1. National Summit on Solutions to Student Loan Debt
MASSACHUSETTS EDUCATIONAL FINANCING AUTHORITY

2. Prevailing Misconceptions
Many Massachusetts parents continue to believe these popular misconceptions related to college savings:
65% of parents believe that saving too much will significantly impact their child’s eligibility for financial aid
52% of parents believe if their child receives financial aid, they do not have to pay that money back
44% of parents believe that as long as they start saving for college by the time their child starts high school, they’ll be OK
Fidelity/MEFA 10th Annual College Savings Indicator Study Summer 2016

3. Federal Financial Aid Breakdown
Undergraduate Student Aid ($183.9 Billion)
Federal
Student Loans
34%
Institutional Grants & Scholarships
22%
Private Grants 6%
Federal Tax
Credits 8%
State Grants 5%
Federal Grants
24%
Federal Work-Study <1%
Source: The College Board, Trends in Student Aid 2015

5. Past Income Present Income Future Income Saving vs. Borrowing Savings
Other Assets
Present Income
Salary
Payment Plans
Future Income
Parent Loans
Student Loans
*Based on 10 years at an interest rate of 7%. This example is an estimate only and market conditions may change.

6. Financial Aid Awarding
College COA = $40,000
Unmet Need $3,000
Work-Study $3,500
Student Loan $5,500
Grant $13,500
Scholarship $9,500
EFC $5,000
Unmet need is the FAMILY’s responsibility

7. Director, Public Affairs 617.224.4813 | msavery@mefa.org
Contact Information
160 Federal Street, 4th Floor, Boston, MA 02110
mefa.org | | (800) 449-MEFA (6332)
Martha Savery
Director, Public Affairs |