We Would Like to Welcome You to Our Workshop!

Transcription

1 Financial Aid Planning for College Presented by: OMH Partner Group, Inc. We Would Like to Welcome You to Our Workshop! OMH Partner Group, Inc. provides financial aid consultation services for a fee. Our services will determine the factors that impact your aid eligibility. You will be provided with appropriate recommendations to maximize college financial aid packages, or demonstrate as much financial need as legally possible. This does not guarantee any college financial aid, nor does it guarantee that we can increase your aid eligibility. Ultimately it is beyond our control and all financial aid packages are independently determined by each college that you are applying for need based financial aid. Need based financial aid packages can and will include a combination of Federal Loans/Grants, Federal Work Study, State Grant Programs, Institutional Grants/Scholarships, and other various loan programs. Investment advisory services provided by Redhawk Wealth Advisors, Inc., an SEC-registered investment advisor. Insurance and Annuity products are sold separately through OMH Partner Group, Inc. Nothing contained in our website or this material is intended to provide tax or legal advice. Consult with your tax advisor and/or legal counsel for suitability regarding your specific situation. Hypothetical or historical rates of return are not a guarantee of future results. Copyright OMH Partner Group, Inc. All rights reserved.

2 Costs of Education Ivy League Private Out of State 2012 Costs 2002 Costs State $0 $10 $20 $30 $40 $50 $60 $70

3 Myths about Financial Aid Myth #1 I make too much money! Myth #2 Let s just fill out a form and see what happens!

4 FAFSA & CSS Profile Forms Free Application for Federal Student Aid (FAFSA) Financial Aid Form All Colleges Require Form Submit Electronically After January 1 st of Senior Year Uses Federal Methodology Free to File CSS Profile Financial Aid Form Not All Colleges Require Form (Check with your colleges) Can Submit Electronically as Early as October of Senior Year, Usually Done with FAFSA in January of Senior Year Uses Institutional Methodology Charges an Application Fee and Charges Per College

5 The Information Entered On the FAFSA and CSS Profile Financial Aid Forms Goes Through One or Both of the Methodologies. These Formulas Will

6 Determine Your Expected Family Contribution Level or EFC

7 The EFC is Used to Determine Financial Need at a College You Must Demonstrate Financial Need in Order to be Eligible for Need Based Financial Aid Eligibility Does Not Guarantee Aid!

8 Demonstrating Need Actual Costs EFC = Need

9 Hypothetical Example Need EFC Costs 10 0 State Out of State Private Ivy League

10 Where Does Aid Come From? Federal Financial Aid Sources Grants Programs (Require Low EFC Levels) Loans (Subsidized and Unsubsidized Student Loans) Work Study Programs State of Illinois Financial Aid Sources Grant Programs (Monetary Assistance Program or MAP) State Resident Going to an Illinois College (Public or Private) Eligibility Requirements (Required Certain EFC Limits) Institutional or College Financial Aid Sources Grant Programs (Includes Need, Merit, Academic, or Athletic) Proprietary Institutional Loan Programs Campus Work Programs

11 Award Letter Once the student has been admitted and the college has everything they need, they will issue an award letter This is your financial aid offer, they are not set in stone. Colleges will have an appeal process if needed Shop, compare, and contrast is to your advantage Multiple Award letters will give your more options and flexibility

12 Special Circumstances What is Considered a Special Circumstance? Unemployment Child Support Being Reduced or Eliminated High Out of Pocket Medical Other Financial Hardships Letter of Special Circumstance Goes to Each Individual College that you are Applying

13 Hypothetical Award Letter College A College B Actual College Cost $48,000 $48,000 EFC $20,000 $20,000 Need $28,000 $28,000 Federal Aid Loans $5,500 $5,500 Grants $0 $0 Work Study $2,500 $0 State Aid Grants $2,000 $0 Institutional Aid Grants $12,000 $22,500 Total Aid $22,000 $28,000 Percentage of Need Met 79% 100%

14 Understanding the Formulas & Process If you understand the FORMULAS and PROCESS in how they can impact your eligibility, you could be at a significant advantage over someone who does not understand the different methodologies or process. A NEW PARADIGM FINANCIAL AID PLANNING STRATEGIES!

15 Students Assets & Income Student Assets Student Income Highest Assessment 20% Dollar One! (25% for Profile) After $1,750 50% Student EFC

16 Parental Assets & Income Parent Assets Parent Income After Allowances 0-6% After Allowances 0-47% Parent EFC

17 Student EFC & Parental EFC Students EFC Parents EFC Expected Family Contribution Level (EFC)

18 What Assets Are Included? REPORTABLE ASSETS (FAFSA) Checking Accounts Savings Accounts Money Market Accounts Mutual Funds Corporate or Government Bonds Individual Stocks Value of Business (Over 100 Employees) Value of Property (Other Than Primary Residence) Farm (You Do Not Live On) NON-REPORTABLE ASSETS (FAFSA) Family Home (Primary Residence) Cash Value of Life Insurance Cash Value of IRA s, 401K s, or Pensions Annuities Value of Business (Under 100 Employees) Family Farm (You Live On) Source: FAFSA On The Web & The Department of Education Federal Hotline for FAFSA.

19 529 Savings Plans & 529 Prepaid Tuition Plans Both types of plans are treated identical with regards to FAFSA & CSS Profile Parent Owned 529 s are reportable on the PARENTS side of the FAFSA & CSS Profile Even Though UGMA/UTMA accounts are Student owned assets they are reportable on the PARENTS side of the FAFSA & CSS Profile Source: FAFSA On The Web & The Department of Education Federal Hotline for FAFSA.

20 Retirement Plans and Contributions HOW ARE RETIREMENT CONTRIBUTIONS TREATED FOR FAFSA? Income All Employee Deductable Contributions to a Qualified Retirement Plan are ADDED Back on the INCOME side of the FAFSA HOW ARE RETIREMENT VALUES TREATED FOR FAFSA? Not Reportable as an Asset Once the money is in the qualified asset (IRA, 401K, Pension, 403B, etc) the cash value of that asset is not reportable Source: FAFSA On The Web & The Department of Education Federal Hotline for FAFSA.

21 How many family members in college? Always Count the Student that is applying for aid Do not include your parents Include others only if they will attend, at least half-time in , a program that leads to a college degree or certificate If your EFC is 20K for the Family, than if there are two in school it will be 10K for each family member Source: FAFSA On The Web & The Department of Education Federal Hotline for FAFSA.

22 Widowed, Married, Remarried, or Divorced Parents Answer the questions as of the date you will complete and sign your FAFSA. If your parent is widowed or single, answer the questions about that parent. If your widowed parent is remarried, answer the questions about that parent and your stepparent. If your parents are divorced or separated, answer the questions about the parent you lived with more during the past 12 months. If you did not live with one parent more than the other, give answers about the parent who provided more financial support during the past 12 months. If this parent is remarried, answer the questions about that parent and your stepparent. Source: FAFSA On The Web & The Department of Education Federal Hotline for FAFSA.

23 Independent vs. Dependent Can I Make My Student Independent? Were you born before January 1, 1989? On the day you submitted your FAFSA, were you married? At the beginning of the school year, will you be Graduate Student? Active Duty in the US Armed Forces Veteran of the US Armed Forces Have Children (Receive More Than ½ Support) Dependents of Your Own (Receive More Than ½ Support) Parents Deceased, Ward of Court, or Foster Child Emancipated Minor Determined By Court Were You In Legal Guardianship Determined By Court Determined to be an Unaccompanied Homeless Youth (As Determined by School District, Emergency Shelter, Transitional Housing, Runaway or Homeless Youth Center) NOT TOO MANY HIGH SCHOOL SENIORS! Source: FAFSA On The Web & The Department of Education Federal Hotline for FAFSA.

24 What Does OMH Partner Group, Inc. Do? Provide Our Clients Comprehensive Financial Aid Planning Services INVESTIGATE: A thorough analysis of your financial situation as it applies to the financial aid process and system RECOMMEND: Make any recommendations any strategies to maximize your financial aid eligibility, use proven methods IMPLEMENT: We have the ability to implement the strategy so that everything is set up correctly FAFSA Preparation included, CSS Profile Preparation for an additional cost It is a comprehensive service that is designed to get you through the entire year in which you are applying for financial aid! Fees for our Services (Contact Us or Available Upon Request)

25 What s Next? If you are interested in using our services please contact our office! OMH Partner Group, Inc. Paul Daly, Investment Advisor 401 South Carlton Avenue, Suite 204 Wheaton, IL O: F: paul@omhpartnergroup.com We would like to Thank You for coming to our seminar and look forward to working with you and your family! OMH Partner Group, Inc. provides financial aid consultation services for a fee. Our services will determine the factors that impact your aid eligibility. You will be provided with appropriate recommendations to maximize college financial aid packages, or demonstrate as much financial need as legally possible. This does not guarantee any college financial aid, nor does it guarantee that we can increase your aid eligibility. Ultimately it is beyond our control and all financial aid packages are independently determined by each college that you are applying for need based financial aid. Need based financial aid packages can and will include a combination of Federal Loans/Grants, Federal Work Study, State Grant Programs, Institutional Grants/Scholarships, and other various loan programs. Investment advisory services provided by Redhawk Wealth Advisors, Inc., an SEC-registered investment advisor. Insurance and Annuity products are sold separately through OMH Partner Group, Inc. Nothing contained in our website or this material is intended to provide tax or legal advice. Consult with your tax advisor and/or legal counsel for suitability regarding your specific situation. Hypothetical or historical rates of return are not a guarantee of future results. Copyright OMH Partner Group, Inc. All rights reserved.