Women Money Financing College Financing College Typical Ways

Women & Money Financing College

Financing College Typical Ways to Pay • Cash – write the check • Grants/Scholarships/Work Study/Summer Job • Loans • Combo - Most Common

Paying For College • Shop for Scholarships/Grants: 10 -20% • Summer Jobs 10 -20% • Work Study and/or Job during school 10 -25% • Live Inexpensively Save 20% • Buy Used vs new Save 15% • Borrow the Rest

Real Costs of College 2017 Real Costs: CSU Tuition: $ 6, 000 R&B 12, 400 Books, Fees etc 1, 500 Gas &Travel 1, 000 Your Upkeep 1, 000 Basic Fun 2, 000 Advanced Fun 3, 000 Sorority Stuff 2, 000 Computer/Cell 1, 000 MISC 1, 000 TOTAL EST: $28, 500 UC Public $12, 300 14, 500 1, 000 2, 000 3, 000 2, 000 1, 500 $38, 800 Private $45, 000 1, 550 1, 000 2, 000 3, 000 2, 500 1, 000 $70, 500

Public or Private School? • It depends on you: • Plan or no Plan? • Potential Career Field • School Resources • Alum Resources & Network • College Major Specialty • Internships • Industry Reputation • Persistence

Types of Loans • Private Institutions: Banks – Wells Fargo, Bank of America, Sallie Mae etc • Private Individuals – Friends or Family • Federal Direct: Interest Rates Range from 3. 5 -8% • • Ford, Stafford, Perkins - $ 5. 500/year limit Direct Plus – Based on Need 7. 9%

How to Apply • Fill out your FAFSA – Early - Deadline: March - Sept • FAFSA Forecaster • Then go to the Loan web site or your school web site • Choose a supplier and the type of Loan • Download the Loan Application • Send the supporting information with the App • Make sure your school is linked to/from the lender

The 411 About Loans Two Keys: The Rate and the Term • The Interest Rate: What it will cost to use their money • The lower the better: Current rate range 3. 5% to 8% • The Terms: How long you can pay it back • The shorter the term the higher the monthly payment but the lower the total cost • The longer the term, the lower the monthly payment but the higher the total cost

True Cost of A loan Loan Amount $ 100000 Interest Rate 6. 8 % Totals Months in Repayment 120 (10 Years) Monthly Payments $ 1150. 80 Interest Payment $ 38096. 00 Total Loan Payment $ 138096. 00 Totals Months in Repayment 300 (25 years) Monthly Payments $ 694. 07 Interest Payment $ 108221. 00 Total Loan Payment $ 208221. 00

True Cost of A Loan Amount $ 100, 000 Interest Rate 5 % Totals Months in Repayment 120 Monthly Payments $ 1060. 66 Interest Payment $ 27279. 20 Total Loan Payment $ 127279. 20 Totals Months in Repayment 300 Monthly Payments $ 584. 59 Interest Payment $ 75377. 00 Total Loan Payment $ 175377. 00

The Truth About Loans Make sure the Loan Terms Support your Needs Make sure you can: 1. Prepay without penalty 2. Watch out for “fees” – like points, application 3. Delay/Extend payments until after graduation 4. Consolidate the loans into one big loan at a lower rate 5. Apply for special terms for Hardship – Lost job

Loan Strategies • Borrow the least amount possible • Start with a longer loan term - but accelerate payback • Swap your loans for cheaper interest rates • Most school loan interest can be tax deductible • Look for Other tax credits like the American Opportunity Credit or Military • Pay off your school loans through a home refinance at a lower interest rate