financing your education

Financing Your Education

Paul CalmeXavier University

513 745-3142www.xavier.edu/financial-aid

Philosophy of Financial Assistance

COLLEGE A B C

COST OF COLLEGE $40,000 $20,000$10,000

EFC $10,000 $10,000$10,000

FINANCIAL ELIGIBILITY $30,000$10,000 $0

Philosophy of Financial Assistance

Parents have primary responsibility to invest in their dependent children’s education

Students have a responsibility to contribute to their educational costs

A student’s ability to pay for educational costs must be evaluated in an equitable and consistent manner

Families should be evaluated in their present financial condition

Special circumstances may be considered

The Cost of AttendanceTuition & Fees

Room & Board

Books & Supplies

Transportation

Personal Expenses

The Cost of College

Total Billable Price-Financial Assistance

Net Price (amount you pay)

Sources of Financial Aid

Scholarships – academic based non-repayable

Grants – need or talent based non-repayable

Loans – borrower must repay

Work Opportunities – wages must be earned

Scholarship ConsiderationsValue of the scholarshipRestrictionsRenewabilityAppealsOn-going valueSources

www.fastweb.com www.collegeboard.com www.gocollege.com

Grants

Need basedNot based on academicsTalent based

Student Loan ProgramsFederal Perkins Loan – 5% fixed interest; no

interest while enrolled at least half time in college; up to 10 years to repay once out of college

Federal Stafford Loan – subsidized and unsubsidized

Subsidized (need-based)- 4.5% interest; no interest while enrolled at least half time in college; up to 10 years to repay once out of college

Unsubsidized (not need-based)– option to pay the 6.8% interest while student in college, or allow interest to accrue and make both interest and principal payments once student out of college – up to 10 years to repay

Federal Stafford Loan Annual Limits

Federal Stafford Loan (subsidized or unsubsidized) Freshman $3500 Sophomore $4500 Junior $5500 Senior $5500

Student may also borrow additional $2000 unsubsidized each year

Stafford may be all subsidized, all unsubsidized or a combination, not to exceed the annual loan limit

Parent Loan - PlusParent may borrow up to full cost of

attendance minus aid offeredInterest rate 7.9%Option to pay interest while student in

college, or allow interest to accrue and make both principal and interest payments once student out of college

Repayment – up to 10 years

Private Education LoansStudents may also secure loans from private lenders

Usually at a higher/variable interest rate and less favorable repayment provisions

Likely to need a co-signer

Repayment usually deferred until after graduationSometimes interest only payments are required

Approval based on student and/or co-signer’s credit history

Amount cannot exceed COA minus all other aid

Work OpportunitiesFederal Work-Study (need-based)

Awarded work-study Secure job usually on campus Work the hours Receive payment Use earnings for billable costs or personal use

University Employment (not need-based) Secure job on campus through office responsible for

non work study employment

How to QualifyAdmission acceptance

University financial aid forms

Free Application for Federal Student Aid (FAFSA)

fafsa.ed.gov

Application ProcessRegister for a PIN: www.pin.ed.gov - dependent student and parent must file

for a PINFile the FAFSA as soon as possible after

January 1 of the year of enrollment at www.fafsa.ed.gov

Determine if colleges require an institution financial aid form and/or the College Scholarship Service Profile form

(the Profile is required by some private colleges in addition to the FAFSA)

TimelineApply and be accepted for enrollment at

collegesFile FAFSA after January 1Results returned to filer and colleges listed

on FAFSA usually within two weeksColleges prepare financial aid award

notification for student beginning late February or early March

All award notifications should be received by student by May 1

Student reviews aid offers and makes college choice

A Few TipsComplete your income tax form before

completing the FAFSA, if possible Up to ten colleges can be listed on the FAFSAKnow the Federal School Code(s) for each

college listed on the FAFSASave a copy of the completed FAFSASave a copy of the completed income tax form(s)Present special circumstances to college(s)FAFSA must be filed each yearGet an estimate: www.fafsa4caster.ed.gov

For More HelpHigh School Guidance OfficeCollege Financial Aid OfficePublic and College Libraries and BookstoresThe Internet -www.finaid.org

-www.fastweb.com -www.collegeboard.com

More Help (continued)Federal Department of Education

-(8oo) 4 FED AID - http://www2.ed.gov/finaid/landing.jhtml

Kentucky Higher Education Assistance Authority (KHEAA) -(800) 928-8926

- www.kheaa.comCincinnati Scholarship Foundation - www.cincinnatischolarshipfoundation.org

College Goal Sunday

January 30, 2011Sunday

2:00 – 4:00

To be held at Northern Kentucky University

Details at http://www.kasfaa.com/cgs/

Questions?

Xavier UniversityOffice of Financial Aidxufinaid@xavier.edu

www.xavier.edu/financial-aid513 745-3142