Paying for Post-Secondary Education

Unit 8 - Succeeding

Saving for College

• Total cost of attendance• Education IRA

– Education savings plan that offers tax advantages

• 529 Account– A higher education savings plan where

the funds can be withdrawn tax-free when they are used for educational purposes

Scholarships

• An award of financial aid for a student to further their education, often based on merit such as academic achievement or athletic skill– http://www.finaid.org/scholarships/– http://studentaid.ed.gov/types/grants-

scholarships/finding-scholarships• Armed Forces Enlistment or Reserve

Officers’ Training Corps (ROTC)

Financial Aid

• Grant or scholarship, loan or paid employment offered to help a student meet his/her college expenses– Pell grant (free money)

• FAFSA (Free Application for Federal Student Aid) www.fafsa.ed.gov– Form that must be completed in order to

qualify for any type of governmental financial aid for higher education

• Pg 14 http://collegecost.ed.gov/shopping_sheet.pdf

Financial Aid

• Grant– Monetary award by the federal, state or

local government to an eligible student for educational expenses and without the expectation of repayment

• Work study– Program that provides students with

part-time jobs while in school in order to subsidize the cost of education

Financial Aid

• Student Loan subsidized and unsubsidized

» By government you pay the interest

• Interest Rate• Grace Period• Deferred Payment• Perkins Loan• Stafford Loan• Parent Loan for Undergraduate

Students (PLUS)

Retirement

Unit 8 - Succeeding

Retirement

• The point in time when a person chooses to leave the workforce permanently, usually at age 65 or older

• Compounding interest (pg. 41 Examples and Practice)

• Risk• Inflation

Retirement

• Social Security• Medicare• Individual Retirement Account

– A retirement investment account that allows a person to save a specified amount of income each year in a tax-deferred account

– Traditional IRA (taxed at time of withdrawal)

– Roth IRA (no taxes at withdrawal)

Retirement

• 401K– A retirement investment plan that

allows an employee to invest a percentage of their wages into a tax-deferred account chosen by the employer

• 403b– A retirement plan available to

employees of certain non-profit organizations that allows them to invest a percentage of their wages in a tax-deferred account

Building your Future

Path to Employment

Did you know?

• Unemployment and earnings are directly linked to educational attainment

• Knowing your interests, strengths, skills and aptitudes can help you identify a number of different career options.– www.onetonline.org/find/career