Paying for College:Financial Aid & Scholarships

Raul HinojosaSeptember 14, 2012

Why Major in Science and Engineering?

STEM (Science Technology Engineering and Math) Pays MoreSTEM careers are always in high demandSTEM careers are growingSTEM college internships pay very wellStudent loans are easier to pay with STEM degreesEngineering is a professional degree

Do not NEED MS/PhD to reach fullest career potentialMany Executives at STEM based industries have only a Bachelor of Science (BS – 4 year degree) in Engineering

Top 10 Paying 4-year degrees?4 Year Degree Starting

Median PayMid-Career Median Pay

1. Petroleum Engineering $97,900 $155,0002. Chemical Engineering $64,500 $109,0003. Electrical Engineering

(EE) $61,300 $103,000

4. Materials Science & Engineering $60,400 $103,000

5. Aerospace Engineering $60,700 $102,0006. Computer Engineering

(CE) $61,800 $101,000

7. Physics $49,800 $101,0008. Applied Mathematics $52,600 $98,6009. Computer Science (CS) $56,600 $97,90010. Nuclear Engineering $65,100 $97,800*Data from Payscale.com employee surveys

What About the Rest?Top 20 paying careers are Engineering or ScienceTop 39/50 careers require advanced Mathematics (at least some calculus)

*Data from Payscale.com employee surveys

How much will my education cost?Average Costs per Academic Year Regardless of Major

$14,000 for a Technical/Trade School$14,000 for 2-year Public$19,000 for 4-year Public In-State$31,000 for 4-year Public Out-of-State$35,000 for 4-year Private School

collegeboard.com

Cost BreakdownTuition & feesRoom & boardBooks & suppliesPersonal expensesTransportation

Costs in TexasSouthwest Texas Junior College

2 Yr PublicIn-stateTuition & fees

$2,081Room & board

$3,600Est. Personal

$745Transportation

$710Total $7,136

Univ. of Texas

4 Yr PublicIn-stateTuition & fees

$9,418Room & board

$10,112Est. Personal

$2,472Transportation

________$1,010Total $23,012

Univ. of Texas

4 Yr PublicOut-of-stateTuition & fees

$31,218Room & board

$10,112Est. Personal

$2,472Transportation

$1,010Total $44,812

Rice University

4 Yr Private

Tuition & fees$33,771

Room & board$11,750

Est. Personal$1,550

Books & supplies $800

Total $47,871

Post-College DebtIs not dependent on degree program at most public universitiesPrivate schools typically require more borrowingMore Science and Engineering degrees are available at 4-Year Public schools than any other type

Institution Level & Control

Percent Borrowing Cumulative Debt

4-year Total 66.5% $22,656 4-year Public 61.1% $19,839 4-year Private Non-Profit 70.6% $27,349 4-year Private For-Profit 97.0% $24,635

*Data from finaid.org/loans

Science & Engineering = Manageable DebtAssume average post-college debt: $22,656 Assume 7% interest for 10 years => $3156/yearAssume 40% of pay towards taxes and retirement

Degree Start pay

Take-Home Pay

% pay toward debt

Mid-Career Pay

Mid-Career Take Home Pay

% pay toward debt

Mechanical Engineering

$58,400 $35,040 9.0% $94,500 $56,700 5.5%

Computer Science

$56,600 $33,960 9.2% $97,900 $58,740 5.3%

Liberal Arts $37,800 $22,680 13.9% $63,200 $37,920 8.3%Humanities $34,900 $20,900 15.1% $57,800 $34,600 9.1%*Data from finaid.org/loans

Private

Agencies

Sources of Aid

Government

Federal& State

Institutional

(Varies bySchool)

Access to Financial AidFAFSA

Free Application for Federal Student AidUsed by federal government, state agencies, colleges, and some scholarship agencies to determine how much and what kind of aid you are eligible to receiveA snap shot of your finances

Student and Parent IncomeSavings and InvestmentsBenefitsState Tax Rates

FAFSA EligibilityHave a high school diploma or a General Education Development (GED) certificate Are working toward a degree or certificate in an eligible program Are a U.S. citizen, U.S. Permanent Resident with an Alien Registration Card, or an eligible non-citizen (refugee, asylum granted) Have a valid Social Security NumberSome states offer their own financial aid applications for students who do not meet these qualifications

FAFSA ProcessComplete online at www.fafsa.ed.govOnline FAFSA is processed in a few days versus a paper FAFSA that can take a few weeksGet a PIN number online www.pin.ed.govA new FAFSA application must be submitted for each academic yearOne application per student, not per familyCheck your college’s Priority Dates to get the best aid

Student Aid Report (SAR)Report that results from your FAFSA

Sent to students by mail or emailRetain for personal records

The SAR will include the Expected Family Contribution (EFC)

This information will be shared with your college

Additional RequirementsYou may be asked to provide additional documents by your college/university

Each college has its own financial aid deadline

Always contact the Financial Aid Office or your financial aid representatives at your college for assistance

How Financial Aid is DeterminedCOA: Total Cost of Attendance for one academic year at the student’s institution (varies by school)

EFC: Expected Family Contribution – the amount is determined on your FAFSA

COA – EFC = Need*

*This amount will vary at each school

Types of Financial AidBased on the Need, a student will receive a Financial Aid Package consisting of different forms of assistance

Gift (Free) Aid– Grants– Scholarships

Self-Help Aid– Work Study– Loans

Example: Financial AidCOA – EFC = Need$14,000 - $5,000 = $9,000 Need

Sample Financial Aid PackageInstitution scholarship$1,500State grant $3,500Work study $2,500Federal Loan $1,500

Total: $9,000

Students DO NOT have to accept the entire financial aid package. They can select the types of aid they want and seek additional funding elsewhere.

Other Sources of Aid

Private

Agencies

Government

Federal& State

Institutional

(Varies bySchool)

ScholarshipsAwarded based on merit, financial need, community service, academic achievements, etc.Sources

Non-Profits: Society of Hispanic Professional Engineers Foundation Hispanic College Fund Hispanic Scholarship Fund

Companies: Target, SouthwestColleges/Universities

Starting the SearchResearch for which scholarships you are eligible

It is never too early to start searching for scholarshipsAvoid organizations that charge fees for scholarship searches or that guarantee a scholarship = SCAMS

Keep a calendar of deadlinesReceived vs. Postmarked

Keep a notebook with contacts, requirements and instructions for each scholarship for which you will apply

Be Prepared, Students Should…Choose very carefully who will write a letter of recommendation for themWrite a detailed essay - achievements, strengths, goals, and how student plans to reach the goalsCreate and constantly update resumeRequest updated transcripts with enough time to mail outKeep an updated photograph that shows professionalism; some scholarships request a photo to print in award programs

Scholarship Selection ProcessLate or incomplete applications are eliminatedIneligible applications are eliminatedSelection Method

Essay, letter of recommendation and resume reviewedExamples of leadership, responsibility, focus, and motivation to succeed despite challenges are looked for in the essay

SHPE Foundation ScholarshipsGeneral Scholarships

Type: Merit-Based and Need-Based Scholarships

Amount: $1,000 - $3,000

Who Can Apply: High School Seniors, Undergraduates, Graduate students, and SHPE Professionals

Major: Science, Technology, Engineering, or Math (STEM fields)

Deadline: May 1

www.shpefoundation.org

* Goes directly to the student not the university

Navy ROTC ScholarshipProvides 4-Year ScholarshipsMonthly stipend from $250 - $400 each semesterOn graduation, two- and four-year College Program midshipmen may be commissioned ensigns in the Naval Service or second lieutenants in the Marine Corps Required to provide a minimum of four years service commitment to the U.S. NavyELIGIBILITY:

U.S. citizen or naturalized citizen 17 years old by September 1 of freshman year in college No older than 23 years old by June 30 Graduate from high school by August 1 of the year of applicationSAT/ACT Minimum Scores:

• SAT: 530 Critical Reading (CR) , 520 Math • ACT: 22 English, 21 Math

Apply and be accepted to an NROTC host college/university (If previously enrolled in college, may have a maximum of 30 semester credit hours)

DEADLINE: January 31

Additional ResourcesHispanic College Fund hispanicfund.org

Hispanic Heritage Foundation hispanicheritage.org

Hispanics Inspiring Students’ Performance and Achievement hispa.org

Hispanic Scholarship Fund hsf.net

MALDEF (Especially for non-US citizens) maldef.org

Scholarships For Hispanicsscholarshipsforhispanics.org

The SallieMae Fund thesalliemaefund.org