Funding Educational Costs

Financial Planning for College/Career Technical

Pathway

p. F5

Overview

1. Cost Benefit Analysis

2. Education Funding for Service Members

3. Living on the Income/Funding

4. Student Loan Repayment/Forgiveness

5. Additional Resources and Knowledgep. F5

1. Cost Benefit Analysis

aka “going to college and the debt that could occur”

p. F6

The Cost of Education Debt

• 1 year at public college = $7,605 • 1 year at private college = $27,293

• Average net price at public college per year = $1,505

• Average debt of a graduate from a public college = $10,000

p. F6

Student Debt Statistics• $100 Billion Loans Taken Out

• $1 trillion Loans Outstanding

• #1 Source of U.S. Household Debt (outside mortgage)

• Graduating Senior borrows average $23,000

• Borrowing twice more than a decade ago

p. F6

Education Pays

High School $1.2 Million

Bachelor’s $2.1 Million

Master’s $2.5 Million

Doctorate $3.4 Million

MD, DDS, DVM, etc. $4.4 Million

High School Dropout $1.0 Million

p. F6

Salary Potential vs. Education Debt• Review Career Field and Salary Projections

• Research Salary Potential vs. Educational Costs

Average $49,000 projected salary vs.

$50,000–$100,000 Educational Costs

www.salary.comwww.payscale.comhttp://onetonline.orghttp://www.bls.gov

DON’T FORGET TO USE…

p. F8

School Costs vs. Benefit ReceivedDon’t forget to…

• Compare each school’s total costs and compare it to the financial assistance you are expecting.

• Confirm its accreditation.

• Work with an Education Specialist

p. F9

2. Education Funding for Service Members

p. F10

Loan

Grant

MGIB

Post 9/11 GI Bill

Debt

Yellow Ribbon Program

Scholarship

Work Study

Debt Consolidation

FAFSA

What is Financial Aid?At your table, list as many words or

topics about paying for college.

Not in Book

Overview• Educational Resources for Marines• Other Military Programs• Grants/Free Money• Loans• Avoiding Scams• IRA Withdrawals• Living on the Income/Funding Received• Additional Income• Repaying Student Loans/Forgiveness• CFPB• Additional Knowledge

p. F10

Educational Opportunitiesfor Marines

• Service Member Opportunity Colleges Marine Corps (SOCMAR)

• Sailor/Marine American Council on Education Registry Transcript (SMART)

• Marine Corps College Fund (“Kicker”)

• Yellow Ribbon Program

• Post 9/11 GI Bill

• Montgomery GI Bill p. F11

Sources of Funding

Tuition Assistance (USMC) 100% Tuition Courses Capped

$250 per Semester Hour $166.67 per Quarter Hour

$4500 per Fiscal Year Classes must end prior to EAS

VA Programs MGIB Post 9/11

Student Loans Work Study Grants Scholarships

p. D 24

2011 GI Bill Funding

MGIBPost 9/11Other (MGIB-SR, REAP, DEA, VEAP)

183, 287

20%

185, 220

20%

555, 329

60%

GI BILL QUIZ1. The MGIB is most commonly known as ____________

2. The post 9/11 GI Bill is most commonly known as ___________

3. T or F: The MGIB is transferrable to your family members

4. The Post 9/11 GI Bill will pay eligible individuals attending private or foreign schools tuition & fees up to __________ per academic year.

5. The MGIB program benefits are payable for ___ years following your release from active duty.

6. The post 9/11 GI Bill benefit provides up to _____ months of education benefits.

GI BILL QUIZ (Continued)

7. T or F: The post 9/11 GI Bill will pay tuition & fees directly to the school for all public school in-state students

8. The MGIB benefit provides up to _____ months of education benefits.

9. The post 9/11 GI Bill pays ups to $_______ for books and supplies.

10. T or F: The Montgomery GI Bill monthly benefit paid to you is based on the type of training you take, length of your service and your category

MGIB vs. Post 9/11 GI BillMGIB• Enrollment fee $1200• Use within 10 years• Monthly rate paid to you

o F/T = $1473 per/moo ¾ Time = $1104.75 per/moo P/T = $736.50 per/moo ¼ Time = $365.25 per/mo

Post 9/11- No enrollment fee- Use within 15 years- Tuition paid to the school- Public School In-State rate- Private/Foreign School up to

$17,500 per year- Yellow Ribbon Program- BAH E-5 with dependents

rate (doesn’t apply while on active duty)

- Based on zip code of the school and rate of pursuit

- Books up to $1000 per year

p. D 24

BAH Calculator

MGIB and Post 9/11 GI Bill Approved Schools and Application

www.gibill.va.gov• Is the school approved for GI Benefits?

- Click on “Choosing a School”

• Application VA form 22-1990 review

• Use “Roadmap for Success”

p. D 24

Yellow Ribbon Program

• Out of state tuition $16,000• In state tuition $10,000 • Post 9/11 GI Bill will provide $10,000 to school so YOU are responsible for remaining

$6,000.• Yellow Ribbon school provides $2,000, so the VA will match that $2,000, meaning YOU are

NOW responsible for paying $2,000 to the school.

Not in Book

Grants/Free Money• Federal Pell Grants

• Federal Supplemental Educational Opportunity Grants (FSEOG)

• Campus-base Institutional Grants

• Scholarships

p. F11

FAFSAFederal Application for Student Aid

Not in Book

Federal Grants and Loans — FAFSA Application

Federal Work Study• Undergraduate students jobs either on

or off campus and are paid at least federal minimum wage

Federal Student Aid Programs• Federal Grants • Do not have to be repaid if classes are

completed successfully• www.fafsa.ed.gov

p. D 28

FAFSAApplication Tips:• Applications available on

January 1st of each year for academic year that begins in August

• Have prior year’s tax returns available

• Try to apply by February 14th of each year

• Attend one of the Education Center’s Financial Aid Workshops if assistance is needed

What you need:• Your SSN and driver’s license

number(s)• Tax records for you and your

spouse (if relevant)• Documentation for your VA

benefits and any worker’s compensation or child support received

• Combat pay (if it was taxable and part of your adjusted gross income on your last tax form)

• Business records, including recent bank statements and investment information

p. D 29

Scholarships

Merit BasedNeed

BasedCareer Specific

Student Specific

Wacky

Scholarships

p. D 27

National Resource

Directory

Loans

Federal Loans (must be repaid)• Stafford Loan

• Subsidized • Unsubsidized

• Perkins (school loan)

Private Loans

Federal Direct Consolidation Loan

p. F12

Avoiding ScamsBe wary of:

• Solicitations for federal aid

• Loan conversion promises

• Application processing fees

• Giving out your information

p. F13

IRA Withdrawals• Qualified expenses• Avoid 10% penalty • HOWEVER, PAY INCOME TAX• Eligible family member• Look for other options• NO SCHOLARSHIPS/LOANS FOR RETIREMENT• Life will always have expenses — will you truly reimburse it?

•Be careful!

p. F14

3. Living on the Income/Funding

p. F14

Living on the Income/Funding• BAH for E-5 with dependents• Up to $1,000 for books and supplies• One time relocation allowance (rural locations)• Scholarships, Grants, Loans• Develop a budget• Evaluate costs of schooling against the income.• Consider rental costs, transportation costs, utilities and

other daily expenses.• Search out sites that can help you save or earn money.• Live below your means and practice “Needs vs. Wants”

p. F14

Additional Income

• Employment at the college (Free or reduced tuition)

• Full/Part-time Job

• Spouse’s Income

• Unemployment Income

• Be Creative

70 – 20 – 10Rule

p. F15

4. Student Loan Repayment/Forgiveness

p. F16

Repaying/Reducing Student Loans

• Combination Degree

• Community Service qualifies for loan forgiveness

• Work Study

• Off Peak Semesters

• Paid Internships

• Debt Consolidation (Get Professional Advice First)

p. F16

Public Service Loan Forgiveness

35

• Make 120 payments• Qualify for forgiveness of the

remaining balance due on their eligible federal student loans• While employed full-time by

certain public service employers

p. F16

Consumer Financial Protection Bureau

• “Know Before You Owe”

• Financial Aid Shopping Checklist

• Student Debt Repayment Assistant

www.CFPB.gov

p. F17

5. Additional Resources and Knowledge

p. F17

Additional Knowledge• E-Knowledge

• College Entrance Exams

• Non-College Degree Program

• On-the-Job/ Apprenticeship Training

• Flight Programs

• Correspondence Training

• PFM Financial Education Workshops

Personal Financial Management(910) 451-9297

Roy Ellis (910) 451- 0174Lewis Summerville (910) 451- 3219

VA POCs

Mike Pike (910) 451-0804Rick Bledsoe (910) 451-7657

Dee Dee (910) 451-7656

p. F18

Summary• Start early

• Do your research

• Explore your options

Jennifer Zundel910- 750- 1462zundeljg@usmc-

mccs.org

p. F18

Please help me!