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. Basis of Aid. - PowerPoint PPT PresentationTRANSCRIPT
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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?