1. 6/9/2015 Financial Aid: Getting your Fair Share By Dennis Bye Member National Financial Aid Practitioner’s Alliance

2. 6/9/2015 Introduction l Cost of Education l Ivy League 60,000 l Private 47,000 l State School 29,000 Public schools up 2.9% Private schools up 3.7% Inflation 1.7% Source CEEB

3. 6/9/2015 Myths l Myth 1 Middle Income Families Don’t Qualify for Aid l Myth 2 You Cannot Impact Aid Eligibility l Myth 3 Only Students with good grades qualify l Myth 4 You have to be a minority to get financial aid

4. 6/9/2015 The Financial Aid Forms l FAFSA l PROFILE l These forms are necessary for Federal, State, and/or Institutional Aid

5. 6/9/2015 Deadlines l Filing financial aid forms late may cost you money

6. 6/9/2015 Many Families Find These Forms Confusing and Intimidating l And Experience Hours of Frustration Trying to Complete Them

7. 6/9/2015 Family Assets and Income Are Among the Many Factors Assessed to Determine Aid Eligibility

8. 6/9/2015 The Information from the financial aid forms is calculated in NEEDS ANALYSES FORMULAS

9. 6/9/2015 The Weighting of this Information Establishes Your l EXPECTED FAMILY CONTRIBUTION l (EFC)

10. 6/9/2015 …. This is How Much the Government Feels You Can Afford to Pay Ouch!!!

11. 6/9/2015 Cost of Attendance l Tuition and Fees l Room & Board l Books, Travel & Personal

12. 6/9/2015 Financial Need COLLEGE COST - EFC =NEED

13. 6/9/2015 EFC Example

14. 6/9/2015 Need Based Aid

15. 6/9/2015 Aid Comes From l Federal > Grants > Loans > Work Study l State > Grants > Scholarships l College > Grants > Loans

16. 6/9/2015 Federal Grants and Loans Pell Grant$5,730 SEOG$4,000 Perkins Loan$5,500 5% Sub Stafford$3,5004.66% Unsub Stafford$3,5004.66% PLUS Loan7.21% 4.29%

17. 6/9/2015 State Programs www.hesaa.org TAG county 2,318,St College 6,326, Ind College 10,468, Rutgers 8,554, NJIT 9,692 NJ Class Loans 5.49% 3% orig fee 10 yr. 6.65% 3% orig fee 15 yr 8.05% 3% orig fee 20 yr

18. 6/9/2015 Financial Aid Awards The Award Letter l Compare Packages l No Absolutes

19. 6/9/2015 Award Letter l SchoolAB l Cost30,00030,000 l Family Cont.10,00010,000 l NEED20,00020,000 l Students Loans3,5004,500 l Work Study1,5002,000 l State Aid2,0002,000 l Grant13,000 5,500 l TOTAL$20,000$14,000

20. 6/9/2015 Public vs. Private College RutgersLoyola Total Cost $29,875Total Cost$59,320 Need$19,875Need$49,320 % need fully met 12%need fully met 95% Financial aid eligibility$2,385Financial aid eligibility $46,854 Gift aid46%$1,099Gift aid 70%$32,797 Self help 54%$1,287Self help 30%$14,056 Out of pocket cost $27,461Out of pocket cost$12,467 Total cost - gift aid $28,776Total cost - gift aid $26,523

21. 6/9/2015 Maximizing Aid Eligibility Understanding The Federal Formula May Save You

22. 6/9/2015 ASSET VALUATION l INCLUDED l Cash l Savings l Stocks l Bonds l Mutual Funds l Real Estate l Business l EXCLUDED l Retirement Accounts l Cash Value of Life Insurance l Annuities l Primary Residence l (Federal Only l Family Farm (Federal Only l Consumer Assets l Consumer Debt

23. 6/9/2015 Parent Income Protection Allowance l Family of 4…. $25,000 l Family of 5….$30,000 l Family of 6….$35,000

24. 6/9/2015 Asset Protection Allowance l Age 46…. $47,700 l Age 47…. $47,900 l Age 48…. $50,100 l Age 49…. $51,300 l Age 50…. $52,900

25. 6/9/2015 How Many Family Members are Attending College ?

26. 6/9/2015 Understand The Logistics For Proper Filing Of Special Conditions Single-Separated-Divorced Parents Loss of Employment...

27. 6/9/2015 Retirement Contributions IRA’S 401K’sAs Income? TSA’SAs Assets? Are included as untaxed income on the financial aid forms. The value of these accounts are not included as an asset.

28. 6/9/2015 How Do I make My Child Independent?

29. 6/9/2015 VERIFICATION THE PROCESS OF SUBSTANTIATING FINANCIAL AID INFORMATION

30. 6/9/2015 EDUCATION TAX INCENTIVES

31. 6/9/2015 American Opportunity Credit 100% OF THE FIRST $2,000.00 25% OF THE NEXT $2,0000.00 Phaseout$180,000 MFJ $90,000 S,H of H Available all four years of undergraduate education Use form 8863 education credits Available for the first four years of post secondary ed. Up to $2,500 per eligible student

32. 6/9/2015 Lifetime Learning Credits 20% of the first $10,000 (no limit to the number of years) can be used for non degree study. Up to $2,500 credit per return Phase-out:$127,000 MFJ $63,000 S, H of H

33. 6/9/2015 Student Loan Interest Deduction Can reduce income up to $2500.00 $155,000 MFJ $75,000 SHH Can take this with claiming American Opportunity Credit Lifetime Learning Credit

34. 6/9/2015 Tuition and Fees Deduction from Income Reduce Income by up to $4000.00 Limits: $ 160,000 MFJ $ 80,000 SHH Can not take this deduction if claiming American Opportunity Credit or Lifetime Learning Credit

35. 6/9/2015 SECTION 529 PLANS l DISTRIBUTIONS ARE TAX FREE FOR EDUCATION l “ ASSETS of the OWNER”

36. 6/9/2015 What I can do for you Ensure you will qualify for the maximum amount of aid you are legally entitled to! Calculate your EFC Expertly complete the financial aid forms Advise how to pay what isn’t subsidized with financial aid Advise you on the most tax efficient way to pay for college Remain a year-round resource for your financial planning needs! Website www.financialaidnj.com

37. 6/9/2015 Services Provided Ensure you qualify for the maximum amount of Financial aid Calculate your expected family contribution Complete the FAFSA Complete the CSS Profile if required Advise how to pay the balance that is not subsidized with financial aid Advise you on the most tax efficient way to pay for college Provide planning recommendations to potentially reduce your EFC Advise on where to get the lowest interest loans for which you qualify Keep you appraised of changes in financial aid on the national and state level Advise you on which colleges are likely to give the most financial aid Review award letters for fairness Remain a year round resource for your financial planning needs