You know you have to pay. The real question is how?! © College Aid Consulting 2014

Our Role Provide guidance Provide some perspective Anticipate pitfalls Copyright: College Money 2001, All Rights Reserved

Most parents feel anxious about the process. They are worried about where the money will come from They are concerned about making a mistake that will adversely impact their student’s future. They don’t understand the process and wonder if applying is a waste of time. They wonder if they will have enough money left to retire on. © College Aid Consulting 2014

College is Expensive © College Aid Consulting 2014

Financial Aid Process Begin January of Senior Year* Step 1: Submit the FAFSA form (parent) Step 2: Submit GPA Verification (HS) Step 3: Submit CSS Profile, if required Step 4: Get taxes completed Step 5: For colleges that require the CSS Profile, submit additional forms as required by each college Step 6: Regularly read all correspondence from college and supply requested information Step 7: Accept financial aid award

“Why do some families receive assistance and others don’t?” © College Aid Consulting 2014

College Funding Myths © College Aid Consulting 2014  State colleges are cheaper than private colleges  In-state is cheaper than out of state  Living at home is cheaper than living on-campus  Most financial aid has to be paid back

© College Aid Consulting with permission from Stratagee Corp 2014

Need Based Merit Based Selectively Discounted Tuition Tax Aid Private Scholarships Types of Financial Aid © College Aid Consulting 2014

For the best chance of assistance… The college list must match the financing profile. © College Aid Consulting 2014 Aid Profile Aid Policy

Knowing Your Expected Family Contributions (EFCs) is a Key to Financing College © College Aid Consulting 2014

Understanding The Secret, Mystical Need Based Financial Aid System Input - Your Financial Statement via the FAFSA & CSS Profile Form* Parent Income & Assets Student Income & Assets Process Data - Mystical Formulas Federal Methodology Institutional Methodology Consensus Methodology Output - The Magic Number Expected Family Contribution (EFC) © College Aid Consulting 2014

Methodology Match-up Federal Methodology Institutional Methodology Consensus Methodology a) Cal Poly Pomona b) Columbia University c) George Washington University d) Regis University e) L.M.U.,U.S.D f) University of Michigan g) Pomona College h) U.S.C. i) U.C.L.A. j) Carnegie Mellon University © College Aid Consulting 2014

568 President’s Group Member Colleges Amherst College Boston College Claremont McKenna College College of the Holy Cross Columbia University Cornell University Dartmouth College Davidson College Duke University Georgetown University Grinnell College Haverford College Massachusetts Institute of Technology Middlebury College Northwestern University Pomona College St. John's College Swarthmore College University of Notre Dame University of Pennsylvania Vanderbilt University Wellesley College Williams College © College Aid Consulting 2014

Federal Methodology Institutional Methodology 50%Student Income 50% 47%Parent Income 46% 20%Student Assets 25% 6%Parent Assets3% - 5% Building the EFC © College Aid Consulting 2014

Federal Institutional Consensus Savings, investments, etc 20%25%5% 529 plan and ESAs 5.64%25%5% Assets in Child’s Name © College Aid Consulting 2014

I have my EFCs Do I Qualify for Financial Aid? © College Aid Consulting 2014

Calculation of Financial Need and Aid Awards Calculation of need $35,000 COA at XYZ private college - $20,000 Your EFC $15,000 financial need For illustrative purposes only. Actual financial aid awards can vary. The student is “eligible” for $15,000 in aid, but what will he/she receive? © College Aid Consulting 2014

Financial Aid Package Grants Loans Work-Study

Theoretically, the Financial Aid System Will Pay the Balance, Except - Watch Out For The Parent Financial Aid Gap Beware! The College Financial Aid Gap Understand difference between NPC & EFC © College Aid Consulting 2014

WHICH IS LEAST EXPENSIVE? CAL POLY POMONA $23,624 U.S.C. $64,761 U.C.L.A. $33,193 POMONA COLLEGE $60,532 Oregon $45,375 Carnegie- Mellon $63,822 © College Aid Consulting 2014

WHICH IS LEAST EXPENSIVE? Federal Methodology (F) $7,000 Institutional Methodology (I) $12,000 Consensus Methodology (C) $10,000 Cal Poly Pomona ($23,624) UCLA ($33,195) University of Oregon ($45,375) USC ($64,761) Pomona College ($60,532) Carnegie-Mellon ($63,822) © College Aid Consulting 2014

WHICH IS LEAST EXPENSIVE? CAL POLY POMONA $12,619 U.S.C. $12,000 U.C.L.A. $11,400 POMONA COLLEGE $10,000 Oregon $29,641* Carnegie- Mellon $20,292 © College Aid Consulting 2014

Knowing The Financial Aid Strength Of Each College Is Critical To A Successful Plan © College Aid Consulting 2014

 College selection  The aid eligibility formula(s) used by the college  Assets and income of the parents and student  Number of children in college  How much a college wants your child to enroll 5 Factors In Qualifying for Need-based Aid © College Aid Consulting 2014

Need-BasedMerit Aid Tuition DiscountsTax Aid Now what? © College Aid Consulting 2014

Used with permission from Stratagee Corp 2014

College Aid Consulting Stephanie Hancock, CFP®, CCPS 1901 Avenue of The Stars 2 nd Floor Los Angeles, CA TEL: FAX: Web: Podcast Launching Soon © College Aid Consulting 2014 Thanks for listening!