1. The Dream of College Sans the Nightmare of Excessive Debt
John Hupalo
Founder & CEO
Invite Education

2. Felix Baumgartner landed on his feet. Will our children?

3. Contextual Questions THE 2 questions:
Can my child get into the college they want?
Can we afford it?
What’s more important, a good academic/social fit or an affordable college?
Is the dream to attend college or to attend an expensive “brand-name” school?

4. 20 Years of Tuition Growth
Source: US News and World Reports

6. This is $100 million

7. This is $1 Billion

8. This is $1 Trillion: a million million

9. The FAFSA Guide (98 Pages!)

10. Myth Busters – Just the Facts Ma’am
Perception does not equal reality
Cost of college overestimated by 200%
50% overestimate loan payment by 50%
34% of costs were paid via scholarships & grants in , up from 30% in
40% undergraduates borrow nothing
Avg undergrad borrows: $17,900 or $37,000?
25-34 year olds with Bachelor’s degrees earn $20k/year more
$1 million over lifetime
Loans of <$10,000 account for 2/3 of all defaults (2011 cohort). <$5,000 = 35%, >$40,000 = 7%
Majority of students are landing on their feet, BUT the noisy minority gets the press

11. Families are Saving More
Souce: Edvisors

12. College Affordability: A Spectrum of Definitions
Complex Quantitative Definition
Lumina Foundation - Rule of 10
Find the net price of a college
It is affordable if students can meet the price:
By working 10 hours per week while in school AND
10% of family’s discretionary income saved over 10 years
Simple “Gut-Feel” Definition
Donald Heller, Dean Education College, Michigan State
Like Justice Stewart’s definition of obscenity: “I know (affordability) when I see it.”

13. College Affordability: My Practical Definition
How much “Free Money” is available?
Savings
Gifts
Income from parent or student
Estimated Financial Aid
Need-based aid
Merit aid
If “Free Money” > cost of a college: It’s affordable
If “Free Money” < cost of a college: Loans
How much for all 4 year?
Total loans < expected starting salary: It’s affordable

14. Takeaways
Families are consumers of education engaged with a seller who is maximizing net tuition revenue
Affordability is within EVERY family’s control
Not all student loan debt is bad; Responsible borrowing provides necessary leverage and the ability to establish a good credit history
Borrow as little as possible
Pay interest while in-school
Families need convenient, plain-English information, tools and services to make more informed college choices

15. #1 New Release, 5 Stars, Amazon

16. THANK YOU! Invite Education John Hupalo: Twitter: @InviteEducation
Blog: InviteEducation.wordpress.com
John Hupalo:
Twitter: @JohnHupalo
LinkedIn: John Hupalo
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