6/5 FA 9.7 Financial Aid Packages

Instructions

OBJECTIVES & STANDARDS
Math Objectives
Analyze data using a box plot
Common Core Math Standards
Link to all CCSS Math
CCSS.HSS.ID.A.2
CCSS.HSS.ID.A.3
Personal Finance Objectives
Differentiate between sticker and net price of college
Explain how the FAFSA, student aid report (SAR) and a financial aid package are connected
Read multiple financial aid offers and understand what types of aid are being offered
Accept, adjust, or decline offers of student aid to best meet their financial needs
National Standards for Personal Financial Education
Managing Credit
4a: Describe the different sources of funding for postsecondary education
DISTRIBUTION & PLANNING
Distribute to students
Student Activity Packet

MOVE: The Net Price of College
SUMMARY
The objective of this activity is to expose students to the net cost and sticker cost of various well-known colleges and universities across the country. Students try to match each college with their price and line up in order.

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What is meant by sticker price?

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What is meant by net price?

VIDEO: How to Read Your Financial Aid Offer
After FAFSA completion, you’ll receive your Student Aid Report detailing how much federal aid you’re likely to receive. As you just saw, the net price at a given college can be thousands or tens of thousands of dollars cheaper than its sticker price. But how does each individual applicant know how much they would pay if they choose this specific school? The financial aid offer, of course!

1

On a financial aid offer, is the cost of attendance similar to the sticker price or the net price?

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Kiki was accepted into four different colleges and received four different financial aid packages as a result. She’s thinking to herself: I already know what’s on my Student Aid Report (SAR), so how different could each of these packages be? List some problems with Kiki’s logic.

ACTIVITY: FINE PRINT: Financial Aid Package
Now that you know the key sections of a financial aid offer, try reading one on your own.

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4

ARTICLE: Accepting Financial Aid
Remember: Just because your Financial Aid Package includes student loans doesn't mean you have to accept them in their entirety (or at all, if you don’t need them). You can decline other forms of aid, too, if you choose. Read this article, starting at the section titled “Deciding Which Loans to Accept” and continuing through the end, in order to answer the questions that follow.

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Kiki’s pretty happy with 2 of the 4 financial aid packages she is offered and will choose between those 2 schools. Once she makes up her mind, what does she need to do?

1

Why is a promissory note a particularly important document?

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At the school of her choice, Kiki’s financial aid letter includes $4,000 of unsubsidized federal loans for the year, but she’s been saving money since she was in middle school and only thinks she’ll need about $1,000 in loans during that first year. She’s thinking, “Eh, I’ll still just the full loan amount in case other expenses come up.” Do you think she’s making a good choice? Why or why not?

GRAPH: Comparing Net Prices
Once you have your financial aid offer, you’ll be able to tell how the price you will pay to attend the college compares to the college’s published sticker price.
The graphs below show the net price distributions for two different groups of colleges – one group that’s sticker price is between $30,000-$39,999 (181 institutions) and one group that’s sticker price is between $70,000-$79,999 (118 institutions). Use the graphs to answer the following questions.

1

For colleges with a sticker price between $30,000 and $40,000, what is the median net price of attendance?_______ 

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Which statement best represents the relationship between sticker and net prices of colleges?
The sticker price and net price are typically the same
The sticker price is typically lower than the net price
The sticker price is typically hundreds of dollars higher than the net price
The sticker price is typically thousands of dollars higher than the net price

1

Steph has completed the FAFSA and applied to 11 colleges. He should expect to receive…
ONE student aid report and ONE financial aid offer
ONE student aid report and up to ELEVEN financial aid offers
Up to ELEVEN student aid reports and ONE financial aid offer
ELEVEN student aid reports and ELEVEN financial aid offers

1

What’s the best advice regarding promissory notes?
Sign your promissory note after you receive your diploma
Sign as many promissory notes as you can to make college more affordable through grants and scholarships
Sign one promissory note for each college that offers you financial aid
Sign a promissory note only after you know which college you’ll attend and how much you want in loans

OBJECTIVES & STANDARDS

DISTRIBUTION & PLANNING

OBJECTIVES & STANDARDS

DISTRIBUTION & PLANNING

6/5 FA 9.7 Financial Aid Packages

OBJECTIVES & STANDARDS

DISTRIBUTION & PLANNING

OBJECTIVES & STANDARDS

DISTRIBUTION & PLANNING

What is meant by sticker price?

What is meant by net price?

VIDEO: How to Read Your Financial Aid Offer

On a financial aid offer, is the cost of attendance similar to the sticker price or the net price?

Kiki was accepted into four different colleges and received four different financial aid packages as a result. She’s thinking to herself: I already know what’s on my Student Aid Report (SAR), so how different could each of these packages be? List some problems with Kiki’s logic.

ACTIVITY: FINE PRINT: Financial Aid Package

ARTICLE: Accepting Financial Aid

Kiki’s pretty happy with 2 of the 4 financial aid packages she is offered and will choose between those 2 schools. Once she makes up her mind, what does she need to do?

Why is a promissory note a particularly important document?

GRAPH: Comparing Net Prices

What is meant by sticker price?

What is meant by net price?

VIDEO: How to Read Your Financial Aid Offer

On a financial aid offer, is the cost of attendance similar to the sticker price or the net price?

Kiki was accepted into four different colleges and received four different financial aid packages as a result. She’s thinking to herself: I already know what’s on my Student Aid Report (SAR), so how different could each of these packages be? List some problems with Kiki’s logic.

ACTIVITY: FINE PRINT: Financial Aid Package

How much annual aid are you being offered in Offer #1 that you do not have to pay back or earn through work?a. $73,332 (Federal Loans + Work Study + Grant + Family Financing Option)b. $44,562 (Family Financing Option)c. $25,770 (Federal Loans + Grant)d. $20,270 (Grant)

What is the estimated annual Cost of Attendance in Offer Letter #2?A. $28,013B. $15,888C. $14,007D. $12,125

How much annual aid are you being offered in Offer #2 that you do not have to pay back?A. $23,368B. $15,946C. $7,422D. $4,645

In Financial Aid Offer #2, which of the financial aid package options would be reduced by fees (deducted from each loan distribution)?A. UW Engineering Alumni FundB. UW Madison GrantC. Federal Pell GrantD. Direct Subsidized Federal Loan

Fill in the blanks of this sentence: The __________________ minus financial aid awarded equals ____________________.A. cost of attendance; sticker priceB. scholarship; net priceC. cost of attendance; net priceD. net price; sticker price

Assume that the college in Offer #1 has a cost of attendance of $73,332. What would be the "net price" for the college?A. $53,062B. $44,562C. $28,770D. $0

Part II: What Did You Learn?Use what you learned from analyzing the financial aid package to answer this question.What information is listed in a Financial Aid Offer? Which letter format did you find easier to understand - Offer #1 or Offer #2? Why?

ARTICLE: Accepting Financial Aid

Kiki’s pretty happy with 2 of the 4 financial aid packages she is offered and will choose between those 2 schools. Once she makes up her mind, what does she need to do?

Why is a promissory note a particularly important document?

GRAPH: Comparing Net Prices

Which group of colleges has the larger interquartile range?

True, false, or uncertain: The mean net price is higher than the median net price for colleges with a sticker price between $70,000 and $80,000.

Which set of colleges offers more financial aid? Explain your thinking.

How much annual aid are you being offered in Offer #1 that you do not have to pay back or earn through work?a. $73,332 (Federal Loans + Work Study + Grant + Family Financing Option)b. $44,562 (Family Financing Option)c. $25,770 (Federal Loans + Grant)d. $20,270 (Grant)

What is the estimated annual Cost of Attendance in Offer Letter #2?A. $28,013B. $15,888C. $14,007D. $12,125

How much annual aid are you being offered in Offer #2 that you do not have to pay back?A. $23,368B. $15,946C. $7,422D. $4,645

In Financial Aid Offer #2, which of the financial aid package options would be reduced by fees (deducted from each loan distribution)?A. UW Engineering Alumni FundB. UW Madison GrantC. Federal Pell GrantD. Direct Subsidized Federal Loan

Fill in the blanks of this sentence: The __________________ minus financial aid awarded equals ____________________.A. cost of attendance; sticker priceB. scholarship; net priceC. cost of attendance; net priceD. net price; sticker price

Assume that the college in Offer #1 has a cost of attendance of $73,332. What would be the "net price" for the college?A. $53,062B. $44,562C. $28,770D. $0

Part II: What Did You Learn?Use what you learned from analyzing the financial aid package to answer this question.What information is listed in a Financial Aid Offer? Which letter format did you find easier to understand - Offer #1 or Offer #2? Why?

Which group of colleges has the larger interquartile range?

True, false, or uncertain: The mean net price is higher than the median net price for colleges with a sticker price between $70,000 and $80,000.

Which set of colleges offers more financial aid? Explain your thinking.

How much annual aid are you being offered in Offer #1 that you do not have to pay back or earn through work?
a. $73,332 (Federal Loans + Work Study + Grant + Family Financing Option)
b. $44,562 (Family Financing Option)
c. $25,770 (Federal Loans + Grant)
d. $20,270 (Grant)

What is the estimated annual Cost of Attendance in Offer Letter #2?
A. $28,013
B. $15,888
C. $14,007
D. $12,125

How much annual aid are you being offered in Offer #2 that you do not have to pay back?
A. $23,368
B. $15,946
C. $7,422
D. $4,645

In Financial Aid Offer #2, which of the financial aid package options would be reduced by fees (deducted from each loan distribution)?
A. UW Engineering Alumni Fund
B. UW Madison Grant
C. Federal Pell Grant
D. Direct Subsidized Federal Loan

Fill in the blanks of this sentence: The minus financial aid awarded equals __.
A. cost of attendance; sticker price
B. scholarship; net price
C. cost of attendance; net price
D. net price; sticker price

Assume that the college in Offer #1 has a cost of attendance of $73,332. What would be the "net price" for the college?
A. $53,062
B. $44,562
C. $28,770
D. $0

Part II: What Did You Learn?
Use what you learned from analyzing the financial aid package to answer this question.
What information is listed in a Financial Aid Offer? Which letter format did you find easier to understand - Offer #1 or Offer #2? Why?

How much annual aid are you being offered in Offer #1 that you do not have to pay back or earn through work?
a. $73,332 (Federal Loans + Work Study + Grant + Family Financing Option)
b. $44,562 (Family Financing Option)
c. $25,770 (Federal Loans + Grant)
d. $20,270 (Grant)

What is the estimated annual Cost of Attendance in Offer Letter #2?
A. $28,013
B. $15,888
C. $14,007
D. $12,125

How much annual aid are you being offered in Offer #2 that you do not have to pay back?
A. $23,368
B. $15,946
C. $7,422
D. $4,645

In Financial Aid Offer #2, which of the financial aid package options would be reduced by fees (deducted from each loan distribution)?
A. UW Engineering Alumni Fund
B. UW Madison Grant
C. Federal Pell Grant
D. Direct Subsidized Federal Loan

Fill in the blanks of this sentence: The minus financial aid awarded equals __.
A. cost of attendance; sticker price
B. scholarship; net price
C. cost of attendance; net price
D. net price; sticker price

Assume that the college in Offer #1 has a cost of attendance of $73,332. What would be the "net price" for the college?
A. $53,062
B. $44,562
C. $28,770
D. $0

Part II: What Did You Learn?
Use what you learned from analyzing the financial aid package to answer this question.
What information is listed in a Financial Aid Offer? Which letter format did you find easier to understand - Offer #1 or Offer #2? Why?