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How do I pay for my education?

Time:Set the timer to 30 minutes for the Learn section.

Read:We now have a better idea about what education or training will help us qualify for our future work. Now we can figure out how much our education will cost and how to pay for it. There may be many options and resources, including personal savings, family help, scholarships, and loans.

Week 1	Week 2	Week 3	Week 4	Week 5	Week 6
What type of work will help me become self-reliant?	What education will qualify me for my work?	How will I pay for my education?	Should I apply for a Perpetual Education Fund loan?	How will I succeed in the classroom?	How will I succeed outside the classroom?

“Paying for My Education” (No video? Read page 54.)

Read:This week, we will find answers to this question and we will take this action:

Read:QUESTION OF THE WEEK—How will I pay for my education?

ACTION OF THE WEEK—Find out how much money I need to pay for the education programs that I am considering, learn about ways to pay for them, and create a finance plan.

Read:We will be thinking a lot about money in order to pay for our education. This may be uncomfortable at first, but it will help us plan our finances wisely and get the education we need.

Discuss: Read the scripture on the right. As a group, discuss the principles in the scripture. How do you feel about money when you understand these principles?

“Before ye seek for riches, seek ye for the kingdom of God. And after ye have obtained a hope in Christ ye shall obtain riches, if ye seek them; and ye will seek them for the intent to do good—to clothe the naked, and to feed the hungry, and to liberate the captive, and administer relief to the sick and the afflicted.”

Jacob 2:18–19

How do I predict the costs?

Practice:Read the following example out loud and discuss the calculations as you go.

Manuel is planning to become a refrigeration specialist. This job is in demand in his area. It is on the Preferred Jobs List. He and his wife, Elisabeth, have chosen a program and school from the Preferred Schools and Programs List, but they are not sure how to pay for it. They work together to organize their finances. They have been tracking their expenses and income, and they update their monthly income and monthly expenses from the My Path booklet. Here’s what they find:

MONTHLY INCOME
Income from work	1450
Family contributions	100
Other income (monthly)	100
“A” Total Monthly Income	1650

MONTHLY EXPENSES
Tithes, offerings	170
Rent	550
Food	450
Transportation	200
Water, electricity, phone	230
“B” Total Monthly Expenses	1600

They calculate how much they can pay each month for education: “A” Total Monthly Income – “B” Total Monthly Expenses = “C” or 50.

Then they calculate how much they could pay in a year: “C” (50) x 12 (months) = “D” (600). “D” or 600 is the total they can pay yearly for education.

Next they calculate what their education costs will be, “E.”

And finally, they calculate what they cannot currently afford to pay, “F.”

They will need to pay this amount by working another job, by getting a loan, or in some other way.

EDUCATION COSTS (for one year)	INSTITUTO TECHNICO
Tuition	9800
Add Exams and Fees	+ 500
Add Books and supplies	+ 1200
Subtract Scholarships	-1150
“E” My Education Costs	=10350
“D” What we can pay	-600
“F” What we cannot pay	=9750

Discuss:Manuel and Elisabeth will need an additional 9750 to pay for the first year of education. Do you see how they did the calculations? Talk together about any questions you have.

What is my income? What are my expenses?

Read:Now, let’s create our own education finance plan.

Practice:On your own, take a few minutes to fill in this form. Be honest with yourself. You might use a pencil. Then, during the week, work with your family to make it more accurate. For now, do your best to estimate the numbers.

Use the numbers you have been tracking on the back cover of My Path.

MONTHLY INCOME (include spouse’s income, if married)
Income from work
Family contributions for education costs
Other income
Other income
“A” Total Monthly Income

MONTHLY EXPENSES
Tithes, offerings
Savings
Food
Housing
Water
Medical expenses
Transportation
Educational expenses
Debt payments
Clothing
Electricity
Phone
Other
“B” Total Monthly Expenses

After you fill in your income and expenses, calculate how much you can pay for your education each month:

“A” Total Monthly Income – “B” Total Monthly Expenses = “C” .

If “C” is 0 or less, you have no extra money to pay for your education costs.

If “C” is greater than 0, then calculate how much you could pay in a year:

“C” x 12 (months) = “D” .

“D” is the total you can pay each year for education costs.

What are my education costs?

Read:Next, we look at our education costs.

Practice:Try to fill in these blanks and do the calculations. Use a pencil. If you have chosen one specific program, fill in one column. If you are thinking about two or three programs, fill in those columns to compare them. Work with each other or with your facilitator if you need help.

The example is for one year. If your program is shorter, adjust your estimates. The SRS Preferred Schools and Programs List and the information on your education plan will help you.

MY EDUCATION FINANCE PLAN (for one year)	Example Radiologist med tech	Program 1	Program 2	Program 3
Tuition (one year)	12000
Add exams and other fees (entrance, license, certification, final exam, and other fees—one year)	+ 2000	+	+	+
Add books and supplies (one year)	+ 1000	+	+	+
Subtract scholarships or grants (if any—one year)	- 1000	-	-	-
“E” My Education Costs (one year)	= 14000	=	=	=
“D” What we can pay (one year)	- 1000	-	-	-
“F” Left to pay (one year)	= 13000	=	=	=

How much of my education costs can I pay?

Practice:Look at the bottom line in the chart above.

If “F” is 0 or less, you can pay for all your education costs—congratulations!

If “F” is greater than 0, then you must find a way to pay this much more. You may fill the gap with more scholarships, another job, or a loan.

What are my options if I cannot pay by myself?

Read:It is best if we can pay our education costs ourselves, even if it takes some sacrifice. If our calculations show that we cannot pay for all our education costs ourselves, then we turn to other sources.

Discuss:As a group, take turns reading each section of this table. Discuss each option briefly. What might be best for you?

FINANCE OPTION	STRENGTHS	WEAKNESSES
Start another job while going to school	No debt or interest. Learn or refine skills. Make important contacts.	May be difficult to work two jobs and succeed in classes. May be hard on family. May take longer to finish the program.
Borrow from family	People you know and trust. They want you to succeed.	May strain family relations. May be difficult if a family emergency arises.
Find scholarships or grants	No debt or interest. Provides freedom to study without another job.	May be difficult to find. But it is worth the effort!
Find a paid apprenticeship or internship	Learn skills related to education. Gain experience. May lead to a job.	May be difficult to work a job, study, and do an apprenticeship.
Get a loan from a bank or government agency	Establish credit at a bank. Some government loans have low interest rates.	Interest rates may be high. It is a loan and must be repaid.
Apply for a Perpetual Education Fund (PEF) loan	Available to worthy Church members. Low interest rates. Performance incentives are available to help you repay the loan.	It is a loan and must be repaid (so others can receive a loan).

Discuss:Have you found the best school value, considering price and quality?

If you are considering a loan, will you be able to repay it? As a guideline, your monthly loan payment after you finish your education program should not be more than 10 percent of the total monthly income you expect.

If you need more information about paying for education costs, who could provide answers? Will you discuss this with your family? Where else could you go for more information?

How do I present my Education Finance Plan?

Practice:Next week you will present your finance plan in three minutes or less. You can use the script below. You will not need to share any confidential information. After your presentations next week, the group will explore one financial option—a loan from the Perpetual Education Fund.

During the week, go find these answers to fill in the blanks. Practice giving the presentation to your family or others.

MY EDUCATION FINANCE PLAN

I compared (number) schools for price and value. The three best schools for me are: , , . At this point, I believe the school will be best for me because . I looked at my income and expenses with my family. I learned these things: . I did the calculations to see if I could pay for my education myself and I found that (I could or could not). (If you can pay for yourself, skip to number 9; if you cannot, go on to number 6.) I will need to find an additional (amount) for my first year of school through another job, scholarships, family help, or a loan. After this first year, I’ll need about (amount) more for the next years of school. I have begun to explore different options to pay for my education. Right now, I’m leaning toward . (If you choose to share) I prayed about my education and my finance plan and . I’d like your advice and help. Do you have any suggestions for me? Write any ideas here.