Planning for the Future

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Planning for the Future

• Rules
• If you do not know the answer you can
• 1. ask a friend
• 2. ask the audience

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1. What is the average lifetime earnings of a 4
yr. college graduate (B.A./B.S. degree)?

• a. 642,824
• b. 817,680
• c. 1,081,520
• d. 1,780,920
• e. 2,207,374
• f. 3,604,143

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2. The federal government will give you money
for continuing your education. Money for
education can NOT be used on which of the
following items?

• a. tuition
• b. car payment
• c. books
• d. fees
• f. meals
• g. housing
• h. plane ticket home for the holidays
• i. pizza on Friday nights
• j. car insurance
• k. laptop computer

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3. How much does an average year of college at
the University of California San Diego cost?

• a. 42,000
• b. 22,000
• c. 15,000
• d. 6,000

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4. Students need to report parent income AND
their own income. What do you as a student need
to do to become independent and not have to
report parent information?

• a. get an apartment and live on your own
• b. go into the Army, Navy, or other armed
  service
• c. not have parents claim you on their income
  taxes
• d. pay for your own car
• e. get married
• f. turn 24 years old
• g. have a child that you support without the
  help of your parents
• h. other special circumstances
• i. have a college degree (bachelors degree)

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5. Expected Family contribution is a term used
by colleges. It means

• a. the money a family has left over after paying
  for family expenses to pay for college
• b. the amount of money a family tells the
  college they want to contribute to pay for
  college
• c. the contribution of parent income and student
  income
• d. families are expected, but not required to
  contribute money toward college expenses

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Financial Aid Process

• Cost of Attendance
• Expected Family Contribution
• Financial Need

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1. Cost of Attendance

• Books Fees
• Personal Expenses
• Transportation

• Tuition
• Room and Board

Indirect Costs
Direct Costs
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2. Family Contribution

• An estimate of your familys financial strength-
  how you can absorb the cost of paying for
  college, based on financial resources available
• It is not an estimate of left-over resources
  from your finances once other responsibilities
  are met
• Always based on previous years income

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Expected Family Contribution

• Parent Income
• Parent Assets
• Student Income
• Student Assets
• ------------------------------
• Expected Family Contribution

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Factors that Influence Family Contribution

• Parent
• Income
• Savings
• Other Assets
• Age
• Number in College
• Family Size

Middle Child Bonus!
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• Income
• Students can earn up to 3000 each year. You
  should SAVE 50 of each dollar you earn over this
  amount

• Savings
• 20 of any savings held in your name goes back
  to college the next year

Independent vs. Dependent
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Family Contribution

• The Family Contribution is a family number, not
  an individual number.
• It is divided between the number of students in
  college.
• The family contribution is a constant number.

• The Family Contribution is a family number, not
  an individual number.
• It is divided between the number of students in
  college.
• The family contribution is a constant number.

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3. Financial Need

• Cost of Education
• --- Family Contribution
• _______________________________
• Financial Need

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Financial Need
Cost of Education determines Financial Aid/not EFC
Cal Poly 15,000 10,000 5,000
3,000 12,000
Cost EFC Need Need Met You Pay
UC SD 22,000 10,000 12,000 11,000 11,000
UOP 42,000 10,000 32,000 32,000 10,000
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Financial Aid Comes in Packages

• Gift
• Grants
• Scholarships
• free money

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Financial Aid Comes in Packages

• Self- Help
• Student Loans
• Work Study
• (does not count as income on financial aid)
• money using
• student initiative

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Then what?

• Receive your SAR - Student Aid Report
• Check for your EFC- This is an IMPORTANT number
  to know!
• Question about SAR? Talk to counselor/other in
  school or college
• next to your EFC? verification
• Add/subtract schools if you have more than 6
  schools to apply to for financial aid

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Then what?

• Wait for Financial Aid offer from the colleges
  you applied to
• Compare financial aid offers- use page from Fund
  Your Future Workbook (compare gift aid, loans,
  and workstudy)
• Update FAFSA information as needed (to report tax
  information, changes in income, etc.)
• Let college know if you have a change OR a
  special circumstance in your family.

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Then what?

• Make a plan for paying for higher education-(p.
  35)

Grants/ Scholar.
Books Personal Expenses
Tuition Room Board
Transportation
Parents
Loans

• Be Smart about your money
• Worksheet in Fund Your Future book tells you HOW!

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Why?

• Think of your life as a tape measure
• The choice you make now will impact
• you the rest of your life.
• Take the first step- apply for financial aid

• All things are possible to him who believes.
• Brother Lawrence