College Costs, Student Loans & Scholarships

Size: px

Start display at page:

Download "College Costs, Student Loans & Scholarships"

Merry Goodman
8 years ago
Views:

1 Some of the best things in life are free unfortunately college isn t one of them. College Costs, Student Loans & Scholarships

2 NH Higher Education Assistance Foundation Continuum of Services

3 Beyond Headlines Using Data

4 There is clear evidence that rising attainment rates in other countries reflect genuine economic demand for a better-educated workforce. Education at a Glance 2012, Table A1.3a The Organization for Economic Co-operation and Development

College Pays During Challenging Times "The recession hit those with less schooling disproportionately hard nearly four out of five jobs lost were held by those with no formal education beyond high

5 College Pays During Challenging Times "The recession hit those with less schooling disproportionately hard nearly four out of five jobs lost were held by those with no formal education beyond high school. At the other end of the spectrum, workers who had completed a four-year college degree or higher were largely protected against job losses during the recession and some had job gains. The job recovery has only increased the divide between the less-educated and more educated. The College Advantage: cew.georgetown.edu/collegeadvantage

6 Lumina Foundation Goal Why increase the percentage of Americans with high-quality degrees and credentials to 60 percent by the year 2025? Higher education is a prerequisite to success in a knowledge-based society and economy. The social and economic opportunities facing our country can best be addressed by educating many more people beyond high school. As we attain the goal, we improve the economy, strengthen civic engagement and reduce the costs of crime, poverty and health care and, in short, improve the human condition. FAFSA COMPLETION PROJECT

7 College Degree Attainment is Key to Short-term Economic Recovery and Long-term Prosperity. Only one problem:

8 Undergraduate Student Aid by Type in Billions

Maximum and Average Pell Grant in 2011 Dollars, 1976-77 to 2011-12

9 Maximum and Average Pell Grant in 2011 Dollars, to SOURCE: The College Board, Trends in Student Aid 2012, Figure 13B.

10 Influencing the Conversation About Debt

11 Federal Student Loan 2-Year Cohort Default Rate

12 Median Earnings and Tax Payments of full-time Workers Ages 25 and Older, by Education Level, 2008 Sources: The College Board, Education Pays 2010

13 Estimated Cumulative Earnings Net of Loan Repayment for Tuition and Fees The College Board, Education Pays 2010 The typical four-year college graduate makes up for time out of the labor force and for paying tuition by age 30.

State Appropriations for Higher Education per $1,000 in Personal Income, 2011-12 and 5-Year

14 State Appropriations for Higher Education per $1,000 in Personal Income, and 5-Year Change from to SOURCE: The College Board, Trends in College Pricing 2012, Figure 13B.

15 Need-Based & Merit Grants for Undergrads Changes Over Time

16 Remarks on Signing the Higher Education Act of 1965 President Lyndon B. Johnson's Remarks at Southwest Texas State College November 8, 1965 The President's signature upon this legislation passed by this Congress will swing open a new door for the young people of America. For them, and for this entire land of ours, it is the most important door that will ever open the door to education. And this legislation is the key which unlocks it To thousands of young men and women, this act means the path of knowledge is open to all that have the determination to walk it. It means that a high school senior anywhere in this great land of ours can apply to any college or any university in any of the 50 States and not be turned away because his family is poor Here the seeds were planted from which grew my firm conviction that for the individual, education is the path to achievement and fulfillment; for the Nation, it is a path to a society that is not only free but civilized; and for the world, it is the path to peace for it is education that places reason over force. As a student, I lived in a tiny room above Dr. Evans' garage. I lived there 3 years before the business manager knew I occupied those quarters and submitted me a bill. I shaved and I showered in a gymnasium that was down the road. I worked at a dozen different jobs, from sweeping the floors to selling real silk socks. Sometimes I wondered what the next day would bring that could exceed the hardship of the day before. But with all of that, I was one of the lucky ones and I knew it even then. I left this campus to become a teacher under one of the great teachers that I have known. He came here and looked over my credentials and somehow or other offered me a job at $125 a month to teach a Mexican school at Cotulla when I was a sophomore, and it was necessary that I leave that year to teach. I shall never forget the faces of the boys and the girls in that little Welhausen Mexican School, and I remember even yet the pain of realizing and knowing then that college was closed to practically every one of those children because they were too poor. And I think it was then that I made up my mind that this Nation could never rest while the door to knowledge remained closed to any American. So here, today, back on the campus of my youth, that door is swinging open far wider than it ever did before. The rest is up to you. The rest is up to the teachers and the citizens and the educational leaders of tomorrow. I want to say this to each of you, finally. You are witnessing a historic moment. You should carry the memory and the meaning of this moment with you throughout your life. And when you look into the faces of your students and your children and your grandchildren, tell them that you were there when it began. Tell them that a promise has been made to them. Tell them that the leadership of your country believes it is the obligation of your Nation to provide and permit and assist every child born in these borders to receive all the education that he can take.

17 The Message is Always Changing If you think education is expensive, try ignorance. The more you learn, the more you earn NOW: Choosing the right vocation will lead to wealth formation

18 New: Net Price Calculators New federal requirement that all schools must provide a Net Price Calculator to enable current and prospective students, families, and consumers to determine an estimate of a current or prospective student's individual net price at a particular institution. ***The calculator s results are not a guaranteed amount that you will receive, but as a potential amount based on information reported.***

19 It s worth the extra $14,500 to go there. Annual Net Price After Financial Aid School A $18,658 School B $33,200 Four-Year Net Price $79,229 $140,980 Actual Price Difference After Interest Expense During 10-year Repayment Period $153,419 $245,294 But, is it worth the extra $91,875? But is it worth the extra $91,875?

20 Calculate Loan Payments Federal Direct Stafford Loan *Assumes a freshman student will borrow $5,500 in an unsubsidized loan with an interest rate of 6.8% over 10 years

21 Stricter Lending Standards

22 Stricter Lending Standards

23 Monthly Loan Payment as a Percentage of Monthly Income

24 Can t Find Your Loan Information? National Student Loan Data System

25 College Navigator -

26 Encourage them not to get discouraged through the process.

27 How Financial Aid Is Awarded Cost of Attendance (COA) The amount a school has budgeted for a student s tuition, room and board, books, fees, supplies and any related expenses. Expected Family Contribution (EFC) The amount, as determined by federal methodology, that represents your family s ability to pay for one year of college. COA 45,000 - EFC 16,000 Eligibility 29,000* * It is important to note that while a student may be eligible for this amount, there is rarely a guarantee that the student will actually receive this amount.

28 EFC Calculators To find out what your EFC would be if your child were filing FAFSA today!

29 How Saving Affects Your EFC Will saving for college hurt my chances of receiving financial aid? The average parents savings will not negatively impact a family s financial aid eligibility. Davis Family Dad is 50, Mom is 48 Two Children Have a combined AGI of $95,000 Saved $6,000 for college expenses EFC = $16,391 Smith Family Dad is 50, Mom is 48 Two Children Have a combined AGI of $95,000 Saved $60,000 for college expenses EFC = $17,023 Parent Asset Protection Allowance Age 45 Age 60 Two parents - $42,900 Two parents - $59,700 One parent - $14,900 One parent - $20,400

30 Celebrate I m Going to College Month

31 Excellent Resource for Learning About & Evaluating College Savings Options

32 FAFSA HOORAY Brooklyn Charter School s Video Spreads the Word About the Importance of the FAFSA to a Hip-Hop Beat.

33 Go confidently in the direction of your dreams. Live the life you have imagined. Henry David Thoreau "The dream begins, most of the time, with a teacher who believes in you, who tugs and pushes and leads you on to the next plateau, sometimes poking you with a sharp stick called truth."--dan Rather

Navigating the World of College Student Financial Aid An Overview

Navigating the World of College Student Financial Aid An Overview Centenary College January 2015 Introduction If you are a student (or the parent of a student) who is about to embark on a journey into