Top 5 Strategies. to Pay Less for College

Transcription

1 Top 5 Strategies to Pay Less for College

2 AGENDA ü ü ü ü ü ü ü ü Is College Still Worth the Investment? Strategy #1 The Conversation Strategy #2 College Selection Strategy #3 File Financial Aid Properly Strategy #4 Ask for More? Strategy #5 Know your Funding Options Bonus Strategy #6 More Cost Cutting Ideas! Question & Answer

3 IS COLLEGE STILL WORTH THE INVESTMENT?

4 Why College? High School Some Training College Degree Graduate Degree $626 $767 $1,038 $1,272

5 College Costs Past, Present, and Future $80,000 $70,000 $60,000 $70,000 $50,000 $40,000 $54,000 $48,000 $30,000 $20,000 $28,000 $24,000 $35,000 $35,000 $10,000 $9,000 $15, Average Public University Average Private College Elite Private College Source: College Board (in Constant (2006) Dollars)

6 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

7 Indirect Costs? Averages Books & Supplies = $1,137 Personal = $1,989 Transportation = $1,073 Computer & Software =? Total = $4,199 $4,199 X 4 = $16,796

8 College Year Grad Rate Boston College 87.2% Bryant University 72.0% Worcester Polytechnic Institute 71.7% Quinnipiac University 69.9% University of Rhode Island 41.9% University of Connecticut- Stamford 25.1% Western Connecticut State University 16.0% * research your colleges

9 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? Average Student Loan Payments That We See: $700-$1800 per mo! What is NOT Counted? Federal Parent PLUS Loan All Private Student Loans Home Equity or Other Loan

10 Do you know where you will be? $95,000 Total Debt $27,000 Total Debt $34,50 Total Debt $70,000 Total Debt

11 STRATEGY #1 THE CONVERSATION

12 Average College Funding Conversation Average Conversation on Paying for College? Typical Location of Conversation? Conversation Content è Why you MUST be different! è

13 Conversation Content Strategy 1: The Conversation 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

14 Strategy 1: The Conversation 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 = $37,000 Total Cost = $66,000

15 Strategy 1: The Conversation 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

16 STRATEGY #2 COLLEGE SELECTION

17 Strategy 2: College Selection Largest Impact 1 Academic Factors 2 Social Factors 3 Financial Factors

18 Strategy 2: College Selection Largest Impact Academic Factors ü Major ü 4 Year Graduation Rate ü Study Abroad Programs ü Academic Advising ü Career Services

19 Strategy 2: College Selection Largest Impact Social Factors ü Location ü Setting ü Student Activities ü Community Activities ü Campus Demographics

20 Strategy 2: College Selection 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

21 Strategy 2: College Selection 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.

22 STRATEGY #3 FILE FINANCIAL AID FORMS PROPERLY

23 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

24 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

25 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 500 Private Colleges ü Institutional Aid ü Early Deadlines! ü Absent Parent Form Institutional Form ü Deadline

26 Strategy 3: File Financial Aid Properly Regardless of Income FAFSA FAFSA.ed.gov Print Paper FAFSA Research State Deadlines Cost = Free PROFILE CollegeBoard.com Research Colleges that require Print Out Instructions Cost = $25 and $16 each College

27 STRATEGY #4 ASK FOR MORE?

28 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)

29 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

30 STRATEGY #5 KNOW YOUR FUNDING OPTIONS- WELL AHEAD

31 Strategy 5: Know your Funding Options Well Ahead of Time! Select Apply Admit Financial Aid Award FUND! June- Nov Nov- Jan Jan- March March - May June May 1 st June 1 st

32 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????

33 Strategy 5: Know your Funding Options Well Ahead of Time! Private Student Loans Federal Stafford Loan Federal PLUS Loan Federal Perkins Loan Home Loan Tuition Payment Plan Amount Term % Fee Cost $10, Years 4.5% Zero $2,437 You may qualify for Federal $10, Years 6.8% 1.5% $4,020 student loans. We encourage students to exhaust Federal $10, Years 7.9% 4% $5,100 student loan options before applying for a Private student $10, Years 5.0% $0 $2,728 loan, as Federal loans are often $10, Years 3.7%? $1,989 less expensive and offer the May 1 st June 1 st widest variety of repayment $10, Years 0% $60 $60 options.

34 Strategy 5: Know your Funding Options Well Ahead of Time! Amount Term % Fee Cost Private Student Loans $10, Years 4.5% Zero $2,437 Federal Stafford Loan $10, Years 6.8% 1.5% $4,020 Federal PLUS Loan $10, Years 7.9% 4% $5,100 Federal Perkins Loan $10, Years 5.0% $0 $2,728 Home Loan Tuition Payment Plan $10, Years 3.7%? $1,989 May 1 st June 1 st $10, Years 0% $60 $60

35 Strategy 5: Know your Funding Options Well Ahead of Time! Private Student Loans Bankruptcy Fixed Death Disability Reduce Dissolve Tax Write- Off NO sometimes NO NO YES Federal Stafford Loan NO YES YES $5,000 After 120 YES Federal PLUS Loan NO YES YES NO YES Federal Perkins Loan NO YES YES $5,000 After 120 YES Home Loan Tuition Payment Plan sometimes sometimes sometimes NO YES May 1 st June 1 st n/a n/a n/a n/a n/a

36 BONUS: Strategy 6 Total Savings $8,000! Strategy 6: Cost Cutting Ideas ü Regional Tuition Options = $7,000 ü HealthCare Plan = $1,000

37 BONUS: Strategy 6 Typical Savings $7,000 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

38 BONUS: Strategy 6 Total Savings $1,000 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!

39 Top 5 Strategies us for the Presentation! Shelley@CollegePrepCollaborative.com

40 THANK YOU Remember: Turn in your Tuition Rewards Take advantage of your FREE visit Get your number!

41 4 of 5 young Americans believe that an educa9on is more important for their genera9on ProjectonStudentDebt.org College educa9on Some post- high school educa9on/ training PLAN, 41 PREPARE & PAY FOR COLLEGE

42 3 in 4 also say that it has become harder to afford college. PLAN, 42 PREPARE & PAY FOR COLLEGE

43 Strategy 2: College Selection Largest Impact

44 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

45 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

46 Case Study 1- Adam Financial Aid Outcome AGI = $120,000 Federal Stafford Loan $5,500 TEACH Grant $4,000 Institutional Grant $9,800 Total $19,300 COA Tuition $21,000 Room & Board $7,000 Fees $1,000 Total Costs = $29,000 Parent Share = $9,700

47 Case Study 2- Adam Financial Aid Outcome 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 $21,000 Room & Board $7,000 Fees $1,000 Total Costs = $29,000 Parent Share = $7,600

48 Case Study 3- Adam Financial Aid Outcome 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 $21,000 Room & Board $7,000 Fees $1,000 Total Costs = $2,250 Parent Share = $2,250