THE ECONOMICS OF COLLEGE

1
THE ECONOMICS OF COLLEGE

• Mead Senior High School
• Student Services

2
Four Myths About College Costs

• Paying for college is a challenge, but not as
  daunting as some people think!

3
Myth 1

• Myth Tuition alone will set you back over
  100,000.
• Fact While tuition costs continue to rise,
  colleges charging 25,000 a year are the
  exception, not the rule.
• 3 out of 4 students in the US paid less than
  12,000 a year for tuition in 2007.

4
Relative Washington Public College Tuition
Costs Research Universities University of
Washington 5,842 Washington State
University 5,812 Comprehensive Universities
Central Washington University 4,089 Eastern
Washington University 4,017 Western
Washington University 4,088 The Evergreen
State College 4,091 Community Tech. Colleges
2,408
5
Myth 2

• Myth The more you save, the less aid you will
  get.
• Fact The more you save, the less you will need
  to borrow. The majority of aid comes in the form
  of student loans.
• Save money in your name, not your childs name.
  Aid formulas count only 5.6 of parental assets
  vs. as much as 35 of money saved in students
  name.

6
Not All Aid is Created Equal!The Use of Student
Loans

• If its the only way you can go to and pay for
  college, see it as an investment.
• Repayment plans can be consolidated at a much
  lower interest rate (as low as 2.50).
• Interest is tax deductible for at least 10 years.

7
Myth 3

• Myth You make too much money to qualify for
  aid.
• Fact Contrary to popular belief, the amount of
  financial assistance available for higher
  education is going up, not down, for most
  families.
• Federal Aid has more than doubled in the last
  decade. Nearly 1/2 of families earning over
  80,000 qualify for assistance.

8
The FASA

• EFC (Expected Family Contribution) Calculation
• Determine type of aid and amount
• Be sure to complete the FAFSA - requirement for
  many scholarships/grants.

9
Myth 4

• Myth The payoff isnt what it used to be.
• Fact You still get a sizable return on your
  higher education investment.
• College grads earn on average 75 more than high
  school grads.
• Over a lifetime that difference is over a million
  dollars.
• Many student loans are charging interest only
  slightly above inflation.

10
Scholarships

• Apply to your institution early!
• Apply for Federal Financial Aid (FAFSA)
• Check the MHS Student Services Scholarship
  Database regularly.
• Get the applications completed and turned in!
• Avoid the Scams and getting ripped off!
• The only scholarship you will never get is the
  one you dont apply for.

11
Cutting the Cost of College

• Advanced Placement
• College in the High School
• Running Start
• Math, Math, Math...
• College Prep Course load

12
(No Transcript)
13
Federal Aid

• FAFSA www.fafsa.ed.gov
• Set up your PIN in advance of Jan 1, 2010.
• Complete/Submit FAFSA - applications accepted
  starting Jan 1, 2010.
• Guesstimate first, then make corrections!
• Attend Post High School Planning Night at MHS
  prior to the 2009 Fall Open House.

14
Tips to Pay for College

• Minimize Debt
• Submit the FAFSA
• Search for Scholarships
• Education Tax Benefits
• If you must...borrow a Federal Loan first
• Pay at least the interest while you are in school
• Continue to save for college
• Be aware of scholarship scams

15
Questions?