By: Scott Kessler (678) 456-4227 scottkessler@outlook.com SmartCollegeFunding.com LPL Financial Member FINRA/SIPC
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
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
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
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
We know why college matters According to Pew Research Center – on average college grads earn $17,500 more per year than high school grads Approximately 35% of all U.S. jobs require at least a bachelors degree and 30% require some college or an associates degree Unemployment rates by educational level per Bureau of Labor 2017 6.5% Less than high school diploma 4.6% High school, no college 4.0% Some college 2.5% Bachelor’s degree LPL Financial Member FINRA/SIPC
Graduation Rates – per National Center for Education Statistics 4 Year Graduation Rates Public Colleges 31% Private Colleges 53% 6 Year Graduation Rates Public Colleges 59% Private Colleges 66% LPL Financial Member FINRA/SIPC
6 Year Graduation Rate - 2017 www.collegeresults.org Univ. of Florida 87.5% Univ. of Georgia 83.7% Univ. of So. Carolina 73.0% Auburn University 70.9% Univ. of Tennessee 69.3% Univ. of Arkansas 62.3% University of North GA 52.4% Georgia Southern 51.3% LPL Financial Member FINRA/SIPC
Research Graduation Rates An excellent place to check graduation rates is: www.collegeresults.org
Average Cost of College (COA) per College Board 2017-2018 Public University: In State $25,290 per year Out of State $40,940 per year Private University $50,900 per year Elite Private University $70,000+ per year LPL Financial Member FINRA/SIPC
Average Cost of Attendance (COA) Breakdown per College Board 2017-2018 Public Public Private In-State Out-of-State Tuition 9,970 25,620 34,740 Housing/Meals 10,800 10,800 12,210 Books/Supplies 1,250 1,250 1,220 Personal Expenses & Transportation 3,270 3,270 2,730 Total $25,290 $40,940 $50,900
Paying for College There are two very different prices for college: one for the informed buyer & one for the uninformed buyer LPL Financial Member FINRA/SIPC
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 I paid $119! $369 LPL Financial Member FINRA/SIPC
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
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
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
Estimate Your EFC You can attempt to estimate your Expected Family Contribution by typing EFC Calculator into the search box on the College Board’s home page. However, it will NOT suggest or provide any guidance in strategies to potentially reduce your EFC
It matters where you keep your assets and how you pay your portion Savings account 529 plans Checking account UTMA/UGMA Money Markets Life Insurance Stocks IRA Bonds 401K/403B Mutual Funds Investment Real Estate Students savings Annuities Home Equity LPL Financial Member FINRA/SIPC
Free Money Scholarships & Grants LPL Financial Member FINRA/SIPC
Loans Must be paid back Direct Loans (Stafford) - students PLUS - parents LPL Financial Member FINRA/SIPC
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
Financial Aid Basics – Loan Programs Unsubsidized Direct Loans Direct Subsidized Loans Interest accrues on loan Gov’t pays interest while while student is enrolled in student is enrolled in school school at least half-time Student has option to defer Need-based or pay interest while in school 1.062% origination fee 1.062% origination fee withheld by US Dept. of withheld by US Dept. of Education prior to Education prior to disbursement disbursement 2018-2019 Interest Rate is 2018-2019 Interest Rate is 5.05% (fixed) 5.05% (fixed) LPL Financial Member FINRA/SIPC
Annual Direct Loan Limits Academic Maximum Annual Limit Total Annual Level that may be subsidized Limit Freshman $3500 $5500 Sophomore $4500 $6500 Junior/ $5500 $7500 Senior LPL Financial Member FINRA/SIPC
Aggregate (Lifetime) Direct Loan Limits Status Subsidized Limit Combined Limit Undergraduate $23,000 $31,000 Dependent Undergraduate $23,000 $57,500 Independent Graduate $65,500 $138,500 Student LPL Financial Member FINRA/SIPC
PLUS Loan for Parents Apply at www.studentloans.gov Origination Fee of 4.248% Interest rate for 2018-2019 = 7.60% Can borrow up to the Cost of Attendance minus other aid Credit Check required LPL Financial Member FINRA/SIPC
Which University Is More Expensive? University A University B COA $25,000 COA $45,000 EFC - 10,000 EFC -10,000 FN 35,000 FN 15,000 Loan 3,000 Loan 5,000 Grant 12,000 Grant 2,000 Scholarship 20,000 Scholarship 6,000 Un-Met Need 0 Un-Met Need 2,000 Real $ Cost 13,000 Real $ Cost 17,000 LPL Financial Member FINRA/SIPC
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
“Don’t wait until it’s too late” DO NOT PROCRASTINATE! - Early planning gives you the best chance to position yourself for financial aid. The more you plan, the more you keep!! TAKE ACTION - Sitting here and just listening is like visiting a gym – unless you actually workout and exercise you will not reap any benefits. The same concept applies here - you must gain a working knowledge of the financial aid process and implement proper strategies to try to reduce your cost of a college education. LPL Financial Member FINRA/SIPC
LPL Financial Member FINRA/SIPC
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