1. Savvy College Financial Strategies
Paying for College and Discussing it with kids!
Cozy Wittman, Education & Partnership Manager
College Inside Track

2. College Inside Track saves families an average of $75,488 off the four year college sticker price!

3. 3 Key Factors For Success
Social
Academic
Financial

4. University of Chicago: $74,526 Northwestern: $72,980 NYU: $71,784
Drexel University: $ 71,763
University of Pennsylvania: $68,687
St. Thomas: $54,133
University of CA-Berkley: $36,015*
University of Michigan: $31,396*
University of Minnesota: $28,304*
*in-state tuition rates
UNC this year: $23,000 – this year.

5. There is no purchase
as significant as college that people know so little about BUT think they know the facts.

6. Average family college debt: students & families per child
$57,800 in loans for
students & families per child
*Sources: Nerdwallet.com Got Parent PLUS Loans? Save Money With These Alternative Payment Plans and The Institute for College Access and Success accessed

7. Determining A Family Strategy
How do know what you can afford?

8. There are multiple ways to pull a successful financial college experience together!
Parents & Students
Merit Aid
Loans
Need Based Aid

9. Parent and Kid contribution potential?
Parents & Students
Merit Aid
Loans
Need Based Aid

10. What is your Philosophy? Who has skin in the game?
“We will pay it all, we don’t want our kids to have loans”
“We have a 529 /other savings, that’s our contribution, everything else is theirs”
“We have a 529/other savings but we would love the college to cost $X so they have money for grad school”
“Our student needs to pay for X percentage and we cover the rest”
“School is all on the student, we expect them to take out loans for school”

11. Break Down Where Money is Coming From!
Parents
Is there savings? 529?
Sports fees, private school payments convert to tuition payments, etc
Pay as you go monthly
Loans
Student
Savings
Merit Aid Grants/Scholarships
AP/PSEO/CIS
Work or Work Study
Loans
Have this conversation NOW!

12. 4 Tips to Take With You!
Have this talk with the student early in the college search
Make financial considerations an equal part of this search along with academic and social fit
Determine the strategy for who has skin in the game and determine what your “maximum” bottom line is
Have an open discussion around loans and use real world examples to illustrate payback

13. How Does “Aid” Factor into the Discussion?
Parents & Students
Merit Aid
Loans
Need Based Aid

14. What is a FAFSA and what on earth does it mean?
Free Application for Federal Student Aid – FAFSA
Application for Federal student loans
Formula determines Expected Family Contribution – Roughly 47% of your net income
Colleges use the number to determine “Need”– sticker price of the college minus the Expected Family Contribution (EFC) = Need
We aren’t getting any “aid” so we aren’t filling out a FAFSA
True, a family may not get need based aid, but if you want your student to take out loans, it is required
Some merit based schools use the FAFSA as a key that unlocks the grants and scholarships they are giving
Some colleges add merit to the package just because the family filled out the financial forms and there is no way to determine which schools those are

15. Need Based Aid Forms Grants & Scholarships
FAFSA – Schools use it to determine need at their college
EFC – Expected Family Contribution
Not tied to tax returns for divorced families
Done yearly
CSS Profile & school specific forms
Forms
Added to your financial package
Revised yearly based on FAFSA outcome
Grants & Scholarships
Need Based Aid

16. Merit Based Aid Criteria Grants & Scholarships
Varies school to school
Grades are only one factor of many that determine the amount
Location, talent, demographics
Criteria
Added to your financial package
Generally applies for all four years if your student meet basic terms
Read carefully!
Grants & Scholarships
Merit Based Aid

17. Top 2 mistakes families make with merit aid?
Not all colleges offer merit aid!
Narrow the field of colleges too soon!

18. What about other scholarships?
There are millions of dollars of unclaimed scholarship money! If we just spend enough time, we should be able to get some!
Myth
The vast majority of kids don’t “win” that money
Ave award amount: $1950
Deducted from Merit Aid package by the school
SO MUCH MORE MONEY is given by colleges
Truth
What about other scholarships?

19. 6% 40% 7% 11% 35% Scholarship/Grant Sources Employers
Federal government
40% 7%
Private scholarships
11%
State governments
35%
Colleges

20. Loan Considerations!
Parents & Students
Merit Aid
Loans
Need Based Aid

21. LOAN Limits Federal Student loan – maximal set amount Freshman - $5500
Sophomore - $6500
Junior - $7500
Senior - $7500
State loans-
Parent Plus loan – limited to the cost of attendance minus any financial aid the student is receiving
Home equity loans are no longer tax deductible, but rates still make them an attractive alternative
Generally, private loans should be reserved as a last resort!

22. Guidelines for Debt
Never take out more in loans than a first year salary in your chosen field
For every $10,000 in loans you take out, it will be roughly $100/month loan payment
Federal loans are only available for the year they are offered, so consider the entire 4 years before declining loans

23. What We Do
Just like you hire a realtor for the major purchase of a home, you hire us for the major purchase of college
Most families do this search a couple of times, we have done it hundreds of time
We find that blinders and myth often cost families money

24. We help navigate the complicated process and find the right fit

25. We help families save lots of money

26. We are a neutral third-party that students listen to

27. How do we partner with schools
Support the work that you! Help get the message to the parents
Free presentations on strategies to reduce the cost of college
Monthly newsletter focused on college search for you to post
Training for counselors/teachers in your school for CE credit
Free family consultation to discuss goals for college, share strategies that align, estimate the EFC

28. Questions? Cozy Wittman, Education & Partnership Manager
College Inside Track