Finance MoneySense
Student - What We
Do
Student Finance works with students by:
Enhancing your understanding of
financial responsibilities
Providing appropriate guidance to help
you make informed financial decisions
Exploring options to help cover
expenses associated with your
academic plan of study
2
Goal Setting
Goals include desires and plans to
achieve a specific outcome
Goals should be:
Clear, specific, linked directly to a desired outcome
Goals are often interrelated, for example:
Keeping your student loan debt low as well as your credit card debt low
while completing your degree
3
Free Application For Student
Payment Options
No Plan
Free ApplicationAid (FAFSA) Payment Plan
For Federal
Standard Payment Plan
Student Aid (FAFSA)
Direct Bill Payment Plan
& Payment Options Payment Plan
Deferred Tuition
Apply as early as January 1st
Important websites
www.fafsa.gov
www.pin.ed.gov
Benefits of applying early
Secure gift-aid and State
Aid
Get organized and
understand your finances
4
Types of Financial Aid
Type of Aid
Gift Aid
Self Help
Aid
Need
Based
Pell Grant
FSEOG Grant
Non-Need
Based
Federal Work
Study
Perkins Loan
Subsidized
Stafford Loan
Unsubsidized
Stafford Loan
PLUS Loan
State Aid
5
Aggregate Loan Limits for Undergraduate Students
Dependent students can borrow up to $31,000 of Stafford Loans,
of which $23,000 can be subsidized.
Independent students can borrow up to $57,500 of Stafford
Loans, of which $23,000 can be subsidized.
Interest rates for undergraduate student loans:
Stafford Loans disbursed between 7/1/11 6/30/12:
3.4%
Sub (undergraduate)
Unsubsidized
6.8%
Important Loans disbursed on or after July
Direct PLUS web site: www.nslds.ed.gov 1,
2006: 7.90%
For additional information on median loan debt on all DeVry University programs, please visit: http://
www.devry.edu/studentconsumerinfo
6
DeVrys Academic Year (July June)
Sessions
Credit Hours (per semester)
1 Year = 3 semesters
Half Time = 6 8 credit hours
1 Semester = 2 sessions (A/B) 3/4 Time = 9 11 credit hours
Full Time = 12 or more credit hours
Remember:
You must be enrolled in at least 6 credit hours per semester to be
eligible for most types of financial aid
If you anticipate that you may need to drop or withdraw from class,
please contact your Student Finance department to discuss the
potential impact to your financial aid eligibility and student account
There are benefits to staying enrolled and resources to assist you
7
Full Time vs. Half
Time
Enrolled in #
credit hrs
Approximate # of
semesters to
graduate
Approximate
length of degree
in years
Approximate
tuition and
fees
Average cost
per credit hr
16
8
2.5 yrs
$69,272
$523
12
10.5
3.5 yrs
$77,225
$577
7
18
6 yrs
$78,068
$597
Tuition Rate Effective July 2011: 1-11credit hours = $597 ; 12 and above credit hours = $360.
Information on this chart taken from the DeVry University US Undergraduate academic catalog page 120. Calculations
are for a Bachelors Degree in the College of Business and Management.
For comprehensive consumer information, visit www.devry.edu/studentconsumerinfo
8
Consequences of Drops
and Withdrawals
Potential
consequences of
drops and/or
withdrawals:
Pay to retake course
Longer to earn your
degree
May not meet
Satisfactory Academic
Progress
For additional information regarding on-time graduation rate of program completers, visit
9
www.devry.edu/studentconsumerinfo
Could lose financial aid
Student Loan Refund Checks
Things to Remember about Your Student Loan Refund
Checks:
Counts against your aggregate loan limit
Accrues interest
Increases debt
Needs to be paid back
Higher student loan payments
Recommendations:
Maximize enrollment
Take as many credit hours as your financial aid
allows
Only borrow what you need
10
My DeVry
http://my.devry.edu
Portal
My Student Account: monthly snapshot of student account activity,
electronic payment availability, recurring payment arrangements
My Financial Aid: real time financial aid information, document details,
award details, To-Do list
Online Registration, Create & Change Schedule, View Grades & Schedule
My DeVry Portal Login Page
Username = your student ID
Click:
Login
Password = year/month of
birthday
Example: DOB is June 8, 1998,
your password is 199806
11
My DeVry Portal - Financial
Aid
12
Borrow Only What You Need
DeVry EstimatedfCosts School
or and Financial Assistance
For current program cost information, visit program specific home page or
www.devry.edu/studentconsumerinfo
13
My Budget Worksheet
14
Needs vs. Wants
Needs are
necessities for
everyday living.
Wants are things
that are nice to
have.
15
Live Within Your Means
Benefits of creating a personal
budget
It is a tangible way of reaching goals
It is a tool for understanding how
you spend money
It allows you to better organize your
spending
It allows you to gain control of your
finances
16
Live Within Your Means
Where does your money come from?
Where does your money go?
6%
15%
Car
20%
Food
Housing
30%
Education
Fun
29%
Understand the difference between:
How much you earn (gross)
How much you actually take home (net)
What monies are withheld:
Federal tax
Social Security tax (FICA)
State tax
17
Learn to Identify Spending
Leaks
Morning coffee
$4 latte
X
5 days
$20 per week
X 52 weeks = $1,040 per year
What if you invested
$1,040 every year, for 10 years at 1.34% interest rate
in a money market account
= $12,386.20
18
Examples of Spending Stoppers
Leave credit cards at home
Write down cash purchases on
back of ATM receipt
Resist easy credit
Eat out less
19
Once I Start My Dream
Career Worksheet
For comprehensive consumer information, visit www.devry.edu/studentconsumerinfo
20
Activity: A Borrowers Story
Annual Income
Gross Income
$25,000
Social tax
-$2,730
State Security
-$1,912
Federal tax
-$1,000
Net Income
$19,358
Monthly Net Income
Amanda has $23 left each
month after her basic living
expenses are paid.
$1,613
Is she in trouble?
What can she do?
Monthly Expenses
Rent, utilities
$1,000
New car payment
$ 360
Student loan payment
$230
Total Expenses
Remaining Spendable Income
$1,590
$23
21
Borrow Only What You Need
How much do you think youll need to pay for school?
for School
Tuition and fees
Books, course materials, and supplies
Lab fees
Health insurance
Campus parking fees
Laptop
Remember:
Loans are not free money
Dont incur unnecessary debt
Your student loan must be paid back!
Your student loans are not a source
of income or to on median loan debt lifestyle
For additional information supplement youron all DeVry University programs, please visit:
http://www.devry.edu/studentconsumerinfo
Dont borrow as much as youre eligible to borrow
22
Understand the Debt
Pyramid
Student loans
Affordable car loans
Manageable credit card balances
Home mortgages
High interest credit cards
Payday loans
Debt past due or in collections
23
High
Cost/Stress
Medium
Cost/Stress
Low
Cost/Stress
Importance of Student Loan
Repayment
Your responsibilities
Whatever you borrow, you must pay
back with interest
Even if you do not complete your
education, or you dont start a career
you still must pay it back
Student loans generally are not
eligible for discharge through
bankruptcy
Communicate
Make sure both your school and
servicer know your current mailing
address, and change in phone number
and e-mail address; and should you
move.
If you drop out of school, for any
reason, notify your school and servicer
24
Importance of Student Loan
Repayment
What should you do if you have
problems meeting your repayment
obligations?
Option 1: Deferment
25
Importance of Student Loan
Repayment
What should you do if you have
problems meeting your repayment
obligations?
Option 1: Deferment
Option 2: Repayment Options
26
Student Loan Repayment
Options
Option 2: Repayment Options
Standard Repayment
Graduated repayment
Income-sensitive repayment
Income-contingent repayment
Income-based repayment
Extended repayment
Loan consolidation
27
Student Loan Repayment
Options
Total Loan Amount
$50,000*
Initial
Monthly
Payment
Long-term
Monthly
Payment
Interest
Paid
Total
Amount
Paid
Years in
Repayment
Standard
$575
$575
$19,048
$69,048
10
Graduated (4 years interest-only)
$283
$848
$24,631
$74,631
10
Extended (Standard)
$347
$347
$54,111
$104,111
25
Income-sensitive (1 year interest-only)
$283
$575
$22,448
$72,448
11
Income-contingent
$236
$423
$69,703
$108,618
25
Income-based
$109
$388
$62,181
$67,330
25
* Source: www.finaid.org loan repayment calculators. Examples assume Federal Stafford loans with the total loan amount due
on the day repayment begins, 6.8% fixed interest rate on non-consolidated loans, no borrower benefits, no pre-payments and no
delinquent payments. All payment calculations are estimates only. Your monthly payment schedule and total payment
estimates will vary.
Income-sensitive repayment based on one year exception at $25,000 annual salary. Income-based repayment based on
estimated AGI of $25,000 and 4% annual growth; total forgiveness $16,350. Income-contingent repayment based on estimated
AGI of $25,000 and 4% annual growth; total forgiveness $13,037.
For additional information on median loan debt on all DeVry University programs, please visit:
http://www.devry.edu/studentconsumerinfo
28
Importance of Student Loan
Repayment
What should you do if you have
problems meeting your repayment
obligations?
Option 1: Deferment
Option 2: Repayment Options
Option 3: Forbearance
29
Importance of Student Loan
Repayment
What are the consequences of late
student loan payments?
Delinquent accounts will be reported to the credit
reporting agencies
They may become part of your financial history
You may have to pay additional late fees
30
Importance of Student Loan
Repayment
What are the consequences of
defaulting on a student loan?
Your lender can request immediate payment in full
Wages can be garnished
Tax refunds can be withheld
A negative credit report will result
Ineligible for additional federal student aid
Professional or occupational license may be suspended.
Unable to collect lottery winnings!
31
Strategies for the Future
Savings accounts
Money market accounts
Certificate of deposits
Stocks
Mutual funds
Retirement accounts
32
Resources
www.mappingyourfuture.org Site DeVry requests its students to complete exit
counseling
www.finaid.org Student guide to financial aid.
www.bankrate.com - Financial advise on mortgage rates, home loans, credit cards.
www.educationquest.org/calc.asp - Provides free college planning services.
www.practicalmoneyskills.com - Access to free educational resources including personal
finance articles, games, lesson plans, and more.
www.youngmoney.com Find articles on careers, investing, and personal finance.
www.bls.gov/oco - Resource that helps find where a certain occupation is prevalent and
how much you might expect to earn in that occupation in different areas.
DeVry Student Finance Website: http://finance.devry.edu
For comprehensive consumer information, visit www.devry.edu/studentconsumerinfo
Outside Links
NSLDS: www.nslds.ed.gov
The Student Guide:
http://studentaid.ed.gov/students/publications/student_guide/index.html
33
Summary
Goal Setting is key
Apply early
Borrow Only What You Need
Live Within Your Means
Maximize your enrollment
Monitor your aggregate loan limits
Know the impact of drops and withdrawals
Know your options when it come to refund checks
Utilized the Student portal and other resources
34