1. NOVA’s Financial Literacy Program
Paying For College
Presented By:
NOVA’s Financial Literacy Program

2. But How Do You Pay For College?
College Pays,
But How Do You Pay For College?
“An investment in knowledge always pays the best interest.”
- Benjamin Franklin

3. What Are Sources of College Funds?
Source: How America Pays for College 2018, from Sallie Mae and Ipsos.

4. What Expenses Will You Have in College?
Tuition
Books
Supplies
Transportation
Room and Board
Other Fees
Personal Expenses +
Estimated Expenses

5. Apply for Financial Aid!
You may qualify for aid for your college & living expenses!
Types of Financial Aid
Grants – Free money based on financial need
Scholarships – Free money based on need and/or merit, competitive, requirements vary
Work-Study – Earn money toward college expenses through need-based work-study employment
Student Loans – Low interest rate, may defer payments while enrolled in at least six credits

6. How to Apply for Financial Aid
Students create a FSA ID.
Parents of dependent students create a FSA ID.
2) Complete the FAFSA at FAFSA.GOV
Reapply each year starting October 1st
(almost a year before the following academic year begins)
Promptly submit any items that may be requested by the Financial Aid Office.
More info is available at

7. How to Apply for Financial Aid
Obtain your FSA ID and
Submit the FAFSA at
FAFSA.GOV

8. Follow Up with Your College
Promptly submit any items that may be requested by the Financial Aid Office.
Register for classes.
Ensure that your financial aid is enough to cover your balance by your college’s payment deadline.

9. Apply for Scholarships
Where should you begin your scholarship search?
Your High School Counseling Office/College Center
Your Academic Department at Your College
Financial Aid Office at Your College
Local Organizations
Apply for external scholarships through free websites like:
Information on grants and scholarships for Virginia Residents:

10. What makes a good scholarship essay?
Tell Your Story
Sales Pitch
Good Grades
Volunteer Experience
Extracurricular Activities
Success Despite Obstacles
Educational and Career Goals
Statement of Financial Need (if applicable)
How you’ll Benefit from the Money
Close with a “Thank You”
Remember, scholarships are competitive, write a good essay and apply for as many as possible!

11. Accept Student Loans if Necessary
Only borrow what you need and can afford to repay!
Complete the Direct Loan Master Promissory Note (MPN) and Entrance Counseling (EC).
Most colleges require the MPN and EC to be completed at

12. Federal Direct Loan Annual Borrowing Limits
At community colleges, students may only potentially receive
Federal Direct Loans at the Freshman and Sophomore levels.

13. Responsible Borrowing
Consider low-rate federal student loans with flexible repayment options before credit cards and private loans.
Contact your loan servicer if you have trouble making loan payments to discuss your options to avoid default.
Average debt of bachelor’s degree recipients is about $37,000.
What would be the estimated monthly loan payment based on the standard repayment plan with a 5.05% interest rate?
$ per month for 10 years

14. Work-Study and External Employment
Ask the Financial Aid Office if you qualify for work-study.
Other opportunities may be available through your
Student Employment Office or Career Center.
Working off-campus while going to school can also help cover your educational expenses.
If employed, consider limiting your schedule accordingly:
16 hours of work per week – Take a maximum of credits
25 hours or work per week – Take a maximum of 8-11 credits
40 hours of work per week – Take a maximum of 7 credits

15. Financial Aid Reminders
Funding for some financial aid programs is limited. Apply early!
Pell eligibility is capped at the equivalent of 12 full-time semesters.
Total Direct Loan borrowing is capped at $31,000 for dependent undergraduates with a maximum of $23,000 in subsidized loans.
Meet the Satisfactory Academic Progress (SAP) Requirements to remain eligible for financial aid.
Unusual circumstances? Contact the Financial Aid Office to discuss your options and the appeal process.
Contact the Financial Aid Office prior to dropping or withdrawing courses to see if it will affect your aid eligibility.

16. Paying Tuition
Colleges typically accept a variety of payment options including:
Financial aid (grants, loans, and scholarships)
Cash, check, wire transfers, and ACH
Credit cards and debit cards
Third-party payments including employer payments
529 Savings Plans
Many colleges also offer payment plans that enable students to spread out the amount they owe over a certain period of time.
Be sure that you have enough pending financial aid to cover your billable charges before your college’s payment deadline, or make arrangements to cover any remaining balance.
Contact the Bursar’s Office or Business Office at your college if you have any questions about payment.
Even if you already paid your tuition, you could still apply for financial aid and be refunded the amount of aid you qualify for.

17. Don’t Just Pay For College, Succeed in College!
Take advantage of
available resources!
Free Tutoring Services
Math & Writing Centers
Career Services
Get an internship, job, or other experience related to your degree.
Study… At least 2-3 hours per week per credit outside of class.
Meet with your counselors, advisors, and professors.
Get involved…Join a club, sports team, or other organization.

18. Tax Benefits for Education
Tax Credits for Higher Education Expenses
Two tax credits help offset the costs (tuition, fees, books, supplies, equipment) of college by reducing the amount of your income tax:
American Opportunity Credit - Allows you to claim up to $2,500 per student per year for the first four years of school.
Lifetime Learning Credit - Allows you to claim up to $2,000 per student per year for any college or career school tuition and fees, as well as for books, supplies, and required equipment that had to be purchased from the school.
Even if you normally wouldn’t file a tax return because of your income level, you may wish to consider doing so to claim a tax credit that could put money in your pocket.
More details at:

19. Tax Benefits for Education
Student Loan Interest Deduction
Interest paid on student loans that you borrowed for yourself, your spouse, or your dependent to pay for higher education expenses may be tax deductible. The maximum deduction is $2,500 a year.
Qualified Tuition Programs (QTP)/529 Plans
QTP/529 plans are established by a state so that you can either prepay or save up to pay education-related expenses. Once you’re in college you withdraw money from your account to pay your education expenses and the money you withdraw will not be taxed.
Learn more about state 529 plans.
Also read IRS Publication 970, Tax Benefits for Education to see which federal income tax benefits might apply to your situation.