DISCOVERY: COLLEGEFinancial Aid

Fundamentals

Senior and Parent Meeting

PAYING FOR COLLEGE: FUNDAMENTAL QUESTIONS

You’ve probably heard that college costs a lot of money. Is it worth it to go?

Who is responsible for paying for your college education?

How much does it cost to attend college? What if you and your family can’t afford to

pay for college? Can you still go? Where’s the money? Who/What can help you

pay for college? Who Gets Financial Aid to Attend College? The Price Is Right! . . . Or is it? Paying for College: What should you do now?

IS IT WORTH IT TO GO TO COLLEGE?

THE LIFETIME LINK BETWEEN LEARNING AND EARNING

IS IT WORTH IT TO GO TO COLLEGE (continued)?

Other Potential Personal and Social Benefits of a College Degree:

Smoking and obesity rates are significantly lower for college graduates than for non-college graduates

Exercise rates are significantly higher for college graduates than for non-college graduates

Volunteering rates (hours/year) are significantly higher for college graduates than for non-college graduates

Voting rates for U.S. citizens are significantly higher for college graduates than for non-college graduates

Life satisfaction levels tend to be higher for those with a college degree than for those with lower educational attainment

Source: http://trends.collegeboard.org/education-pays AND http://www.foxnews.com/health/2011/07/17/top-10-proven-ways-to-improve-life-satisfaction/

WHO IS RESPONSIBLE FOR PAYING FOR COLLEGE?

Who do you think is responsible for paying for your college education?

The U.S. federal government and colleges (the top two sources for college financial assistance) consider it primarily the family's responsibility to pay for school. The federal government provides financial assistance only when the family is unable to pay (although colleges may provide merit-based financial assistance).

Source: http://www.finaid.org/otheraid/parentsrefuse.phtml

HOW MUCH DOES COLLEGE COST?

The Cost of Attendance (COA – includes tuition, room, board, books, travel, and other expenses related to college attendance) varies dramatically at colleges and universities across the U.S.

HOW MUCH DOES COLLEGE COST (some

examples)?$60,116 – Sarah Lawrence College (NY)

(highest COA) of any college/university in the U.S. in 2012-2013

Other Ten Most Expensive U.S. CollegesU. of Chicago (IL) - $59,950Columbia U. (NY) - $59,208Washington U. (MO) - $58,901New York U. - $58,858Northwestern U. (IL) - $58,829Fordham U. (NY) - $58,732Dartmouth College (NH) - $58,638Boston Conservatory (MS) - $58,573Vanderbilt U. (TN) - $58,544

Source: http://www.forbes.com/sites/tomvanriper/2012/11/13/americas-most-expensive-colleges/

HOW MUCH DOES COLLEGE COST (more

examples)?$27,854 (approx.) – University of Colorado

Boulder (our flagship university)

$15,137 – Western State Colorado University (one of the lowest costs for a public 4-year university in Colorado)

$15,156 - Colorado Mountain College (includes room/board, etc. costs; potentially less if living at home) –

$0.00 – Deep Springs College (CA), Berea College (KY), (+ other work study colleges) + U.S. military academies

HOW MUCH DO “YOUR” COLLEGES COST?

Determine the Cost of Attendance (COA) for the colleges on your “Colleges I’m Thinking About” list in Naviance

Determine the percentage of students at the colleges in your “Colleges I’m Thinking About” list that receive financial aid. What is the average amount?

Determine if merit-based as well as need-based financial assistance is available at the colleges on your list. What are the average amounts?

WHAT IF YOU CAN’T AFFORD TO PAY THE COST OF ATTENDANCE?

CAN YOU STILL GO TO COLLEGE IF YOU AND YOUR FAMILY DON’T HAVE A LOT OF MONEY TO PAY FOR COLLEGE?

COST SHOULD NOT BE A DETERRENT TO ATTENDING COLLEGE.

Financing a higher education IS possible. You will, however, have to take time to strategize and complete required financial aid application forms and to apply for scholarships.

THE GOOD NEWS!

Most students do not pay the full Cost of Attendance (COA) at their college or university.

Two-thirds of undergraduate students attending college in the U.S. receive some form of financial assistance.

Source: NACAC (2012): Step By Step: College Awareness and Planning for Families, Counselors, and Communities

WHERE’S THE MONEY: WHO/WHAT CAN HELP YOU

PAY?The Largest Sources of

College Cash

Scholarship/Grant Sources % of Grant Aid

U.S. Federal Government 44%Colleges/Universities 36%State Governments 9%Private Scholarships 6%

TYPES OF STUDENT FINANCIAL AID

GRANTS & SCHOLARSHIPS: Often referred to as “gift aid.” This is free money that does not need to be repaid (can be need-based or merit-based financial aid).

WORK-STUDY: This is part-time student employment which lets you earn as you learn (students with financial need get first dibs at work-study).

STUDENT LOANS: This is money that is repaid over several years, usually with interest.

WHO GETS FINANCIAL AID TO ATTEND

COLLEGE? Families/students that

demonstrate financial “need” (i.e. Need-Based Financial Aid)

Students with qualities that a particular college or organization deems worthy of financial support to help pay for college expenses (i.e. Merit-Based Financial Aid).

NEED-BASED FINANCIAL

ASSISTANCE: FORMSStudent and Parent(s) must complete one or more applications to be considered for need-based financial aid, including:

FAFSA (Free Application for Federal Student Aid)

CSS Profile (many private colleges require this form)

Institutional Financial Aid Application (specific to an individual college or university)

NEED-BASED FINANCIAL

ASSISTANCE: YOUR EFCCompletion of FAFSA produces your:

SAR (Student Aid Report) which includes your . . .

EFC (Expected Family Contribution) – the amount of money that you and your family are expected to be able to pay for your college education each year.

Considerations in determining your EFC include: parent income, student income, assets, number of children in college, age of oldest parent, household size, and more

NEED-BASED FINANCIAL ASSISTANCE: DEFINING

“NEED”

COA – EFC = Financial Need(Cost of Attendance – Expected Family Contribution = Financial Need

(according to FAFSA federal formula))

Examples:Sarah Lawrence: $60,116 – $16,000 = $44,116 (Financial Need)

Western State CO: $15,156 - $16,000 = $-844 (NO Financial Need)

Colleges may or may not (bad) meet your full demonstrated financial need.

NEED-BASED FINANCIAL

ASSISTANCE (cont.)TWO CONSIDERATIONS IN REVIEWING

FINANCIAL AID AWARDS:

(1) How Much Of Your Need Is Being Meta) Full Need Met (YES!!)b) Partial Need Met (Not so good!)

And(2) How Your Need Is Being Met

a) Grants and Scholarships – “Gift Aid”b) Work Studyc) Loans

MERIT-BASED FINANCIAL

ASSISTANCEMerit-based financial awards are based on a

student's academic, artistic, athletic or other abilities/characteristics, and often factor in an applicant's extracurricular activities and community service record.

Many common merit-based scholarships, awarded by either private organizations or directly by a student's intended college, recognize academic achievement or high scores on standardized tests.

SCHOLARSHIPSScholarships can be need-based, merit-based, or a

combination thereof.

Best places to find scholarships:Colleges’ website – check the listings on the financial aid web pages of the colleges to which you plan to apply

National scholarship list on AHS School Fusion

Local scholarship list on School Fusion (becomes available in January, 2013 for AHS Class of 2013). Local scholarships tend to be consistent from year to year, so check them in January for 2014.

State and national scholarship lists: Naviance , College In Colorado, Fastweb.com, collegeboard.com, scholarships.com

Tips for Finding Scholarships: Read 4 do's and 1 don't for finding scholarships.

Source: http://www.usnews.com/education/blogs/the-scholarship-coach/2011/01/06/7-prestigious-undergrad-scholarships

SEVEN LUCRATIVE SCHOLARSHIPS

Here are seven of the more well-known and lucrative scholarships available to high school students: 1. Coca-Cola Scholars Program: Open to high school seniors who are outstanding leaders in

business, government, the arts, or education. This program gives $20,000 renewable scholarships to 50 students and $10,000 renewable scholarships to 400.

2. Davidson Fellows Scholarships: Offers $50,000, $20,000, and $10,000 scholarships to high school students who have completed a portfolio or project related to science, math, technology, music, literature, or philosophy.

3. Gates Millennium Scholars: Full-ride scholarships open to high school seniors who have demonstrated leadership in community service or extracurricular activities, meet Federal Pell Grant eligibility requirements, and are U.S. citizens of African-American, American Indian/Alaska Native, Asian Pacific Islander American, or Hispanic descent.

4. Intel Science Talent Search: An extremely prestigious pre-college science competition awarding scholarships of up to $100,000 for original science projects.

5. National Merit Scholarships: This is one prestigious scholarship that doesn't actually take much work to apply. Taking the Pre-SAT/National Merit Scholarship Qualifying Test automatically enters you into the competition, and multiple scholarships are awarded.

[Get 8 tips for building your own scholarship.] 6. Ron Brown Scholar Program: Seeks out African-American high school students with the

potential to make significant contributions to society. Applicants must demonstrate leadership, academic excellence, and community service. Ten students will receive a renewable $10,000 scholarship.

7. Siemens Competition: One of the highest science honors for high school students. Multiple scholarships of up to $100,000 are awarded to individuals with remarkable talent in the science, math, and technology fields. Recognizes extraordinary science projects completed during high school years.

Source: http://www.usnews.com/education/blogs/the-scholarship-coach/2011/01/06/7-prestigious-undergrad-scholarships

COST OF ATTENDANCE AND YOUR COLLEGE

LIST?Question: If you and/or your family don’t have a lot of

money to pay for college, should you only consider attending colleges with a low cost of attendance (COA)?

Answer: In the application process, fit should be the most important criterion. Cost should not be a deterrent in choosing colleges to which you will apply.

However, if you will need financial aid, be sure to include colleges on your list with a range of costs, including some that are within reach financially. Remember: Some of the most expensive schools in the country can actually be the most affordable ‘for the right students’.

HOW MUCH WILL YOU ACTUALLY PAY TO ATTEND COLLEGE?

The amount you and your family will pay depends on several factors:

The cost of attendance (COA) at the college/university you attend

Your Expected Family Contribution (EFC)

Whether your full demonstrated need is met by the college/university you attend

Any merit-based financial awards you may receive

THE PRICE IS RIGHT? OR IS IT?

JEFFERSON U. VERSUS ROOSEVELT U.

Let’s compare financial aid “awards” . . .

WHAT SHOULD YOU DO NOW?

Talk with your family about paying for college

Estimate your family’s eligibility to receive federal financial aid, use the FAFSA4CASTER (www.FAFSA4CASTER.ed.gov)

Create a Prospective Colleges List that is balanced for admissions possibilities AND affordability. Include some colleges where you are likely to receive merit-based financial assistance.

Explore scholarship possibilities early: colleges’ scholarship lists, local scholarship lists (can’t apply until 2014), and national scholarship lists.

Register for the College Opportunity Fund, a tuition stipend for eligible undergraduate students that pays a portion of your total in-state tuition when you attend a Colorado public institution or a participating private institution.

COF website: (https://cof.college-assist.org/cofapp/cofapp/default.aspx?pageid=9)

FINANCIAL AID: FAST FACTS

Total outstanding college debt is estimated at $1 trillion dollars.

More than $150 billion in U.S. federal aid is available to students who qualify.

More than two-thirds of undergraduate students receive some form of financial assistance to attend college.

YOUR QUESTIONS?

What Questions Do You Have About Paying For College?

TODAY’S “TAKE AWAY”

What is your Financial Aid Knowledge “take away” today?