The Dream of College Sans the Nightmare of Excessive Debt John Hupalo Founder & CEO Invite Education

Felix Baumgartner landed on his feet. Will our children?

Contextual Questions THE 2 questions: Can my child get into the college they want? Can we afford it? What’s more important, a good academic/social fit or an affordable college? Is the dream to attend college or to attend an expensive “brand-name” school?

20 Years of Tuition Growth Source: US News and World Reports

This is $100 million

This is $1 Billion

This is $1 Trillion: a million million

The FAFSA Guide (98 Pages!)

Myth Busters – Just the Facts Ma’am Perception does not equal reality Cost of college overestimated by 200% 50% overestimate loan payment by 50% 34% of costs were paid via scholarships & grants in 2015- 16, up from 30% in 2014-15 40% undergraduates borrow nothing Avg undergrad borrows: $17,900 or $37,000? 25-34 year olds with Bachelor’s degrees earn $20k/year more $1 million over lifetime Loans of <$10,000 account for 2/3 of all defaults (2011 cohort). <$5,000 = 35%, >$40,000 = 7% Majority of students are landing on their feet, BUT the noisy minority gets the press

Families are Saving More Souce: Edvisors

College Affordability: A Spectrum of Definitions Complex Quantitative Definition Lumina Foundation - Rule of 10 Find the net price of a college It is affordable if students can meet the price: By working 10 hours per week while in school AND 10% of family’s discretionary income saved over 10 years Simple “Gut-Feel” Definition Donald Heller, Dean Education College, Michigan State Like Justice Stewart’s definition of obscenity: “I know (affordability) when I see it.”

College Affordability: My Practical Definition How much “Free Money” is available? Savings Gifts Income from parent or student Estimated Financial Aid Need-based aid Merit aid If “Free Money” > cost of a college: It’s affordable If “Free Money” < cost of a college: Loans How much for all 4 year? Total loans < expected starting salary: It’s affordable

Takeaways Families are consumers of education engaged with a seller who is maximizing net tuition revenue Affordability is within EVERY family’s control Not all student loan debt is bad; Responsible borrowing provides necessary leverage and the ability to establish a good credit history Borrow as little as possible Pay interest while in-school Families need convenient, plain-English information, tools and services to make more informed college choices

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THANK YOU! Invite Education John Hupalo: Twitter: @InviteEducation Blog: InviteEducation.wordpress.com John Hupalo: Twitter: @JohnHupalo LinkedIn: John Hupalo Email: John@Inviteeducation.com Phone: 617-807-0320