Top 5 Strategies to Pay Less for College

Transcription

Top 5 Strategies
to Pay Less for College
PLAN, PREPARE & PAY FOR COLLEGE
WWW.COLLEGEPREPCOLLABORATIVE.COM
AGENDA
ü  Is College Still Worth the Investment?
ü  Strategy #1 The Conversation
ü  Strategy #2 College Selection
ü  Strategy #3 File Financial Aid Properly
ü  Strategy #4 Ask for More?
ü  Strategy #5 Know your Funding Options
ü  Bonus Strategy #6 More Cost Cutting Ideas!
ü  Question & Answer
IS COLLEGE STILL WORTH THE
INVESTMENT?
Why College?
High School
$626
Some Training
$767
College Degree
$1,038
Graduate Degree
$1,272
College Costs – Past, Present, and Future
$80,000
$70,000
$70,000
$60,000
$54,000
$50,000
$48,000
$40,000
$35,000
$30,000
$28,000
$20,000
$35,000
$24,000
$15,000
$10,000
$9,000
1996 2006 2016 Average
Public University
1996 2006 2016 Average
Private College
1996 2006 2016 Elite
Private College
Source: College Board (in Constant (2006) Dollars) Undisclosed Fees are rising
much faster than Tuition
“Students are swamped in fees” A not mentioned regional
college “charges a service fee, a health fee, an activities
fee and a curriculum fee, which together add up to
about $4,100.”
NY Times
Indirect Costs?
Averages
•  Books & Supplies =
$1,137
•  Personal =
$1,989
•  Transportation =
$1,073
•  Computer & Software =
•  Total =
?
$4,199
$4,199 X 4 = $16,796
College
Boston College
Bryant University
2010 4-‐Year Grad Rate 87.2%
72.0%
Worcester Polytechnic
Institute
Quinnipiac University
University of Rhode Island
71.7%
69.9%
41.9%
University of ConnecticutStamford
25.1%
Western Connecticut State
University
16.0%
* research your colleges www.collegeresults.org
Average Student Debt?
§  $23,000? NO!
§  $35,000 X 4= $140,000
§  Indirect Costs = $14,000
§  =
What is Counted?
§  Federal Stafford & Perkins
§  $5,500, $6,500, $7,500, $7,500
= $27,000 or $34,500
$154,000?
What is NOT Counted?
Average Student Loan Payments
That We See:
$700-$1800 per mo!
§  Federal Parent PLUS Loan
§  All Private Student Loans
§  Home Equity or Other Loan
Do you know
where you will be?
$95,000
Total Debt
$27,000
Total Debt
$34,50
Total Debt
$70,000
Total Debt
STRATEGY #1
THE CONVERSATION
Average College Funding
Conversation
•  Average Conversation on Paying
for College?
•  Typical Location of Conversation?
•  Conversation Content è
•  Why you MUST be different! è
Strategy 1: The Conversation
Conversation Content
•  College Costs? Net Price Calculators
•  What the Family can Afford? Each Year X 4
= $00,000? Other children? Cost of Borrowing?
•  Why the Student Needs a Stake?
$27,000 , $34,500
•  Goals & Expectations- Write them down!
Work 15 hours per week, C or above, Finish in 4
years, etc…
ü  Current Financial Assessment
Why you MUST be Different?
Direct Benefits
SAVINGS = $25,000-$66,000
One Year College Tuition = $24-40k
Indirect costs =
$4-5k
1 Year extra Accrued Interest = $1k
1 Year Salary =
Total Cost =
$37,000
$66,000
Why you MUST be Different?
Indirect Benefits
•  Student Confidence
•  Resume Booster- I Graduated in 4 years!
•  Better Graduate School Candidate
•  More Job Experience- 1 year head start!
•  Peace of Mind knowing less Debt
STRATEGY #2
COLLEGE SELECTION
Strategy 2: College Selection
Largest Impact
1  Academic Factors
2  Social Factors
3  Financial Factors
Largest Impact
Academic Factors
ü  Major
ü  4 Year Graduation Rate
ü  Study Abroad Programs
ü  Academic Advising
ü  Career Services
Largest Impact
Social Factors
ü  Location
ü  Setting
ü  Student Activities
ü  Community Activities
ü  Campus Demographics
Largest Impact
Financial Factors
ü  4 year Graduation Rate
ü  College NEED or MERIT based Aid?
ü  Geography
ü  Private vs. Public
ü  Student Value
Largest Impact
ü  GOOD MATCH ACADEMICALLY = Intern/CoOp Options è
Study Abroad è Better Job Candidate è Better Prepared for
Graduate School è Better Career Outlook priceless!
ü  GOOD MATCH SOCIALLY = Social Satisfaction è Academic
Satisfaction è Graduate on-time è $25-66,000 savings!
ü  GOOD MATCH FINANCIALLY = Larger Tuition Discount è
More Financial Aid è Less Debt (10 vs 30) è More Life
Satisfaction è Minimum savings $7,000.
STRATEGY #3
FILE FINANCIAL AID FORMS
PROPERLY
Financial Aid
How Is Need Determined?
Income, assets,
family information
Types of financial aid:
•  Loan
•  Grant/Award
•  Scholarship
•  Work-study job
Federal or institutional
methodology
Expected family
contribution (EFC)
Cost of college less EFC
equals financial need
Financial Assistance For All Students
The two top reasons that students do not get financial aid •  Remember Need Based or Merit Aid
ü  They never complete the required forms
ü  This can mean no scholarship money or grant money
ü  They incorrectly complete the required forms, and never know it
ü  Would you let the IRS complete your tax returns? –  Everyone MUST file all forms whether you think you have need or not,
otherwise your student may NOT get the merit money they deserve
Strategy 3: File Financial Aid Properly
Regardless of Income
ü  FAFSA- Free Application for
Federal Student Aid
ü  Gateway to: Federal, State,
and Institutional Aid.
ü  MUST be Filled each year by
Deadline!
ü  Common errors: AGI, Tax
paid, Asset Allocation,
Exemptions vs. Family Size
CSS PROFILE
ü 
ü 
ü 
ü 
500 Private Colleges
Institutional Aid
Early Deadlines!
Absent Parent Form
Institutional Form
ü  Deadline
Strategy 3: File Financial Aid Properly
Regardless of Income
FAFSA
PROFILE
§  FAFSA.ed.gov
§  CollegeBoard.com
§  Print Paper FAFSA
§  Research Colleges that require
§  Research State Deadlines
§  Print Out Instructions
§  Cost = Free
§  Cost = $25 and $16 each College
STRATEGY #4
ASK FOR MORE?
Strategy 4 : Ask for More…?
ü  Just that Simple...NO!
ü  Merit | Affordability | Both
ü  Merit changes each year
ü  Affordability Certain Factors:
Medical Expenses, Income Change,
other Extenuating Circumstances
ü  Professional Judgment (PJ)
Case Study - Megan
Financial Aid Appeal
•  Funeral Expenses: Unavoidable
expenses
•  Medical Expenses: RX
expenses, co-pays, and surgery
expenses
•  Dental Expenses: Uncovered
necessary expenses
•  Loss of Income: Hours
Decreased after June or layoff?
•  PJ: Verification of all income and
documentation of expenses
•  Adjustment: $2,300
STRATEGY #5
KNOW YOUR FUNDING
OPTIONS- WELL AHEAD
Strategy 5: Know your Funding Options
Well Ahead of Time!
Select
JuneNov
Apply
NovJan
Admit
JanMarch
Financial
Aid
Award
March
- May
FUND!
June
May 1st –
June 1st
Student Loans Anyone????
ü Stafford
ü Perkins
ü PLUS
ü Private
ü Alternative
ü Home Equity
ü 401k Loans
ü Your name????
ü Student name????
Well Ahead of Time!
Private Student Loans
Amount
Term
%
Fee
Cost
$10,000
10 Years
4.5%
Zero
$2,437
You may qualify for Federal
Federal Stafford Loan
Federal PLUS Loan
Federal Perkins Loan
$10,000
Years
student10loans.
1.5%
We 6.8%
encourage
students to exhaust Federal
$10,000
10 Years
7.9%
$4,020
4%
$5,100
applying10for
a Private
$10,000
Years
5.0%student
$0
$2,728
student loan options before
loan, as Federal loans are often
Home Loan
$10,000
10 Years
3.7%
less expensive
and
offer the ?
$1,989
May 1st –
June 1st
Tuition Payment Plan
widest variety of repayment
$10,000
10 Years
options.
0%
$60
$60
Well Ahead of Time!
Amount
Term
%
Fee
Cost
$10,000
10 Years
4.5%
Zero
$2,437
$10,000
10 Years
6.8%
1.5%
$4,020
Federal PLUS Loan
$10,000
10 Years
7.9%
4%
$5,100
$10,000
10 Years
5.0%
$0
$2,728
Home Loan
$10,000
10 Years
3.7%
?
$1,989
May 1st –
June 1st
$10,000
10 Years
0%
$60
$60
Well Ahead of Time!
Bankruptcy
Fixed
Death
Disability
Reduce
Dissolve
Tax WriteOff
NO
sometimes
NO
NO
YES
NO
YES
YES
$5,000
After 120
YES
Federal PLUS Loan
NO
YES
YES
NO
YES
NO
YES
YES
$5,000
After 120
YES
Home Loan
sometimes
sometimes
sometimes
NO
YES
n/a
n/a
May 1st –
June 1st
n/a
n/a
n/a
BONUS: Strategy 6
l
Tota s
ng
Savi 0!
0
$8,0
Strategy 6: Cost Cutting Ideas
ü  Regional Tuition Options = $7,000
ü  HealthCare Plan = $1,000
BONUS: Strategy
6
cal
i
p
y
T
ng s
i
v
a
S
00
$7,0
New England TuitionBreak- Regional Tuition
ü  Six states: Connecticut, Maine, Massachusetts, New
Hampshire, Rhode Island and Vermont
ü  More than 700 Programs
ü  Study Abroad in Quebec (16) & Nova Scotia (10)
ü  New England China Scholarship Program (50) up to 1
year tuition & fees paid
BONUS: Strategy
6
l
Tota s
ng
Savi 0
0
$1,0
HealthCare Plan
ü  All College Students MUST have HealthCare
to be on Campus!
ü  College Provides Plan if you don’t. Costs
vary $1,000-$2,500 per year.
ü  Charges will be in your bill!
ü  MUST provide proof by deadline!
Top 5 Strategies
Email us for the
Presentation!
[email protected]
THANK YOU
Remember:
Turn in your Tuition Rewards
Take advantage of your FREE visit
Get your number!
4 of 5 young Americans believe that an educa9on is more important for their genera9on ProjectonStudentDebt.org College educa9on 41 PLAN, PREPARE & PAY FOR COLLEGE
Some post-‐high school educa9on/ training WWW.COLLEGEPREPCOLLABORATIVE.COM
3 in 4 also say that it has become harder to aﬀord college. 42 PLAN, PREPARE & PAY FOR COLLEGE
Largest Impact
Case Study 1- Adam
Family Background
• 
• 
• 
• 
Parental Income: $120,000
Parental Assets: $10,000
Student income: $4,000
Student Assets: $1,000
•  Major: Elementary Education
•  Academic Setting: Small to
Medium Size
•  Community setting: Suburban
•  Graduate School: Required
•  Projected Income: $42-57,000
Case Study 1- Adam
Contributing Factors
•  Region: Outside of New England
•  School Type: Small to Medium
Private college
•  Gender: Male in Elementary
Education, Campus Balance
•  TEACH School: Participating
school
Case Study 1- Adam
Financial Aid Outcome
AGI = $120,000
TEACH Grant
Institutional Grant
Total
$5,500
$4,000
$9,800
$19,300
COA
Tuition
Room & Board
Fees
Total Costs =
$21,000
$7,000
$1,000
$29,000
Parent Share =
$9,700
Case Study 2- Adam
AGI = $49,000
Federal Stafford Loan $5,500
TEACH Grant
$4,000
Pell Grant
$3,200
SEOG
$1,000
State Grant
$700
Institutional Grant
$7,000
Total
$21,400
COA
Tuition
Room & Board
Fees
Total Costs =
Parent Share =
$21,000
$7,000
$1,000
$29,000
$7,600
Case Study 3- Adam
AGI = $29,000
Federal Stafford Loan $5,500
TEACH Grant
$4,000
Pell Grant
$5,550
SEOG
$4,000
State Grant
$1,700
Work-Study
$2,800
Institutional Grant
$6,000
Total
$26,750
COA
Tuition
Room & Board
Fees
Total Costs =
Parent Share =
$21,000
$7,000
$1,000
$2,250
$2,250

Top 5 Strategies to Pay Less for College

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