financial college literacy 101
TRANSCRIPT
Financial Aid College Literacy 101: How Will We
Pay For College?
Rebecca Joseph, PhD
Getmetocollege.org/hs
Higher Earnings. High Education
What Is College Education Worth?
• Careers
• Healthy Life
• Savings
• Take Care of Families
• Brains on Fire
First things first.How much is college going to cost?
There are two components to this:Direct Costs & Indirect Costs.
Tuition
Fees
Room & Board+
Direct Costs
(if applicable)
Direct Costs are those that arebilled directly by the University.
Books
Transportation
Etc.+
Indirect Costs
Indirect Costs are the other miscellaneousexpenses involved with attending college.
Direct Costs
Indirect Costs+
Cost of Attendance
Together, these two components makeup the total Cost of Attendance.
(COA)
Ciria and Kimberly
UC Merced
Next, you need to determine howmuch you can contribute toward
Cost of Attendance.
How Do Colleges Determine How Much We Can Pay?
• FAFSA (fafsa.ed.gov)
• CSS Profile
(https://student.collegeboard.org
/css-financial-aid-profile)
• CA Dream Act
(https://dream.csac.ca.gov)
• Cal Grants
(http://www.calgrants.org)
Parent Contribution
Student Contribution+
Estimated Family Contribution
The data you provide on the FAFSA is used tocalculate the amount you are expected to contribute.
(EFC)
Cost of Attendance
Estimated Family Contribution-Financial Need
The gap that’s left between what you are expected to contribute and the total cost is called “Financial Need.”
There are 3 types of Financial Aid:
$ Need-based Merit-based Non-need-based
Financial Aid is what helps you fill that gap.
Need-based
Grants Federal Work Study Loans
(Federal, State, and College Grants)
(Stafford Subsidized Loan, Perkins Loan)
The first type of aid is determinedsolely by Financial Need.
Scholarships (College and Outside Scholarships)
Merit-based
The second type of aid is determined by a student’sacademic accomplishments, not Financial Need.
Internal Merit Scholarships
College Greenlight
External Merit Scholarships
https://roybal-allard.house.gov/uploadedfiles/student_resource_guide_2014-2015.pdf
Loans (Stafford Unsubsidized Loan, PLUS Loan, Alternative Loans)
Non-need-based
The final type of aid is available to all students, regardless of Financial Need or academic accomplishments.
The Financial Aid Packageconsists of all or any of these.
Need-based Merit-based
Non-need-based
COA Across Campuses
Financial Aid Recommendations
• If parents make less than $60,000 per year, students and families most likely
won’t have to take out many loans.
• There are more than 50 colleges that meet all need with no loans.
http://www.usnews.com/education/best-colleges/paying-for-
college/articles/2014/09/15/colleges-and-universities-that-claim-to-meet-full-
financial-need
• Educational loans are low interest. Students have ten years to pay them back and
can deduct interest from taxes. They are best investment possible in your child.
• Students should never borrow on credit cards.
• Students can visit colleges for free at the beginning and end of senior year.
http://getmetocollege.org/hs/what-colleges-look-for/fall-2014-free-diversity-
college-visits
What Can We Do Now?
• Save. Every dollars counts.
• Prepare FAFSA-Now PRIOR, PRIOR
• Explain your family finances to your children.
• Build children’s resume.
• Apply for scholarships.
– MALDEF- http://www.maldef.org/assets/pdf/1415_MALDEF_Scholarship.pdf
– Congresswoman Roybal-Allard- http://roybal-
allard.house.gov/uploadedfiles/student_resource_guide_2014-2015.pdf