Warm Up I can estimate my tuition cost and understand student loans.

Warm Up

I can estimate my tuition cost and understand student loans.

1. Multiply:

2. For what value(s) of is ?

3. Solve for x:

1. Multiply:

2. For what value(s) of is ?

Cosine is positive in quadrants I and IV

360−𝜃

3. Solve for x:

Student Loans - Estimating CostThe Net Price Calculator is a way of estimating what a given school will cost.

Every school must have net price calculator on their financial aid website.

Each school asks for different information - sometimes it's GPA and SAT Scores and sometimes its your financial info - then calculates, based on the scholarships/grants it thinks you qualify for, and estimate of what a year of school will really cost you.

Student Loans - Estimating Cost

The FAFSA (Free Application for Federal Student Aid) website allows you to apply online for federal aid, using your parents' tax information from the previous year.

Grants and Scholarships

Grants and scholarships are money that you do not have to pay back.

Grants can come from either the federal government or private institutions and scholarships come from just about anywhere and for anything.

Pell Grants

The most popular federal grant is the Pell Grant which is given based entirely on need, specifically unment need after FAFSA.

The maximum Pell Grant award for 2014-2015 is $5,730.

WUEThe Western Undergraduate Exchange gives qualified students who are from Oregon tuition discounts of up to 150% at more than 150 west coast schools.

Each school has additional qualifications (such as GPA or SAT/ACT scores) and the amount of tuition help you qualify can vary by school.

The WUE website lists all participating schools and can estimate your tuition discount. Contact the school directly to find out if you qualify and for what rate.

Grants and ScholarshipsGrants and scholarships can be given on based on need, merit or be student-specific.Student-specific grants might include:• women• minorities• students with disabilities• children of veterans• 1st generation college applicants• athletes

Grants and ScholarshipsEach grant or scholarship has a different application and application deadline. Some have short applications, while others are more involved. Apply for as many grants/scholarships as you think you qualify for.

The more grant/scholarship money you receive, the less you have to take out in student loans.

Student Loans - Types of Loans

There are two ways to get a student loan: through the Federal Government or through a private institution.

Federal loans come in two forms: Subsidized loans and non-subsided loans.

Student Loans - Subsidized Loans

Based on your parent's income, you may qualify for a subsidized loan.

If you have a subsidized loan you don't accrue interest on your loan while you're in school. You only begin accruing interest after you graduate (or 8 semesters of school).

Student Loans - Non-Subsidized Loans

Everyone can qualify for a non-subsidized loan through the federal government.

Non-subsidized loans begin accruing interest immediately.

For all education loans, you don't begin paying off the loan until after you graduate.

Student Loans - Private Loans

There is a limit to how much money you can get from a federal loan (subsidized or non-subsidized).

Private loans allow you to take out more money, but often have higher interest rates, which means bigger loan payments.

Student Loans - Loan ForgivenessSome federal loans qualify for loan forgiveness.

Loan forgiveness occurs when you work in a specific field (usually a government job) and/or in a high needs area of the country.

For example: a teacher who works in a low income school for 5 years may have some of his/her federal loans forgiven.

If you receive a federal loan, ask if it qualifies for loan forgiveness.

Parent Loans

Often times, when you receive a financial aid package from a school, the package will include a parent loan; the school assumes that your parent will take out a loan to help you pay for school.

Start talking with your parents now about what they can and are willing to contribute to your education. If your parents can't or won't take out a loan, speak with a financial aid officer at the school you're applying to about other options.

Loans - Be WarryMany large and/or private universities don't concern themselves with whether you can actually afford to attend their school. Just because you can get the money to cover the school of your choice doesn't mean you should.

Be realistic about your loan amount, your interest rate and what you think you may earn after you finish school.

If you ever have to file for bankruptcy your student loans will not be cleared - you ALWAYS have to pay back your student loans.

Questions about Loans

The FAFSA and Net Price Calculator websites have a plethora of information, from Money 101 to more advanced advice.

It's the job of the Financial Aid Officer at the school(s) you apply to answer your specific questions about the aid the school gives.

Questions about Loans Possible questions to keep in mind/ask a Financial Aid Officer:- My parent is a freelancer and last year earned $____, but this year will only earn $____, do you take that into consideration?- Do you count property value in your estimation of my parents' worth?- Can I defer payments if I don't get a job after gradation?- Does this loan qualify for Income Based Repayment?- Is the interest rate fixed?

Application Fee WaiverThe average college costs $75 just to apply and the average student will apply to 10 schools.

If you're on Free or Reduced Lunch, live in federally subsidize housing, are a ward of the state, or your family income is below a certain amount, you may qualify for an application fee waiver, which can be used for up to 4 applications.

Helpful websites:FAFSA:https://fafsa.ed.gov/

Net Price Calculator:http://studentnpc.collegeboard.org/

FinAidhttp://www.finaid.org/

Western Undergrad Exchange (WUE)http://www.wiche.edu/wue

The financial aid website of the school(s) you're applying to

Calculating Interest – Investing and Loans

Interest Formula: • P = Principle• R = rate as a decimal (divide percent by 100)• N = number of times compounded –Yearly = 1 -- Daily =365–Monthly = 12 -- Quarterly = 4

• T = time (typically years)

ExampleChuck invests $4,000 into an account that pays 7% interest compounded monthly. How much money will be in his account after 8 years?• P = 4000• R = .07• N = 12• T = 8

Interest BackwardsCharlie inherited $15,230 from his grandparents who invested money into an account that pays 6.5% interest compounded weekly 20 years ago. How much did his grandparents originally invest?• I = 15230• P = ?• R = .065• N = 52• T = 20

Continuous Growth• If something is compounded continuously, the

formula is • is a constant, similar to pi

Example: A town’s population was 450,000 in 2000. If the population has grown at a rate of 4% each year, how many people will be expected to live in the town in 2020?

Interest Practice

Project Partner Grade SheetKeep tracking your spending!