College Research and Financing

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College Research and Financing

• Career Explorations
• Burlington High School
• A. Nolte

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What to consider I

• Type of College or University
• 2-yr or 4-yr ?
• technical /vocational?
• single gender or coed?
• particular affiliation, e.g. religious, military,
  business?
• Cost
• Available Aid
• Academic Programs
• Selectivity (GPA, class rank, SAT/ACT,
  leadership, service, work ethic, recommendations,
  etc.)
• Faculty

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What to consider II

• Reputation
• Location
• Size of school
• Student/Teacher Ratio
• Infrastructure (housing, atmosphere, activities,
  student life, facilities)
• Diversity

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Cost

• Tuition the cost of classes
• Room and Board the cost of living on campus
  (live in dorm, eat at cafeterias)
• Student Fees various lab, athletic or activity
  fees, health care
• Books and Supplies
• Other Fees some schools have other random fees
• Personal Items (living expenses)
• Transportation, travel

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Cost per year
Source www.finaid.org
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Cost for 4 Years
Assuming college costs go up about 7 per year
? avg. student debt (class of 2008) 25,000
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Reducing Cost I

• go to nearby school and live at home
• go to school part-time (w/part-time job)
• participate in work-study program
• Buy used textbooks and supplies needed
• live off-campus
• prepare own meals, not eating at cafeteria

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Reducing Cost II

• 22 savings (start 2-yr community college
  transfer)
• connections (e.g., family member)
• Dual Enrollment (take college classes during
  H.S.)
• AP classes in H.S. to earn credits for free
• Take Gap-year (for work or personal advancement)
• Go to school abroad (e.g. Canada)
• Etc.

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How to Pay?

• Financial Aid (Sources Fed. Govnmt, State,
  Colleges, Private Scholarships, Banks, etc.)
• Grants and Scholarships
• Work Study Program
• Loans
• Savings (yours, parents, 529 plans, etc.)
• Work and SAVE (have you started??)

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How to Pay a puzzle
Plus own contribution from savings and earnings!
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Grants and Scholarships

• gift aid do not need to be repaid
• but scholarships are not entirely free you
  may owe
• (community) service
• athletic activities
• academic results
• scholarships are based on, for example
• Financial need
• Academic / Athletic Achievements
• Activities, Services, Involvement
• Recommendations
• Essay, Interview, Personal Statement

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Work Study Program

• self-help aid students earn money for
  education
• jobs usually within the college (hours are
  appropriate for students)
• jobs sometimes useful (e.g., desk job where you
  can study, do homework)

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Loans

• self-help aid money borrowed to pay for school
  (parents or students)
• loans must be repaid with interest (lots of
  interest!)
• typical repay 6 mos. after leaving school
• no interest while in school
• deferment if continue on to grad school
• ? work closely with financial aid advisor!

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Interest on Loan an example

• Federal Stafford Loans are now at about 5
  interest p.a.
• Example
• UVM will cost you 110,000 over 4 years
• Assumption you borrow 100,000 at 5
• Approx. total cost over 10 years
• Pay total 133,000 over 10 years
• Which is 1,100 per month for 10 years!
• Including 33,000 in interest
• ? avg. student debt 23,000 (www.finaid.org for
  2008)

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Sources of Financial Aid

• Federal Government the primary source of
  financial aid (FAFSA.ed.gov)
• VSAC limited to Vermont residents
• Vermont state grants, scholarships, and some
  federal and private loans
• College colleges provide their own amount of
  financial aid
• Grants, Scholarships, Loans, Work Study
• Other foundations, civic groups, organizations,
  sponsors, employers, etc.

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Financial Aid Criteria - General

• Family income before taxes (incl. students!)
• Family assets savings, investments (incl.
  students!)
• Family size (parents plus children)
• Family members in college
• The age of your older parent
• Other factors sometimes considered include
• Credit card debt
• Home and/or Business equity
• Rent/Mortgage payments
• Retirement accounts

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Financial Aid Criteria Income and Assets

• Budget minus Resources Need
• 1. Income Statement
• Family income before taxes
• minus certain expenses
• Resource 1
• 2. Balance Sheet
• Family assets
• minus certain liabilities/debt
• Resource 2
• Yields EFC Expected Family Contribution

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FAFSA

• www.FASFA.ed.gov
• Free Application for Federal Student Aid
• Example
• Cost / yr 40,000
• You pay(EFC) 15,000 (per FAFSA)
• Financial Aid 25,000 (to be covered by
  grants, loans, etc.)

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College Search - Resources

• Free tools, e.g. VSACs School Finder, or
  Choices
• or www.collegeaccess.org
• or www.collegeboard.com
• or www.FastWeb.com
• or www.vsac.org
• or www.onetcenter.org, etc.
• Internet Research (colleges and aid programs)
• Campus visits, open houses, fairs
• College Pathways Conference (at St. Mikes)
• Workshops
• Recommendations
• Guidance
• LLL Office (College Connections, Dhyana
  Bradley)
• Etc.

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College Search - Preparation

• Meet with school counselor (check your high
  school course map)
• Keep on track with work, grades, exams
• Meet with Linking Learning to Life
• Talk to your parents, guardians, siblings,
  friends, teachers, mentors, classmates, etc.
• Prepare for tests (PLAN, PSAT, SAT, ACT, etc.)
• Explore / Research / Visit more than one college
  (target schools reach schools)
• Sign up for extracurricular activities
• Stay involved (volunteer, service, clubs, sports,
  music, drama, )

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College Search Preparation contd

• Save money, manage funds wisely
• Continue Career Exploration (interests, skills,
  values, talents, empl. outlooks)
• Attend Informational Meetings (Pathways)
• Know due dates for tests, applications, fairs
• Line up letters of recommendation
• Clean up your image (e.g. Facebook...)
• Stay informed (news, changing world,
  competition,...)
• and again distinguish yourself

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Education pays in higher earnings and lower
unemployment rates
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Education Earnings some statistics

• Workers w/bachelors degree earn avg. 26K/yr
  more than workers with H.S. diploma only (57K
  vs. 31K p.a.)
• 29 of adults (25 yrs) have a bachelors degree
• 29.4 mio. women
• 28.4 mio. men

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More Reading/Reasearch Sources

• College How Much to Spend?
• http//www.pbs.org/now/shows/528/college-expenses.
  html
• Census Bureau Releases Data Showing
  RelationshipBetween Education and Earnings
• http//www.census.gov/Press-Release/www/releases/a
  rchives/education/013618.html
• Look Before You Leap Student Loan Shopping Tips
• http//projectonstudentdebt.org/look_leap.vp.html
• Gap year, Time Off With A Plan
• http//www.bls.gov/opub/ooq/2009/fall/art04.pdf
• Student Loans Avoiding Deceptive Offers
• http//www.ftc.gov/bcp/edu/pubs/consumer/credit/cr
  e43.pdf
• Characteristics of Borrowers with Excessive Debt
• http//www.finaid.org/educators/20090511excessived
  ebt.pdf