National Summit on Solutions to Student Loan Debt MASSACHUSETTS EDUCATIONAL FINANCING AUTHORITY

Prevailing Misconceptions Many Massachusetts parents continue to believe these popular misconceptions related to college savings: 65% of parents believe that saving too much will significantly impact their child’s eligibility for financial aid 52% of parents believe if their child receives financial aid, they do not have to pay that money back 44% of parents believe that as long as they start saving for college by the time their child starts high school, they’ll be OK Fidelity/MEFA 10th Annual College Savings Indicator Study Summer 2016

Federal Financial Aid Breakdown Undergraduate Student Aid 2014-15 ($183.9 Billion) Federal Student Loans 34% Institutional Grants & Scholarships 22% Private Grants 6% Federal Tax Credits 8% State Grants 5% Federal Grants 24% Federal Work-Study <1% Source: The College Board, Trends in Student Aid 2015

Past Income Present Income Future Income Saving vs. Borrowing Savings Other Assets Present Income Salary Payment Plans Future Income Parent Loans Student Loans *Based on 10 years at an interest rate of 7%. This example is an estimate only and market conditions may change.

Financial Aid Awarding College COA = $40,000 Unmet Need $3,000 Work-Study $3,500 Student Loan $5,500 Grant $13,500 Scholarship $9,500 EFC $5,000 Unmet need is the FAMILY’s responsibility

Director, Public Affairs 617.224.4813 | msavery@mefa.org Contact Information 160 Federal Street, 4th Floor, Boston, MA 02110 mefa.org | info@mefa.org | (800) 449-MEFA (6332) Martha Savery Director, Public Affairs 617.224.4813 | msavery@mefa.org