Little-Known Secrets of Paying for College Instructor: Sam Courtney Phone: Welcome To: ®

2 Student: Select the right college for the child Graduate in 4 years with a career Parents: Pay with cost-efficient dollars Minimize Taxes Minimize college expenses/Increase Financial Aid Maximize Efficiency of your money Minimize Lost Opportunity Costs Ultimate College Goal… It’s coming sooner than you think!

How Do You Apply for Aid? 3 The FAFSA The CSS Profile (≈ 240 Schools) More Detailed: Non-Custodial Parents Home Equity The School’s Institutional Forms COA = Stands for Cost of Attendance EFC = Stands for Expected Family Contribution COA – EFC = Your Family’s Financial Need FINANCIAL NEED = Amount of Aid for Which Your Family is Eligible Pool of 700 Questions. Each School Can Ask 10

Public UPrivate College Total Cost$ 21,000Total Cost $ 61,098 EFC- 15,000EFC - 15,000 NEED$ 6,000NEED$46,098 % Need Met 63% Need Met 100% Financial Aid Eligibility$ 3,780Financial Aid Eligibility$ 46,098 Gift Aid (48%)$ 1,814Gift Aid (89%) $ 41,027 Self Help (52%)$ 1,966Self Help (11%) $ 5,071 "Out-of-Pocket Cost"$ 17,220"Out-of-Pocket Cost"$ 15,000 (Total Cost - Financial Aid Eligibility) “Net Price"$ 19,186“Net Price"$ 20,071 (Total Cost - Gift Aid) (Total Cost - Gift Aid) Hypothetical example based upon information reported on Are In-State Public Schools the ONLY OPTION?

Assets Bank Accounts Investments 529 Plans UGMA & UTMA Business Investment Property Income Wages Rental Income Business Income Interest Dividends Child Support Social Security Welfare Current Retirement Contribution Assets Retirement Plan Assets Home Farm Life Insurance Annuities Household Items Personal Debt Income Financial Aid Food Stamps Pension Rollovers Loans * These resources may be assessed by some colleges, particularly those that utilize the CSS Profile or who have their own institutional forms. 5 AssessableNon-Assessable *

Invested money goes further than borrowed money Hypothetical saving scenario Hypothetical borrowing scenario The bottom line: $15,120 Total Savings! The goal: $25,000 Your monthly investment: $152 Total invested: $18,240 The goal: $25,000 Your monthly payment: $278 Total repaid: $33,360 Investing example assumes a 6% annual rate of return with all distributions reinvested and a 10-year investment program. Borrowing example assumes a 6% interest rate and a 10-year repayment period. Savings by Saving—Performance Counts 6

UGMA/UTMA Education Savings Bonds (Series E or EE) Educational IRAs (Coverdell) Loans, Grants, Scholarships Borrowing Against Retirement Plans Leveraging Home Equity Cash-Value Life Insurance Post 9/11 GI Bill Section 529 College Savings Plans Pre-Paid Variety Savings Variety Historical College Savings Vehicles 7 What is the BEST Way to Pay for a College Education? 5% 30% 32% 6% 16% Source: Sallie Mae, How America Pays for College, 2015

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