1. Navigate the College Process
10 Insider Tips to
Navigate the College Process bb
CollegeInsideTrack.com
@collegeinsidetrack

2. Helps over 500,000 students per year with the transition to life after HS
Saves families an average of $22,478 per year off college sticker price

3. College is different than when we went to school

4. Quiz
Since 1987, how much has tuition increased at the University of Minnesota?
28%
77%
215%
570%
The numbers on my calculator don’t go that high

5. U of M Tuition Increase since ‘87
570%
Private College Tuition Increase
686%

6. NYU: $70,444
Drexel University: $69,489
Sarah Lawrence U: $67,130
Carleton: $64,420
Macalester: $61,853
St. Thomas: $54,133
St. Ben’s (MN): $53,477
University of MN: $26,304

8. as significant as college that people know so little about
There is no purchase
as significant as college that people know so little about

10. Average Family college debt: Includes student & family
$48,000+ in loans
Includes student & family

11. What Will College Cost? 1986 annual cost: $ 5,000 to $13,000

12. Treat this decision like the major financial investment that it is.

14. 2 Types of Aid
1. Need-based aid
2. Merit aid

15. Expected Family Contribution (EFC)
2 Need-based aid forms
FAFSA vs. CSS/Profile
Expected Family Contribution (EFC)

16. Biggest Influencers of Financial Aid
Income from tax return
Parent non-retirement assets
Number of children in college
Children’s assets and income (UGMA/UTMA, Grandparent donations)

17. Financial Aid Example:
Tuition/fees $ 38,000
Room and board $ 8,500
Books, supplies $ 1,500
Misc $ 2,500
Total annual cost $ 50,500
- EFC (FAFSA) $ 20,000
= Remaining Student Need $ 30,500
YOUR FINANCIAL PACKAGE:
NOT met by the school (25%) $ 7,625
Total need school will meet (75%) $ 22,875
Student loan $ 5,500
Work Study $ 2,000
Parent Loan (PLUS) $ 5,500
Financial Aid $ 9,875
= Out-of-pocket costs $40,625
Sample of AGI = $50,000
Hamline – meet 75% of need
Normal time-line
Might get accepted in January, but no financials until March or April
Commit May 1
Small window to negotiate – BUT DO NEGOTIATE
My life is about to become consumed
ONE OF REASONS FOR BACKLASH AGAINST EARLY ACTION
WORST PART OF IT IS TIMING…
Let’s look at how that “gifts/aid” line is determined…

18. Tip #1 If need-based aid is an option, move assets out of child’s name
Child 20%
Parent rate is 5.64%
529 plans are assessed at parent’s rate, UGMA/UTMA at child’s rate

19. Tip #2 Review financial aid forms for accuracy
42% contain errors that cost a family money
FAFSA-Your primary residence and your retirement are not counted as assets (CSS/Profile is different)

20. Merit Aid
AP, PSEO, standardized test scores, GPA, sports, etc.

21. Tip #3
To get the most merit aid, spend the majority of your time finding the right college
(not private scholarships)

22. 40% 6% 7% 35% 11% Scholarship/Grant Sources Federal government
Employers 7%
Private scholarships
35%
State governments
Colleges
11%

23. #1 mistake families make with merit aid?
Not all colleges offer merit aid!

24. Look for schools … 1. Offer merit aid
2. Where student would bring something special
Grades and test scores in the top %
Extra-curricular talents
Gender or ethnicity
Geographic diversity

25. Tip #4 Consider colleges in other states
50% of students attend college within 100 mi of home
MN colleges have all the Minnesotans they want- 72% stay in MN
Students have geographic “hook” by looking at colleges outside geographic area
Location can cost families $15,000 a year

26. Tip #5 1 or 2 more points on the ACT or SAT can be worth $1,000’s
Goal is to be in top 25% of college’s scores
Investment in test prep may be worth it
Test optional - If student does poorly on standardized tests consider 800+ colleges that do not require them (

27. Anatomy of 1 College’s Merit Aid
Demonstrated Interest- $3,000 (Don’t be “stealth” candidate)
Lives out of state-$2,000-$15,000
“A” in class-$62 for every “A” on transcript
Rigorous class-$400 for every AP, IB, etc.
Excellent letter of recommendation-$1,800
Increase ACT score-$425 for every point above avg.
FAFSA-$1,800 for completing
CSS/Profile-$2,500 for completing
Essay-$1,100-8,500 for excellent essay
Major- deduct $1.89 for every student admitted w/ same major (good news for philosophy majors!)

28. Tip #6 Show demonstrated interest
A growing number of schools say demonstrated interest is important
Ways to show interest: Ask for materials, visit website, “like” school’s Facebook page

29. Another money source: Division III
Athletic scholarships - 2% chance of scholarship
Men’s football
Woman’s track
1,000,000
603,000
Number of players
<29,000
9,888
Number of scholarships
$13,000
$8,100
Average value
Another money source: Division III
ScholarshipStats.com

31. Tip #7
Avoid un-manageable debt

35. Subsidized Stafford Loans
Rate is fixed at 3.76%
Interest does NOT accrue while student in college
Unsubsidized Stafford Loans
Rate is fixed at 3.76%.
Rate likely to increase in future years
Interest DOES accrue while in college
PLUS (Parent)
Interest is fixed at 6.31%
Payment begins upon disbursement

36. Student Loan Debt – Monthly Payments
3.76% for 10 years:
@ 6.31%
3.76% for 10 years:
3.76% for 10 years:
$400 $450
$500 $563
$600 $675
We use software that allows them to…
Recent client talked out of Miami for Music Education. Would need to make $70K to pay loan and minimal expenses.
Only 58% of loans go toward college expenses!

37. Tip #8 Negotiate the financial aid award
Called an “appeal,” dirty little secret colleges don’t want you to know about
Need a reason, e.g., a better offer from another college, family circumstance change, etc.
Last year our appeals saved our clients an average of $7,883 per year ($31,532 over the 4 years)

38. Tip #9 Look for the right academic, social and financial fit
Look beyond local school and rankings

39. Frequent Mistakes! Consider ONLY LOCAL schools
Make an emotional decision
Follow best friend or boyfriend/girlfriend
Consider ONLY Prestige
Accept the school’s first offer
Failure to compare
This slide summarizes the mistakes that we have observed families making, and it is important to review, because it truly articulates the challenges and issues that our service addresses. Common mistakes are: confining the college search to local area schools, making an emotional decision about a school (i.e.—friend attending there, the coach is nice, etc.), accepting the college’s first offer, failure to compare, create competition or negotiate. REMEMBER 33% of college freshmen transfer schools in the first year !!! 39

40. 800 : 1

41. Common Myths
It’s better to get good grades than take challenging courses
You can’t get into a good college if you did poorly in ninth or tenth grade
The standardized tests are more important than grades
If you haven’t heard of a college, it can’t be very good

42. Common Myths (cont.)
Your life will be ruined if you don’t get into your first choice
You have a better chance of getting into professional or grad. school if you go to a university that has these grad programs
State supported institution offer more financial aid than private colleges

43. Tip #10 Start the spring of 10th grade or ASAP
FAFSA change – will use financial data from 2 years prior starting with class of 2017
Research and then target schools based on predicted aid
Give yourself enough time to retake ACT if needed

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