Financing Your Education

1. Financing Your Education Paul Calme Xavier University 513 745-3142 www.xavier.edu/financial-aid

2. Philosophy of Financial Assistance COLLEGEA 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

3. 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

4. The Cost of Attendance Tuition & Fees Room & Board Books & Supplies Transportation Personal Expenses

5. The Cost of College Total Billable Price -Financial Assistance Net Price (amount you pay)

6. 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

7. Scholarship Considerations • Value of the scholarship • Restrictions • Renewability • Appeals • On-going value • Sources • www.fastweb.com • www.collegeboard.com • www.gocollege.com

8. Grants • Need based • Not based on academics • Talent based

9. Student Loan Programs • Federal 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

10. 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

11. Parent Loan - Plus • Parent may borrow up to full cost of attendance minus aid offered • Interest 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

12. Private Education Loans • Students 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 graduation • Sometimes interest only payments are required • Approval based on student and/or co-signer’s credit history • Amount cannot exceed COA minus all other aid

13. Work Opportunities • Federal 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

14. How to Qualify • Admission acceptance • University financial aid forms • Free Application for Federal Student Aid (FAFSA) fafsa.ed.gov

15. Application Process • Register for a PIN:www.pin.ed.gov - dependent student and parent must file for a PIN • File 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)

16. Timeline • Apply and be accepted for enrollment at colleges • File FAFSA after January 1 • Results returned to filer and colleges listed on FAFSA usually within two weeks • Colleges 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

17. A Few Tips • Complete your income tax form before completing the FAFSA, if possible • Up to ten colleges can be listed on the FAFSA • Know the Federal School Code(s) for each college listed on the FAFSA • Save a copy of the completed FAFSA • Save a copy of the completed income tax form(s) • Present special circumstances to college(s) • FAFSA must be filed each year • Get an estimate: www.fafsa4caster.ed.gov

18. For More Help • High School Guidance Office • College Financial Aid Office • Public and College Libraries and Bookstores • The Internet -www.finaid.org -www.fastweb.com -www.collegeboard.com

19. 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.com • Cincinnati Scholarship Foundation - www.cincinnatischolarshipfoundation.org

20. College Goal Sunday January 30, 2011 Sunday 2:00 – 4:00 To be held at Northern Kentucky University Details at http://www.kasfaa.com/cgs/

21. Questions? Xavier University Office of Financial Aid xufinaid@xavier.edu www.xavier.edu/financial-aid 513 745-3142