Student Finances

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Finances and College!
Khalilah A. Payne
Director For Student Success
University College, IUPUI
This presentation…
 Financial
Aid overview
 Balancing
 Being
work and school
financially literate!
Overview of Financial Aid
Submission of the FAFSA is required
yearly to be considered for financial aid.
 Cost of attending IUPUI (Financial Aid
COA)– Includes tuition/fees,
books/supplies, room/board,
transportation, personal/miscellaneous
expenses.
 In 2007 17,618/29,854 (59%)IUPUI
students applied for financial aid and
15,176 (51%)received it.
 For more information visit
http://www.iupui.edu/~finaid/

Sources of Financial Aid

Federal grants
– Pell – ranges from $400 to $4731 (max) based on EFC.

Scholarships
– Institutional – both merit and need based - $16,208,555 to
8356 students – does not include athletics.


Continuing Student Scholarship opportunities
Departmental scholarship awards
– Private –limited funding


Community based awards – through churches, organizations, etc.
Work Study
– Student can work various on and off campus jobs – see
jagjobs.org

Loans
– Subsidized loans – govt. pays interest while attending
– Unsubsidized loans – interest accrued while attending
More info on student loans:
Good or Bad?

Federal Loans
– Now the largest source of aid – 70% (federal family
education and direct loans).
– Average loan debt of a college grad is $18,629.
– Federal loan interest rate roughly 6% for 08-09.
– Deferred payments until graduation

Private Loans
– Interest rates upwards of 18% - based on credit
– Some go into repayment while still enrolled

Loans as an investment? Consider the value of a
college degree based on difference in income.
– High school grad earns about $30,400
– College grad earns about $52,200
Balancing
work and school
Employed while attending
The more hours worked – the more the
negative effect on grades and experience
 Cumulative GPA declines in correlation to
the number of hours worked each week.
 46% of students work 25 or more hours
 63% of full-time students who work say
that if they didn’t work – they couldn’t
afford college.
 1 in 5 work 35 hours or more per week

Work and financial aid

Govt. income
forgiveness - $2300
– For every dollar over, .50
is counted toward
students contribution.
– This can impact the
students financial aid
package.
– This information will
differ based on
dependency status
(Independent vs
dependent students)
Student must
work to balance
financial
obligations due
to unmet need
and lack of
financial
management
skills.
The expected
family
contribution has
increased
because the
student has
more income
possibly
resulting in
decreased
financial aid
and increased
student loans.
Working
student exceeds
the
government’s
income
forgiveness
limit of $2300.
For every dollar
over the limit –
the student is
expected to
contribute $.50
to the cost of
their education.
Financial Literacy
What is it?
Definitions???????
Financial Literacy Defined…
Financial literacy is the ability to read,
analyze, manage, and communicate
about the personal financial
conditions affecting material wellbeing. It includes the ability to make
financial choices, understand money
and financial issues, plan for the
future, and respond to life events.
--Personal Finance and the Rush to Competence.
If you are going to
graduate...
You must be
knowledgeable
about your
finances.
It is a big deal…
 Financial
Literacy and Education
Commission
 People in the 18-24 age bracket
spend nearly 30% of their income on
debt repayment.
 Young adults spend $1.22 for every
$1.00 earned.
Student Finances

Credit Card debt
– 83% of students have at least 1 credit card
– Average balance is $2327
– Midwesterners carry the highest average credit
card balances
– Read the fine print – regarding annual fees,
cash advance fees, late fees, over-limit fees,
etc.
– Minimum payment traps – a balance of $2000
with an 18% APR – paying 3% (min payment)
will take 11 years to pay off and cost an
additional $1654 in interest.
Some other useful info…

Bankruptcy
– In 2001 – 6.9% of filers were 18-24 yrs old
and 29% were 25-34. Over 150,000 filers.

Free credit report
– Freeannualcreditreport.com is the only
government supported website to obtain a free
credit report.

Protecting your identity
– Frequently change your passwords/pins

Avoiding predatory lending
– They are marketing you – a vulnerable
population
– Types include check cashing stores, payday
loans, rent-to-owns.
Needs vs wants!
Some tips to start thinking wiser
about your financial profile.
 Purchases
 Living
in last week?
expenses that you expect to
have while in college?
5 Top Areas of Expenses
 Communication
 Books/supplies
 Recreation/Entertainment
 Food
 Transportation
Find alternatives to spending lots of
money in the areas above.
“Many people assume that it’s
normal to be unable to control their
money. It’s not. Money abuse is
the inability to control excessive debt
or spending. It is a recurrent, often
unconscious, use of money to
overcome underlying issues.”
--Steve Rhode, President, Co-founder
MyVesta Financial Health Centers
Being financially literate

Overall financial management knowledge
is critical.
Budgeting, planning, saving – keys to
financial freedom.
 Get help if you have uncontrollable
spending habits or don’t know how to
balance or budget.
 Free courses on financial literacy
www.nslpflonline.org
 Mymoney.gov – another online resource!

Thanks…
Questions or Comments
Khalilah A. Payne
[email protected]
(317) 278-6856
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