Military Officer - November 2006 - (Page 66)

T $210 a month at an 8 percent annual return from the child’s birth just to pay for a four-year public degree. The 2003-2004 National Postgraduate Student Aid Study shows the average graduating college se66 MILITARY OFFICER NOVEMBER 2006 T HE NU MB ERS A RE DAU NT I N G : According to the College Board, the average tuition at a four-year public college is $5,491 a year (2005-2006, up 7.1 percent from 2004-2005) and $21,235 a year for a four-year private college (2005-2006, up 5.9 percent from 2004-2005). What’s more, a child born in 2004 can expect to pay approximately $128,000 for the average four-year public college degree and a whopping $304,000 for the average four-year private college degree. Essentially, this means saving nior accumulated nearly $22,000 in educational debt, including federal student loans (Perkins and Stafford) and Parent Loan to Undergraduate Students (PLUS) loans. Graduate degrees pile on even more debt, from approximately $26,000 for the average master’s degree to more than $114,000 for a medical degree. Debt levels for both undergraduate and graduate students are expected to increase about 3 percent annually for the foreseeable future. However, all is not lost for parents, grandparents, and self-ﬁnancing students suffering from sticker shock. There is a signiﬁcant gap between the college tuition rates above and what students actually are paying. Nearly 60 percent of students attending a four-year college pay less than $6,000 in annual tuition and fees. In fact, only 2 percent of undergraduate students attend schools whose tuition and fees exceed $33,000 annually. For the 2005-2006 school year, an estimated record $129 billion in student aid was available, with nearly 60 percent of students receiving some manner of student aid. The 2004-2005 average grant aid — which does not have to be repaid — totaled more than $3,300 for a student attending a public school and about $9,600 for a student attending a private school. Given rising college tuition and expanding educational debt loads, it Financial Aid Definitions: Knowing the Lingo Is Half the Battle Award Year — the actual year for which student aid is being requested. Base Year — the year on which financial aid calculations are based. For a child starting school September 2007, the base year is 2006. College Scholarship Service (CSS) Profile — similar to the FAFSA, but used by private colleges and universities. Cost of Attendance (COA) — (also known as the “student budget”) what it actually costs to attend school for the year, including tuition, room and board, fees, and incidental expenses. Expected Family Contribution (EFC) — the amount of money parents are expected to contribute toward college costs, based on assets and income. Filing Deadlines — The FAFSA deadline usually falls around June 30 each year. However, filing deadlines for state or specific school aid may be much earlier. Consult www.fafsa.ed.gov/before003a.htm for the latest federal and state aid deadlines. Financial Need — how much student aid, in various forms, you can expect to receive. Financial need equals the COA minus the EFC. Free Application for Federal Student Aid (FAFSA) — required for all federal student aid, including Pell Grants, Perkins Loans, PLUS loans, Stafford Loans, and work-study programs. Student Aid Report (SAR) — summary report from the FAFSA, which indicates the EFC. http://www.fafsa.ed.gov/before003a.htm

Table of Contents Feed for the Digital Edition of Military Officer - November 2006

From the Editor From the President Your Views MOAA Directory Rapid Fire Washington Scene Financial Forum Ask the Doctor Chapter Activities Cover Story: Financial Guidebook Got (the right) Insurance? A Penny Saved, a Degree Earned The “Y” MOAA Scholarship Recipients Pages of History Information Exchange Member Books MOAA Scholarship Donors MOAA Member Services Advertising Index MOAA Calendar Sounding Taps Encore

Military Officer - November 2006

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