understand the college financial aid process 12 th grade fafsa and financial aid #1

Understand the College Financial Aid Process

12th GradeFAFSA and Financial Aid #1

Pre-Test

1. Name four types of financial aid2. What three types of financial aid does not

have to be paid back?3. The __________ of an education continues

to rise and is a good investment for the future.

Objectives

• Paying for College– Financial Aid Overview

• Compare Financial Aid Awards– Know Financial Aid Specifics

• People will help you with – Grants, Scholarships, Work-Study, Loans

• Update Postsecondary Plan

Paying for College Video

• Watch the Paying for College Overview Video–Pay special attention to• The value of a college education• Who may qualify for financial aid

Review Key Points of the Video • Value of a college education continues to rise– It is a good investment for the future– Gain skills you will use for the rest of your life– Broadens your understanding of the work around you– College Graduate: Earns $1.2 million more

• No matter how much money your family makes– Investigate all of your financial aid options including

• Grants, scholarships, work study, loans– Families that earn up to $150,000 a year can still be eligible for

financial aid in some cases

College Loans and Work-Study • 3 Common types of loans– Stafford Student Loan• 3.4 fixed interest rate (very low rate)

– PLUS Parent Loan• 7.9% rate (still low) used most often used by parents

– Private Loans (from banks or other lending firms)• Usually highest interest rates, can get a good deal sometimes

• Work Study: College pays students for working– Some jobs allow students to study while working• Example: Receptionist in Waiting area

– May be able to get a job related to your major• Examples: Working in a science lab, being a chef

– Good for your resume

Financial Aid Overview Video

• Watch the Overview of the Financial Aid Process Video–Pay special attention to• U.S. Department of Education: Federal Student Aid–Why it is important to investigate studentaid.gov

Review Key Points of the Video • U.S. Department of Education: Federal Student Aid– Largest providers of grants, work-study, loans– Visit studentaid.gov to gain valuable information

• Complete the FAFSA at the beginning of January– Grant aid based on FAFSA: Determines financial need of student

• Grants and Work-Study– Do not need to pay money back

• Loans– Only take out what you need

Compare Financial Aid Awards Video

• Watch the Compare Financial Aid Awards Video–Pay special attention to• The value of a college education• Who may qualify for financial aid

Know the Financial Aid Specifics • Compare award letters from different colleges– Are the scholarships renewable each year?– Understand the loan repayment obligation

• Know the interest rates of the different loans

• Set up a spreadsheet – To compare financial aid packages from your colleges of interest

• Note which colleges subtract scholarship amounts from grant money

– Know the amount of money• You do and do not have to repay

Scholarships and Grants• Most colleges have a set amount of money for grants – Example: College X :$1 million dollars of grants for their students– When money is gone, colleges have no more grant money to offer – That is one of the reasons why it is important to send applications

and FAFSA information to colleges as soon as possible

• Some colleges will offer students grant money– But then subtract that money if students are awarded

scholarships• The student’s financial need is recalculated: Receive less grant funds

– This grant money is then distributed to other students with greater financial need

Scholarships• Highly recommended that students apply for scholarships– It may not be taken away from your grant money

• Scholarships are a more stable form of financial aid– Many scholarships last four years– Grants can be less reliable based on funding issues

• Scholarships look great on your resume– Future employers and graduate schools look for scholarships

Groups: Scholarships and Grants• Do you believe it is a good policy for some colleges to

subtract scholarship money from grant amounts in order to give money to other students with greater financial need? Why or Why not?

• What do you think are the biggest benefits of being awarded a college scholarship?

People Will Help You Video

• Watch the People Will Help You video –Pay special attention to• Who can help with the financial aid process• The value of writing essays

People Will Help You• High school students do not realize – How much financial aid there is out there – How important it is to research financial aid on websites

• Use the college financial aid office– School counselors can also help you find financial aid

• Writing essays is worth the money– Can get between $1,000 and $5,000 dollars

Financial Aid was a Lifesaver Video

• Watch the Financial Aid was a Lifesaver Video–Pay special attention to• Types of grants awarded • Financial aid paid for what percentage of the

student’s college costs

Applying for Aid Was Worth it Video

• Watch the Applying for Aid Was Worth It Video–Pay special attention to• Research for grants and scholarships• How the 2 scholarships helped the student

Important Video Points• 2-year colleges cost a lot less than a 4-year college• Financial aid pays for around 80% of my expenses– Including books and tuition– Took out loans to cover the remaining balance

• Receive national Pell grant and a state grant• Did a lot of research on scholarships and grants– Fastweb.com, Naviance, College Board, Scholarships.com– 2 scholarships: took away much of the financial burden

Sample Types of Scholarships • Academic • African-American• Asian• Art • Athletic• Best Buy• Business• Cargill• Computer• Cosmetology• College (ex: U of M)

• Fashion Design • Female• First Generation • Hispanic• Interracial• Left-handed• LGBT• Marble • Music • Native American• Nursing

• Parent’s Company

• Religious• Skateboard• State• STEM Career • Study Abroad • Teaching• Technical School• Twins• Vegan• Vocational

Group Activity: What do you know?

• Where do you plan to investigate scholarships? • Name 3 scholarships that might be a good match

for you

Update Postsecondary Plan

Update Your Postsecondary Plan

• Sections– What am I doing now to prepare to pay for college?– How do families like mine typically pay for college?– What scholarships might I be eligible for in the

future?

Pre-Test

1. Name four types of financial aid2. What three types of financial aid does not

have to be paid back?3. The __________ of an education continues

to rise and is a good investment for the future.

Review

1. Four types of financial aid– Grants, scholarships, work-study, loans

2. 3 types of financial aid that does not have to be paid back

– Grants, scholarships, work-study

3. The __________ of an education continues to rise and is a good investment for the future.

– Value