Life after High School

The "Cost" of Post-Secondary Education

And some benefits too

Paying for College

Info for seniors

Is it worth it?

Benefits of postsecondary education:

●Economic (personal)

○higher salary, lifetime earnings

○less unemployment

●Societal

○volunteering

○voting

●Quality of life

○healthier

○involved with children’s activities

Paying for
postsecondary
education is an
investment in
your future!!!

Financial Aid Process

Video overview of the financial aid
process.

Summarize key ideas on your
notes sheet.

​Watch this video to see how applying for federal student aid can help you.

Multiple Choice

You must complete the FAFSA to find out if you are eligible for federal student aid.

• True

• False

Types of aid

Types of federal
student aid

​Watch this video for an overview of federal student aid types.

​Define/describe the following terms on your notes sheet.

• grants

• loans

• work study

Multiple Choice

What are some benefits of federal student loans?

• lower interest rate

• income-based repayment plans

• loan forgiveness with certain careers

• all listed answers are benefits

Two common types of grants

Federal Pell Grant:

●Exceptional financial need as demonstrated
on the FAFSA

●Amount varies each year

●Based on SAI (Student Aid Index) from FAFSA, cost of attendance, and student status

●Funds guaranteed by U.S. Dept. of
Education; receive full amount qualify for

●Eligibility is limited to 12 semesters

FSEOG (Federal Supplemental Educational
Opportunity Grant)

●Comes from the educational institution

●For students who have the most financial
need; Pell Grant recipients have priority

●Depends on availability of funds at each
school

●Pay attention to each school’s financial aid
deadline

Grants at AZ state universities and Pima CC

This spreadsheet describes the
types of grant aid available at
each institution.

Please note that completing your
application for admission AND
sending your FAFSA earlier gets
you in line for those grants where
funds are limited.

You can view the spreadsheet in Google Classroom

Loans

(Have to repay with interest)

Subsidized Direct Loan

😀

●Eligible if have demonstrated financial need

●U.S. Dept. of Education pays interest while
in school and for first 6 months after leave
school; lower interest rate

●Amount depends on grade level and
dependency status of student

Unsubsidized Direct Loan

😐

●Financial need is not a requirement

●Student pays interest even while in school.
Can defer - interest added to principal of
loan

●School determines amount based on cost of
attendance and other financial aid received

Federal Direct PLUS Loan

😦

●Taken out by parent

●Interest rate and repayment terms are less
favorable than those of other Direct Loans

Private Loans

😲

●From banks or other financial institutions

●No consideration of student status

​Note the rating emojis!

Match

Match the loan type with its description.

• student pays interest even while in school

• must demonstrate financial need; government pays interest while student is in school

• taken out on student's behalf

• from bank; just another customer

unsubsidized direct loan

subsidized direct loan

direct PLUS loan

private loan

• unsubsidized direct loan

• subsidized direct loan

• direct PLUS loan

• private loan

Federal Work-Study

(Earned; no repayment)

●Financial need

●Part-time job on campus or off campus with a nonprofit
organization or public agency

●Award depends on when apply, level of financial need, and
school funding level.

●Limited funds - apply early!

●Earnings paid to student

○send to bank account

○apply to education-related institutional charges (tuition, fees, room and
board)

●Limit to # hours can work; can’t earn more than FWS
award

Scholarships:
Some basic info

Scholarships

(No repayment)

Types

●Merit

○academic

○skills / talents

○leadership

●Need-based

○financial qualification

●Combination

Sources

●institutional

●nonprofit organizations

●employers

●religious groups

Searching for scholarships and completing applications takes time!  Typically the amount of the potential award increases with the amount of effort required.​
We'll talk more about scholarships soon!

​Time

Poll

How much time are you willing to invest in searching for and applying to scholarships?

• I don't plan to apply for scholarships
• 30 minutes/week
• 1 hour/week
• 2 hours/week
• 3 or more hours/week

Financial Fit
This is the second major criteria in
your college application and decision
process.

​This is the second major criteria in your college application and decision process.

Read the next three slides and add information to your notes sheet.

Sticker shock!

Like cacti, the list price of a
college can be painful! Don't get
sticker shock

Very few (< 15%) students actually pay the full price.

More expensive schools also
typically offer more financial aid.

Important calculations

COA - (scholarships + grants) = Net price

COA - SAI* = Financial need
*Student Aid Index from FAFSA

Two critical figures

SAI = Student Aid Index

●Found in FAFSA Submission Summary after FAFSA is processed

●Indicates your eligibility for need-based aid

●Can estimate using a tool called the Federal Student Aid Estimator

Net price

●Calculator available on each college’s website

●Will ask for your SAI

●Uses basic financial information to give an estimate of what you would have to
pay to attend the college

Conclusion

On the next slide, please click the link to complete the short Google form regarding today’s lesson.

Mastering Financial Aid

Apply for financial aid from the federal government, state government, college/university/career school, or private/non-profit groups. Student loans are borrowed money for education that must be repaid with interest. Federal loans are repaid after leaving college, while private loans come from banks, credit unions, or schools.

Multiple Choice

What are student loans?

• Borrowed money for education that must be repaid with interest

• Financial GRANTS from the federal government

• Scholarships provided by private/non-profit groups

• Grants offered by state government

Types of Financial Aid

• Grants: Free money from government, school, or private groups
• Work-Study: Part-time job to help pay for school
• Scholarships: Money you don't have to repay

Multiple Choice

What is a scholarship?

• Free money from government, school, or private groups

• Part-time job to help pay for school

• Money you don't have to repay

• A loan that needs to be repaid with interest

Mastering Financial Aid

FAFSA

 Free Application for Federal Student Aid (FAFSA ® 

Apply for it every year. Other groups use it to determine your eligibility.

FAFSA: Key to Federal Student Aid

FAFSA stands for Free Application for Federal Student Aid. It is a crucial form that determines your eligibility for grants, scholarships, work-study programs, and federal student loans.

Completing the FAFSA accurately and on time is essential for accessing financial assistance for college. Don't miss the deadline!

Multiple Choice

What is important to remember about FASFA

• To not miss the deadline

• To pay it back

• To take psychology classes

• To take buisness classes

What is an FSA ID?

An FSA ID is your Federal Student Aid Identification. It is a username and password that you create. You use your FSA ID to get into the Federal Student Aid system, fill out your FAFSA form, and legally sign your student aid documents. Remember, never share your FSA ID with anyone else as dishonest people could use it to access your account.

FSA ID:

A unique identification number assigned to students. It is used to access the Federal Student Aid system.

The FSA ID serves as a secure login credential for students and parents to access and sign federal student aid documents, including the FAFSA form.

It helps protect personal information and ensures the privacy of financial aid records.

Remember to keep your FSA ID confidential and never share it with anyone.

Multiple Choice

What is an FSA ID?

• A username and password for accessing the Federal Student Aid system

• A unique identification number assigned to students

• A document required for filling out the FAFSA form

• A financial aid program for students

Multiple Select

Which of the following do you think is true about college. Check all that apply.

• College is an investment.

• Everyone who goes to college is guaranteed a career upon graduation

• All people are eligible for a full pell grant for college

• People with post-secondary educations have higher lifetime earning potential than people without

• If you cannot pay back student loans, you can always file bankruptcy.

1. College IS an INVESTMENT

Whether you take out loans, work two jobs to cover the cost, or have a full ride scholarship........College is an investment for your future quality of life.

Everyone IS NOT eligible for a full pell grant

This federal grant is awarded through a formula that is based off of your parents income. The higher the income, the lower the grant amount. HOWEVER, with the right qualifications scholarships are also available but are highly competitive.

Everyone who obtains post-secondary education or training IS NOT guaranteed a career.......

This depends on the job outlook for their specific field of interest, as well as their personality traits, their skills, and their ability to network and go out there and get the position they feel passionately about

People with post-secondary educations do have higher lifetime earning potential.

According to the Social Security Administration...Men with bachelor's degrees earn approximately $900,000 more in median lifetime earnings than high school graduates. Women with bachelor's degrees earn $630,000 more

If you are unable to pay back your federal students loans, filing bankruptcy WILL NOT ERASE THAT DEBT

Unfortunately, federal student loans cannot be filed on bankruptcies.

Net price

vs

Sticker Price

The most heavily awarded federal grant is the Pell grant. This amount is determined through your FAFSA.

FAFSA

• Free Application for Federal Student Aid

• Each year the new application opens on October 1st at 1:00 a.m.

• The FAFSA makes you eligible for grants, scholarships, work-study programs, and federal student loans

Scholarships vs Grants

Both DO NOT have to be paid back

Scholarships are merit-based (student performance)

Grants are need based (low-income families)

The FAFSA also determines your EFC

This is your Expected Family Contribution

Multiple Choice

I am going to save the FAFSA details for a couple of days while we focus on the cost of attendance. With that said, I will close with a common sense FAFSA question.

Which of the following is TRUE about how you get your financial aid?

• All financial aid is paid directly to you in one payment

• All financial aid is paid to you in installments

• Aid is 1st applied to your account; you get the rest

• The school receives all of your financial aid