1 Financing Your Education A Partnership between Government, School and Family.

2 Financing Your Education The government works to determine overall aid for students. Your eligibility for aid is also established by the government. Aid regulations apply to all schools. HOW IT WORKS Government School Family HOW TO GET IT FAFSA Financial Need Budget FastWeb Scholarships Loans More Government

3 Financing Your Education Institutional assistance depends upon funding at each school. Financial aid eligibility will vary from school to school. School sets own eligibility requirements. Check with your school’s financial aid office for additional aid forms you may need to complete! HOW IT WORKS Government School Family HOW TO GET IT FAFSA Financial Need Budget FastWeb Scholarships Loans More School

4 Financing Your Education Your Expected Family Contribution (EFC) is established by FAFSA. Your EFC is the amount of money you and your parents can be expected to contribute to your college costs each year. HOW IT WORKS Government School Family HOW TO GET IT FAFSA Financial Need Budget FastWeb Scholarships Loans More Family

5 Financing Your Education Eligibility for aid is determined based on your FAFSA results. Complete the FAFSA on the Web at: Submit your FAFSA as soon as possible after January 1 st. HOW IT WORKS Government School Family HOW TO GET IT FAFSA Financial Need Budget FastWeb Scholarships Loans More Free Application for Federal Student Aid (FAFSA)

6 Financing Your Education About 1 in 3 FAFSAs are chosen for verification. When this happens, you must supply additional information as requested. Any requested information should be submitted to your prospective college as soon as possible, to prevent delays in your aid. HOW IT WORKS Government School Family HOW TO GET IT FAFSA Financial Need Budget FastWeb Scholarships Loans More FAFSA - Verification

7 Financing Your Education Definition of Need Need is the cost of attendance (COA) minus your expected family contribution (EFC): COA – EFC = NEED The cost of attendance varies for each school, so a student’s financial need will also vary for each school. Use FinAid’s online calculators to help you determine your need: HOW IT WORKS Government School Family HOW TO GET IT FAFSA Financial Need Budget FastWeb Scholarships Loans More Financial Need

8 Financing Your Education Cut Costs by Curbing Expenses -Take advantage of free campus activities. -Buy used textbooks. -Exercise credit card restraint. -Carpool or take a bus when going home. Manage Money Wisely - Make a budget and stick to it! Be a Student Worker - Save as much as possible from a summer job. - Work part-time while in school. Consider Alternative Sources... HOW IT WORKS Government School Family HOW TO GET IT FAFSA Financial Need Budget FastWeb Scholarships Loans More Budget

9 Financing Your Education Use the Internet to find scholarship opportunities FREE personalized scholarship matches Over 1.3 million scholarships $3 billion dollars in aid available On-line applications alerts when new awards become available and deadlines approach Helpful articles, bulletins, and how-tos Expert advice on financial aid HOW IT WORKS Government School Family HOW TO GET IT FAFSA Financial Need Budget FastWeb Scholarships Loans More FastWeb

10 Financing Your Education Warning! Beware of companies that do any of the following: 1.Require a fee of any kind (including and up-front fee for a loan). 2.Refuse to release their telephone number and provide only a P.O. Box where you can mail your check. 3.Offer an award for which you did not apply. 4.Promise to do all the work. HOW IT WORKS Government School Family HOW TO GET IT FAFSA Financial Need Budget FastWeb Scholarships Loans More Scholarship Scams

11 HOW IT WORKS Government School Family HOW TO GET IT FAFSA Financial Need Budget FastWeb Scholarships Loans More Financing Your Education Scholarship Scams 5.Guarantee you will win a scholarship. 6.Claim you cannot get the information they have and supply anywhere else. 7.Require personal information to “hold” the scholarship (like your banking or credit card information. If you think you are the victim of scam, contact the Federal Trade Commission (FTC)

12 Financing Your Education FACT: Two/thirds of students (65.7%) graduate with some student loan debt. Rule of thumb: Do not borrow more than your projected first-year salary. Example: If your income will be $40,000/year, then you should try not borrow more than $10,000/year. HOW IT WORKS Government School Family HOW TO GET IT FAFSA Financial Need Budget FastWeb Scholarships Loans More Loans

13 HOW IT WORKS Government School Family HOW TO GET IT FAFSA Financial Need Budget FastWeb Scholarships Loans More Financing Your Education Loans Federal Student Loans provide lower fixed interest rates, subsidized (government pays the interest while you are in school and the six month grace period after graduation), and offer a choice of repayment options. Federal Parent PLUS Loans can help supplement a student’s loan. The repayment obligation is on the parent. Private student and parent loans have variable but competitive rates, are credit- based, and have a higher loan limit than federal student loans.

14 Financing Your Education Hope Scholarship Tax Credit -Provides a $1650 tax credit per student that is enrolled full-time. -A reduction of your calculated tax for qualified, out-of-pocket expenses and expenses during the first two (tax) years of college. -Financial aid/scholarships do not count towards qualified tuition. Lifetime Learning Tax Credit -Up to a $2,000 tax credit. -Applicable for students enrolled less than half-time. -May be claimed for an unlimited amount of years. Student Loan Interest Deduction -Up to a $2,500 deduction, even if deductions are not itemized. -Loan origination fees and capitalized interest count towards the deduction. -Students and parents can claim the deduction for past years by filing amended income tax returns. HOW IT WORKS Government School Family HOW TO GET IT FAFSA Financial Need Budget FastWeb Scholarships Loans More Tax Credits and Deductions

15 Financing Your Education IRA Early Withdrawal Provision for Education No penalty for early withdrawal of IRA funds to pay qualified educational expenses. Coverdell Education Savings Account Type of IRA in which contributions are made until the beneficiary reaches the age of 18. Prepaid Tuition Programs College savings plans guaranteed to increase in value at the same rate as college tuition. 529 Plans Contributions to this kind of savings plan earn money on a tax- deferred basis (like a 401k) and are also tax-exempt when used to pay for qualified education expenses. HOW IT WORKS Government School Family HOW TO GET IT FAFSA Financial Need Budget FastWeb Scholarships Loans More Savings Plans to Finance Your Education

16 Financing Your Education This presentation was created by FastWeb Students complete a free scholarship search visit Educators find helpful resources, how-tos, and articles for your students visit If you have any questions or comments about this presentation, please contact the Member Services Department at FASTWEB( ) ext. 3 HOW IT WORKS Government School Family HOW TO GET IT FAFSA Financial Need Budget FastWeb Scholarships Loans More Best wishes for your success!