Copy write Strategies For College, Inc College Planning & Funding Strategies Copyright Strategies For College, Inc. 2015

Did You Know? 68% of Americans are unhappy with the way they financed college 54% wish they had attended a less expensive school 27% wish they had delayed going to college so they could have saved more money first Source: Journal of Accountancy, April 2015

12 Years of Inflation Tuition % Increase Northeastern$24,467$43, % UMASS$7,482$13,443+80% Boston Univ.$28,906$46,664+61% Univ. of Vermont$22,688$37,844+67% Univ. of Michigan$25,733$41,906+63% Furman Univ.$22,712$44,668+97% Why Worry About Funding Higher Education? Data from National Center for Education Statistics ( and the Princeton Review, 2015 edition

Why Worry About Funding Higher Education? Source: Strategies For College Annual Update, 2015 Princeton Review, The Best 377 Colleges, 2015

Do you know how bad the 4-Year graduation rate is? 39%

Why Worry About Funding Higher Education? Because $1.2 Trillion in College Debt Is Crippling Students, Parents And The Economy Source: Forbes, August 7, 2013

Why Worry About Funding Higher Education? Source: Fidelity College Grad Study, 2013

Why Worry About Funding Higher Education? 50% increase in use of retirement funds to pay for college Source: April 2013 survey by Fidelity Investments

Spending Plans After College? Source: Upromise survey, May 2015

We will continue to send our children to college! However …

Key Questions: How Much Will It Cost Today? What’s more important? Cost? Clout? Both?

True or False? Not a single Ivy League college awards merit scholarships Retirement Account balances are required to be reported on FAFSA in investments section There is a criminal penalty for knowingly submitting false or misleading info on FAFSA

Develop a Plan Start Early Retirement First Remain Open-Minded Don’t Refuse OPM DIY May Not Be Best Option Protect Family Financial Well Being The Effective Mindset Provide, Protect, Preserve

Paying For College Effective Mindset Understands This Your Hard Earned Money (YHEM)  Past (assets, investments, savings) Present (income) Future (loans) Students Parents Other People’s Money (OPM) Financial Aid Grants Merit Scholarships Athletic Scholarships Tuition Discounts Other unknown sources

Colleges will calculate the EFC (Expected Family Contribution) If the EFC is less than the Cost of Attendance, the family is “aid eligible” If the EFC is greater than the Cost of Attendance, the family is not “aid eligible” The Effective Mindset Seeks Understanding

Always, Always, Always… RUN THE NUMBERS! ALWAYS CALCULATE YOUR EFC LEARN HOW TO REDUCE YOUR EFC

Expected Family Contribution (EFC) Parent Income Max assessment = 47% AFTER ALLOWANCES Student Income FM assessment: 50% after first $6,130 IM assessment: $1,850 min, then parent rate. Parent Assets Max Assessment: 5.65% AFTER ALLOWANCES Student Assets FM assessment: 20% IM assessment: 25% Parent Contribution + Student Contribution = Expected Family Contribution

Case Study #1 Family of 4 (1 in college), lives in MA Some key factors: – Income <$100,000 per year – Home Equity $655,000 – Business Value 1) $1,000,000, 2) $100,000 – less $600,000 liabilities So what does the EFC look like?

EFC Calculation

RESULT? Based on an early read of the family’s EFC, the student is now looking only a schools using the Federal Methodology – potential savings: $160,000!

And Then… CPA had a GREAT IDEA! Take a dividend – TAX FREE! Saved roughly $18,000 in taxes Lost roughly $38,000 in college grant eligibility That’s a -$20,000 decision! Still a “GREAT IDEA?”

Case Study #2 DO NOT BE DECEIVED BY STICKER PRICE!

Cost of Attendance EFC from FAFSA Financial Need* Average % of need met with grant aid** 50% 60% 85% Estimated Grant Aid $7,500 $15,000 $38,250 Estimated GAP $7,500 $ 10,000 $6,750 Potential Net Cost of College $17,500 $20,000 $16,750 $25,000 $35,000 $55,000 $10,000 $10,000 $10,000 College A College B College C $15,000 $25,000 $45,000 Don’t Be Deceived By Sticker Price – Is it possible to be eligible at one college but not at another? * Maximum need based aid eligibility. ** For discussion. Does not reflect any particular institution’s statistics.

Next: Getting Funding Now that you understand how to pay for college… how do you make sure the aid will be there? Need to understand the concept of Enrollment Management

Enrollment Management & Financial Aid Leveraging If you are looking for money, where is the risk? The opportunity? Can afford 75% – 100% COA Can afford 50% - 75% COA Can afford 25%-50% COA Can afford 10% - 25% of COA Top 25% 2 nd 25% 3 rd 25% 4 th 25% Student rank in admitted student pool Ability to Pay: College’s assessment of FAFSA and/or CSS Profile 25 ABCD

Enrollment Management & Financial Aid Leveraging If you are looking for money, where is the risk? The opportunity? Can afford 75% – 100% COA Can afford 50% - 75% COA Can afford 25%-50% COA Can afford 10% - 25% of COA Top 25%Merit $$$$ (If available) Grant $$$$ 2 nd 25%Merit $$ (If available) Grant $$ 3 rd 25%Full Pay (Merit??) Gapped -Gapped + 4 th 25%Full PayGapped -Gapped + Student rank in admitted student pool Ability to Pay: College’s assessment of FAFSA and/or CSS Profile 26 ABCD

Objective Assessment of Applicant Profile & Competitive Position Objective Assessment of Applicant Profile & Competitive Position Well Thought Out Financial Strategy For Each College Year Well Thought Out Financial Strategy For Each College Year Family & Student Priorities Addressed “Best Fit” Family & Student Priorities Addressed “Best Fit” Win - Win Strategies For College, Inc. “Integrated College Planning” Strategies For College, Inc. “Integrated College Planning” The Prime Objective Affordability + Getting In + Fitting In + 4 Year Finish

Quick Lookup Resources CSS Profile: CSS Noncustodial Profile: FAFSA: Federal PIN: Private Scholarships: Federal Student Aid: College Navigator: SFC Blog & Newsletter: SFC Member Website: Strategies For College – DIYhttp://

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