By: Scott Kessler LPL Financial www.smartcollegefunding.com Planning By: Scott Kessler LPL Financial www.smartcollegefunding.com LPL Financial Member FINRA/SIPC

We know why college matters Bachelor’s degree holders earn $1 million more over a lifetime than high school graduates By 2020, 75% of all U.S. jobs will require a degree beyond high school Unemployment rates by educational level as of 5/2013 11.1% Less than high school diploma 7.4% High school, no college 6.5% Some college 3.8% College or greater LPL Financial Member FINRA/SIPC

Graduation Rates 4 Year Graduation Rates 6 Year Graduation Rates Public Colleges 31% Private Colleges 53% 6 Year Graduation Rates Public Colleges 56% Private Colleges 65% LPL Financial Member FINRA/SIPC

6 Year Graduation Rate - 2011 University of Florida 83.7% www.collegeresults.org University of Florida 83.7% University of Georgia 82.4% University of So. Carolina 70.2% University of Tennessee 63.2% University of Arkansas 59.0% GCSU 55.3% University of North GA 52.8% Georgia Southern 46.5% LPL Financial Member FINRA/SIPC

Average Cost of College (COA) per College Board 2013-2014 Public University $22,826 per year Private University $44,750 per year Elite Private University $50,000+ per year LPL Financial Member FINRA/SIPC

Tuition Inflation - per the Consumer Price Index cumulative percent price changes since 1983 Apparel 29% Cars 47% Coffee 109% Housing 129% Gas 217% Medical Care 326% College Tuition 645% LPL Financial Member FINRA/SIPC

Which price will YOU pay? Paying for College There are two very different prices for college: one for the informed buyer & one for the uninformed buyer Which price will YOU pay? LPL Financial Member FINRA/SIPC

Retail vs. Wholesale Only $119! I paid $369 When you fly do you pay the same as the person sitting next to you? WHY? Which seat would you rather sit in? Only $119! I paid $369 LPL Financial Member FINRA/SIPC

EFC Expected Family Contribution (EFC) – The portion of your income and assets that you will be expected to contribute towards college costs. How is it determined? From January of the students Junior Year to December of their Senior Year. This is called the Base Year. Cost of Attendance – EFC = Financial Need LPL Financial Member FINRA/SIPC

Free Money Scholarships & Grants LPL Financial Member FINRA/SIPC

Loans Must be paid back Stafford - students PLUS - parents LPL Financial Member FINRA/SIPC

Which University Is More Expensive? University A University B COA $45,000 EFC -10,000 FN 35,000 Loan 3,000 Grant 12,000 Scholarship 20,000 Un-Met Need 0 Real $ Cost 13,000 COA $25,000 EFC -10,000 FN 15,000 Loan 5,000 Grant 2,000 Scholarship 6,000 Un-Met Need 2,000 Real $ Cost 17,000 LPL Financial Member FINRA/SIPC

Where does your portion come from? Savings account Checking account Money Markets Stocks Bonds Mutual Funds Students savings 529 plans UTMA/UGMA Life Insurance IRA 401K/403B Real Estate Annuities LPL Financial Member FINRA/SIPC

Financial Aid Requires the understanding of: Need to know: Forms required by the school (FAFSA, Profile) Knowing your EFC Prudent planning strategies to increase financial aid eligibility Need to know: Average % of Financial Need met by the university The university’s 4 and 6 year graduation rates LPL Financial Member FINRA/SIPC

Planning Effective planning for financial aid occurs before filing FAFSA/Profile – NOT AFTER! DO NOT PROCRASTINATE! - Early planning gives you the best chance to position yourself for financial aid Learn as much as possible about the financial aid process and seek out the assistance of experts in the field for guidance LPL Financial Member FINRA/SIPC

Scott Kessler 678.456.4227 www.smartcollegefunding.com The opinions voiced in this material are for general information only and are not intended to provide specific advise or recommendations for any individual. To determine what may be appropriate for you, consult a financial professional. scottkessler@outlook.com LPL Financial Member FINRA/SIPC