Planning and Paying for College

1. Planning and Paying for College Kerry Lubold Assistant Director of Financial Aid SUNY Plattsburgh www.plattsburgh.edu

2. Next Step College. Are You Ready? • How much does it cost • What academic programs are offered • What social/campus activities exist • Is the campus accessible, is it safe • Where is it located/how far from home • Will I receive a quality education • Will it help me achieve my career goals • Will it support my college transition needs

3. What type of higher education is right for you?What are your career goals?What is your earnings expectation?What employment opportunities exists now? later? Nycareerzone.org nymentor.com princetonreview.com

4. HappyAdmissions Application Complete Admissions Application = • Submit all requested info/materials in a timely manner • Know how to receive college communications • Keep the people important to you in the loop • Have you shown a spotlight on the attributes/characteristics that make you great?

5. Ways to PayGet more info…www.studentaid.ed.gov and www.hesc.org • Grants (i.e. Pell, TAP, SEOG, EOP) - free, eligibility criteria, usually a need component • Scholarships (i.e. Presidential, Freshman Merit, Kiwanis) - free, eligibility criteria, usually an academic component • Loans (i.e. FELP, Direct, PLUS, Perkins, Alternative) - debt, interest, borrowing limits, repayment options • Employment Opportunities (i.e. work-study) - funding contingent on work or service • Third Party Resources - VESID, Employer, Union, Community Group • Self-Help and Out-of-Pocket - personal resources and cost-saving measures

6. Federal Grants Pell Grant • Financially needy applicants with EFC below 5274 • $555 - $5550 annually What is an EFC? Estimated Family Contribution What does it do besides determine if I qualify for Pell? Your College’s Cost of Attendance (COA) Budget $29,000 - Your EFC (Estimated Family Contribution)-11,000 = Your Financial Need $18,000 Financial need can be met* with aid like grants, scholarships, no in-school interest loans and work-study. *There is no guarantee your financial need will be met. EXAMPLE

7. TEACH GrantLearn more at studentaid.ed.gov For students who intend to teach in a high-need field in a public or private elementary or secondary school serving students from low-income families. • Up to $2000 per semester for those who meet the education and academic criteria • Service Obligation must be fulfilled, otherwise any grants received convert to an unsubsidized student loan Some Eligible Schools in 2010-2011: Crown Point Ausable Valley Bloomingdale Elementary Elizabethtown-Lewis BeekmantownChateaugay Keene Northeastern Clinton Franklin Academy Minerva Northern Adirondack Salmon River Moriah Peru Middle School St. Regis Falls Schroon Lake Saranac Elementary School Tupper Lake Ticonderoga Stafford Middle School Westport Willsboro Possible eligible subject matters: • Bilingual Education ESOL • Career & Tech. Ed (except Ag & Bus/Mrkting) Languages Other Than English • Chemistry (grades 7-12) Library & School Media Specialist • Earth Science (grades 5-9 or 7-12) Special Education (grades 5-9 and 7-12) • Physics (grades 7-12) Special Education-Bilingual

8. New York State Aid TAP Grant • Annual application (online or paper) • NYS Net Taxable Income < $80,000 • $500 - $5000 for NYS college tuition www.hesc.org • Scholarships for Academic Excellence • NYS Regents Awards for Children of Deceased and Disabled Veterans • NYS Educational Opportunity Program (EOP, HEOP, SEEK) • Military Service Recognition Scholarships • NYS Math & Science Teaching Incentive Scholarship • NYS Memorial Scholarships (children of deceased firefighters, police, EMS) • NYS Aid to Native Americans • Veterans Tuition Awards

9. Where to look for free money • School Counselor • Public Library • College Websites • Online Resources such as fastweb.com, collegeboard.com • Community & Gov’t Sponsors Moose Lodge, 4-H, Youth Hockey League, VESID, etc. • Employers (Student & Parents) tuition reimbursement, short term loans, scholarships, etc.

10. Self-Help… what you can do to afford college • Grades count -- Challenge yourself to perform your very best in high school. • Save, Save, Save -- Earnings you tuck away for college will help keep your debt down. • Want vs. Need -- Evaluate how the choices you make can increase or decrease the cost of college. • 4 year goal -- Maintain fulltime status, consider miniterm coursework and communicate with your academic advisor to graduate on time.

11. Before January 1st… • Submit all required college admissions materials, complete all necessary tests (SAT and/or ACT), and are on track for high school graduation. • Discuss college costs as a family and review your college’s Net Price Calculator • Apply for your Federal PIN at www.pin.ed.gov The student and ONE parent must have PIN’s • Try out the FAFSA 4 Caster www.fafsa4caster.ed.gov

12. After January 1stto do… • Complete your 12-13 FAFSA online at www.fafsa.gov, paying attention to your colleges recommended deadline • Complete your NYS TAP application online (via link from FAFSA confirmation or at www.tapweb.org) • Complete your colleges supplemental applications and respond to all requests for information/documentation • File your federal and state income tax returns as soon as possible

13. FAFSA.GOV • You will need to know SSN’s, income, assets and other household info • Parent on the FAFSA --- the household the student resides in for 51% of the year or more (not necessarily the parent who claims the student on taxes) • Income can be estimated --- use W-2’s, EOY pay stubs or last year’s tax return • Do not report --- value of your home, value of your retirement accounts • List all the colleges to whom you have applied for admissions • Submit your completed FAFSA by your college’s recommended deadline

14. The highlights • Look for free money from all available resources • Discuss what you can afford & cost-saving measures • Submit all applications & required documentation timely • Ask for help along the way, that’s what we are here for

15. Sounds like a lot of work. Why should I do it? Indirect Costs (varies student to student) • Books/Supplies $1,000 • Transportation $ 600 • Personal/Living $1,150 • $2,750 Higher cost does NOT necessarily mean more costly…

16. Financial Aid Award Letter Will list the financial aid you may qualify for should you decide to attend that college/university Will provide instructions for you to follow if any action is required to accept, decline, or finalize the awards

17. Paying for college when financial aid is not enough • Payment Plans (college specific) • Personal Resources (savings, investments) • Personal Loans (home equity, line of credit) • Education Loans (federal or alternative)

18. Federal Student Loans Fixed Interest Rate 6.8 % • Federal Direct Subsidized and Unsubsidized Student Loans Subsidized = no interest charged while in school, only during repayment Unsubsidized = interest will be charged through the entire life of the loan • Max Eligibility Freshman $5,500 Junior$7,500 Sophomore$6,500 Senior$7,500 • Repayment - beginning 6 months following graduation or cessation of at least halftime enrollment - 10 years or longer repayment schedules (no prepayment penalties) - deferment, cancellation and consolidation options available - visit www.studentaid.ed.gov for repayment plan options and calculators

19. Federal Parent (PLUS) Loans • Interest Rate Fixed at 7.9% • Repayment begins 60 days following full disbursement, ORrequest deferment during in-school period • Standard 10 year repayment period (no prepayment penalty) Alternative (Private) Student Loans • Primary borrower is usually the student • Credit and income review weighs heavily on the co-signer • Interest rate can be Prime or LIBOR • Fixed and variable interest programs available

20. Sample Repayment – 10 Years Borrowed Interest Rate Monthly Repayment Total Repaid Federal Student $23,000 6.8% F ~ $265 ~ $31,762 Loan Federal Parent (PLUS) $23,000 7.9% F ~ $278 ~ $33,340 Loan Alternative Student $23,000 7.5 – 12.9% V* ~ $307 ~ $36,780 Loan * A few lenders offer fixed rate alternative loans, with and without fees. Visit lender websites for info.

21. Special Circumstances Examples only. It’s your colleges professional judgment to consider circumstances and how  • Loss of income - retirement, unemployment, job change, etc. • Loss of Benefits – social security, unemployment compensation, child support, disability pension, etc. • Change in Marital Status – widowed, divorced or separated since filing the FAFSA. • Extraordinary Expense – unreimbursed out-of-pocket medical, catastrophic event, etc.

22. Academic Achievement Matters Most financial aid has a minimum academic progress expectation • SAP = Satisfactory Academic Progress • 2.0 gpa or better (higher for many aid programs) • 67% completion rate (fulltime for state aid) • Warning/Probationary semester may be available • May lose aid awards if student falls below standards • Federal, state and institutional standards differ

23. Your success begins with YOU ! • Have goals • Be confident • Seek assistance • Plan ahead • Communicate • Explore opportunities