Navigate the College Process 10 Insider Tips to Navigate the College Process bb CollegeInsideTrack.com @collegeinsidetrack

Helps over 500,000 students per year with the transition to life after HS Saves families an average of $22,478 per year off college sticker price

College is different than when we went to school

Quiz Since 1987, how much has tuition increased at the University of Minnesota? 28% 77% 215% 570% The numbers on my calculator don’t go that high

U of M Tuition Increase since ‘87 570% Private College Tuition Increase 686%

NYU: $70,444 Drexel University: $69,489 Sarah Lawrence U: $67,130 Carleton: $64,420 Macalester: $61,853 St. Thomas: $54,133 St. Ben’s (MN): $53,477 University of MN: $26,304

as significant as college that people know so little about There is no purchase as significant as college that people know so little about

Average Family college debt: Includes student & family $48,000+ in loans Includes student & family

What Will College Cost? 1986 annual cost: $ 5,000 to $13,000

Treat this decision like the major financial investment that it is.

2 Types of Aid 1. Need-based aid 2. Merit aid

Expected Family Contribution (EFC) 2 Need-based aid forms FAFSA vs. CSS/Profile Expected Family Contribution (EFC)

Biggest Influencers of Financial Aid Income from tax return Parent non-retirement assets Number of children in college Children’s assets and income (UGMA/UTMA, Grandparent donations)

Financial Aid Example: Tuition/fees $ 38,000 Room and board $ 8,500 Books, supplies $ 1,500 Misc. $ 2,500 Total annual cost $ 50,500 - EFC (FAFSA) - $ 20,000 = Remaining Student Need $ 30,500 YOUR FINANCIAL PACKAGE: NOT met by the school (25%) $ 7,625 Total need school will meet (75%) $ 22,875 Student loan $ 5,500 Work Study $ 2,000 Parent Loan (PLUS) $ 5,500 Financial Aid $ 9,875 = Out-of-pocket costs $40,625 Sample of AGI = $50,000 Hamline – meet 75% of need Normal time-line Might get accepted in January, but no financials until March or April Commit May 1 Small window to negotiate – BUT DO NEGOTIATE My life is about to become consumed ONE OF REASONS FOR BACKLASH AGAINST EARLY ACTION WORST PART OF IT IS TIMING… Let’s look at how that “gifts/aid” line is determined…

Tip #1 If need-based aid is an option, move assets out of child’s name Child assessed @ 20% Parent rate is 5.64% 529 plans are assessed at parent’s rate, UGMA/UTMA at child’s rate

Tip #2 Review financial aid forms for accuracy 42% contain errors that cost a family money FAFSA-Your primary residence and your retirement are not counted as assets (CSS/Profile is different)

Merit Aid AP, PSEO, standardized test scores, GPA, sports, etc.

Tip #3 To get the most merit aid, spend the majority of your time finding the right college (not private scholarships)

40% 6% 7% 35% 11% Scholarship/Grant Sources Federal government Employers 7% Private scholarships 35% State governments Colleges 11%

#1 mistake families make with merit aid? Not all colleges offer merit aid!

Look for schools … 1. Offer merit aid 2. Where student would bring something special Grades and test scores in the top 25- 33% Extra-curricular talents Gender or ethnicity Geographic diversity

Tip #4 Consider colleges in other states 50% of students attend college within 100 mi of home MN colleges have all the Minnesotans they want- 72% stay in MN Students have geographic “hook” by looking at colleges outside geographic area Location can cost families $15,000 a year

Tip #5 1 or 2 more points on the ACT or SAT can be worth $1,000’s Goal is to be in top 25% of college’s scores Investment in test prep may be worth it Test optional - If student does poorly on standardized tests consider 800+ colleges that do not require them (www.fairtest.org)

Anatomy of 1 College’s Merit Aid Demonstrated Interest- $3,000 (Don’t be “stealth” candidate) Lives out of state-$2,000-$15,000 “A” in class-$62 for every “A” on transcript Rigorous class-$400 for every AP, IB, etc. Excellent letter of recommendation-$1,800 Increase ACT score-$425 for every point above avg. FAFSA-$1,800 for completing CSS/Profile-$2,500 for completing Essay-$1,100-8,500 for excellent essay Major- deduct $1.89 for every student admitted w/ same major (good news for philosophy majors!)

Tip #6 Show demonstrated interest A growing number of schools say demonstrated interest is important Ways to show interest: Ask for materials, visit website, “like” school’s Facebook page

Another money source: Division III Athletic scholarships - 2% chance of scholarship Men’s football Woman’s track 1,000,000 603,000 Number of players <29,000 9,888 Number of scholarships $13,000 $8,100 Average value Another money source: Division III ScholarshipStats.com

Tip #7 Avoid un-manageable debt

Subsidized Stafford Loans Rate is fixed at 3.76% Interest does NOT accrue while student in college Unsubsidized Stafford Loans Rate is fixed at 3.76%. Rate likely to increase in future years Interest DOES accrue while in college PLUS (Parent) Interest is fixed at 6.31% Payment begins upon disbursement

Student Loan Debt – Monthly Payments $40,000 @ 3.76% for 10 years: @ 6.31% $50,000 @ 3.76% for 10 years: $60,000 @ 3.76% for 10 years: $400 $450 $500 $563 $600 $675 We use software that allows them to… Recent client talked out of Miami for Music Education. Would need to make $70K to pay loan and minimal expenses. Only 58% of loans go toward college expenses!

Tip #8 Negotiate the financial aid award Called an “appeal,” dirty little secret colleges don’t want you to know about Need a reason, e.g., a better offer from another college, family circumstance change, etc. Last year our appeals saved our clients an average of $7,883 per year ($31,532 over the 4 years)

Tip #9 Look for the right academic, social and financial fit Look beyond local school and rankings

Frequent Mistakes! Consider ONLY LOCAL schools Make an emotional decision Follow best friend or boyfriend/girlfriend Consider ONLY Prestige Accept the school’s first offer Failure to compare This slide summarizes the mistakes that we have observed families making, and it is important to review, because it truly articulates the challenges and issues that our service addresses. Common mistakes are: confining the college search to local area schools, making an emotional decision about a school (i.e.—friend attending there, the coach is nice, etc.), accepting the college’s first offer, failure to compare, create competition or negotiate. REMEMBER 33% of college freshmen transfer schools in the first year !!! 39

800 : 1

Common Myths It’s better to get good grades than take challenging courses You can’t get into a good college if you did poorly in ninth or tenth grade The standardized tests are more important than grades If you haven’t heard of a college, it can’t be very good

Common Myths (cont.) Your life will be ruined if you don’t get into your first choice You have a better chance of getting into professional or grad. school if you go to a university that has these grad programs State supported institution offer more financial aid than private colleges

Tip #10 Start the spring of 10th grade or ASAP FAFSA change – will use financial data from 2 years prior starting with class of 2017 Research and then target schools based on predicted aid Give yourself enough time to retake ACT if needed

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