By: Scott Kessler LPL Financial SmartCollegeFunding

1. LPL Financial Member FINRA/SIPC College Planning By: Scott Kessler LPL Financial SmartCollegeFunding.com

2. Financial Aid Basics - HOPE • 3.0 high school HOPE GPA across core academic subjects (evaluated by GSFC) • 3.0 across ALL college courses attempted • Evaluated at the end of every Spring semester AND at 30, 60, and 90 attempted hours • Can LOSE HOPE at any of these checkpoints • Can only GAIN HOPE at 30, 60 and 90 attempted hours LPL Financial Member FINRA/SIPC

3. Financial Aid Basics – Zell Miller • ZELL MILLER SCHOLARSHIP ELIGIBILTY • Graduate as the valedictorian or salutatorian; OR • Graduate with a 3.7 GPA (as calculated by GSFC); AND 1200 on the math and reading portions of the SAT or 26 on the ACT – One test administration, not highest combined score • Must maintain 3.3 GPA across ALL college courses attempted • Evaluated at the end of Spring term AND at 30, 60, and 90 attempted hours LPL Financial Member FINRA/SIPC

4. Financial Aid Basics • Common Requirements between HOPE and Zell Miller Scholarship • GA resident at high school graduation – must be GA resident for 12 months prior to receiving HOPE/ZMS in college • Not a GA resident at high school graduation – must be GA resident for 24 months prior to receiving HOPE/ZMS in college • Lose and Regain only ONE time • Can lose ZMS and maintain HOPE eligibility if above 3.0 college GPA LPL Financial Member FINRA/SIPC

5. Financial Aid Basics • Common Requirements between HOPE and Zell Miller Scholarship • 127 Attempted Hour Limit • ATTEMPTED HOURS • Hours of record after drop/add – “If it appears on the transcript” • Includes F grades and withdrawals Seven Year Limit following high school graduation LPL Financial Member FINRA/SIPC

6. We know why college matters • Bachelor’s degree holders earn $1 million more over a lifetime than high school graduates • By 2020, 75% of all U.S. jobs will require a degree beyond high school • Unemployment rates by educational level as of 5/2013 11.1% Less than high school diploma 7.4% High school, no college 6.5% Some college 3.8% College or greater LPL Financial Member FINRA/SIPC

7. Graduation Rates • 4 Year Graduation Rates • Public Colleges 31% • Private Colleges 53% • 6 Year Graduation Rates • Public Colleges 58% • Private Colleges 65% LPL Financial Member FINRA/SIPC

8. 6 Year Graduation Rate - 2013 www.collegeresults.org • University of Florida • University of Georgia • University of So. Carolina • University of Tennessee • University of Arkansas • GCSU • University of North GA • Georgia Southern 86.5% 82.2% 72.7% 67.5% 60.1% 61.2% 52.8% 50.5% LPL Financial Member FINRA/SIPC

9. Average Cost of College (COA) per College Board 2014-2015 • Public University $23,410 per year • Private University $44,272 per year • Elite Private University $55,000+ per year LPL Financial Member FINRA/SIPC

10. Paying for College There are two very different prices for college: one for the informed buyer & one for the uninformed buyer Which price will YOU pay? LPL Financial Member FINRA/SIPC

11. Retail vs. Wholesale • When you fly do you pay the same as the person sitting next to you? • Which seat would you rather sit in? Only $119! I paid $369 LPL Financial Member FINRA/SIPC

12. Cost of Attendance (COA) • Includes direct costs to the college (tuition/fees) • Also includes indirect costs for related educational expenses • Room/Board • Books/Supplies • Transportation • Miscellaneous Living Expenses LPL Financial Member FINRA/SIPC

13. Expected Family Contribution (EFC) • A measure of how much the student and his or her family can be expected to contribute to the cost of the student’s education for the year • EFC is calculated by a formula specified in federal law • Factors include but are not limited to: • Assets • Adjusted gross income • Federal tax liability • Number in household • Number in college • Student’s dependency status LPL Financial Member FINRA/SIPC

14. Financial Aid Formula COA (Cost of Attendance) - EFC (Expected Family Contribution) = FN (Financial Need) The difference between the COA and EFC numbers is your “financial need” or eligibility for financial aid at a particular school. LPL Financial Member FINRA/SIPC

15. Free Money Scholarships & Grants LPL Financial Member FINRA/SIPC

16. Loans • Must be paid back • Direct Loans (Stafford) - students • PLUS - parents LPL Financial Member FINRA/SIPC

17. Financial Aid Basics – Federal Programs • Free Application for Federal Student Aid (FAFSA) • www.fafsa.gov • The gateway for all Federal Student Aid programs • Includes student and parent loan programs LPL Financial Member FINRA/SIPC

18. Financial Aid Basics – Loan Programs Direct Subsidized Loans • Gov’t pays interest while student is enrolled in school at least half-time • Need-based • 1.073% origination fee withheld by US Dept. of Education prior to disbursement • 2015-2016 Interest Rate is 4.29% (fixed) Unsubsidized Direct Loans • Interest accrues on loan while student is enrolled in school • Student has option to defer or pay interest while in school • 1.073% origination fee withheld by US Dept. of Education prior to disbursement • 2015-2016 Interest Rate is 4.29% (fixed) LPL Financial Member FINRA/SIPC LPL Financial Member FINRA/SIPC

19. Annual Direct Loan Limits Academic Annual Limit Additional Total Annual Level (Sub & Unsub) Unsub Limit Limit Freshman $3500 $2000 $5500 Sophomore $4500 $2000 $6500 Junior/ $5500 $2000 $7500 Senior LPL Financial Member FINRA/SIPC

20. Aggregate (Lifetime) Direct Loan Limits Status Subsidized LimitCombined Limit Undergraduate $23,000 $31,000 Dependent Undergraduate $23,000 $57,500 Independent Graduate $65,500 $138,000 Student LPL Financial Member FINRA/SIPC

21. PLUS Loan for Parents • Apply at www.studentloans.gov • Origination Fee of 4.292% • Interest rate for 2015-2016 = 6.84% • Can borrow up to the Cost of Attendance minus other aid • Credit Check required LPL Financial Member FINRA/SIPC

22. Which University Is More Expensive? University A University B • COA $25,000 • EFC -10,000 • FN 15,000 • Loan 5,000 • Grant 2,000 • Scholarship 6,000 • Un-Met Need 2,000 • Real $ Cost 17,000 • COA $45,000 • EFC -10,000 • FN 35,000 • Loan 3,000 • Grant 12,000 • Scholarship 20,000 • Un-Met Need 0 • Real $ Cost 13,000 LPL Financial Member FINRA/SIPC

23. Where does your portion come from? • Savings account • Checking account • Money Markets • Stocks • Bonds • Mutual Funds • Students savings • 529 plans • UTMA/UGMA • Life Insurance • IRA • 401K/403B • Real Estate • Annuities LPL Financial Member FINRA/SIPC

24. Financial Aid • Requires the understanding of: • Forms required by the school (FAFSA, Profile) • Knowing your EFC • Prudent planning strategies to increase financial aid eligibility • Need to know: • Average % of Financial Need met by the university • The university’s 4 and 6 year graduation rates LPL Financial Member FINRA/SIPC

25. Planning • Effective planning for financial aid occurs before filing FAFSA/Profile – NOT AFTER! • DO NOT PROCRASTINATE! - Early planning gives you the best chance to position yourself for financial aid • Learn as much as possible about the financial aid process and seek out the assistance of experts in the field for guidance LPL Financial Member FINRA/SIPC

26. SmartCollegeFunding.com Scott Kessler 678.456.4227 scottkessler@outlook.com LPL Financial Member FINRA/SIPC