“ Affording College & Solving the Financial Aid Mystery”

1. “ Affording College & Solving the Financial Aid Mystery” Sponsored By The Education Funding Consultants Association A National 501 (c ) 3 Non-Profit Organization

2. Handouts:Does everyone have one? • Strategies • FAFSA WORKSHEET • Evaluation Form • www.efcagroup.org

4. Program Outline • Who We Are • The College Cost Environment • College Facts & Myths • The differences between the SAT VS ACT • The Financial Aid Process • Paying For College? • Strategies & Programs-Making College a Financial Non-Event!

5. Who Is The Education Funding Consultants Association? • Federal tax-exempt 501(c)3 non-profit organization. • Works in conjunction with member colleges, universities, and organizations/companies. • Provides HS informational programs to parents of college-bound students. • Provide the necessary information about - financial aid, maximizing awards & coping with the costs of college.

6. Do You Know What This Is?

7. Three Most Important Years • Schools use a students first three years when considering acceptance for that student into their school. • What they look at: • GPA and SAT • AP or Honors classes • Extracurricular activities (Talent/Skills)

8. High School - 9th GradeThis is an important year! • This year lays the foundation for the classes that the student needs to take in the coming years (the better the classes the better the chances for acceptance at the most competitive colleges). • Take challenging classes in English, mathematics, science, history, geography, foreign language, government, civics, economics, the arts AND DO WELL IN THEM!! • Get to know your career or guidance counselor as well as other college resources available in your school.

9. High School - 10th Grade • This is the most important year and often not considered as such…this is the “qualifying heat” when determining where to place for 11th grade. • Become involved in school - or community-based extracurricular (before or after school) activities that interest you and/or enable you to explore career interests • Take the Preliminary SAT/National Merit Scholarship Qualifying Test (PSAT/NMSQT). You must register early.

10. Myth about the PSAT “Does my child’s score really matter on the PSAT? I heard the score does not count towards anything.” Yes it does… The PSAT is used to disburse National Merit Scholarships. This is not a test you want to take for granted.

11. HIGH SCHOOL - 11th GRADE • Meet with your career or guidance counselor to discuss colleges and their requirements. • Decide which colleges most interest you. Contact them to request information and an application for admission. Ask about special admissions requirements, financial aid, deadlines and ask if you can see sample essay’s? • Talk to college representatives at college fairs. • Visit colleges and talk to students. Consider which people you will ask for recommendations - teachers, counselors, employers, etc. • Investigate scholarships provided by private sources, talk to your guidance department about local scholarships. • Register for and take the SAT’s or the ACT, SAT I-Subject Tests or any other exams required for admission to the colleges you would like to attend.

12. SAT VS ACT Which one should you take? The Correct answer is ….BOTH!

13. Math: up to basic Geometry & Algebra ll Science: none Reading: sentence completion, short & long critical reading passages, reading comprehension Writing: essay & testing grammar, usage, & word choice Math: up to Trigonometry Science: charts, experiments Reading: four passages, one each of Prose Fiction, Social Science, Humanities, & Natural Science English: stresses grammar Writing: essay (optional) How Do These Tests Compare? What is the Content? SAT ACT Note: The ACT essay is optional; the SAT essay is not!

14. About the SAT / ACT SAT Scoring ACT Scoring • Used by all U.S. Colleges as an admissions requirement & to award scholarships. • This exam tests more on what you have learned in school from the classes taken. Critical Reading 200 - 800 Math 200 - 800 Writing 200 - 800 Essay 2 – 12 (Will account for 1/3 of English/Writing score) English 1 - 36 Math 1 - 36 Reading 1 - 36 Science 1 - 36 Writing 2 – 12 (Will account for 1/3 of English/Writing score) • Required for admission by most U.S. Colleges. • It is a reasoning test & requires reasoning skills to excel.

15. Admissions Timeline • Early • Early Action vs. Early Decision • Nov. 1st – 15th Submission • Dec. 15th – Jan 10th Acceptance notification • Regular • Jan. 1st – Feb 1st Submission • March 1st – April 15th Acceptance • On or around May 1st decision by student

16. Graduation Rate Financial Aid Majors offered Campus life Cost of Attendance Give you a feel of their campus life (do you see yourself at this school?) SAT and GPA requirements Admission requirements Internship programs Job placement rate College Fairs / Visits Great way to get information on colleges you wish to consider or visit.

17. Get Your Forms Done Avoid Making Mistakes Follow the Admissions Time Line Search for Grants & Scholarships Visit our website for entry to a $10,000 monthly scholarship giveaway! www.efcagroup.org Visit a few Colleges Fear Factor - Control The Fear

18. Marketing Opportunity for Colleges • Health Insurance • Credit Cards • Cell Phone Plans Besides tuition colleges have many money making opportunities…

19. College Costs... Prepare for a SHOCK!!!

20. College is EXPENSIVE ! Annual Costs

21. The $200,000 + Mark! College / University George Washington U. Bucknell University University of Richmond Bennington College Sarah Lawrence U. Columbia U. Kenyon College Wesleyan Vassar College Trinity Coll. Drexel University UPENN *Source Money.cnn.com

22. Chances of Graduating In 4 Years??? • 2 in 10 from a Public School. • Less than 1 in 2 from a Private School. • 65% of enrolled students do not complete a degree in 4 years. • 50% do NOT finish where they started. THIS WILL IMPACT YOUR TOTAL COST!

23. Useful Statistics • Number of HS Grads expected to increase until 2014 (58% women, 42% men) • 50% of apps filed on-line • 70% of students file 3 or more apps • Steady increase in early apps (to 16%) • 400 apps per admission officer • 70% of HS’s rank • Public HS counselor to student ratio is 315:1 • 21% of public HS’s have college counselor

24. Types of Colleges(4200 total) • In the U.S. there is a higher education opportunity • for every level of student interest and ability. • My categories: • Register and attend (1900) • Routine enrollment process • Specialty schools (300) • Admit on interest and talent • Meet basic standards (1500) • Admit more than 75% of applicants • Competitive (400) • Admit from 40% to 75% of applicants • Selective (100) • Admit fewer than 40% of applicants

25. Specialty Schools For students who have a very specific career interest and don’t need the typical college experience. Examples: (300) • Culinary arts:Johnson & Wales • Aeronautics:Embry-Riddle • Art, design, fashion:Art Institute of Philadelphia • Technology, engineering:Webb Institute • Business, accounting:Babson • Performing arts, music, dance:Julliard • Military academies:West Point

26. Competitive and Selective • 5-year grad rate: • 50% or more for publics • 80% or more for privates • 50% or more of freshmen have SAT over 1200, ACT over 24 • 3.5 average high school GPA • 1/3 or more from top 10% of H.S. class • They are the types of colleges where good admission planning is needed. • They tend to be more expensive and information about how to pay, with or without aid, is important.

27. Personality and Career Assessment • As a first step in the admission process, it may be a good idea to make a connection between .. Personality characteristics Areas of interest College courses, majors, and schools Career choices • Collegeboard.com - Myroad.com

28. Increasing Pressures on Middle Class America INCOME IS DOWN DEBT IS UP And Parents are busier than ever! * Parade Magazine – April 2006

29. The Cost of College 2008 – 2009 ** Pre-tax $ Needed 5 years Annual Cost Total Cost (5yrs.) University of Maryland $37,218 $200,297 $266,395 RUTGERS U.$24,500 $138,109 $183,685 NYU $52,290 $294,763 $392,035 BOSTON COLLEGE $48,934 $267,108 $355,254 VILLANOVA $48,530 $273,568 $363,845 GEO WASHINGTON U $53,760 $303,050 $403,056 *Assumes 6% Tuition Increase Annually. **Assumes 33% Federal Tax & NJ State Tax

30. What is Financial Aid? How is it Dispensed? • Merit • Academic • Athletic • Other Talents • Financial Need • Family income • Assets • Scholarships • Grants

31. The Goal of Financial Aid Assist students in paying for college and achieved by: • Evaluating family’s ability to pay • Distributing limited resources in an equitable manner • Providing a balance of gift aid and self-help aid

32. Meeting a Student’s Financial Need • Choose your college wisely, because: • Not all will meet 100% of need • Private colleges generally: • Meet a higher percentage of need • Award a higher percentage of gift aid • Loans • Work Study • Many students can attend a private college for the same cost as a public university!

33. Need Based Formula Based on a "needs analysis" formula Total College Costs (COA) $30,000 Expected Family Contribution (EFC) – 12,000 “Financial Need” $18,000

34. What is the "Expected Family Contribution (EFC)"? • How much the family is expected to contribute, based on the “FAFSA” or “PROFILE” The Cost of Attendance Tuition and Fees Room and Board Books Transportation Cost of Computer Misc. Expenses + ____________________ Cost of Attendance COA =

35. 2007 – 2008 EFC Calculations Based on Parent Income and Family Size

36. Methods Used to Determine EFC • Federal Formula (FM) • Institutional Formula (IM)

37. Federal Methodology • Used by all accredited public and private colleges and universities • Used to disburse Federal financial aid funds • Does not assess home or family farm equity or retirement accounts (including annuities and cash-value life insurance) • FAFSA form is used to collect the information

39. FAFSA on the Web: www.fafsa.ed.gov

40. To Register for a PIN: www.pin.ed.gov

41. Reportable Assets On FAFSA • Brokerage Accounts, Savings Accounts • In Parent and Student Names – includes: • Mutual Funds, Stocks, Bonds, etc. • 529 QTP* Note! Section 529 plans can CAUSE A LOSS OF FINANCIAL ELIGIBILITY. Value is based on Parents accessibility formulas and no longer assessed as a student asset. However, all children 529 accounts are included in formula.

42. Institutional Methodology • Used by some private colleges to distribute: • Endowment funds • Assesses the home and family farm equity • Assesses a fee to complete the application • PROFILE® form is used to gather the information

43. CSS Profile Application Some Colleges, Universities, Graduate Schools & Scholarship Programs Information collected on PROFILE awards non-federal student aid funds. Pay a fee to register & submit to each specific school or program

44. Reportable Assets on CSS / Profile Institutional Methodology Savings Stocks Bonds Mutual Funds 529 QTP Sibling Assets Home Value Retirement Plans Note! Some Schools may ask for the values of Non-Retirement Annuities, Cash Value Life Insurance, the value of Family Cars and Personal Property.

45. Special Situations Two in College Having more than one student in post-secondary school at one time will lower your EFC per student EFC $10,000 Two Students $10,000 2 EFC=$5,000 Three Students $10,000 3 EFC=$3,333 Be careful of Gapping!

46. Common FAFSA Errors Avoid ERRORS! Errors made in completing the FAFSA and/or supplemental forms may delayapplication processing and result in the loss of financial aid funds. • Divorced/remarried parent information • Not Obtaining Two PINs • Untaxed income • U.S. income taxes paid • Household size • Number in post-secondary education • Real estate and investment net worth

47. Meeting a Student’s Financial Need • Choose your college wisely, because: • Not all will meet 100% of need • Private colleges generally: • Meet a higher percentage of need • Award a higher percentage of gift aid • Many students can attend a private college for the same cost as a public university!

48. PUBLIC vs. PRIVATE COLLEGE * “Out of State” Public School

49. Federal Loan Programs: (Subsidized and Unsubsidized) • Subsidized Stafford: Must demonstrate “need” • Unsubsidized Stafford: Need is not a consideration • Parent Loans: Helps parents cover the complete cost of their child’s education, less any financial aid received(Not based on income or assets…even Bill Gates would qualify!) • Federal Loan Consolidation: programs that takes multiple loans and folds them into one entity with fixed rates & extended payment terms • Lowest Rates in 38 year history of program • Lower interest rates than other consumer options (Credit Cards, Home Equity, Private Education Loans) • Flexible repayment terms and options for students and parents • ***Remember NEVER go into debt without a clear plan to pay it back!!!***

50. Deficit Reduction Act of 2005 • $39 billion in cuts to student loan subsidizes • Stafford limit increased from $2,625 to $3,500 • Stafford interest rate increased to a fixed 6.8% • Plus loan interest rate increased to 8.5% • Academic Competitiveness Grants $750 to $1,300