Speech on theme: „MEFA’s Self-help guide to School Investment.“- Demonstration transcript:

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dos In the MEFA MEFA is a no more-for-profit condition authority that really works making advanced schooling much more obtainable and you can affordable through area training software, university offers arrangements and you may lower-prices resource alternatives. MEFA developed the You.Fund® together with U.Plan® college or university offers arrangements and contains considering affordable fixed interest rate college or university funds to possess 3 decades. MEFA has aided hundreds of thousands of families for the financing an effective college degree.

step 3 Action-by-action tips to walk you through the method Tools & Resources Signal-up age-Guide Query a specialist Movies/ Social media

cuatro Summit Information What is actually school funding? Just how can pupils apply? How is actually school funding conclusion generated? What do school funding honours feel like? Just how do family spend the share out of college will set you back? Exactly what 100 % free info are around for let parents?

5 Overview of Educational funding Undergraduate Scholar Support ($177.6 Mil) Sort of financial aid: Has and you will scholarships and grants Really works-data Financing Source: The school Board, Style into the Student Support 2011 *Source: The college Panel, 2011 Fashion from inside the College student Services

6 Sources of Financial aid Federal Has, work-study, money Massachusetts Grants, scholarships and grants, university fees waivers, fund College/College (institutional services) Gives, grants, loans External Companies Grants

7 Government College loans Pupil ‘s the best borrower Zero co-borrower or credit score assessment Zero costs owed when you’re enlisted Federal Direct Stafford Mortgage Two sorts: Backed – Fixed interest rate out-of step three.4% initiate shortly after graduation Unsubsidized – Fixed rate of interest from 6.8% begins instantaneously Federal Perkins Financing Repaired 5% rate of interest initiate immediately after graduation Mortgage availability may vary by the college or university; not all the universities engage

8 You need-Built Help Given based on family members’ monetary eligibility determined by standardized algorithm Comes with has, loans and you may/otherwise really works-investigation All of the government and more than state and organization assistance are approved according to economic qualifications

9 Merit-Created Help Awarded inside the recognition out-of beginner profits (instructional, graphic, athletic, etc.) Applications usually are compared against almost every other pupils who use Can get or might not be sustainable

ten School funding Software Free Application getting Federal College student Support (FAFSA) Required by all universities having federal and you will MA state services Free function Internal revenue service Investigation Recovery Product On the web app demanded (FAFSA.gov) CSS/Financial aid Profile® Required by specific colleges to have institutional support Costs associated: $25 getting very first university, $sixteen per extra Online software requisite Noncustodial Parent Reputation required whenever applicable University Financial aid Application Necessary for certain colleges Usually a portion of the admissions package Software must be accomplished from year to year

eleven FAFSA Go out Massachusetts Totally free guidance within the doing the latest FAFSA! Weekend, More 25 urban centers across Massachusetts See for additional times and you will locations close by

MEFA’s Self-help guide to College or university Investment

a dozen What happens After you Apply? Universities and you may state found study electronically You’ll found (digitally otherwise because of the mail): Student Assistance Statement (SAR) CSS/Financial aid Reputation® acknowledgement report Review both for reliability and continue maintaining to have information Universities will get consult confirmation files

thirteen Expected Loved ones Sum (EFC) A formula out of how much a family group is able to lead to your student’s training for starters season Computed using the same algorithm for each and every nearest and dearest, inputting study from financial aid applications Relatives has the number one responsibility to own leading to the latest student’s education Not always just what family members pays over the course of the season Stop by at have fun with an EFC calculator

14 EFC Formulas Federal and you will institutional formulas are very different Federal algorithm getting MA and you will government assistance Institutional formula to possess aid from some universities Includes money and you will investment defense allowances Mother or father and you can college student suggestions addressed in another way Does not include personal payday loans Geneva IN debt such credit cards, auto loans or signature loans

fifteen Asset Feeling – Household members Proportions: cuatro Moms and dad income stays level, assets boost Household members A household B Family relations C Earnings $sixty,one hundred thousand Possessions $0 $75,100000 $150,000 EFC $step 3,930 $5,117 $8,348 Change $step 1,187 $4,418 This example try an estimate just. Predicated on Federal Methods (one young child inside university).

sixteen Income Perception – Family relations Size: 4 Mother or father assets continue to be peak, income increases Loved ones A household B Nearest and dearest C Earnings $sixty,000 $100,100 $150,000 Possessions $fifty,100000 EFC $cuatro,260 $several,832 $27,147 Difference $8,572 $twenty two,887 This example is actually a price merely. Considering Government Methodology (one young child within the school).

17 Financial aid Algorithm Cost of Attendance (COA) – Asked Family unit members Share (EFC) = School funding Eligibility Universities complete Financial aid Eligibility which have monetary the aid of multiple provide

18 Stop by at know about online rate calculators The way the Formula Functions Cost of Attendance Trip to find out about websites rates hand calculators

19 School funding Awarding COA $31,100000 – EFC $5,100 = Monetary Qualification $twenty-five,000 – Scholarships/Offers $15,100000 – Student loan $5,five-hundred – Federal Functions-Data $1,five hundred = Unmet You would like $3,100 Unmet You need $step three,000 Government $step 1,five hundred Functions-Analysis Pupil $5,500 Loan Offer $eight,500 Grant $7,500 EFC $5,100 Price of Attendance (COA) This case is actually a quote merely.

20 Evaluating Award Characters: Honor Totals Are different COA: $30, EFC: $5, Full Eligibility: $25,000 College Elizabeth College or university F College or university G Features/Scholarships and grants $18,100 $15,100000 $10,000 Student education loans $5,five-hundred Performs-Data $step 1,five hundred Complete $25,100 $twenty two,100 $17,one hundred thousand Unmet You would like $0 $3,100 $8,100 This case is actually an offer simply. Stop by at availability a college Pricing Calculator

21 Comparing Award Letters: Prize Totals Is actually Equal COA: $30, EFC: $5, Total Qualifications: $twenty-five,100000 School E College F University G Offers/Scholarships $15,one hundred thousand $5,one hundred thousand $0 Student loans $5,five hundred Mother Mortgage $10,100000 $sixteen,five hundred Works-Studies $step 1,500 Complete $twenty-two,100000 Unmet You would like $step three,100 This situation are a quotation merely.

twenty-two Path In order to Paying the Amount owed Favourite College or university Balance due $20,100000 Earlier in the day Earnings College student Deals -$step 1,five hundred Parent Offers -$cuatro,000 Expose Earnings Student Sum so you can Fee Bundle -$step 1,one hundred thousand Mother Sum so you’re able to Fee Plan -$3,five-hundred Coming Earnings Student loan -$10,100 $0 Example

23 Factors to consider Whenever choosing financing What is the rate of interest and you may Apr? Is the interest rate fixed otherwise variable? Fixed: secure, monthly installments not affected from the discount Variable: transform according to market conditions; flexible budget requisite That is the primary debtor (scholar otherwise parent)? Whenever does the mortgage repayment initiate? How much tend to the brand new payment per month end up being? Exactly how many years are you presently and make payments?

twenty four Adopting the Acceptance Regional Seminars More than twenty-five Cities Round the Massachusetts from inside the later February/April Pursue-as much as College or university Financing Convention to provide trick, prompt advice Subject areas include: Understanding award characters and expense Loan choices (mother and you will beginner) Percentage Preparations Handling the newest Financial aid Place of work having special things particularly employment losses and other reduced total of money Sign up for MEFA s to receive area information