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Credit Union Student Choice © 2017www.nihfcu.org/education

How to Plan, Prepare, Pay for CollegePresented by: Suzanne Wilkins | Director of Strategic Partnerships


Junior Year

• ACT/SAT

• Apply for scholarships

• Attend financial aid nights and visit colleges

• College prep courses

• Continue smart study habits and maintain good grades

• Save money

Senior Year

• Apply to colleges• FAFSA (October 1st)• “College Goal Sunday”• Continue applying for

scholarships• College prep courses• Continue smart study habits

and maintain good grades• Continue saving money

Preparing for College


Preparing for College

• Avoid Senioritis – Stay Focused, Excited, and Active• Maintain a challenging course load• Commit to an internship• Keep a calendar of your activities and deadlines• Enjoy your Senior experience REASONABLY!

• All offers of admission to a college are conditional

• Colleges may rescind admission for a number of reasons• If a student enrolls and makes a deposit at more than one college• If there is a significant change in senior year grades• If there is a lapse in judgment or integrity such as cheating or suspension for

alcohol or drug use• And admission can be rescinded for lying, for misrepresenting any facts or

work in the application – grades, test scores, essays, a change in personal circumstances, extracurricular activities or for a disciplinary matter

Sources: “5 Ways to Get Your College Admissions Rescinded,” Lauren Paylor, HuffingtonPost.com 06/18/13 and “Admission

Rescinded,” CollegeAdmissionBood.com 03/19/12


Scholarships without FAFSA

• Private Scholarships• Amounts vary and begin as early as 11th grade• Awarded based on need or merit• Awarded for a variety of reasons: academics, sports, extra-

curricular activities, community service, hobbies, writing skills

• Resources Include• High School Guidance Counselor• Online Search Engines

• Fastweb.com• Finaid.org• Collegeboard.org

• iPhone and Android app • Scholly (scholly.com)


• Follow all instructions

• Use reference letters

• Highlight any community involvement and charity work

• Include job history

• Essays = TEETime, Energy and Effort

• Beware of scams!

Scholarship Tips


Choosing a College

• University accreditations?

• Does the school participate in Federal Student Aid?

• Do I have the financial resources for this college?

• Do I meet admission requirements?

• Does the school offer the types of programs and courses I am interested in?

• What is the job placement rate?

• What are the graduation statistics?

• Check the Better Business Bureau listings or Consumer Protection Division of your State Attorney General’s Office


Choosing a College

College Navigator is an online research tool from the US National Center for Education Statistics

www.nces.ed.gov/collegenavigator


Choosing a College – Search Example

www.nces.ed.gov/collegenavigator


Applying to a College

Application Process• Deadlines• Application waivers• Varies by school (as ranked in NACAC State of College Admissions 2014 edition)

• Courses • 1st College Prep, 2nd Curriculum Strength

• Test Scores (3rd)• Overall GPA (4th)• Essay (5th) • Student’s Demonstrated Interest (6th)• Teacher/Counselor Recommendations (7th)• Extracurricular Activities (8th)

• Quality over Quantity • Emphasize activities related to your major or career

goal• Involvement with organizations

NOTE: A student’s interview and work experience can add further depth to the admission application and are sometimes used for comparing candidates with similar academic qualifications.


Applying to a College

Application Ethics

• Be HONEST about (everything):• activities and accomplishments• disciplinarily infractions

• Intended major

• Write your own essay

• Once you have accepted an offer to attend, make other colleges aware – other students financial aid can be impacted


Financial Aid Overview

We’ve been accepted…

Now what?

We’ve applied…


How Does it All Begin?

• The only way to access most financial aid is by completing the FAFSA• Free Application for Federal Student Aid (fafsa.ed.gov)


• Scholarships and Grants

• Federal Work Study

• Federal Direct Loans• Subsidized• Unsubsidized

• Federal Perkins Loans

• Federal Direct PLUS Loan

• Additional Student Loans

Types of Financial Aid


FAFSA Process

• Begin as early as October 1st of year prior to upcoming academic term through June 30th of ending school term

• Check with your state and college for additional deadlines• Must apply annually

• Submit application online at www.fafsa.ed.gov • Or through the mail (not recommended)

• So be sure you are on the federal government site with the URL ending in .gov

• Beware of scams that will offer to charge you to complete the FAFSA – it is FREE


FAFSA Process

• Submit the FAFSA• Online 2-3 weeks to process• Paper 4-6 weeks to process

• Student receives SAR (Student Aid Report)• Summarizes information on FAFSA• Provides EFC (Expected Family Contribution)

• School receives ISIR (Institutional Student Information Record) • 10 to 14 days after FAFSA submitted• Summarizes information on student’s FAFSA• All schools listed on FAFSA receive ISIR • School uses information coupled with application to determine

student’s financial need and creates an award letter


FAFSA Process

• School sends Award Letter to student• Financial aid award package• Sent directly to student• Review and decide which awards to accept

• Student is responsible for any unmet need• Savings Account• College Savings Plan• Home Equity Line• PLUS Loans • Private Loans


Scholarships and Grants

• Assistance from the government, state, school or private party

• Does not have to be repaid if certain criteria are met • Grants may have an obligation associated with acceptance• Failure to meet obligation may require grant to be repaid

• Awarded for a variety of reasons: • Need or merit• Academics, sports, extra-curricular activities

• Check with the Financial Aid Office for scholarship availability


Federal Work Study

• Assistance in exchange for work

• First come – First serve – Financial Need

• Provides jobs to student with financial need

• Paid at least minimum wage

• Jobs are part time, usually on-campus

• If you did not receive work study, check with the admissions and financial aid offices


• Loan is in the student’s name, made through the school’s financial aid office

• Awarded to students with exceptional financial need

• Maximum annual amount is $5,500

• Fixed interest rate

• Government pays interest while in school

• Fixed interest rate

• No origination fee

• Once in repayment, pay school directly

• Standard repayment term is 10 years

• Grace period is 9 months

• Check with your financial aid office to see if your school participates in the Federal Perkins Loan Program

Federal Perkins Loan


Federal Direct Loan

Subsidized UnsubsidizedVS

*Effective 7/12017**Effective 10/1/17

Standard repayment term is 10 years with a 6 month grace period

• Awarded to eligible students based on financial need

• Government pays interest while in school

• Fixed interest rate of 4.45%*

plus 1.066% loan fee**

• Awarded to all eligible students, not based on need

• Students are responsible for interest, may defer

• Fixed interest rate of 4.45%*

plus 1.066% loan fee**


Federal Direct Loan

Exceptions to Eligibility

• Must be a U.S. citizen or eligible noncitizen of the U.S. with a valid Social Security Number (SSN)

• Must have a high school diploma or a General Education Development (GED) certificate, complete homeschooling or pass an approved “ability to benefit” test

• Must enroll in an eligible program as a regular student seeking a degree or certificate

• Must be making satisfactory academic progress


Federal Direct Loan

Exceptions to Eligibility

• Males between the ages of 18 and 25 must register or already be registered with Selective Service

• Drug conviction while you were receiving federal student aid (still may be eligible)

• Not owe a refund on a federal grant or be in default on a federal education loan


Federal Direct Loan Limits

Subsidized

Freshman $3,500

Sophomore $4,500

Juniors/Seniors $5,500

Dependent Student

Freshman $5,500

Sophomore $6,500


Independent Student

Freshman $9,500

Sophomore $10,500


Unsubsidized


Student Status

Independent Student

• At least 24 years old• Married on the day you applied for aid• A graduate or professional student • Active Duty or a Veteran of the Armed Forces• Children or other dependents who receive more than half of their

support from you• At anytime since you turned 13 both of your parents were deceased,

you were in foster care, or you were a ward of the court• Emancipated minor • Declared homeless by your high school or director of an emergency

shelter


Student Status

Dependent Student

• Dependent Student

• Does not meet any of the criteria listed for an independent student


Value Based Approach to Financial Aid

FREE• Grants• Scholarships• Tuition Discounting

CHEAP • Federal Direct Loans

GAP

• Savings (Including 529 plans)• Home Equity• Tuition Payment Plans• Federal PLUS Loans• Private Student Loans


Sample Award Letter

Federal Loan – Subsidized $3,500 Federal Loan – Unsubsidized $2,000 School Grant $1,500State Scholarship $1,000Federal Work-Study $2,000

Total Award $10,000Cost of Attendance $20,000Remaining Need $10,000

University of sUccess


How Much Do You Really Need?

Things to Consider

• Fixed Costs

• Flexible Costs

• Appeals

• Other Income

• Tuition Payment Plans


Fixed Costs vs. Flexible Costs

Tuition $8,000+School Fees $1,000

Total Fixed $9,000

Total Flexible $11,000


Total Flexible Costs: $11,000

• Rent:$500 X 10 $5,000

• Food:$300 X 10 $3,000

• Books:$200 X 10 $2,000

• Personal Expenses:$75 X 10 $750

• Transportation (ex. bus pass):$25 x 10 $250

Total Flexible Costs: $8,750

• Rent:$400 X 10 $4,000

• Food:$300 X 10 $3,000

• Books:$100 X 10 $1,000

• Personal Expenses:$50 X 10 $500

• Transportation:$25 x 10 $250

Flexible Costs


(New) Unmet Need

Fixed $9,000Flexible $8,750 Total Costs $17,750

Total Costs $17,750Total Award ($10,000)Remaining Need $7,750

Need reduced by $2,250 (or $225 a month)

If you can do this each year in school, you’ll save over $9,000 because of accrued interest


Appealing your Award Letter

Reasons to appeal• Change in employment/income

• Medical bills

• Divorce

• Disability/death

• High consumer debt


Federal Direct PLUS Loan

• Often listed on Award Letter

• Interest rate is fixed at 7.00%*

• Bridges the gap between education costs and financial aid

• Credit based loan made to the biological, adoptive, or in some cases a step-parent of a dependent student for the purpose of meeting the cost of attendance.

• Origination fee of 4.264%**

*Effective 7/1/2017**Effective 10/1/2017


Federal Direct PLUS Loan

• Limit is the COA less any other Financial Aid

• Payments begin 60 days after first date of disbursement (can request deferment) and it is a 10 year term

• No pre-payment penalty

• Dependent students whose parent is denied may qualify for additional Federal Direct Loan limits


• Rate• Index – Prime or LIBOR

(difference of about 3%) • Margin – % added to index• Floor – Never go below

• Fees• Origination Fee – 0-3%

• Repayment Terms • 10 to 25 years

• Borrower Benefits• What’s in it for me?

(W.I.F.M.)

• Co-borrower Options• FICO, Debt-to-income ratio

• Payment Options • Full deferment • Principal & Interest• Good Faith Payments

Evaluating Private Student Loans


NIH FCU’s Student Choice Solutions

Undergraduate Students• In-school financing for undergraduate students

Student Loan Refinance • Refinance and consolidate existing private and federal student loans• One manageable loan with one convenient payment• Potentially lowering your rate or reducing your repayment term

Additional refinance benefits for practicing medical doctors and dentists

For more information visit: www.nihfcu.org/education


Undergraduate Benefits

• Line of credit structure so you can borrow once for your full undergraduate career (versus applying every year)

• Subject to credit qualification and annual review – must meet school’s Satisfactory Academic Progress (SAP) requirements

• Borrow up to $75,000 with rates as low as 3.75%

• No origination or prepayment penalties

• Flexible repayment options & in-school deferment options

Rates and terms as of 6/22/17Subject to change without notice


For More Information or to Applyhttp://nihfcu.studentchoice.org

24/7 undergraduate student lending center: 844-830-3255

http://nihfcu.studentchoice.org/


Thank You for Attending

Please contact us with any additional questions:

http://www.studentchoice.org/Scholarhelp

Visit or call NIH Federal Credit Union for more information or for any additional assistance in planning your college career.

www.nihfcu.org/education

Slides and recorded webinar may be accessed following the webinar:

www.nihfcu.studentchoice.org/college-webinar

http://www.studentchoice.org/Scholarhelp

http://www.nihfcu.org/education

http://www.nihfcu.studentchoice.org/college-webinar

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