Download - AVID Family Workshop
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AVID Family Workshop
Phantom of the Opera
Paying for College
March 24, 2009
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Portfolio ContentsPortfolio ContentsTAB 1 TIMELINES Chart your Course 6-12 checklists
/ Grad Plan
TAB 2 ACTIVITIES Extra Curricular Activities / Honors & Awards
TAB 3 REPORT CARDS Report Cards/ Transcripts
TAB 4 SCORES PSAT/ SAT/ ACT/ AP/ ASVAB/ Terra Nova Scores
TAB 5 ESSAYS Essay samples
TAB 6 LETTERS Letters of Recommendation / RESUME
TAB 7 SCHOLARSHIPS http://www.fastweb.com
TAB 8 COLLEGE INFO Selection Process/ Top Colleges / College Visits/ College Planner/ Travel
TAB 9 FINANCES Paying for College/ Pre-Pay / FAFSA
TAB 10 OTHER Goals/ Careers / Career Launch/ MyRoad/ Other info
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SAT/ACTSAT: 02 May 2009 (International Registration Deadline 31 March 09)
SAT: 06 June 2009 (International Registration Deadline 05 May 09)
www.collegeboard.com
ACT: 13 June 09 (Registration Deadline: 08 May 09)http://www.actstudent.org/
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Phantom of the Opera
Ms. Sibayan’s MS AVID
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Paying for CollegeThe New Reality
From Suze Orman’s2009 Action Plan
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The New Reality•Real estate has
decreased in value•Stock values decreased
dramatically•Credit crisis
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The Good News•May 2008 Congress
passed emergency legislation
•Kickstarted the student loan market
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Important changes in student loans
•Increased amounts students can borrow
•Eased the terms of repayment
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How to proceed?
•Depends on variety of factors:– Your age– Age of your children– How much money you have
saved
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What you MUST DO in 2009
•If your child is headed to college within four years and your college savings are in the stock market, you should be phasing it out of the market so that it is 100% out by the time he/she is 17.
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What you MUST DO in 2009
•If you have a child entering college this year, look into getting a Stafford loan.
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What you MUST DO in 2009
•If parents need more, consider a PLUS loan.
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What you MUST DO in 2009
•Stay away from private student loans at all costs!
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Your Retirement Accounts
• These must come first!• Especially important in these
uncertain times• You need that money waiting
when you retire.• Don’t divert this money to pay
for college.
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Borrowing from Your Retirement?
• Never a good idea to use this to pay for another expense
• 2009 is doubly risky• Could also affect your child’s
financial aid eligibility• Don’t touch your IRA or 401K or
TSP
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Be Realistic and Honest
• Seriously rethink what you can afford
• The best school is one that provides a solid education and doesn’t put you in deep debt.
• Keep an open mind.• Look at your in-state college
system• Kiplinger’s “Best College Values”
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Want to start a college fund?
• 529 Savings Plan is easiest and smartest
• Earnings are tax-free• Withdrawals used for college
also tax-free• Contributions can come from
grandparents, relatives, and friends.
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Want to start a college fund?
• Coverdell Educational Savings Accounts
• U.S. Savings Bonds• www.savingforcollege.com (best
site)
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Already have a 529K?
• Do NOT move money out of it now!
• If necessary, shift some money within the fund to stable-value account.
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Planning ahead . . .
• Under age 14 100% stocks• Age 14 75% stocks• Age 15 50% stocks• Age 16 25% stocks• Age 17 0% stocks
Adjust your portfolios now!
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College is here and you don’t have the
money . . . • You have options!• STEP ONE: Your child, the
student, applies for both subsidized and unsubsidized Stafford loans
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Stafford Loans
• The cheapest loan options• 5.6% -6.8% interest• Can opt to pay interest now or
later• Anyone can get the unsubsidized
loans• Freshmen up to $5,500• Sophomores up to $6,500• Juniors and seniors up to $7,500
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How do you get a Stafford loan?
• MUST complete the FAFSA!• Also necessary for any school
financial aid• http://www.fafsa.ed.gov/
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You need more money?
• STEP TWO: Apply for a Parental PLUS loan (also federal)
• No income limit• Can borrow up to the full
amount of college costs still needed
• Current rate 7.9% -8.5%• Can defer repayment till
graduation
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Your situation changes . . .
•Contact the financial aid office immediately!
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Honesty
• You must limit what you borrow to what you can truly afford
• College Board has calculators for costs of repayment on PLUS loans
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Honesty
• Consider less-expensive schools
• Have the child earn some money
• Make the hard choices
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Other points to remember
• Let Uncle Sam pay• Most F.A. comes from the
colleges• You must apply• Consider colleges that WANT
YOU!
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What Parents Can Do
•Advocate for your child•Learn and play “the game”•Support your child
Washington University in St. Louis 2002
The College of the Holy Cross 2006
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NEXT WORKSHOP
TBA May 2009See you there!