EDUCATION
SPECIAL SECTION:
expenses. There are several types of loans available including
need-based, non-need-based, state, and private.
Need-based loans are provided to students who are unable
to pay the amount needed to cover all costs to attend college.
Need is determined by the Free Application for Federal
Student Aid (FAFSA), which can be completed online, as
the name suggests, for free! Need-based loans are available as
a Federal Perkins Loan, awarded to students with the highest
need, or a Federal Direct Subsidized Loan, provided interest-
free while in college.
If FAFSA determines that a student is ineligible for a need-
based loan, non-need-based loan options are available as a
Federal Direct Unsubsidized Loan or Federal Direct PLUS
Loan. Unsubsidized loans allow the borrower to add interest
to the total amount borrowed after graduation, but beware,
as this leads to owing even more money when it comes time
to start paying off the loan. Direct PLUS Loans provide
graduate students or parents the opportunity to borrow
the total cost of attending college, minus other financial aid
received.
Unlike the loans mentioned above that are sponsored by
the federal government, state and private loans are sponsored
by banks, colleges, foundations, and state agencies. The U.S.
Department of Education manages all college loans available
by state and requires students to be in-state residents or
enrolled in a college in that state. Private loans are an option
for borrowers but come with terms and conditions that may
not be as favorable as federal loans. Private loans also require
a cosigner who is responsible for repaying the money if the
student fails to do so.
MANAGING DEBT POST-COLLEGE
Student loan debt continues to increase and has become a
burden on both graduates and the U.S. economy. There are
a variety of loan repayment options for students. Here are
some tips on how to approach repayment.
• Figure out what you’ll owe and start to save early –
Creating a budget early will allow you to build a solid
foundation for repayment after graduation. Setting aside
money each month toward future savings for repayment
will set you up for success come graduation day.
• Understand your repayment options – There are several
different options available to start paying off student
loans based on the type of loan you received. Common
federal loan plans include standard, graduated, extended,
or income-based. Standard plans are payments in fixed
amounts that ensure loans are paid off in 10-30 years
(these payments are often very high for new graduates).
Graduated plans are payments that start out lower and
increase every two years, also ensuring loans are paid off
within 10-30 years (based on loan). This plan assumes
you’ll continue to make more money as you continue your
career path, so additional money is allotted to repayment
as you go. Extended plans may be made in a fixed amount
or a graduated amount and ensure payment in full within
25 years. Income-based plans take 10-15 percent of your
discretionary income and are recalculated each year.
Once you are married, your spouse’s income will also be
considered, if filing jointly on tax returns. Any outstanding
balance on the loan will be forgiven after 20-25 years.
• Consolidate for ease – If you have multiple federal loans,
consolidating them into one can make repayment easier.
But there may be fees or other conditions associated with
consolidating, so be sure to do your research.
• Is forgiveness an option? Some programs offer loan
forgiveness if you meet certain criteria or work in a
particular field. People in government, nonprofit, and
other public service jobs may have the remainder of
their loans forgiven after 10 years of service. Additional
forgiveness options are available for nurses, teachers,
AmeriCorps and Peace Corps volunteers, and some state
and private programs.
PRE-K – HIGH SCHOOL
The first public school opened in the United States in
1635, and the Boston Latin School remains the nation’s
oldest public school. Early education didn’t focus on
math or science, but on the virtues of family, religion and
community. Nearly 400 years later, schools are harnessing
the fundamental principles of community, and although it
may look very different in this day and age, a strong focus is
being put on the importance of creating a safe school culture
and tapping into technology for limitless learning.
In 2019, students, parents, teachers, and administrators
are seeing changes both inside and outside of the classroom.
One of the biggest changes in recent years comes in the
form of technology. Artificial Intelligence (AI) continues
to change education tools and is expected to increase in
implementation in U.S. classrooms by 47.5% in the next
three years, according to the Artificial Intelligence Market
in the U.S. Education Sector report. In addition to AI, other
technologies are providing students with the opportunity to
connect with classmates in other countries, giving teachers
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SOUTH FAYETTE
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FALL 2019
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