1. By: Scott Kessler LPL Financial SmartCollegeFunding.com LPL Financial Member FINRA/SIPC

2. Financial Aid Basics - HOPE  3.0 high school HOPE GPA across core academic subjects (evaluated by GSFC)  3.0 across ALL college courses attempted  Evaluated at the end of every Spring semester AND at 30, 60, and 90 attempted hours  Can LOSE HOPE at any of these checkpoints  Can only GAIN HOPE at 30, 60 and 90 attempted hours LPL Financial Member FINRA/SIPC

3. Financial Aid Basics – Zell Miller  ZELL MILLER SCHOLARSHIP ELIGIBILTY  Graduate as the valedictorian or salutatorian; OR  Graduate with a 3.7 GPA (as calculated by GSFC); AND 1200 on the math and reading portions of the SAT or 26 on the ACT – One test administration, not highest combined score  Must maintain 3.3 GPA across ALL college courses attempted  Evaluated at the end of Spring term AND at 30, 60, and 90 attempted hours LPL Financial Member FINRA/SIPC

4. Financial Aid Basics  Common Requirements between HOPE and Zell Miller Scholarship GA resident at high school graduation – must be GA resident for 12 months prior to receiving HOPE/ZMS in college Not a GA resident at high school graduation – must be GA resident for 24 months prior to receiving HOPE/ZMS in college Lose and Regain only ONE time Can lose ZMS and maintain HOPE eligibility if above 3.0 college GPA LPL Financial Member FINRA/SIPC

5. Financial Aid Basics  Common Requirements between HOPE and Zell Miller Scholarship  127 Attempted Hour Limit ATTEMPTED HOURS Hours of record after drop/add – “If it appears on the transcript” Includes F grades and withdrawals Seven Year Limit following high school graduation LPL Financial Member FINRA/SIPC

6. 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 LPL Financial Member FINRA/SIPC

7. Graduation Rates  4 Year Graduation Rates  Public Colleges 31%  Private Colleges 53%  6 Year Graduation Rates  Public Colleges 58%  Private Colleges 65% LPL Financial Member FINRA/SIPC

8. 6 Year Graduation Rate - 2013  University of Florida  University of Georgia  University of So. Carolina  University of Tennessee  University of Arkansas  GCSU  University of North GA  Georgia Southern 86.5% 82.2% 72.7% 67.5% 60.1% 61.2% 52.8% 50.5% LPL Financial Member FINRA/SIPC www.collegeresults.org

9. Average Cost of College (COA) per College Board 2014-2015  Public University $23,410 per year  Private University $44,272 per year  Elite Private University $55,000+ per year LPL Financial Member FINRA/SIPC

10. Paying for College There are two very different prices for college: one for the informed buyer & one for the uninformed buyer LPL Financial Member FINRA/SIPC

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

12. Cost of Attendance (COA)  Includes direct costs to the college (tuition/fees)  Also includes indirect costs for related educational expenses  Room/Board  Books/Supplies  Transportation  Miscellaneous Living Expenses LPL Financial Member FINRA/SIPC

13. Expected Family Contribution (EFC)  A measure of how much the student and his or her family can be expected to contribute to the cost of the student’s education for the year  EFC is calculated by a formula specified in federal law  Factors include but are not limited to:  Assets  Adjusted gross income  Federal tax liability  Number in household  Number in college  Student’s dependency status LPL Financial Member FINRA/SIPC

14. Financial Aid Formula COA (Cost of Attendance) - EFC (Expected Family Contribution) = FN (Financial Need) The difference between the COA and EFC numbers is your “financial need” or eligibility for financial aid at a particular school. LPL Financial Member FINRA/SIPC

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

16. Loans  Must be paid back  Direct Loans (Stafford) - students  PLUS - parents LPL Financial Member FINRA/SIPC

17. Financial Aid Basics – Federal Programs  Free Application for Federal Student Aid (FAFSA)  www.fafsa.gov www.fafsa.gov  The gateway for all Federal Student Aid programs  Includes student and parent loan programs LPL Financial Member FINRA/SIPC

18. Financial Aid Basics – Loan Programs Direct Subsidized Loans  Gov’t pays interest while student is enrolled in school at least half-time  Need-based  1.073% origination fee withheld by US Dept. of Education prior to disbursement  2015-2016 Interest Rate is 4.29% (fixed) Unsubsidized Direct Loans  Interest accrues on loan while student is enrolled in school  Student has option to defer or pay interest while in school  1.073% origination fee withheld by US Dept. of Education prior to disbursement  2015-2016 Interest Rate is 4.29% (fixed) LPL FinancialMember FINRA/SIPC LPL FinancialMember FINRA/SIPC LPL Financial Member FINRA/SIPC

19. Annual Direct Loan Limits Academic Annual Limit Additional Total Annual Level(Sub & Unsub)Unsub Limit Limit Freshman$3500$2000$5500 Sophomore$4500$2000$6500 Junior/$5500$2000$7500 Senior LPL Financial Member FINRA/SIPC

20. Aggregate (Lifetime) Direct Loan Limits Status Subsidized Limit Combined Limit Undergraduate$23,000 $31,000 Dependent Undergraduate$23,000 $57,500 Independent Graduate$65,500 $138,000 Student LPL Financial Member FINRA/SIPC

21. PLUS Loan for Parents  Apply at www.studentloans.govwww.studentloans.gov  Origination Fee of 4.292%  Interest rate for 2015-2016 = 6.84%  Can borrow up to the Cost of Attendance minus other aid  Credit Check required LPL Financial Member FINRA/SIPC

22. Which University Is More Expensive?  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  COA$45,000  EFC -10,000  FN 35,000  Loan 3,000  Grant 12,000  Scholarship 20,000  Un-Met Need 0  Real $ Cost 13,000 University AUniversity B LPL Financial Member FINRA/SIPC

23. 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

24. Financial Aid  Requires the understanding of:  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

25. 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