© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 1 So, You Want To Go To College… How the heck do we pay for it?

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 2 About Roy

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 3 Let’s Define Terms COA – Cost of Attendance EFC – Expected Family Contribution Need – COA minus EFC FAFSA – Free Application for Federal Student Aid CSS/Profile – College Board’s application Base Year – Junior Spring to Senior Fall Semester

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 4 Who is responsible? Copyright © 2013 Photography Blogger.

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 5 Student Responsibilities What increases gift aid?  Doing your best in school, in society and in your interests  Choosing optimal schools  Applying well to these optimal schools  Confirming that the offer is as good as it can be  Clear career direction

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 6 Clarifies high school choices Clarify Your Career Direction Being clear about your direction: Clarifies college choices Better gift aid offers, graduate sooner, more earnings in career

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 7 Choose endowed schools Good schools have grateful graduates who then give back Apply to several of these schools Ignore cost of attendance (COA) during search How do they use their endowment?

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9 Choosing the schools Focus on “Fit” first Full freshman class vs. revenue “Financial aid leveraging”

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 10 Make Yourself Attractive On your application, leverage the advantages you’ve built up to now Academic program ACT/SAT test scores Extra-curricular activities Community service Recommendation letters Ask for help early

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 11 You’re In Charge You have what the schools want Apply to 6 or more colleges for both admission and financial aid The colleges see where else you’re applying Let them compete If offers are less than you expect, be ready

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 12 Should I Apply for Scholarships? For scholarship sources, which is the largest? Private Sources Government Colleges

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© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 14 Parent Responsibilities What is most efficient and least stressful?  Eliminate mistakes on the aid applications  Stay on top of the process  Understand optimal use of financial tools  Optimize cash flow  Optimize the use of existing assets  Confirm that the offer is as good as it can be

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 15 Eliminate Application Mistakes Over 70% have mistakes that are not to the family’s advantage Have your data checked now Make entries from an answer key

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18 Apply Early for Financial Aid Financial Aid is first come, first serve. Be at the head of the line.

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 19 Apply for Financial Aid Some believe it is impossible to receive financial aid because their income is high This is simply not true.

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22 Fund Savings Elsewhere Find places to save funds for college that: Are not included in the formulas Are accessible Have friendly rules If offers are low, funds are available If offers are high, good place to leave it Supports retirement regardless

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 23 Reduce What is Reported Reduce or postpone income Reposition assets Must be completed during base year Can run contrary to traditional planning or tax advice Synchronize with retirement goals Must improve financial efficiency

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 24 Three Levels of Families 1. EFC of 0 – Qualifies for all need-based aid 2. EFC within COA range – EFC and Efficiency improvements possible 3. EFC above COA range – Efficiency improvement focus

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 25 Find money you don’t know you’re losing and don’t need to lose Leave your lifestyle and spending the same What is “efficiency”?

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved Improving Financial Efficiency Find and eliminate transfers in at least 5 major areas Eliminate opportunity costs now Retain compounding as long as possible 26

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 27 What is “Opportunity Cost”?

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 28 What is “Opportunity Cost”?

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 29 Retain Compounding

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 30 Retain Compounding

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 31 Effect of Finding Transfers  Single-income family, Mother homeschools 4 children  Initial monthly savings: $187/month  Locate and redirect $630/month  Percent of income: 8.40%  Double-income family, 2 children in public High School  Initial monthly savings: $2,292/month  Locate and redirect $2,068/month  Percent of income: 7.94%  Plus lump sums redirected to more efficient positions

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 32 If Necessary, Appeal the Offer

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© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 35 Learn and Follow the Process What families receive the most money for college? “Those that know the most about the process.”

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 36 Helping you: Pay for college efficiently and comfortably Optimize your need- and merit-based aid Increase the funds available for college and retirement Reduce stress, while increasing your confidence All without changing what you’re spending now

© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 37 For More Information: Roy Sargent: MtnFinancial.com

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