AVID Family Workshop

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AVID Family Workshop

• Phantom of the Opera
• Paying for College
• March 24, 2009

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Portfolio Contents
TAB 1 TIMELINES Chart your Course 6-12 checklists / Grad Plan
TAB 2 ACTIVITIES Extra Curricular Activities / Honors Awards
TAB 3 REPORT CARDS Report Cards/ Transcripts
TAB 4 SCORES PSAT/ SAT/ ACT/ AP/ ASVAB/ Terra Nova Scores
TAB 5 ESSAYS Essay samples
TAB 6 LETTERS Letters of Recommendation / RESUME
TAB 7 SCHOLARSHIPS http//www.fastweb.com
TAB 8 COLLEGE INFO Selection Process/ Top Colleges / College Visits/ College Planner/ Travel
TAB 9 FINANCES Paying for College/ Pre-Pay / FAFSA
TAB 10 OTHER Goals/ Careers / Career Launch/ MyRoad/ Other info
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SAT/ACT

• SAT 02 May 2009 (International Registration
  Deadline 31 March 09)
• SAT 06 June 2009 (International Registration
  Deadline 05 May 09)
• www.collegeboard.com
• ACT 13 June 09 (Registration Deadline 08 May
  09)http//www.actstudent.org/

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Phantom of the Opera

• Ms. Sibayans MS AVID

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Paying for College

• The New Reality
• From Suze Ormans
• 2009 Action Plan

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The New Reality

• Real estate has decreased in value
• Stock values decreased dramatically
• Credit crisis

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The Good News

• May 2008 Congress passed emergency legislation
• Kickstarted the student loan market

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Important changes in student loans

• Increased amounts students can borrow
• Eased the terms of repayment

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How to proceed?

• Depends on variety of factors
• Your age
• Age of your children
• How much money you have saved

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What you MUST DO in 2009

• If your child is headed to college within four
  years and your college savings are in the stock
  market, you should be phasing it out of the
  market so that it is 100 out by the time he/she
  is 17.

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What you MUST DO in 2009

• If you have a child entering college this year,
  look into getting a Stafford loan.

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What you MUST DO in 2009

• If parents need more, consider a PLUS loan.

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What you MUST DO in 2009

• Stay away from private student loans at all costs!

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Your Retirement Accounts

• These must come first!
• Especially important in these uncertain times
• You need that money waiting when you retire.
• Dont divert this money to pay for college.

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Borrowing from Your Retirement?

• Never a good idea to use this to pay for another
  expense
• 2009 is doubly risky
• Could also affect your childs financial aid
  eligibility
• Dont touch your IRA or 401K or TSP

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Be Realistic and Honest

• Seriously rethink what you can afford
• The best school is one that provides a solid
  education and doesnt put you in deep debt.
• Keep an open mind.
• Look at your in-state college system
• Kiplingers Best College Values

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Want to start a college fund?

• 529 Savings Plan is easiest and smartest
• Earnings are tax-free
• Withdrawals used for college also tax-free
• Contributions can come from grandparents,
  relatives, and friends.

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Want to start a college fund?

• Coverdell Educational Savings Accounts
• U.S. Savings Bonds
• www.savingforcollege.com (best site)

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Already have a 529K?

• Do NOT move money out of it now!
• If necessary, shift some money within the fund to
  stable-value account.

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Planning ahead . . .

• Under age 14 100 stocks
• Age 14 75 stocks
• Age 15 50 stocks
• Age 16 25 stocks
• Age 17 0 stocks
• Adjust your portfolios now!

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College is here and you dont have the money . .
.

• You have options!
• STEP ONE Your child, the student, applies for
  both subsidized and unsubsidized Stafford loans

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Stafford Loans

• The cheapest loan options
• 5.6 -6.8 interest
• Can opt to pay interest now or later
• Anyone can get the unsubsidized loans
• Freshmen up to 5,500
• Sophomores up to 6,500
• Juniors and seniors up to 7,500

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How do you get a Stafford loan?

• MUST complete the FAFSA!
• Also necessary for any school financial aid
• http//www.fafsa.ed.gov/

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You need more money?

• STEP TWO Apply for a Parental PLUS loan (also
  federal)
• No income limit
• Can borrow up to the full amount of college costs
  still needed
• Current rate 7.9 -8.5
• Can defer repayment till graduation

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(No Transcript)
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Your situation changes . . .

• Contact the financial aid office immediately!

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Honesty

• You must limit what you borrow to what you can
  truly afford
• College Board has calculators for costs of
  repayment on PLUS loans

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Honesty

• Consider less-expensive schools
• Have the child earn some money
• Make the hard choices

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Other points to remember

• Let Uncle Sam pay
• Most F.A. comes from the colleges
• You must apply
• Consider colleges that WANT YOU!

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What Parents Can Do

• Advocate for your child
• Learn and play the game
• Support your child

The College of the Holy Cross 2006
Washington University in St. Louis 2002
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NEXT WORKSHOP

• TBA May 2009
• See you there!