Dr. Dean Skarlis, President The College Advisor of New York Helping Your Clients Pay Less: Proven Strategies To Reduce College Cost. Dr. Dean Skarlis, President The College Advisor of New York

Top 5 Things Colleges Need to See Strategies To Reduce College Cost Today’s Agenda The Cost Of College Top 5 Things Colleges Need to See Rankings Vs. Fit 2 Case Studies Strategies To Reduce College Cost

The Environment What influences decision making? Largest Family Purchase? Financial concerns not limited to aid candidates Student Counselor ratio 488:1 Students receive average of 38 minutes of college admission advice 6/10 received NO college info from their HS counselor Page 3

Student Debt

PARENT DEBT

How Will Your Clients Function? A $280,000 decision to the emotion of a teenager?

Tunnel Vision Is Costly! 2015: Ivies reject 79% valedictorians Most competitive high school class Know who wants the student!

1 - Grades in College Prep Courses 2 - Test Scores How Will Students Be Evaluated? 1 - Grades in College Prep Courses 2 - Test Scores 3 - The Application Essay/Application 4. Demonstrated Interest 5. Teacher Recommendations 6 - Extracurricular Involvement NACAC Trends Study 2016

Finding A Good Fit vs Brand Name Paralysis Allegheny College - 90% Med/Law School Ohio U – Journalism Clark U – 5th year/MA Free DeSales U - #1 PA Program

The 3 Line Formula It should be this simple! Total Cost ●Tuition ●Room & board ●Books ●Laboratory Fees ●Computer Fees ●Mandatory fees ●Transportation ●Community Costs ●Personal Expenses Expected Family Contribution (EFC) = Student Need What % need met? 50%? 75%? 100%?

What Do the Formulas Assess? Income Debt? Life Insurance? Home Equity? Retirement? Business Assets?

Allowances In The Formulas Asset Protection Allowance: Between $29-$50K Income Protection Allowance: About $40K/year Employment Allowance: About $4k/year

Income and Asset Treatment Parent income assessed up to 47% of value Parent assets assessed at 5.64% of value Student income assessed up to 50% of value Student assets assessed at 20% of value

American Opportunity Tax Credit Lifetime Learning Credit Tax Credits American Opportunity Tax Credit - Tax credit up to $2,500 of qualified tuition & related expenses 100% of up to $2,000, plus 25% of next $2,000 Lifetime Learning Credit - 20% of $10,000 -Maximum of $2,000/year per taxpayer (not student) - No limit with regards to number of years credit can be claimed

Case Study - Chase 91 GPA 1270 SAT NO Financial Need (Scholarships ONLY) Strong Essay/Application

Case Study - Chase

Case Study - Logan 88 GPA 28 ACT DID have Financial Need FAFSA Not Profile Strong Essay/Application

Case Study - Logan - Business Owners - Real Estate AGI - $141,000 Parental Assets - $120,000 Student Assets - $22,000 Business Assets – $6,100,000 Properties and Business Valuation

Case Study - Logan FAFSA EFC - $38,700 Strategy 1: Move $22,000 out of student’s name RESULT: $34,300

Case Study - Logan Profile EFC - $371,000 Business assets included

Case Study - Logan 1. Drexel: $69,000 - 34,300 (EFC) =$34,700 (Need)– Met 95% of need NET Cost - $36,000 2.U Richmond: $64,000 - $371,000 (EFC) = $0 Need NET Cost - $64,000

Case Study - Logan Savings: $112,000 over 4 years Strategy: Selection of Colleges

Updates To The Process FAFSA/Profile Changes - Available on October 1 - “Prior-Prior Year” – e.g., 2017-2019 - Every college is now NEED AWARE! New SAT Imitates ACT Scores Inflated

Some Strategies Grandparent or Aunt/Uncle Owned 529 Effect on Formulas Simplified Needs Test & Automatic Zero EFC Effect On Formulas 401(k) or 403(b) Contributions Discretionary Income HELOC and Home Equity Loan Triple Advantage Credit Card + Car Loan Debt Defer income and bonuses to January

A Word About: 91% Acceptance Rate 88% Graduation Rate Clients of All Income Levels Full Service Admission, Scholarship, Aid, Test Prep 91% Acceptance Rate 88% Graduation Rate Families, Business Owners Save: Money, Time, Find The Best Fit

The College Advisor of New York Questions? Comments? The College Advisor of New York Phone:  (518) 512-3021 Fax:  (518) 512-4070 18 Corporate Woods Boulevard, Albany, NY 12211 www.collegeadvisorny.com Dean@collegeadvisorny.com Closing slide option 2 Page 27 The Right College At The Right Price |September 20, 2018