GRADUATE x119 College Costs, Financial Aid & Savings Options for Parents of High School Students Presented by: The NHHEAF Network Organizations’ Center for College Planning

GRADUATE x119 The Center for College Planning Free Financial Aid Counseling College Planning Library – Concord Monthly e-newsletters Special Events and Programs Presentations to NH K-12 schools A Free Resource for New Hampshire Students and Parents

GRADUATE x119 Potential Cost of College in New England Your Child’s Current Age Public College Private College 9$130,010$305,896 12$112,308$264,245 15$97,016$228,265 17$87,996$207, average amounts for New England schools provided by CollegeBoard. These numbers reflect 4 years of college tuition, room & board and reflect a 5% annual increase.

GRADUATE x119 Cost of College ( ) One Year of Tuition, Fees and Room & Board NHTI – Concord’s Community College $12,682 University of New Hampshire $24,702 UMASS Amherst $34,698 Northeastern University $51,362 Dartmouth College $55,365

GRADUATE x119 Cost of Attendance Billable Expenses Tuition and Fees Room and Board Non-Billable Expenses Books and Supplies Equipment (i.e. computers, software) Transportation Miscellaneous Personal Expenses Loan Fees Study Abroad Costs (when applicable) While the bill from the college will only include the “Billable Costs” families need to budget for the additional expenses students will have during their year at school.

GRADUATE x119 Understanding Financial Aid Financial Aid Philosophy: While financial aid can make college more affordable, parents & students are expected to take primary responsibility for paying for post-secondary education. FAFSA Free Application for Federal Student Aid CSS Profile Institutional Form College’s financial aid page

GRADUATE x119 Types Of Aid Gift Aid: Grants and Scholarships - Need-based (determined through the financial aid process) - Merit-based (determined through the admission or recruitment process) Self-help Aid: Loans and Employment - Need-based

GRADUATE x119 How Financial Aid Is Awarded Cost of Attendance (COA) The amount a school has budgeted for a student’s tuition, room and board, books, fees, supplies and any related expenses. COA45,000 - EFC 16,000 Eligibility29,000* Expected Family Contribution (EFC) The amount, as determined by federal methodology, that represents your family’s ability to pay for one year of college. * It is important to note that while a student may be eligible for this amount, there is rarely a guarantee that the student will actually receive this amount.

GRADUATE x119 Filling the Cost “Bucket” GAP = Unmet Need EFC + GAP = Family Share Self-Help Aid (Direct Loan, Work Study) Expected Family Contribution (EFC) Gift Aid (Grants & Scholarships)

GRADUATE x119 Award Letter Sample Cost of Attendance 45,000 Expected Family Contribution -16,000 Eligibility for Financial Aid 29,000 Financial Aid Package - University Grant 10,500 - Presidential Scholarship 2,500 - Federal Student Loan 5,500 - College Work Study 1,500 Total Award 20,000 Gap 9,000 + EFC 16,000 + Federal Student Loan5,500 + College Work Study1,500 Total Family Share 32,000 Eligibility 29,000 - Financial Aid 20,000 Gap 9,000

GRADUATE x119 EFC Calculators Visit: To find out what your EFC would be today!

GRADUATE x119 How Saving Affects Your EFC Davis Family –Dad is 50, Mom is 48 –Two Children –Have a combined income of $95,000 –Saved $1,000 for college expenses EFC = $16,391 Smith Family –Dad is 50, Mom is 48 –Two Children –Have a combined income of $95,000 –Saved $60,000 for college expenses EFC = $17,023 Myth Saving for college will negatively impact a family’s financial aid eligibility.

GRADUATE x119 Value of Saving Saving Saving $200 monthly for 5 years (total invested is $12,000) at a 3% interest rate will yield a total of $12,961 Borrowing Borrowing $13,000 at a 7.9% interest rate equals a monthly payment of $157 for 10 years with a total payback of $18,844 Total Savings of $5,844 Saving any amount towards college can decrease the total borrowed and amount owed per month.

GRADUATE x119 Impact of Popular Savings Vehicles on the FAFSA Parent’s Asset (Maximum Assessed is 5.64% above Asset Protection Allowance for Parents) 529 Plans Coverdell ESA Savings Bonds (if parent is the primary owner) Student’s Asset (Assessed at 20% with no Asset Protection Allowance for Students) UTMA/UGMA (Uniform Gift to Minor/Uniform Trust to Minor) Savings Bonds (if student is the primary owner) Parent Asset Protection Allowance Age 45Age 60 Two parents - $42,900Two parents - $59,700 One parent - $14,900One parent - $20,400

GRADUATE x119 Net Price Calculators

GRADUATE x119 Affinity Programs

GRADUATE x119 How do most families pay for college? Savings Current Income Tuition Payment Plans Federal/Direct PLUS Loans Private Student Loans College Can Be Affordable Don’t Let the Numbers Scare You! About Direct PLUS Loans Fixed rate of 7.9% 4% loan origination fee No set limit – determined by the cost of education less financial aid received by the student About Direct PLUS Loans Fixed rate of 7.9% 4% loan origination fee No set limit – determined by the cost of education less financial aid received by the student

GRADUATE x119 Applying For Scholarships National Search – – Local Search – High School/Guidance Department – Employers & Professional Associations – Library & Community Organizations – – – Note: –Avoid Scholarship Scams! –Find out each college’s policy on the treatment of outside scholarships.

GRADUATE x119 College Is Possible! Remember: While financial aid can make college more affordable, parents & students are expected to take primary responsibility for paying for post-secondary education. Meeting financial aid deadlines is critical. Don’t assume Merit Aid or Merit Scholarships are offered at every institution. Inquire with each school to find out what type of aid they offer. Every little bit a student and family saves today helps reduce the amount needed to be borrowed in the future.

GRADUATE x119 Questions? The NHHEAF Network Organizations’ Center for College Planning GRADUATE x119