financing your child’s college education

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Financing Your Child’s

College Education

What does college cost?

Based on estimated expenses at Louisiana State University – Baton Rouge for a dependent student living on campus who graduates from high school in 2008 assuming a 4% annual increase

Academic Year

Tuition & Fees

Room & Board

Books & Supplies

Trans-portation

Personal Expense

Total

2011-2012 $6,019 $10,784 $1,170 $1,116 $1,909 $20,998

2012-2013 $6,260 $11,215 $1,217 $1,161 $1,985 $21,838

2013-2014 $6,510 $11,664 $1,266 $1,207 $2,064 $22,711

2014-2015 $6,770 $12,131 $1,317 $1,255 $2,147 $23,620

Total $25,559 $45,794 $4,970 $4,739 $8,105 $89,167

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eBasis of Aid

Merit-Based aid is based on a student’s academic achievement, grades, ACT/SAT scores, talent, ability, athletic achievement, etc

Need-based aid is based on the student’s financial need

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eFinancial Need

COST OF ATTENDANCE

- EXPECTED FAMILY CONTRIBUTION

FINANCIAL NEED

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eFinancial Need

Cost of Attendance (COA)Tuition and feesRoom and boardBooks and suppliesTransportationMiscellaneous personal expenses

Expected Family Contribution (EFC)IncomeAssets (excluding the family home)Family sizeNumber of family members attending college (excluding parents)Age of parents

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eTypes of Financial Aid

ScholarshipsGift Aid – Based on Merit

GrantsGift Aid – Based on Need

Employment Opportunities

LoansMust be repaid – may be based on need

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eSources of Financial Aid

State

Federal

Institutional

Private

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eInstitutional Aid

Each institution has its own merit-based scholarship programs

Many schools have their own need-based aid programs

Investigate aid opportunities earlyEach institution has its own aid application process and deadline

Upperclassmen should also check with their department for aid opportunities for students in a specific major

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ePrivate Aid

The best source of information on private aid is the Internet. There are numerous free scholarship search services available

See LOSFA website Useful Internet Links page or Surfing the Web for a listing (www.osfa.la.gov)

Private aid can be based on merit or financial need

Providers of private aid include companies, civic organizations, religious organizations, clubs, etc.

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eFederal Pell Grant

General InformationGift aid

Portable - can receive at any eligible institution

Maximum Award: $5,550

Eligibility CriteriaUndergraduates without a bachelor’s degree or first professional degree

Must demonstrate financial need

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eCampus-Based Federal Aid Programs

FSEOG

LEAP

Federal Work Study

Perkins Loans

Stafford Loans

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eFederal Supplemental Educational

Opportunity Grant (FSEOG)General Information:

Gift aid

Maximum award $4,000

Eligibility Criteria:Undergraduates without bachelor’s or first professional degree

Must demonstrate exceptional financial need

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eLeveraging Educational

Assistance Partnership (LEAP)LEAP uses federal and state funds to provide need-based grants to academically qualified students

Maximum Award: $4,000

Recipients determined by the institution’s financial aid office

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eLEAP Eligibility Requirements

Be a U.S. citizen or eligible non-citizenBe a Louisiana residentBe enrolled as a full-time undergraduate studentApply by completing the FAFSADemonstrate substantial financial needMust have one of the following:

2.00 cumulative high school GPA45 on the GED20 on the ACT2.00 cumulative college GPA

Schools may establish additional criteria

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eFederal Work Study

General Information:Wages must be not less than current minimum wage

Eligibility Criteria:Undergraduate, graduate or professional students, including less-than-half-time students

Must demonstrate financial need

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eFederal Perkins Loan

General Information:5% interest rateAnnual Loan limits

$4,000 for undergraduates; $6,000 for graduate or professional students

School is the lenderRepayment begins 9 months after leaving school10 year repayment period

Eligibility Criteria:Undergraduate, graduate, and professional students Must demonstrate financial needMust be willing to repay the loan

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eWilliam D. Ford Direct Loan Program

The source of long-term, low-interest loans for undergraduate, graduate, and professional students, and parents of dependent students

Subsidized Stafford Loan

Unsubsidized Stafford Loan

Parental Loans for Undergraduate Students (PLUS)

Consolidation Loans

Grad PLUS Loans

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eSubsidized Stafford Loan

Loan InformationLoan is need-basedFederal government pays all interest while:

Borrower is in schoolDuring the grace period During periods of deferment

Interest rate is variable, capped at 8.25%

Eligibility RequirementsStudent must have Financial NeedStudent must be enrolled at least half-timeStudent must maintain Satisfactory Academic Progress (SAP) as defined by the school to continue receiving loans

Loan RepaymentLoan has a 6 month Grace Period after leaving school or dropping below half-time before entering repayment10 year repayment period

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eUnsubsidized Stafford Loan

Loan InformationLoan is not need-basedLoan may replace all or part of the student’s EFCBorrower is responsible for interest at all timesInterest rate is variable, capped at 8.25%

Eligibility RequirementsStudent must have completed the FAFSAStudent must be enrolled at least half-timeStudent must maintain Satisfactory Academic Progress (SAP) as defined by the school to continue receiving loans

Loan RepaymentLoan has a 6 month Grace Period after leaving school or dropping below half-time before entering repayment10 year repayment period

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ePlus Loans

Loan InformationParent may borrow up to the Cost of Attendance less other financial aid received by the studentInterest rate is annually variable, capped at 9%

Eligibility RequirementsBorrower must be the parent of a dependent undergraduate studentBorrower must not have an adverse credit history

Loan RepaymentRepayment begins 60 days after the loan is fully disbursed10 year repayment period

Loan Limits

Dependent Undergraduate StudentsBorrower’s Academic Level Combined Subsidized & Unsubsidized

Freshman $3,500

Sophomore $4,500

Remaining Undergraduate $5,500

Independent Students or Dependent Students Whose Parents Are Denied Plus Loans

Borrower’s Academic Level Subsidized Unsubsidized Total

Freshman $3,500 $4,000 $7,500

Sophomore $4,500 $4,000 $8,500

Remaining Undergraduate $5,500 $5,000 $10,500

Graduate or Professional $8,500 $10,000 $18,500

Loan Limits

Total Cumulative Loan Limits

Dependent Student $23,000

Independent Undergraduate $46,000

Graduate Student $138,000

PLUS Loans No Federal Limit 

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eThe LA College Payment Plan

START Saving Program

Early Start

TOPS

Student Loans

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eSTART Saving Program

Louisiana’s college savings program, a qualified tuition program under Section 529 of the Internal Revenue Code, offering earnings that are exempt from state and federal taxes, state matching contributions, and seven investment options.

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eEarly Start

The Louisiana Early Start Program provides tuition assistance to eligible 11th and 12th grade students from public high schools that enroll in eligible college courses for dual credit at an eligible public or private college or university.

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eTOPS

Louisiana’s Taylor Opportunity Program for Students, a series of merit-based scholarships that award amounts equal to tuition, some including a stipend, at a state public college, university, community college or technical school, (or the weighted average of public school tuition at certain in-state private colleges).

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eStudent Loans

Beginning July 1, 2010, all student loans are now made through the William D. Ford Direct Loan program.

Students should take out loans as a last resort and only borrow the amount needed for their education.

Loans must be paid back.

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QUESTIONS?