What are some ways in which we can
pay for college??
What are some ways in which we can
pay for college??
What are some ways in which we can
pay for college??
1. Grants/Scholarships 2. Loans
Let’s talk about Grants/Scholarships
Let’s talk about Grants/Scholarships
-Called “gift aid” because they are free money– financial aid that doesn’t have to be repaid.
Let’s talk about Grants/Scholarships
-Called “gift aid” because they are free money– financial aid that doesn’t have to be repaid.
-Grants are need-based, while scholarships are merit based.
Federal Pell Grant
Federal Pell Grant
-is awarded to only undergraduate students who have not earned a bachelors.
Federal Pell Grant
-is awarded to only undergraduate students who have not earned a bachelors.
-Max award: $5,730…. Which will depend on: -financial need
-cost of attendance
-status as full time or part time students
How do I get a Federal Grant?
How do I get a Federal Grant?
-Almost all grants are awarded to students with financial need. 1. You must submit a Free Application for Federal Student Aid
How do I get a Federal Grant?
-Almost all grants are awarded to students with financial need. 1. You must submit a Free Application for Federal Student Aid
(FAFSA)
Let’s talk about LOANS:
-Let’s talk about Loans:
Let’s talk about Loans:
-It is money you borrow and must pay back with interest.
-Interest: Money they charge the borrower (you) for borrowing
What are the types of Student Loans?
-What are the types of Student Loans?
What are the types of Student Loans?
William D. Ford Federal Direct Loan Program
What are the types of Student Loans?
William D. Ford Federal Direct Loan Program
(U.S Department of Education is your lender)
What are the types of Student Loans?
William D. Ford Federal Direct Loan Program
(U.S Department of Education is your lender)
1. Direct Subsidized Loans
What are the types of Student Loans?
William D. Ford Federal Direct Loan Program
(U.S Department of Education is your lender)
1. Direct Subsidized Loans
2. Direct Unsubsidized Loans
What are the types of Student Loans?
William D. Ford Federal Direct Loan Program
(U.S Department of Education is your lender)
1. Direct Subsidized Loans
2. Direct Unsubsidized Loans
Federal Perkins Loan Program
Subsidized Loan
Subsidized Loan
Subsidized Loan
Subsidized Loan
*Federal government will pay interest on your loan while you are in school and during your grace period and deferment periods. -grace period: The 6 months after you graduate, stop attending school or drop below a half-time student status.
Subsidized Loan
*Federal government will pay interest on your loan while you are in school and during your grace period and deferment periods. -grace period: The 6 months after you graduate, stop attending school or drop below a half-time student status.
Subsidized Loan
*Federal government will pay interest on your loan while you are in school and during your grace period and deferment periods. -grace period: The 6 months after you graduate, stop attending school or drop below a half-time student status.
-deferment period: A contract option in which you apply for more time before you begin paying back your loan.
Unsubsidized Loan
*You are responsible for ALL interest that accumulates on your loan from the time you receive your money through your
Unsubsidized Loan
*You are responsible for ALL interest that accumulates on your loan from the time you receive your money through your
repayment of loan.
-You have the option to pay the interest while you are in school, during your grace period, or your deferment period.
Unsubsidized Loan
*You are responsible for ALL interest that accumulates on your loan from the time you receive your money through your
repayment of loan.
-You have the option to pay the interest while you are in school, during your grace period, or your deferment period.
or
-You can let your interest accumulate and be added to the
Unsubsidized Loan
*You are responsible for ALL interest that accumulates on your loan from the time you receive your money through your
repayment of loan.
-You have the option to pay the interest while you are in school, during your grace period, or your deferment period.
or
-You can let your interest accumulate and be added to the
Unsubsidized Loan
Unsubsidized Loan
EX: You have a principal balance (Full balance) of $10,000 in unsubsidized loans.
Unsubsidized Loan
EX: You have a principal balance (Full balance) of $10,000 in unsubsidized loans.
--Your interest rate is 6.8%.
Unsubsidized Loan
EX: You have a principal balance (Full balance) of $10,000 in unsubsidized loans.
--Your interest rate is 6.8%.
--Your payment will be about $115 each month (120 payments made over 10 years)
Unsubsidized Loan
EX: You have a principal balance (Full balance) of $10,000 in unsubsidized loans.
--Your interest rate is 6.8%.
--Your payment will be about $115 each month (120 payments made over 10 years)
Unsubsidized Loan
EX: You have a principal balance (Full balance) of $10,000 in unsubsidized loans.
--Your interest rate is 6.8%.
--Your payment will be about $115 each month (120 payments made over 10 years)
Over 10 years, you’ll repay approximately $13,763: •$10,000 of original principal
Unsubsidized Loan
EX: You have a principal balance (Full balance) of $10,000 in unsubsidized loans.
--Your interest rate is 6.8%.
--Your payment will be about $115 each month (120 payments made over 10 years)
Over 10 years, you’ll repay approximately $13,763: •$10,000 of original principal
Federal Perkins Loans
Federal Perkins Loans
Federal Perkins Loans
* A low interest loan that is made with government funds to help you pay for undergraduate school.
Federal Perkins Loans
* A low interest loan that is made with government funds to help you pay for undergraduate school.
-Only awarded to students who show extraordinary financial need.
How will I receive my loan?
How much can you borrow in Federal
Student Loans?
How much can you borrow in Federal
Student Loans?
Undergraduates can borrow:
How much can you borrow in Federal
Student Loans?
Undergraduates can borrow:
-$5,500 per year in Perkins Loans
What should I consider before taking out
federal student loans?
1. Keep track of how much your are borrowing. Your student
What should I consider before taking out
federal student loans?
1. Keep track of how much your are borrowing. Your student loans should only be a small percentage of your salary after you graduate.
What should I consider before taking out
federal student loans?
1. Keep track of how much your are borrowing. Your student loans should only be a small percentage of your salary after you graduate.
2. Research starting salaries in your field. You do not want to get caught not being able to pay your student loan.
What should I consider before taking out
federal student loans?
1. Keep track of how much your are borrowing. Your student loans should only be a small percentage of your salary after you graduate.
2. Research starting salaries in your field. You do not want to get caught not being able to pay your student loan.
3. Understand your loan terms and agreements. When you sign the promissory note (the binding legal document you sign
What should I consider before taking out
federal student loans?
1. Keep track of how much your are borrowing. Your student loans should only be a small percentage of your salary after you graduate.
2. Research starting salaries in your field. You do not want to get caught not being able to pay your student loan.
3. Understand your loan terms and agreements. When you sign the promissory note, you are agreeing to legally repay the
How do I get a Federal Student loan?
1. Fill out your Free Application for Federal Student Aid (FAFSA) 2. Complete the entrance counseling, located in the website
Federal Work Study Jobs
-This provides part time jobs for undergraduate students with
Federal Work Study Jobs
-This provides part time jobs for undergraduate students with
financial need. It allows them to earn money to help pay for education expenses.
Federal Work Study Jobs
-This provides part time jobs for undergraduate students with
financial need. It allows them to earn money to help pay for education expenses.
1. Provides part-time employment while you are enrolled in school.
Federal Work Study Jobs
-This provides part time jobs for undergraduate students with
financial need. It allows them to earn money to help pay for education expenses.
1. Provides part-time employment while you are enrolled in school.
2. Available to full-time or part-time students.
What kind of jobs are there?
Are jobs on campus or off campus?
-Both. If you work on campus, you will usually work for your school.
How much will I earn?
-At least current federal minimum wage. You can earn more
How much will I earn?
-At least current federal minimum wage. You can earn more
depending on the type of work you do and the skills required for the position.
How much will I earn?
-At least current federal minimum wage. You can earn more
depending on the type of work you do and the skills required for the position.
Work study award depends on: --When you apply
Student Checking Account
Student Checking Account
An account you deposit money into knowing you will be using the money for purchases, withdrawals, and or online payments.
Always read the fine print….
1. Monthly Service feesAlways read the fine print….
1. Monthly Service fees-How much will your bank charge for this acct?
Always read the fine print….
1. Monthly Service fees2. Debit cards-Will your acct come with a free debit card?
3. ATM charges 4. Free checks
5. Minimum balances 6. Check limits
Always read the fine print….
1. Monthly Service fees2. Debit cards
3. ATM charges-Will they charge me money to withdraw from my acct?
4. Free checks
5. Minimum balances 6. Check limits
Always read the fine print….
1. Monthly Service fees2. Debit cards 3. ATM charges
4. Free checks-Will they charge me for checks?
5. Minimum balances 6. Check limits
Always read the fine print….
1. Monthly Service fees2. Debit cards 3. ATM charges 4. Free checks
5. Minimum balances-Will they charge me if my balance drops below the minimum?
6. Check limits
Always read the fine print….
1. Monthly Service fees2. Debit cards 3. ATM charges 4. Free checks
5. Minimum balances
6. Check limits-Is there a limit of checks I can write in a month?
Always read the fine print….
1. Monthly Service fees2. Debit cards 3. ATM charges 4. Free checks
5. Minimum balances 6. Check limits
Always read the fine print….
Types of Cards
Types of Cards
Debit Card: a card that takes money directly from your checking account, just like when you write a check
Types of Cards
Debit Card: a card that takes money directly from your checking account, just like when you write a check
-They look like Credit Cards and will have the Visa or Mastercard logo
-Use Debit cards when making purchases without accumulating
Types of Cards
Debit Card: a card that takes money directly from your checking account, just like when you write a check
-They look like Credit Cards and will have the Visa or Mastercard logo
-Use Debit cards when making purchases without accumulating
interest
Types of Cards
Types of Cards
Credit Cards: Cards that can be used to pay for just about anything, anywhere.
Types of Cards
Credit Cards: Cards that can be used to pay for just about anything, anywhere.
1. Not taken out of your bank account
Types of Cards
Credit Cards: Cards that can be used to pay for just about anything, anywhere.
1. Not taken out of your bank account
2. There is a limit to how much you spend
Types of Cards
Credit Cards: Cards that can be used to pay for just about anything, anywhere.
1. Not taken out of your bank account
2. There is a limit to how much you spend
3. You are billed at the end of the month and you have the option to pay only a portion of your full balance.
