Transcript Document
Empowering Students to Make Sound Financial Decisions
Presented by Linda Williams Senior Financial Counselor Southeast Missouri State University
Empowerment
• • • To give ability to To enable or permit A poll conducted by Sallie Mae – – 71% did not name loans as a source of financial aid – 65% of surveyed students planning to attend college, did not name grants as a source of financial aid 72% did not name scholarships as a source of financial aid
How Can We Help??
• • • • • • • Encourage students to ask questions Be patient when those questions are asked Understand students' emotions – Fear of the unknown – Anxiety that situation will never be resolved – Anger at not feeling in control of the situation Encourage students to communicate with family members Provide options or offer a plan, but do NOT make the decision for them Give students the tools they need to succeed and show them how to use those tools Talk to students in a non-threatening environment
Taking Control of Your Student Account
Presented to UI100 Southeast Missouri State University
Topics For Discussion
The Financial Aid Process Borrowing Responsibly Satisfactory Academic Progress Scholarships Creating a Plan Communication Question and Answer
Overview of the Financial Aid Process
(video provided by www.studentaid.gov)
Borrowing Responsibly
(video provided by www.studentaid.gov)
Borrowing Responsibly
Subsidized loans-
Interest is not charged while borrowers are enrolled in school at least half time (6 hours) Current interest rate 4.66%
Unsubsidized loans-
life of the loan Interest is charged throughout the Current interest rate 4.66% (for undergrad)
Parent Plus loan-
Loan in the parents’ names. Parents are responsible for repayment Current interest rate 7.21%
Borrowing vs Paying Out of Pocket
$1337.50 (15 meal plan) x8 (semesters) $10,700 (unsubsidized loan) $10,700 @ 4.66% with a Standard Repayment plan of 120 months $13,431 (total paid with interest based on studentloans.gov loan calculator) ***If you over borrow and receive a refund, that refund can be returned to SFS and applied back to your original loan amount***
Satisfactory Academic Progress
Federal regulations mandate that every Title IV school has a policy establishing satisfactory academic progress (SAP)for students receiving financial aid Progress is reviewed after every semester 1. 2.0 cumulative gpa by the end of 4 th semester (Grad students 3.0) 2. A minimum 1.75 gpa at the end of each semester is required prior to the 4 th semester 3. Complete 67% of attempted hours After review of 1 st semester student is placed on a warning semester After review of 2 nd semester student is placed on financial aid suspension (example: Fall 2014 student does not meet sap criteria; Spring 2015 will be a warning. Spring 2015 student does not meet sap criteria ineligible for financial aid for future semesters )
Scholarships
Endowed/Sponsored Scholarships $1,806,207 were awarded for 2013/14 Apply online through the portal October 13 th 2 nd , 2015 - March Student SS Endowed Scholarship Application Scholarships are typically awarded in May (2015) by email Private Scholarships Speak with High school guidance counselor Check with parents to see if their workplace has any scholarship programs
Tips to manage your account and expenses
Have a Plan (how am I going to pay for school?) Start the financial aid process early Find alternative funding sources (work, scholarships, etc…) Implement and complete plan before the 1 st Payment due Date
Let’s Make a Plan
Search online for local/private scholarships Complete Endowed/Sponsored Scholarship application by March 2, 2015 Complete Fafsa by March 1,2015 (if possible) If selected for verification immediately turn in information Meet with a financial counselor by May 1 st Discuss information with parents or family members Check student email often for award notices
What can I do to Reduce My Cost?
If you live on campus compare residence hall rates Speak with academic advisor regarding reducing semester hours Avoid unnecessary charges such as: parking tickets, library fines and excessive bookstore charges For books that cannot be rented shop around (Barnes&Noble, Amazon, Ebay, etc…) If you purchased a book, at the end of the semester sell it on Ebay Utilize the SE portal and account summary to track your expenses and charges
Cost Comparisons
• Plan A • Plan B 15 credit hours $3468.75
Vandiver Hall $3000.00
Other fees $75.00
15 Meals $1337.50
Textbook Rental $129.70
Total $8,010.95
Unsub loan - $2750.00
Total due $5,260.95
4 Monthly pmts $1315.24 12 credit hours $2,775.00
Towers (S&E) $2125.00
Other Fees $75.00
15 meal plan $1337.50
Textbook Rental $129.70
Total $6,442.20
Unsub loan -$2750.00
Total due $3692.20
4 Monthly pmts $923.05
$$$$$Cost Savings$$$$$
Moving from Vandiver to Towers South and East will save you $7000.00 over 8 semesters Moving from LaFerla or Merick to Towers South&East will save you $8000.00 over 8 semesters $8000.00 Unsubsidized loan 4.66% interest Standard 120 repayment plan $10,042.00 =Total to repay (based on studentloans.gov loan calculator)
Communication 101
Check your Southeast Email! (And actually read it) Ask Questions!!!!!!!!
Check your portal for changes in your student account Complete all financial aid forms in a timely manner Be aware of your financial situation Make sure that you have the right address on file Communicate with your parents, guardians, etc… Don’t wait to the last minute
Contact Information
Southeast Missouri State University Phone (573) 651-2253 Email: [email protected]
Thank you for attending this session!