1. By: Scott Kessler LPL Financial www.smartcollegefunding.com
Planning
By: Scott Kessler
LPL Financial
LPL Financial Member FINRA/SIPC

2. We know why college matters
Bachelor’s degree holders earn $1 million more over a lifetime than high school graduates
By 2020, 75% of all U.S. jobs will require a degree beyond high school
Unemployment rates by educational level as of 5/2013
11.1% Less than high school diploma
7.4% High school, no college
6.5% Some college
3.8% College or greater
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3. Graduation Rates 4 Year Graduation Rates 6 Year Graduation Rates
Public Colleges 31%
Private Colleges 53%
6 Year Graduation Rates
Public Colleges 56%
Private Colleges 65%
LPL Financial Member FINRA/SIPC

4. 6 Year Graduation Rate - 2011 University of Florida 83.7%
University of Florida
83.7%
University of Georgia
82.4%
University of So. Carolina
70.2%
University of Tennessee
63.2%
University of Arkansas
59.0%
GCSU
55.3%
University of North GA
52.8%
Georgia Southern
46.5%
LPL Financial Member FINRA/SIPC

5. Average Cost of College (COA) per College Board 2013-2014
Public University $22,826 per year
Private University $44,750 per year
Elite Private University $50,000+ per year
LPL Financial Member FINRA/SIPC

6. Tuition Inflation - per the Consumer Price Index cumulative percent price changes since 1983
Apparel 29%
Cars 47%
Coffee 109%
Housing 129%
Gas 217%
Medical Care 326%
College Tuition 645%
LPL Financial Member FINRA/SIPC

7. Which price will YOU pay?
Paying for College
There are two very different prices for college: one for the informed buyer & one for the uninformed buyer
Which price will YOU pay?
LPL Financial Member FINRA/SIPC

8. Retail vs. Wholesale Only $119! I paid $369
When you fly do you pay the same as the person sitting next to you? WHY?
Which seat would you rather sit in?
Only
$119!
I paid $369
LPL Financial Member FINRA/SIPC

9. EFC
Expected Family Contribution (EFC) – The portion of your income and assets that you will be expected to contribute towards college costs.
How is it determined? From January of the students Junior Year to December of their Senior Year. This is called the Base Year.
Cost of Attendance – EFC = Financial Need
LPL Financial Member FINRA/SIPC

10. Free Money
Scholarships
&
Grants
LPL Financial Member FINRA/SIPC

11. Loans Must be paid back Stafford - students PLUS - parents
LPL Financial Member FINRA/SIPC

12. Which University Is More Expensive?
University A
University B
COA $45,000
EFC -10,000
FN 35,000
Loan 3,000
Grant 12,000
Scholarship 20,000
Un-Met Need
Real $ Cost 13,000
COA $25,000
EFC -10,000
FN 15,000
Loan 5,000
Grant 2,000
Scholarship 6,000
Un-Met Need 2,000
Real $ Cost 17,000
LPL Financial Member FINRA/SIPC

13. Where does your portion come from?
Savings account
Checking account
Money Markets
Stocks
Bonds
Mutual Funds
Students savings
529 plans
UTMA/UGMA
Life Insurance
IRA
401K/403B
Real Estate
Annuities
LPL Financial Member FINRA/SIPC

14. Financial Aid Requires the understanding of: Need to know:
Forms required by the school (FAFSA, Profile)
Knowing your EFC
Prudent planning strategies to increase financial aid eligibility
Need to know:
Average % of Financial Need met by the university
The university’s 4 and 6 year graduation rates
LPL Financial Member FINRA/SIPC

15. Planning
Effective planning for financial aid occurs before filing FAFSA/Profile – NOT AFTER!
DO NOT PROCRASTINATE! - Early planning gives you the best chance to position yourself for financial aid
Learn as much as possible about the financial aid process and seek out the assistance of experts in the field for guidance
LPL Financial Member FINRA/SIPC

16. Scott Kessler 678.456.4227 www.smartcollegefunding.com
The opinions voiced in this material are for general information only and are not intended to provide specific advise or recommendations for any individual. To determine what may be appropriate for you, consult a financial professional.
LPL Financial Member FINRA/SIPC