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College Financial Planning Workshop II: Borrowing
Money
Glow Foundation2010
Glow Online Curriculum Session 4
Page 2
What this Session will Cover
Senior Year Calendar milestones
Student Loans
Financial Aid Review
FAFSA / AB 540 / Scholarship Search
Page 3
Financial Aid 101-Loans
What’s a loan?
When would I need a loan?
Things to pay attention to How much to borrow Interest rate & fees Repayment terms
Subsidized vs. Unsubsidized Loans
Page 4
Financial Aid 101-Loans
Federal Perkins Loan (subsidized) Up to $5,500/year Repayment starts after 9 months 5% fixed interest rate
Federal Stafford Loans Subsidized or Unsubsidized 4.5% fixed interest rate for subsidized loans 6.8% fixed interest rate for unsubsidized loans 10-year repayment term Enrolled at least half-time
Page 5
Financial Aid 101-Loans
Parent PLUS Loans (unsubsidized) Your parents are the borrowers Can borrow up to the cost of attendance 8.5% fixed interest rate Repayment starts either 60 days after loan
disbursement or 6 months after graduation No FAFSA required
Page 6
Financial Aid 101-Loans
Federal student loans: lower interest and better repayment plansHow do I apply? THE
FAFSA
Private Loans: higher interest, less favorable terms, and good credit
Page 7
Financial Aid 101-Loans
Tips:
Loan amount may depend on enrollment statusChoose federal before privateWhile in your repayment period, always pay at least the minimum balanceMake payments on early or on timeDON’T BE INTIMIDATED!
Page 8
fafsa.ed.gov – Gotten your PIN?
Page 9
Fill Out Your FAFSA
Page 10
Login
Page 11
Introduction Page
Page 12
Student Demographics Information
Page 13
Student Eligibility
Page 14
School Selection
Page 15
School Selection
Page 16
Dependency Determination
Page 17
Parent Demographics and Financial Information
Materials Needed:
Your parents’ income tax forms - your parents can do this themselves without involving you if they wish
Your income tax forms
If you don’t have everything done – submit anyway and fix it later. It’s important to get it in!
Page 18
Sign & Submit
Page 19
FAFSA Overview
FAFSA Tips:
Always click “save” before moving on
Fill in all answer boxes before you move on
Keep track of questions you’re not sure about
Use the “Help and Hints” box
Page 20
Recap:
Student Loans
Financial Aid (Review)
FAFSA
Scholarship Search
Page 21
Homework:
Finish the FAFSA and print out a
copy of your FAFSA or SAR
