Abilene Christian University

affording college: add up the numbers

How it adds upResources families use to finance an ACU education

contentLive Up 1–2–3 . . . . . . . . . . . . 3

Facing the numbers . . . 4

Types of aid . . . . . . . . . . . . 8

Case studies . . . . . . . . . . 10

Glossary . . . . . . . . . . . . . . 14

Dates . . . . . . . . . . . . . . . . . . 15

Student/Parent (Family) Income/Savings

Student Borrowing

Government and Outside Scholarships

ACU Scholarships

Parent Borrowing

ACU Grants37%

6%

7%8%

24%

18%

“The price of higher education is going up nationwide, and ACU is committed to keeping cost from becoming a barrier. We introduced a unique annual block tuition model, increased merit-based scholarships and launched a $50 million scholarship endowment campaign. But we won’t stop there. Our Horizon Team continues to attack cost escalation and to seek innovative ways to make the ACU experience affordable for all who dream of becoming a Wildcat.”

– Dr. Phil Schubert, President

How it adds up At Abilene Christian University, we challenge each other to live up to our highest potential. As you consider college, you will be looking for the college or university that will let your student live up to his or her best potential – and you may wonder whether you can afford that best option.

Each family’s situation is unique, yet many are surprised to find that a private education is not only affordable, but a competitive value. How can that happen when the starting price tags are so different? It’s as simple as 1-2-3:

1. GiftsScholarships and grants, which come from many sources and for many reasons, reduce the cost of an education and do not have to be paid back.

2. LoansSmart borrowing by students and parents makes college affordable for many people, much as a car loan or mortgage makes a major purchase affordable: You do pay for college, but over time, like any other major investment.

3. TimeThis one is basic math: If a four-year degree takes six years to complete, it will cost 50 percent more (or more, if you count the two years of salary your student loses by not entering the marketplace on time).

Live Up 1–2–3

Tuition is the core cost of a college education; it’s what you pay to be a student, to take classes and to use the campus facilities during, before and after class. ACU’s annual block tuition plan, sometimes called flat-rate tuition at other colleges and universities, helps students and families:

●● Plan better financially●● Save money each year●● Shorten the time it takes to

earn a degree●● Reduce debt upon graduation

Most private and many state universities offer semester block tuition plans. ACU’s unique annual block model allows full-time undergraduate students to take up to 36 hours each school year for one price, with general fees included. Students have the flexibility to earn their 36 credit hours over fall, spring and summer terms.

To the college investment

What College Costs: Tuition

In today’s business and professional world, a quality higher education has never been more important. According to the latest research, the value of a college degree is between $1 million and $4.5 million* in additional lifetime earnings. That’s an important investment in a student’s future, but also an expensive one requiring as much planning as determination to achieve. And how much time a student takes to earn a degree can have a dramatic effect on the total cost. Across the nation, trends show significant numbers of full-time undergraduates taking fewer courses each semester, either by choice or because demand for classes exceeds classroom space, and taking six or more years to graduate.** Abilene Christian University – ranked for years as one of the “Best Value Schools” according to U.S. News & World Report – is committed to making a college degree affordable. Our simplified annual block tuition plan and increased academic scholarships are designed to help students graduate on time and save money.

* U.S. Census Bureau, 2009 ** American Council of Trustees and Alumni, 2010

f a m i l i e s f a c e t h e n u m b e r s

“As Christians and as citizens of a small country with many needs, we see in this experience with ACU an opportunity, a gift from God, to prepare our children for a world in constant change, where society deteriorates and the future is uncertain – yet a world that is full of possibilities.”

– Douglas and Helga Sierra

One day, a Christian friend invited Douglas and Helga Sierra to dinner to meet the ACU representatives staying at the hotel she owned. The Sierra’s oldest child, Helga, was interested in a Christian university. Her parents agreed and thought a college beyond Honduras might prepare her for a global future. So they considered ACU seriously, despite the costs. First they prayed, and then they acted in faith that God would provide. Affording ACU became a family project. They applied for financial aid. With ACU counselors, they explored every scholarship possibility. To fund what remained, they budgeted and saved. When the economic crisis hit Honduras in 2009, Helga took a part-time job. Through it all, Helga stayed at ACU, completing her undergraduate degree in organizational management in 2012.

When her younger brother, Douglas, was ready for college, the family was better prepared for the process, thanks to the support and answers ACU counselors had already provided, although the recent crisis made affording ACU even more difficult. The family understood how they could use the annual block tuition to save money, as well as the thriftiest way to handle room and board. Douglas wanted to major in information systems, so he was able to add a scholarship from that program. The process of applying, searching and trusting deepened the family’s faith. Knowing that their children were being molded in a healthy environment and gaining a practical and technologically advanced education made the decision easy for their parents. More important, the Sierras appreciate that ACU offers a global vision of the world, an attitude of service and a space to know more about Jesus Christ as Lord.

O n e F a m i l y f a c e s t h e n u m b e r s

In determining what college costs, you start with tuition, fees and room and board. Then add books, transportation and other expenses.

Direct and Indirect Expenses Cost

2013-14 Tuition (annual block tuition, up to 36 credits/year)

$28,350

Room and Board (living and dining on campus)

$8,610

Books and Supplies $1,250

Transportation $1,450

Personal/Miscellaneous $1,950TOTAL BUDGET $41,610

What College Costs: Beyond TuitionAfter tuition, your largest single cost is your living expenses. Your room and board expenses will vary depending on your campus housing and dining choices. Beyond these obvious costs, we consider what it costs the average student to buy books, travel from home to school and pay for miscellaneous items such as laundry, pizza, printing or a campus mailbox.

Calculate the whole cost

The Sierr as

ACU supports you through grants based on financial need, as determined by FAFSA, and through scholarships based on a wide variety of criteria, including academics, athletics and major or career.

None of these awards require repayment, although most have GPA expectations. For complete details, consult our website or call Student Financial Services at 888-588-6083 or 325-675-2300 or email finaid@acu.edu.

need-bAsed ACU gR AnT

The ACU grant reduces the cost of attending college for full-time undergraduate students who might otherwise not be able to afford to attend. Based on the FAFSA as well as information provided in the admission process, this grant comes from a combination of general institutional financial aid, university endowments and money provided by the state through the TEG (Texas Equalization Grant).

This grant is renewable to students who continue to demonstrate financial need (complete the FAFSA each year) and are making satisfactory academic progress.

ACAdeMIC sCHOLARsHIP AWARds FOR 2013–14

To recognize students holistically, ACU considers academic achievements in the classroom as well as on standardized tests. Merit-based awards range from $3,000 per year to $14,000 per year. Best yet, ACU will notify you of your scholarship award with your acceptance letter to the university. If you have not completed your application or been admitted to ACU, we encourage you to use our freshman net cost calculator to estimate the academic scholarship amount for which you may qualify. Information about additional scholarships and a link to the calculator are available at acu.edu/affordability.

scholarships and need-based grants

Our scholarships are as varied as our students. Some are based on past achievements, some on future potential. For most academic scholarships, we review all our admitted students for eligibility. Others require an application, interview or other assessment, like a recommendation. Full details for all scholarships would take too many pages here, but are available online or through a conversation with your admissions counselor. This list covers all scholarships available to the class entering in fall 2013:

●● Academic Scholarships

●● Athletics Scholarships

●● Christian Academies

●● Christian Colleges

●● Church Match Scholarship

●● Departmental Scholarships

●● Faith and Education Scholarship

●● iSchool Scholarships

●● Missionary Children

●● Multicultural Scholarships

●● National Hispanic Scholarship

●● National Merit Finalist or Semifinalist Scholarship

●● National Merit Commended Scholarship

●● Presidential Scholar Awards

●● Rachel Blasingame Memorial Scholarship

●● Tessie Eerligh Scharing Memorial Scholarship

●● Transfer Merit Award

●● Valedictorian or Salutatorian

Academic Scholarships at ACUWith ACU’s move to block tuition – an innovative way to reduce the cost to complete a degree – the university also has increased its academic scholarships to allow every student who graduates in the top half of his or her high school class to receive an increased scholarship over last year. Scholarship level “locks in” on May 1, 2013, or the date the student is admitted, whichever occurs latest.

Alternative Financing●● Payment Plans

●● PLUS Loans

●● Alternative Student Loans

ACU scholarships

Real Numbers Add UpCase studies in ACU Financial Aid Packages

Not only is your situation unique, but you won’t be able to see your real numbers until your student has applied to ACU, completed all financial aid forms and been offered aid. Still, there’s nothing like seeing how someone else’s real numbers add up. The following examples illustrate how need-based financial aid and payment options work together. These case studies consider several variables used to determine a family’s college contribution and financial need, including income, annual taxes, assets, household size and number of children in college.

Even though your family situation may resemble one of these case studies, it’s important to note that ACU cannot guarantee your student will be offered a similar aid package. These case studies are examples only.

In determining total financial need, please keep in mind that some models include personal expenses such as books, laundry and travel. For our examples, we have focused on the direct costs that do not vary from individual to individual:

Direct Cost– Expected Family Contribution

= Financial Need

For the following examples, we assume that the Direct Cost of Attendance = $36,960. This includes tuition, room and board, and student fees for the 2013-14 academic year.

Calculate your ACU costs: acu.edu/cost-calculator

Calculate your loan payments: finaid.org/calculators/loanpayments.phtml

Compare the real costs of different loans: finaid.org/calculators/loandiscountanalyzer.phtml

do the Math

Real Numbers Add Up CaitlynnCaitlynn lives in Washington with her parents and her older brother, who also is in college. Caitlynn scored 25 on the ACT, and is ranked 36th out of 100 in her senior class. Her parents’ total income is $145,000. Based on their FAFSA filing, ACU calculated that Caitlynn’s family could contribute $20,657 toward her education for the current year.

Caitlynn’s financial need is determined as follows:

Educational Expense Budget $36,960

Expected Family Contribution – 20,657

FINANCIAL NEED $16,303

Caitlynn’s financial aid package includes:

A.B. Barret Award from ACU $9,000

ACU Grant $2,200

Federal Direct Subsidized Loan $3,500

Federal Direct Unsubsidized Loan $2,000

Federal Program Work-Study $3,000

TOTAL AID PACKAGE $19,700

In addition to the ACU award and $2,200 for the ACU grant, Caitlynn is eligible to earn up to $3,000 through an on-campus job, and to borrow $3,500 at a subsidized rate through the Federal Direct loan program and an additional $2,000 at an unsubsidized rate. If they choose to minimize after-college debt, Caitlynn and her parents don’t have to borrow the full $5,500. They can also use the 12-month Wildcat Pay Plan to spread the estimated family contribution of $20,657 evenly over the course of a year.

Since the $2,000 unsubsidized loan will accrue interest while Caitlynn is in school, the family is advised to make quarterly interest payments.

c a s e s t u d y o n e

●● Federal student loans, such as the subsidized or unsubsidized Stafford Loan, generally offer lower rates than parent or alternative options.

●● Federal Parent Loans for Undergraduate Students (PLUS) generally have more flexible credit criteria than private loans.

●● Borrow on an academic year basis (not per semester or degree).

●● Research loan products each year – interest rates and incentives change.

●● Apply for one loan at a time because each application requires the lender to run your credit. Multiple hits at one time lower your score, possibly reducing your ability to borrow.

●● Alternative loan products often have variable interest rates WITHOUT a limit, meaning your interest over the life of the loan could be much higher than when you sign.

●● Cosigning impacts your credit score, too.

Sizing up your borrowing options

Real Numbersc a s e s t u d y t w o

shawnShawn lives in Texas with his mother and a younger brother in high school. Shawn scored 29 on the ACT and is ranked 5th out of 100 in his senior class. His mom earns $17,250 a year, so the estimated family contribution is zero.

Shawn’s financial need is determined as follows:Educational Expense Budget $36,960

Less Family Contribution –0

FINANCIAL NEED $36,960

Shawn’s scholarships and grants:Chancellor’s Award $14,000

ACU Grant $3,250

Snyder-Nation Academic Scholarship $2,000

Federal Pell Grant $5,550

Federal SEOP Grant $2,000

TOTAL SCHOLARSHIPS AND GRANTS $26,800

Shawn’s loan and work-study financial aid:Federal Direct Subsidized Loan $3,500Federal Direct Unsubsidized Loan $2,000Federal Work-Study Program $3,000TOTAL LOANS AND WORK-STUDY $8,500TOTAL AID PACKAGE $35,300

Shawn plans to work additional hours on campus and hopes to apply most of his expected earnings (about $4,000/year) to his college expenses to minimize his debt after graduation. He also expects to earn $2,500 over the summer.

Real Numbersc a s e s t u d y t h r e e

MarthaMartha lives in California with her parents and a younger sister. Martha scored 27 on the ACT, and is ranked 17th out of 100 in her senior class. They have a family income of $80,000 and no other children in college. However, because she has a high ACT score, a good GPA and a major in information technology, Martha was awarded several scholarships not based on financial need. In addition, she qualified for a Federal Direct Unsubsidized Loan.

Martha’s financial need is determined as follows:

Educational Expense Budget $36,960

Expected Family Contribution – 16,218

FINANCIAL NEED $20,742

Martha’s need-based financial aid package includes:

Stevens Award $12,000

Pell Grant $2,000

iSchool Scholarship $2,000

Federal Direct Unsubsidized Loan $5,500

TOTAL AID PACKAGE $21,500

Martha’s merit based awards reduce the family’s contribution. Martha may choose to borrow up to $5,500 of that as an unsubsized loan, or they may use the Wildcat Payment Plan to spread the family contribution over a year.

Choose your lender carefully and remember to read the fine print before you sign.

Clarify these issues before borrowing:

●● Fees, including origination fees, charged up front to service the loan

●● Rebates offered up front, and conditions

●● Repayment options

●● Total owed when degree is complete

●● Estimated monthly payments

●● Whether the rate is fixed or variable and, if variable, how often the rates change

●● The cap, if any, on the variable rate

●● Earliest repayment options

●● Consolidation options

●● Effect of consolidating on rebates and incentives

●● Effect of a cosigner on the interest rate

●● Whether the loan will be sold to another company

●● Customer service center hours and availability

How lenders measure up

glossaryAGI Adjusted gross income (used to calculate need)

Award Like a scholarship, this is a gift that does not need to be repaid

Board A prepaid plan for on-campus dining

Budget The combined direct and indirect costs that college will cost

CSS College Scholarship Service

Direct/Indirect Costs Direct costs are billed to you and usually for a set amount (such as tuition, room, board, activity fees); indirect costs are things you will probably have to pay for, but the cost may vary and they are not billed to you directly by the institution (books, travel to and from home)

EFC Estimated family contribution (calculated from FAFSA)

FAFSA Free Application for Federal Student Aid

FM Federal methodology (how FAFSA is used to calculate need and aid eligibility)

FWS Federal work-study

Grant Like a scholarship or award, this is a gift that does not need to be paid back. At ACU, grants are need-based; you must file a FAFSA to be eligible.

IM Institutional methodology (how we calculate need and aid internally)

Loan An amount you borrow at one time and repay over time, with interest

MPN Master promissory note

PLUS Parent loan for undergraduate student, a federal program where the parents are the borrowers

Room On-campus housing in residence halls (dorms)

SAP Satisfactory academic progress

Scholarship Like grants and awards, this is a gift that does not need to be paid back

Sub/Unsub Subsidized or unsubsidized, used in reference to Stafford loans. A loan may be subsidized to provide a better option to fulfill your financial need; an unsubsidized loan may be offered to help you make your expected contribution to the cost of education.

TEG Texas Educational Grant

November 1 Fall Early Action* Admission Deadline.

November 15 Nonbinding notification of early action applicants (on or before).

February 1 Regular Admission Deadline. Applications received after February 15 will be considered on a space-available basis.

January 1 File your FAFSA or Renewal FAFSA for the upcoming school year.

March 15 Notification of admission.

March First financial aid award letters for the upcoming school year will be mailed to entering freshmen and continuing students who filed a FAFSA in January and February. Award letters are mailed on a weekly basis for students who submit their FAFSA after March 1.

May 1 National Candidates Reply Date: If you are admitted and decide to attend Abilene Christian University, this is the date your enrollment deposit and Intent to Enroll form are due. However, you may submit them at any time after admission has been granted, and we encourage you to do so as space fills quickly.

May 20 SAP notices: Notification sent to students who have not met the SAP policy for financial aid eligibility.

July 1 Apply for PLUS or other alternative loans.

July 6 Billing for the fall semester.

* Early Action Deadline: Students wishing to be reviewed early based on their transcripts through junior year must take the SAT or ACT prior to their declared early action deadline. Application files must be complete by the deadline below to be considered.

TR ACK THESE CHANGES

Annual Costs: At a glance

Class of 2013 Direct ExpensesAnnual Block Tuition (up to 36 hours) .......................................... $28,350Room and Board .................................................................................... $8,610

TOTAL RESIDENT COST: BILLED COST ........................... $36,960

Indirect ExpensesBooks and Supplies ............................................................................... $1,250Transportation ....................................................................................... $1,450Miscellaneous ........................................................................................ $1,950

TOTAL INDIRECT ExPENSES .................................................. $4,650

Financial Aid: At a glance

Freshman Class of 2012Total ACU Financial Assistance .......................................................$12+ millionTotal Financial Assistance, All Sources .........................................$21.1+ millionAverage Need-Based Financial Aid Package

(including scholarships/grants/loans/work-study) ..................$21,900Average Need-Based ACU Grant .....................................................$4,536 Average Need-Based Grant, All Sources.........................................$6,181Average Merit-Based Scholarship .....................................................$8,868Percentage of Class with ACU Grants ............................................50% Percentage of Class with Merit-Based Scholarship ......................98%Percentage of Class with ACU Need-Based Grant

and/or Merit-Based Awards ..........................................................99.4%Abilene Christian University

Office of AdmissionsACU Box 29000Abilene, Texas 79699-9000800–460–6228 | 325–674–2650info@admissions.acu.eduacu.eduacu.edu/espanol

Our Promise

ACU is a vibrant, innovative, Christ-centered

community that engages students in authentic

spiritual and intellectual growth, equipping

them to make a real difference in the world.

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