much do you
expect your child to pay for? Would dipping into your investments affect your retirement? Could tapping into your home equity affect your other short-term goals?
4
![Page 5: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/5.jpg)
How does financial aid fit in? Many times, financial aid
is a lower-cost option for families.
Start with a visit to the school’s financial aid office. They’re the first source for information on grants, scholarships and aid.
It’s the focus of their office to ensure that your family can pay for school.
5
![Page 6: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/6.jpg)
Financial aid myths
Only students with a perfect grade point average get aid.
If your family has a decent income, you won’t qualify for anything.
Only great athletes get grants and scholarships.
There’s so much paperwork involved, it’s not worth the time and effort.
6
![Page 7: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/7.jpg)
Financial aid facts
Financial aid is money that: Can come in the form of
grants or scholarships that don’t have to be paid back
Could include a Work Study program
Is offered as loans, even to families that have middle to high income
7
![Page 8: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/8.jpg)
Getting started
8
![Page 9: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/9.jpg)
First things first
Complete the Free Application for Federal Student Aid (FAFSA) with your student. Most undergraduates need their parents’ information to complete the form. Required in order to qualify for federal aid Complete this as early as possible after your taxes are complete. The results are automatically sent to the schools that you indicate. Be sure to get a PIN before you start—one for your child and one for you—it’s an identification method and can be obtained at pin.ed.gov. Find the form at fafsa.ed.gov.
9
Note: Check with the financial aid office for additional forms or applications that you and/or your child may need to complete.
![Page 10: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/10.jpg)
The FAFSA online
10
![Page 11: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/11.jpg)
The award process
Watch for the Student Aid Report, this report summarizes the results of the FAFSA.
From here, each school where your child is accepted will send an award letter. It will show grants, work-study, and federal loans.
Compare awards! Not all financial aid packages are the same. Some schools might have additional grants or scholarships. Check with the school to see if your child can qualify for the same aid every year, and understand the full picture of the future cost of education at each school.
Remember, you don’t have to accept everything. Start with the lowest-cost options.
11
![Page 12: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/12.jpg)
Expected family contribution
Most undergraduate students are considered to be ‘dependent’ when financial aid is calculated—even if you don’t still claim them on your taxes. What this means to you: Based on your family’s income and other factors, parents are expected to contribute a percentage of college costs. The student may take a secondary responsibility in paying for
college, in the results of aid calculation.
Want to know if your student will be considered as a dependent? Visit fafsa.ed.gov which has a quick worksheet to determine dependency status.
12
![Page 13: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/13.jpg)
Types of aid
13
Don’t have to be repaid
Beware of scams—you should never have to pay to do a scholarship search. Find details on finaid.org and fastweb.com
Awarded based on financial need and/or academic achievement
Don’t have to be repaid
Some are federally funded and others are state programs
Some institutions have their own private grant programs
Based on financial need
Allows students to earn income working part-time
Can work either on or off-campus
Scholarships Grants The Federal Work-Study Program
![Page 14: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/14.jpg)
What federal loans are available?
14
Need-based Low interest rates
Fixed interest rates Government
guaranteed Qualify for
unsubsidized regardless of family income
Fixed interest rates Cover the cost of
education Not need-based
Federal Perkins Loans
Federal subsidized and unsubsidized loans
Direct PLUS Loan for parents and graduate students
Federal Direct Loans
![Page 15: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/15.jpg)
How much will college cost?
When planning how much to borrow, consider the following costs: Tuition & fees: varies by school Housing: dorm room or rent Meals: cafeteria or groceries Books and supplies: buy used textbooks to save Transportation: the bus or parking pass and gas (Student loans
cannot be used for the purchase of a car) Personal expenses: laundry, toiletries, cell bills, etc.
Consider inflation on tuition and living expenses when calculating the full cost of education.
15
![Page 16: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/16.jpg)
Estimate before borrowing
If you decide to borrow for the benefit of your child or if they are borrowing on their own, you’ll want to consider repayment.
No one wants a surprise from that first billing statement. Use an online loan calculator to see how much the monthly payments
will be Pay attention if a loan has deferred payments. What is borrowed now may
accrue interest while the student is in school; interest is normally capitalized (added to the balance) at repayment.
If you or the student can afford to, paying the interest or even part of the principal balance while he or she is in school is a great way to reduce their debt load.
Be realistic—consider your child’s estimated income versus their estimated monthly payments. Ideally, student loan payments should be 10 percent or less of net monthly income.
16
![Page 17: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/17.jpg)
Timeline
As soon as possible after January 1, file the Free Application for Federal Student Aid (FAFSA) at fafsa.ed.gov (don’t forget to get a PIN).
Remind your child to register for advanced placement tests.
Help your child complete scholarship applications.
Watch for the Student Aid Report (the response from the FAFSA application).
January February March
17
![Page 18: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/18.jpg)
Timeline
Compare financial aid awards
Look for additional funding if aid doesn’t cover the cost
Make sure your child’s final transcripts are sent to the school that they will attend
If your child has a summer job, remind them to save money!
April May Summer
18
![Page 19: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/19.jpg)
What if financial aid isn’t enough?
Private student loans When federal funding and other sources of aid aren’t enough,
you may want to consider a private student loan. Private loans vary by lender, but they typically offer:
Credit based approvals Variable interest rates Generous borrowing limits Deferred repayment
19Note that most students will need a qualified cosigner to qualify for a private student loan.
![Page 20: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/20.jpg)
More information for students and parents
20
Covers the basics of good money management and the skills you need to create a brighter financial future
handsonbanking.org
Hands on Banking®
![Page 21: Paying for college Anita Baldwin & Brenda Griffith All credit products subject to qualification. © 2010, 2012 Wells Fargo Bank, N.A. All rights reserved.](https://reader033.fdocuments.us/reader033/viewer/2022051303/5a4d1b677f8b9ab0599b0c8e/html5/thumbnails/21.jpg)
Any questions?
Thanks for your time today. Presenter Name
More information: studentaid.ed.govfafsa.ed.govanycollege.comcollegenet.comfastweb.com
21