Chuck Moore, CCFC, CAMC, CAFC Louisville, Kentucky ▪ THE SIX-STEP PROCESS OF PAYING FOR COLLEGE At What Cost?

AVOID WASTING YOUR MONEY AND ACCUMULATING UNNECESSARY COLLEGE DEBT BY TAKING AN ENGINEERING APPROACH Pool In The Shadow Of New Dorm At UC Irvine

Nationally, only about 60 percent of students graduate from four-year colleges and universities within SIX YEARS. Should All Students Attend College Data From The Federal Integrated Postsecondary Education Data System (IPEDS)

Determine If Your Student Is College Ready Should All Students Attend College Step One

How Important Is The Student’s ACT/SAT Test Scores And GPA Should All Students Attend College

ACT National and Field Office Report 2010 ACT’s College Readiness Benchmarks The minimum ACT® test scores that indicate whether high school graduates are likely ready for entry-level college coursework are: English - 18 Mathematics - 22 Reading - 21 Science - 24 National Composite Average - 21 (ACT) SAT - COMPARISON (Read + Math 1600) or 1470 – 1520 (Math, Critical Reading And Writing 2400)

What Is Your Student’s Attitude Of Attending College Should All Students Attend College Step Two

Four Questions All Students Should Answer 1.WHY Do You Want To Attend College 2.What College (s) Do You Want To Attend And WHY 3.What Major Or Degree Do You Want To Pursue And WHY 4.Is Money Important To You After Graduation And WHY

Determine Your Student’s Personality Strengths And Weaknesses Should All Students Attend College Step Three

Confident, Driven, Risk Taker, Impatient, Demanding Optimistic, Good Communicators, Disorganized Easy Going, Fears Change, Supportive, Compassionate Analytical, Controlled, Too Critical Of Others, Too Picky What Is Your Student’s Personality Traits

Determine Your Family’s Expected Family Contribution (EFC) Should All Students Attend College Step Four

How Much Will The Colleges Expect You To Contribute Toward Your Student’s College Education What Is Your Family’s Expected Family Contribution (EFC)

Understand How Your EFC Is Calculated (FAFSA/CSS Profile) Determine How Your Income And Assets Affect Your EFC Avoid Quick Decisions Of Repositioning Assets To Decrease Your EFC Understand What Is Available In Financial Aid On A Federal And State Level - Based On Your EFC What Is Your Family’s Expected Family Contribution (EFC)

Step Five What Do You Have Available To Help Pay For College Costs

How Will You Pay For College Costs There Are Only Four Ways To Pay For College Costs: Scholarships and Grants From Savings Or Investments Pay From Ordinary Income… or Borrowing The Needed Cash Ways Of Paying For College

Will Your Student Qualify For Scholarships Or Grants Scholarships and Grants Are Given Out Based On: Need – EFC (FAFSA/CSS Profile) Merit – Special Skills, Academics, Community Service, Athletic, ROTC Scholarships and Grants

The Average Families That Have Saved Or Invested For College Have Saved $5,000 Or Less UGMA/UTMA, 529 Savings Plans, 529 Prepaid Tuition Plans, Coverdell ESA, EE Savings Bonds, Life Insurance, Trusts, CD, Parents’ Mutual Funds, Real Estate, Annuities, IRA, Municipal Bonds Savings or Investments

Can Your Afford The Additional Expense Most Families Live Paycheck To Paycheck: What Expenses Will You Cut (Is Your Money Controlling You Or Are You Controlling Your Money) Will You Require The Student To Work, Will You Take On A Second Job, Stop Contributing To Your Retirement, Eliminate Your Vacation, etc. Will You Qualify For Tax Credits Or Deductions Pay From Ordinary Income

Will You Borrow The Funds The Easiest Way To Pay For College: Where Will You Borrow The Funds (Direct Loans, PLUS Loans, Home Equity Loans, Borrow From Relatives, Use Credit Cards, Life Insurance, Etc.) Will You Make Payments Now Or Defer Your Payments (Direct Loans, PLUS Loans) What Affect Will Borrowing Have On Your Financial Future (What Affect Will Borrowing Have On Your Debt-To-Income Ratio) How Much Will The Borrowed Money Cost You Borrow The Needed Funds

Step Six Select A College That Is Affordable

Chuck Moore, CCFC, CAMC, CAFC Louisville, Kentucky ▪ THE SIX-STEP PROCESS OF PAYING FOR COLLEGE At What Cost?