How To Pay For College In Hawaii

Transcription

1 Financing Your Graduate Education Overview of Today s Workshop Estimating Graduate School Costs Making a Budget Funding Options Available Example Additional Resources Literacy Program 1

2 Did you know The tuition for graduate school varies according to program, the costs range from $13,248 - $37,824 per year for residents and $32,016 $67,200 for non-residents. Source: Estimating Graduate School Costs Costs of Attendance: UHM Graduate Programs (General) Costs Resident Non-resident Tuition $13,248 $32,016 Fees $780 $780 Books & Supplies $1,560 $1,560 Meals & Housing (living in town) $16,724 $16,724 Personal Expenses $2,030 $2,030 Annual (1-Year) $34,342 $53,110 Total (2-Years) $68,684 $106,220 Literacy Program 2

3 Making a Budget Managing your Money Terminology Fixed Expenses Variable Expenses Income Disposable income Tuition Fees School Expenses Clothing Food TV Internet Family Contribution Scholarships Grants Loans Money remaining after paying for expenses Literacy Program 3

4 Budget Variables 7 Monthly Income - (Monthly Fixed + Variable Expenses) Monthly Disposable Income Monthly Disposable Income 8 $3,000 (income) - [$2,693(fixed expenses)+$169(variable expenses)] $138 $138 = monthly disposable income Literacy Program 4

5 Little Changes Mean A Lot 9 No Change Reduced Income $3,000 $3,000 Fixed Expenses $2,693 $2,693 Variable Expenses Disposable Income (Month) $169 $80 $138 $227 Annually $1,656 $2,724 Fee Assistance & Waiver Programs Getting in to Grad School Literacy Program 5

6 Fee Assistance/Waiver Programs Available for financially disadvantaged applicants. Reduced or waived fees Entrance exam registration Application First-come, first-served basis Request 3-6 months in advance ASUH Grad Test Prep Award Eligibility: Full-time, classified undergraduate student at UHM Junior Status (55+ credits) 3.0 cumulative GPA Plan on taking a graduate test or prep course during Fall 2014, Spring 2015, or Summer 2015 Cannot be a senator or employee of ASUH, both past and present Requirements: Application Form ( Budget Sheet listing costs of graduate tests, prep courses, study materials, etc. Proof of tests or courses already taken (if applying for reimbursement) Official transcript 1 Letter of Recommendation word essay List of extra curricular activities you have been involved in while attending college Deadline: April 4, Literacy Program 6

7 Types of Financial Aid Types of Financial Aid Free Money Family Contributions Work Forgiveness/Payback Loans Loans Federal Private Literacy Program 7

8 Types of Financial Aid Free Money Family Contributions Work Forgiveness/Payback Loans Loans Federal Private Free Money What is it? Money you do not need to pay back E.g. Scholarships, grants, fellowships Awarded by Merit Need Literacy Program 8

9 Free Money Where to find? Program E.g. East-West Center Institution E.g. UH STAR database, UH Foundation, Financial Aid website State E.g. Hawaii Community Foundation, WICHE National E.g. Fast Web, Hamilton Library Reference desk WICHE Western Interstate Commission for Higher Education Discounted tuition at an out of state institution Program of study must not be offered in your state -Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming PSEP Program - for those in the Health Field Literacy Program 9

10 Types of Financial Aid Free Money Family Contributions Work Forgiveness/Payback Loans Loans Federal Private Family Contributions Family s ability to pay Calculated by Free Application for Federal Student Aid (FAFSA) Most schools will ask for this Expected Family Contribution (EFC): the number that s used to determine your eligibility for federal student aid EFC is always more than you think you can afford Note: Your EFC is not the amount of money your family will have to pay for college nor is it the amount of federal student aid you will receive. Most students rely on scholarships, grants, & loans Graduate students are generally considered independent Literacy Program 10

11 Types of Financial Aid Free Money Family Contributions Work Forgiveness/Payback Loans Loans Federal Private Work Many graduate programs offer assistantships Teaching Assistant, Graduate Assistant, Research Assistant Federal-work study (limited) Need to complete FAFSA Federal government funds part of your income On or off campus employment E.g. Manoa Career Center (MCC) *Not all programs accommodate work! Literacy Program 11

12 Types of Financial Aid Free Money Family Contributions Work Forgiveness/Payback Loans Loans Federal Private Forgiveness/Payback Loans: Loans that can be partially or fully eliminated in return for choosing certain careers, military service, or specific volunteer work. Literacy Program 12

13 Forgiveness/Payback Loans: Volunteer work AmeriCorps Segal AmeriCorps Education Award Public Service Loan Forgiveness Program (PSLF) Peace Corps Deferment or partial cancellation of student loans Graduate School Fellowship Program Forgiveness/Payback Loans Questions to ask: Which student loans are eligible? Is there a minimum debt requirement? What service obligation do I have & for how long? Is there an income cap & what is it? What employment qualifies? Literacy Program 13

14 Types of Financial Aid Free Money Family Contributions Work Forgiveness/Payback Loans Loans Federal Private Federal Loans Federal Perkins loans Federal Stafford loans Grad PLUS loans Discipline/specialty specific loans Literacy Program 14

15 Graduate Loan Comparison Federal Perkins Loan Federal Stafford Unsubsidized Loan Grad PLUS Loan Lender UH US Department of Education US Department of Education Interest Rate 5% 5.41% 6.41% Interest Free in School? Yes No No Loan Fees % 4.29% Grace Period 9 months 6 months 6 months Annual Amount You May Borrow $8,000 for graduates $20,500 Cost of Attendance (minus any other aid) Lifetime Maximum Amount You May Borrow $60,000 $138,500 Eligibility Need based At least half-time student in good academic standing Non-need based Applied for maximum Stafford Loans Good credit history Private Loans Offered through well-established educational lenders E.g. Sallie Mae, Access Group, Discover, your bank Involve credit checks & require satisfactory credit history Eligibility differs by lender Rates and repayment plans differ depending on credit Literacy Program 15

16 Private vs. Federal Loans Federal loans are a better option for repayment Low fixed interest rates Income-based repayment plans Cancellations or reductions for certain employment/service Deferment options Tip: Federal loan rates may double in 2015!!! Literacy Program 16

17 Graduate Student Profiles: Planning your Finances C A B Graduate Student Profiles General Grad Students Non-Residents Entering Grad School Fall 2014 $32,016 tuition for the first year Same Financial Background No family contributions Will not work Literacy Program 17

18 Cost of Attendance: UH Manoa Description Costs Tuition $32,016 Student Fees, Transportation, $21,094 Living Expenses, etc. Total (1 year) $53,110 Total (After 2 years) $106,220 Student A Plan of Action: Relax, Eat, Sleep Why not he just got into Grad School?! Apply for Financial Aid as late as possible! How: Literacy Program 18

19 Student B Plan of Action: Make a budget & stick to IT! How: Reduce her Variable Expenses Spend less on clothes Rarely eat out Will not pay for internet (use Internet at School FREE!) Student C Plan of Action Research scholarships and grants EARLY! How: Visit Hamilton Library (reference desk) Visit Financial Aid Website ( Visit UH STAR database Apply to several scholarships Literacy Program 19

20 C Who will you be? A B 2 Years Later Literacy Program 20

21 Student A Plan of Action: Relax, eat, sleep until Grad School starts Result: Applied at the Deadline for Financial Aid No more Scholarships available Took out loans for his expenses Literacy Program 21

22 Plan of Action Cost of attendance $106,220 Savings $0.00 Amount: $106,220 Payment Plan Total loans taken out $106,220 Interest on loans $40,466 (6.8% Stafford Interest Rate) Payments 10 years Total Monthly Payment (Interest + loans) 120 Payments $1,222 $1, Payments Literacy Program 22

23 $146,640 Student B Plan of Action: Create a budget and stick to it Result: Saved $10,000 each year through reducing her Variable Expenses Literacy Program 23

24 Plan of Action Cost of Attendance $106,220 Savings (2 years) $20,000 Amount $86,220 Payment Plan Total loans taken out $86,220 Interest on Loans (6.8% Stafford Interest Rate) $32,847 Payments 10 years Total Monthly Payment (Interest + loans) 120 monthly payments $992 $ Payments Literacy Program 24

25 $119,040 Student A Student B $146,640 $119,040 Total Savings: $0 Total Savings: $27,600! Literacy Program 25

26 Student C Plan of Action: Research and apply for Scholarships and Grants Research different loans Result: Received $20,000/year in Scholarships Plan of Action Cost of Attendance $106,220 Savings $40,000 Total Amount: $66,220 Payment Plan Total loan $66,220 Interest on Loans (6.8% Stafford Loan) $25,228 Payments 10 years 120 Total Monthly Payment (Interest+ loan) $762 Literacy Program 26

27 $ Payments $91,440 Literacy Program 27

28 Student A Student B Student C $146,640 $119,040 $91,440 Total Savings: $0 Total Savings: $27,600 Total Savings: $55,200 Important Financial Aid Tips Do your research, APPLY EARLY, & apply broadly! Literacy Program 28

29 USA Funds Life Skills Financial Literacy Website: Contact Us UHM Financial Literacy Program Phone: (808) Website: Literacy Program 29