FINANCIAL AID STRATEGYCOLLEGE AID PLANNING

PRESENTS

THE SECRETS TO GREATER COLLEGE FINANCIAL AID - MYSTERY SOLVED !

A FAMILY OF FOURSOME EXAMPLES BASED ON ADJUSTED GROSS INCOME THAT A FAMILY OF FOUR WITH TWO DEPENDENT CHILDREN IS EXPECTED TO PAY EACH YEAR TOWARDS COLLEGE.$22,688 @ $110,000 ADJUSTED GROSS INCOME$35,165 @ $150,000 ADJUSTED GROSS INCOME$43,404 @ $175,000 ADJUSTED GROSS INCOME

http://www.forbes.com/sites/troyonink/2014/01/31/2014-guide-to-fafsa-css-profile-college-aid-and-expected-family-contribution/

REALITY SETS IN

THE HAND DEALTA FAMILY OF FOUR WITH TWO DEPENDENT CHILDREN PARENTS AGE 45ADJUSTED GROSS INCOME OF $150,000SAVINGS UNSHELTERED FROM FINANCIAL AID FORMS $150,000ASSET PROTECTION ALLOWANCE OF $30,700EXPECTED FAMILY CONTRIBUTION (EFC) $41845

KNOWLEDGE IS POWER

Knowing what has the greatest manageable impact on the expected family contribution (EFC) calculation will help a family dramatically increase the amount of financial aid awarded to your student.

KNOWLEDGE + ACTION = SAVINGS $$$$$

THE HAND PLAYEDA FAMILY OF FOUR WITH TWO DEPENDENT CHILDREN PARENTS AGE 45ADJUSTED GROSS INCOME OF $150,000SAVINGS SHELTERED FROM FINANCIAL AID FORMS $150,000ASSET PROTECTION ALLOWANCE OF $30,700EXPECTED FAMILY CONTRIBUTION (EFC) $35165THEY SAVED $6681 YEAR 1 AND BY YEAR 4 THEIRSAVINGS TOTALED A WHOPPING $26724

DID YOU KNOW

DID YOU KNOW THAT YOUR 401K,IRA,SEP IRA CONTRIBUTIONS ARE CONSIDERED “DISCRETIONARY” AND WILL BE ADDED TO YOUR INCOME WHEN YOUR FINANCIAL NEED IS CALCULATED FURTHER REDUCING THE AMOUNT OF FINANCIAL AID YOU MAY BE ELIGIBE FOR? IT’S TRUE!!

THEY REALLY HAVE STACKED THE DECK AGAINST YOU………

THE IMPACT

DIVIDENDS, CAPITAL GAINS & INTEREST FROM SAVINGS ARE CONSIDERED INCOME WHICH WILL REDUCE THE AMOUNT OF FINANCIAL AID YOU ARE ELIGLIBLE FOR.UGMA & UTMAS ARE CONSIDERED ASSETS OF THE STUDENT WHICH WILL FURTHER REDUCE YOUR ELIGIBLE FINANCIAL AID

ABOUT YOUR TAX RETURN

KNOW WHAT IS ON YOUR IRS FORM 1040……LINES 8A & 8B Taxable & TAX EXEMPT INTERESTLINES 9A&9B ORDINARY&QUALIFIED DIVIDENDSLINE 13 CAPITAL GAINSLINE 32 IRA DEDUCTIONLINE 37 ADJUSTED GROSS INCOME

MANAGING THE IMPACT

WE CAN ONLY MANAGE WHAT WE CAN CONTROL AND AS PARENTS YOU DO HAVE CONTROL OVER THE FOLLOWING……..ASSETSDIVIDENDS INTEREST INCOMECAPITAL GAINSUGMA,UTMAs & TRUSTSALL OF WHICH HAVE A GREAT IMPACT ON YOUR FINCIAL AID AWARD

THE IMPACT BY THE NUMBERS20% of a student's assets (money, investments, business interests, and real estate)

50% of a student's income (after certain allowances)

2.6%- 5.6% of a parent's assets (money, investments, certain business interests, and real estate,

based on a sliding income scale and after certain allowances)

22%-47% of a parent's income (based on a sliding income scale and after certain allowances)

Examples:$20,000 UGMA=$4000 REDUCTION IN NEED$20,000 MUTUAL FUND =$ 4000 REDUCTION IN NEED (STUDENT OWNED) $20,000 MUTUAL FUND = $1120 REDUCTION IN NEED (PARENT OWNED)$40,000 NUMBERS BECOME $8000(STUDENT OWNED) & $2240 (PARENT OWNED)$ 20,000 CAPITAL GAINS,DIVIDENDS & INTEREST(PARENT OWNED) COULD REDUCE NEED BY 47% OR BY $9400

THESE NUMBERS CAN ADD UP QUICKLY DRAMATICALLY REDUCING THE AMOUNT OF YOUR FINANCIAL AID AWARD

KNOW TOUR LIMITS

MOST PARENTS DO NOT KNOW AND HAVE NEVER HEARD OF…………….INCOME PROTECTION ALLOWANCEASSET PROTECTION ALLOWANCEFEDERAL HOUSING INDEXWE DO AND SO SHOULD YOU, REMEMBER “KNOWLEGE IS POWER”

KNOW THE EFFECTS BEFORE YOU FILE FAFSA OR CSS PROFILEHOME EQUITY… IF YOU HAVE A GREAT AMOUNT OF EQUITY IN YOUR HOME AVOID APPLYING TO PRIVATE UNIVERSITIES WHICH USE THE CSS PROFILE AND CONSIDER APPLYING ONLY TO STATE COLLEGES AND UNIVERSITIES THAT ONLY USE THE FAFSA ONLY TO DETERMINE YOUR STUDENTS FINANCIAL NEED. WHEN WE REFER TO STATE COLLEGE AND UNIVERSITIES THAT MEANS “ANY” STATE COLLEGE THROUGHOUT THE UNITED STATES.

WHO OWNS WHICH ASSETS & HOW IT WILL EFFECT FINANCIAL AIDINVESTMENTS & SAVINGS IMPACTSTUDENT & PARENT INCOME

CUT & PASTE THE LINK BELOWFOR A FREE CALCULTION

http://www.finaid.org/calculators/finaidestimate.phtml

THE FINANCIAL AID PROCESS

FAFSA = EFC YOUR “EXPECTED FAMILY CONTRIBUTION”ABOUT FAFSA: YOU MUST SUBMIT THE Free Application for Federal Student Aid IF YOU WANT TO APPLY FOR FEDERAL AND STATE FINANCIAL AID. USED BY ALL STATE COLLEGES AND UNIVERSITIES TO DETERMINE THE AMOUNT OF YOUR FAMILY’S FINANCIAL NEED.*THE FAFSA DOES NOT CONSIDER HOME EQUITY IN THEIR CALCULATIONS.ABOUT the CSS PROFILE: THE COLLEGE SCHOLARSHIP SERVICE or CSS Profile IS USED BY NEARLY400 PRIVATE INSTITUTIONS THROUGHOUT THE U.S. THE CSS Profile IS MUCH MORE EXTENSIVE THAN THE FAFSA. *THE CSS Profile WILL CONSIDER YOUR HOME EQUITY INTO THEIR NEEDS BASED CALCUATIONS.

COLLEGES THAT MEET UP TO 100% OF FINANCIAL NEED

THERE ARE MANY COLLEGES & UNIVERSITIES THAT WILL PAY UP TO ALL OF THE COST OF ATTENDING DEPENDING UPON YOUR FINANCIAL NEED.HOWEVER, MOST OF THESE INSTITUTIONS ARE VERY SELECTIVE IN THEIR ACCEPTANCE DUE DILIGENCE AND TAKE ONLY THOSE STUDENTS WITH HIGH GPAs & SAT SCORES. OTHER CRITERIA MAY INCLUDE PARTICIPATION IN INTERSCOLASTIC SPORTS, OTHER INTERESTS SUCH AS MUSIC,BAND,SCIENCE MATH OR DEBATE CLUBS etc. AS WELL AS PARTICIPATION IN COMMUNITY SERVICES.

*http://www.usnews.com/education/bestcolleges/payingforcollege/articles/2015/09/14/colleges-that-report-meeting-full-financial-need

COLLEGE ENDOWMENT FUNDS

THE VALUE OF THE ENDOWMENT FUNDS OF COLLEGES AND UNIVERSITIES WAS $425 BILLION AT THE END OF FISCAL TEAR 2012. AS OF 2013 THE TOP 5 UNIVERITIES COMBINED HAD OVER $100 BILLION.*REMEMBER FINANCIAL AID IS BASED ON NEED AND EVEN THE WEALHIEST COLLEGES PAYOUT LESS THAN 5% OF THEIR ENDOWMENTS TO STUDENTS EACH YEAR.**http://chronicle.com/article/Regulation-of-College/40395

THE LIST OF COLLEGES &UNIVERSITIES LARGEST WITH THE LARGEST ENDOWMENTSKNOW THIS…….THE COLLEGES AND UNIVERSITIES WITH THE LARGEST ENDOWMENTS ARE ALSO THE ONES WHICH AWARD FINANCIAL AID IN THE FORM OF GRANTS WHICH IS MONEY YOU DO NOT HAVE TO PAY BACK.FOR THE COMPLETE LIST PASTE & COPY THE LINK BELOW TO YOUR BROWSERhttp://www.nacubo.org/Documents/EndowmentFiles/2013NCSEEndowmentMarket%20ValuesRevisedFeb142014.pdf

EASING THE BURDENMERIT AWARDS…GIVEN FOR OUTSTANDIND ACADEMIC ACHIEVEMENT REGARDLESS OF FINANCIAL NEEDGRANTS…MANY PRIVATE UNIVERSITIES PROVIDE FINANCIAL AID IN THE FORM OF GRANTS WHICH IS MONEY YOU DO NOT HAVE TO PAY BACKAP COURSES…TAKEN IN HIGH SCHOOL CAN PROVIDE UP TO A FULL SEMESTER OF TUITION SAVINGSTWO YEAR COMMUNITY COLLEGE… IN MASSACHUSETTS YOUR STUDENT CAN TRANSFER TO A STATE UNIVERSITY AFTER COMPLETING A 2 YEAR COMMUNITY COLLEGE DEGREE PROGRAM AND ATTEND TUITION FREE FOR THEIR JUNIOR & SENIOR YEARS

THE NOT SO OBVIOUS SOURCES OF FUNDING & PAYING FOR COLLEGE

RETIREMENT PLAN LOANSAPPLYING TO ONLY THOSE COLLEGES THAT MEET UP TO 100% OF NEEDWAITING UNTIL AGE 23 TO BEGIN COLLEGE.* IF YOUR CHILD IS LIVING INDEPENDENTLY AT AGE 23( NOT AT HOME WITH PARENTS) FINANCIAL NEED WILL BE CALCULATED BY THEIR INCOME & ASSETS ONLY. PARENTS WILL NOT HAVE TO PROVIDE ANY FINANCIAL INFORMATION.CHOOSING LOANS WHICH ALLOW DEFERRING REPAYMENT UNTIL AFTER GRADUATION *DEFERRING PAYMENT MAY HELP YOU WITH CASHFLOW TODAY BUT WILL COST MORE OVER TIME

Forbes 2015 AmericasTop 50 Colleges

America’s Top Colleges 2015

#50 Whitman College, Washington $58,228

#49 University of North Carolina, Chapel Hill, North Carolina $50,732

#48 Kenyon College, Ohio $62,160

#47 Vanderbilt University, Tennessee $62,320

#46 Oberlin College, Ohio $64,396

#45 University of California, Los Angeles, California $55,856

#44 Colby College, Maine $61,100

#43 Bucknell University, Pennsylvania $63,040

#42 Barnard College, New York $63,220

#41 University of Michigan, Ann Arbor, Michigan $55,404

#40 Colgate University, New York $62,405

Forbes Top 50 list Rankings # 14-26

#26 Wellesley College, Massachusetts $61,088#25 Cornell University, New York $63,606#24 Tufts University, Massachusetts $63,400#23 Georgetown University, District of Columbi$64,540 #22 Duke University, North Carolina $63,999#21 Bowdoin College, Maine $61,650#20 University of Chicago, Illinois $67,572#19 Haverford College, Pennsylvania $64,226#18 Claremont McKenna College, California $64,215#17 Wesleyan University, Connecticut $64,163#16 Northwestern University, Illinois $65,519#15 Columbia University, New York $66,604#14 Dartmouth College, New Hampshire $65,133

Forbes Top 50 list Rankings #27-39

#39 College of William & Mary, Virginia $53,435#38 United States Air Force Academy, Colorado $0 #37 Boston College, Massachusetts $63,022#36 University of Virginia, Virginia $56,196#35 University of California, Berkeley California $57,234#34 Middlebury College, Vermont $61,160#33 California Institute of Technology, California $60,990#32 Rice University, Texas $56,316#31 Davidson College, North Carolina $60,921#30 Carleton College, Minnesota $62,465#29 Washington and Lee University, Virginia $60,084#28 Vassar College, New York $63,390#27 United States Naval Academy, Maryland $0

Forbes Top 50 list Rankings # 1-14

#14 Dartmouth College, New Hampshire $65,133#13 University of Notre Dame, Indiana $62,461#12 University of Pennsylvania, Pennsylvania $64,200#11 United States Military Academy, New York $0#10 Massachusetts Institute of Technology, Massachusetts $61,030#9 Amherst College, Massachusetts $64,006#8 Brown University, Rhode Island $62,694#7 Swarthmore College, Pennsylvania $62,450#6 Harvard University, Massachusetts $62,250#5 Yale University, Connecticut $63,970#4 Princeton University, New Jersey $58,965#3 Stanford University, California $62,801#2 Williams College, Massachusetts $64,020#1 Pomona College, California $62,632 Source/ Forbes http://www2.forbes.com/entrepreneurs/americas-top-colleges-2015/?utm_campaign=Top-Colleges-2015&utm_source=yahoo-gemini&utm_medium=referral

The Rising Cost of Tuition, Room & Board

You can expect to pay 25% more for college when your Freshman is in there Senior year ! $ 60,000 Freshman year $75,000 Senior year That is a $15,000 increase (or 25%) in just 4 short years!

Source http://www.fool.com/investing/general/2015/10/18/wage-growth-is-languishing-but-these-3-expenses-ar.aspx

IMPORTANT REFERENCE LINKSINCOME AND ASSET PROTECTION ALLOWANCE

http://www.indianacollegecosts.org/docs/default-source/publications/parent-income-asset-contribution.pdf?sfvrsn=6

2014 GUIDE TO FAFSA,CSS PROFILE,COLLEGE AID & EXPECTED FAMILY CONTRIBUTION

http://www.forbes.com/sites/troyonink/2014/01/31/2014-guide-to-fafsa-css-profile-college-aid-and-expected-family-contribution/

DIVORCE & FINANCIAL AID

http://www.finaid.org/questions/faq.phtml#divorce

COLLEGES THAT DO NOT USE SAT/ACT SCORES FOR ADMITTANCEhttp://www.fairtest.org/schools-do-not-use-sat-or-act-scores-admitting-substantial-numbers-students-bachelor-degree-programs

2014-15 EFC FORMULA GUIDE

http://ifap.ed.gov/efcformulaguide/attachments/091913EFCFormulaGuide1415.pdf

2014-15 FAFSA DEADLINES

https://fafsa.ed.gov/fotw1415/pdf/Deadlines.pdf

2014-15 ASSET PROTECTION ALLOWANCE CHANGES

http://www.completecollegeconsulting.com/apa-asset-protection-allowance-changes-2014-2015/

REMEMBER THIS…………..

CLOSING REMARKSOUR GOAL TODAY WAS TO PROVIDE YOU WITH THE NECESSARY ACTIONABLE KNOWLEDGE TO HELP REDUCE THE FINANCIAL BURDEN OF THE COSTS ASSOCIATED TODAY WITH ACQUIRING A COLLEGE DEGREE. WE ARE HERE TO HELP SO IF YOU ARE FEELING OVERWHELMED, CONFUSED OR SIMPLY DO NOT WANT OR HAVE THE TIME TO DO THE NECESSARY RESEARCH ON YOUR OWN GIVE US A CALL AND MOST OF ALL “GOOD LUCK & BEST WISHES “ ON YOUR JOURNEY.http://www.financialaidstrategy.com/WE CAN BE REACHED AT 508-887-5615