College Financial Planning Workshop II: Borrowing Money Glow Foundation 2010 Glow Online Curriculum Session 4
Page 2 What this Session will Cover Senior Year Calendar milestones Student Loans Financial Aid Review FAFSA / AB 540 / Scholarship Search
Page 3 Financial Aid 101-Loans What’s a loan? When would I need a loan? Things to pay attention to How much to borrow Interest rate & fees Repayment terms Subsidized vs. Unsubsidized Loans
Page 4 Financial Aid 101-Loans Federal Perkins Loan (subsidized) Up to $5,500/year Repayment starts after 9 months 5% fixed interest rate Federal Stafford Loans Subsidized or Unsubsidized 4.5% fixed interest rate for subsidized loans 6.8% fixed interest rate for unsubsidized loans 10-year repayment term Enrolled at least half-time
Page 5 Financial Aid 101-Loans Parent PLUS Loans (unsubsidized) Your parents are the borrowers Can borrow up to the cost of attendance 8.5% fixed interest rate Repayment starts either 60 days after loan disbursement or 6 months after graduation No FAFSA required
Page 6 Financial Aid 101-Loans Federal student loans: lower interest and better repayment plans How do I apply? THE FAFSA Private Loans: higher interest, less favorable terms, and good credit
Page 7 Financial Aid 101-Loans Tips: Loan amount may depend on enrollment status Choose federal before private While in your repayment period, always pay at least the minimum balance Make payments on early or on time DON’T BE INTIMIDATED!
Page 8 fafsa.ed.gov – Gotten your PIN?
Page 9 Fill Out Your FAFSA
Page 10 Login
Page 11 Introduction Page
Page 12 Student Demographics Information
Page 13 Student Eligibility
Page 14 School Selection
Page 15 School Selection
Page 16 Dependency Determination
Page 17 Parent Demographics and Financial Information Materials Needed: Your parents’ income tax forms - your parents can do this themselves without involving you if they wish Your income tax forms If you don’t have everything done – submit anyway and fix it later. It’s important to get it in!
Page 18 Sign & Submit
Page 19 FAFSA Overview FAFSA Tips: Always click “save” before moving on Fill in all answer boxes before you move on Keep track of questions you’re not sure about Use the “Help and Hints” box
Page 20 Recap: Student Loans Financial Aid (Review) FAFSA Scholarship Search
Page 21 Homework: Finish the FAFSA and print out a copy of your FAFSA or SAR