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Schedule Your Complimentary Consultation or Call

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SLIDE 2

ABOUT US

Other Great Team Members: Wezi, Molly, Rachel, Gary, Terry, Glenn, Dan

Combined 50 years of experience

Stuart Canzeri

Co-Director & College Financial Planning Specialist BA –Tulane University, MBA - Mercer, CFP - UGA

Teresa Venturo

College Planning Specialist, Former High School Teacher, Proud Mom of UGA & Un. of Tampa Students, Rutgers University Graduate

Combined 50 years of experience - PES

Teresa Venturo

Director of Client Service, Professional Education Services Liaison, Proud Mom

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▪ Founded in late 2008 ▪ Independent ▪ Partner in Education with High Schools ▪ Full Service ▪ Fee Only ▪ Fiduciary ▪ College Experts ▪ Combine College Admissions planning with college financial planning

Who is Peachtree? The Difference Matters

Savings College Retirement Investments Our Solution

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▪ This is a free class. Nothing is being sold. ▪ Partner in Education with many local high schools ▪ Partner in Education of the Year Honoree, Fulton County Schools ▪ Do not represent any colleges ▪ Two disciplines – Guidance (Admissions) and Financial ▪ Cover the admissions, financial aid, college financial planning, scholarship and tax ▪ You can create a SAFe™ and easy plan

COLLEGE PLANNING

Benefits College Planning Workshop

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1

• Empower families to make informed college choices.

2

• Save ON the cost, not just FOR the cost of college.

3

• Proactive rather than reactive 4 year college funding plan.

4

• Remove the emotion and make a rational college buying decision.

5

• Graduate on time with manageable student loan debt.

6

• Pay for college without robbing retirement.

7

• Help 10,000 families achieve their college and financial goals

Peachtree’s Mission for You

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Application numbers continue to rise per student - 33% of freshmen applied to

7+ institutions Selectivity on the rise Autocatalytic process: Schools become more selective: ergo students need to apply to more schools, further increasing selectivity More applicants per school change how applications are processed (person or stacking) Enrollment Management plays a larger role than ever before State funding continues its long decline – increasing costs to parents applying to instate schools The average discount for first- year students at private colleges is now 46% International Recruiting Push - Admissions officers at 70% of research universities say that international recruiting is just as important as or more important than domestic recruiting at their institutions Grade inflation puts a premium on curricular strength Enrollment Yield rates are falling at most colleges - The average yield rate for all institutions in 2014 was 36%, down from 49% in 2002

• Chronicle of higher education Annual Survey, 2015

8 Current Trends

SLIDE 7

7

Student Debt Crisis

▪ 510% Increase Over the Last 10 Years ▪ $2,701 Per Second 2016 Graduation Class ▪ 7 in 10 Graduates Have Student Loans ▪ $37,000 on Average ▪ $370/Month Payment Over 10 Years

SLIDE 8

College Planning – What You Need to Know

SLIDE 9

Coll College ge Fina Financ ncial ial Plan Planning ning Roa

• adma

dmap COLLEGE SELECTION TAX AX Sc Scho holar larsh ships ips Merit and Financial Aid Planning

▪ Academically ▪ Socially ▪ Financially ▪ Merit Based ▪ Need Based Aid ▪ Three Formulas ▪ Two Application ▪ Tax Credits ▪ Income Shifting ▪ Investing ▪ Income, Cash Flow Planning ▪ Assets, Loans, Gifts ▪ Awards, Appeals

College Dream Builder Plan

SLIDE 10

Public University (instate) $23,410 Public University (out) $37,229 Private University $46,272 Elite University $63,000 - $65,840*

Per Year College is EXPENSIVE! No Matter Where You Go!

hdps://secure-media.collegeboard.org/digitalServices/misc/trends/2014-trends-college-pricing-report-final.pdf

Average Cost of College

SLIDE 11

*2014 Full Cost of Attendance figures provided by National Center for Education Statistics & University System of Georgia / ** College Board 2014

▪ COA: Tuition, Books, Room/Board, Living Expenses ▪ Four Years Could Cost $60,000 to $200,000 or More ▪ Multiply by Number of Kids ▪ Costs Increasing 5-8 Percent Annually

Auburn Univ. $29,794 / $47,410 Wake Forest $64,478 Georgia State $24,798 /$43,008 Georgia $25,134 /$41,006 Kennesaw State $25,773 /$38,356

• Univ. of Florida

$20,661 /$42,938

• Univ. of Alabama

$24,572 /$40,352 Valdosta State $21,018 /$34,235 College of Charleston $27,913/$45,457 Emory $63,058 Georgia Tech $27,420 /$47,612 GA Southern $23,972/$37,190 Princeton $61,850 Morehouse College $47,952 Stanford $65,177

Cost of College

SLIDE 12 Source: United States Department of Education, Published 2014, Cohort Entry 2006

Percentage of Students Graduating in: 4 Years 6 Years Public 33% 57% Private 53% 66% Georgia 27% 55% Average Student Takes 5.8 to 6.2 Years to Graduate with a 4 Year Degree**

“Time Contributes to Cost!

Cost of College

SLIDE 13

Chronicle of Higher Education: http://collegecompletion.chronicle.com/state/#state=ga&sector=public_four .

Graduation Rates - Public

SLIDE 14

Chronicle of Higher Education: http://collegecompletion.chronicle.com/state/#state=ga&sector=public_four .

Graduation Rates - Private

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SLIDE 16

Ho p e Award 3.0 GPA – 80% Tuition $17,310 a Year! – GA Tech Net Tuition Calculator 2015 $17,100 a Year! – UGA Net Tuition Calculator 2014 Zell Award 3.7 GPA and 1200 SAT (Math & Reading) / ACT 26 ▪ 100% Tuition (3.3 College GPA) $10,500 - $12,000 a Year On Average

Hope Facts & Figure

SLIDE 17

▪ University of Georgia

60.9

▪ Georgia Tech

42.7

▪ Georgia College & State

38.4

▪ Georgia State

31.7

▪ Georgia Southern

28.7

▪ Kennesaw State

27.7

▪ Southern Polytechnic

18.3

▪ University of West Georgia

18.3

▪ Clayton State

15.6

▪ University System Average

29.6

Hope Scholarship Retention

SLIDE 18

Cost of an Extra Year 5th Year of College $20,105 Lost Salary for 1st YR $42,579

Total Loss $62,684

Time Contributes to Cost!

Cost of an Extra Year

SLIDE 19

“What If” you recaptured $10,000 a year?

Annual Cost 4 Year Public 4 Year Elite $28,000.00 $61,000.00 Tax Bracket 25% $37,000.00 $81,000.00 33% $42,000.00 $91,000.00 39.6% $46,000.00 $101,000.00

Tax Cost of College

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Where to Begin?

SLIDE 21

Safety Schools Target Schools Reach School

Assumption Will Cost You!

SLIDE 22

Safety Schools Target Schools Reach School

Social Fit Academic Fit Financial Fit

The Best Fit

Know Before You Go

It is About FIT – Know Before You Go

SLIDE 23

College is a business.

• Know Graduation Rates*
• 44.1% within 4 years
• 59.3% within 6 years
• Know the value of the degree

and major

• Know internship and job

placement opportunities

• Know how financial aid is

awarded

• collegescorecard.ed.gov
• collegeboard.org
• collegedata.com

National Center for Education Statistics 2012 (for all 4 year non profit colleges and universities)*

Unicorn College

Financial Academic Social

SLIDE 24

Choosing the Right School

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W H I C H P A T H A R E Y O U O N ?

#1 School #1 Career #2 Major #3 Career #2 Major #3 School

▪ Investigate Career and Major FIRST ▪ Create a List of Characteristics that are Important to You ▪ Score Every School Using the Same Criteria ▪ Use Your SCORESHEET When You Visit W H I C H P A T H A R E Y O U O N ?

Two Paths to College

SLIDE 26

Type of Schools

• Research Universities
• Master’s Level Universities
• Liberal Arts Colleges

▪ Baccalaureate Colleges Financial Aid ▪ Who Gives it ▪ How do they give it ▪ What’s free and what needs to be paid back ▪ Are you Eligible

Selecting the RIGHT Type of College

SLIDE 27

✓ Size ✓ Majors Offered ✓ Liberal - Conservative ✓ Location ✓ Safety ✓ Campus Setting ✓ Enrollment Yield ✓ Graduation Rates ✓ Internships & job placement rates

Selecting the Right College!

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SLIDE 29

NOT All Majors are Created Equal!

Discipline Starting Salary Engineering $62,891 Computer Science $62,103 Business $57,229 Communications $48,253 Math and Sciences $44,299 Education $40,267 Humanities and Social Sciences $38,049 OVERALL $48,707

Average Starting Salary By Discipline*

SLIDE 30

REALITY

&QUALITY

Dorm Room Apartments Cafeteria Visit a Class Interview & Questions

Job Placement Student/Teacher Ration Grading Scale Tutoring Options Athletic Department

Be An Educated Shopper!

SEE THE COLLEGE

There’s No Substitute for a Visit! Top Down Approach: Apply to 6-10 Colleges

SLIDE 31

College Planning Selection Tips

▪ On-Line College Searches – The Numbers – Enrollment Yield ▪ Interview Your School – Grad Rates, etc. ▪ There is NO Substitute for a Visit ▪ Top-Down Approach (Goal: Apply to 6-10 Colleges) ▪ Ensure the College will “Want” You to Apply ▪ Career – Major – College (Not College – Major – Career) ▪ Plan for 4 Years, Pick, Pay Not Pick, Pay 1st Year and Plan for the Rest

SLIDE 32

ACT / SAT Tests

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H.S. Grades in the Context of Schedule Strength and Academic Strength of School Great return on investment of time and resources Teacher Recommendations SAT Subject Tests Admissions Essay Activities (Leadership, Depth)

SAT ACT

You walk through these doors one at a time. A super high SAT score cannot make up for a 1.5 GPA. A beautifully written essay will rarely trump an SAT score below a school’s minimum range. Content provided by

www.applerouth.com

Testing: A Critical Part of Admissions Process

SLIDE 34

• Junior year is the absolute best time to start this process.

The earlier the better.

• Mock testing (to get baseline scores) can begin as early

as the summer before Junior year.

Good first test Good 2nd test Final Test Oct Nov Dec Jan Mar May Jun Oct Nov Dec J U N I O R Y E A R ED/EA applications AP PSAT Content provided by

www.applerouth.com

The Ideal Time to Prep

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Financial Aid

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Coll College ge Fina Financ ncial ial Pla Plann nning ing COLLEGE SELECTION TAX AX AID AID FINANCIAL AID

▪ Admissibility ▪ Fit ▪ Price ▪ Merit Based ▪ Need Based Aid ▪ Three Formulas ▪ Two Application ▪ Tax Credits ▪ Income Shifting ▪ Investing ▪ Income, Cash Flow Planning ▪ Assets, Loans, Gifts ▪ Awards, Appeals

College Dream Builder Plan

SLIDE 37

Merit-based

How is it awarded? Scholarships awarded to recognize

• utstanding academic performance,

talents or leadership. Gift Aid = Scholarships

Need-based

How is it awarded? Awarded to those who demonstrate financial need. Gift Aid = Scholarships & Grants Self Help = Student Loans & Work Study

Financial Aid

SLIDE 38

Financial Aid – What Type of Family are You?

1.

• 1. Hig

High Mer erit/ Lo Low Nee eed 3.

• 3. Hig

High Mer erit/ Hig igh Nee eed 4.

• 4. Lo

Low Mer erit/ Hig igh Nee eed 2.

• 2. Lo

Low Mer erit/ Lo Low Nee eed

SLIDE 39

• 100% of Need Met
• Merit Aid
• Private Scholarship
• Test Prep
• EFC Reduction
• Non Need Merit Aid
• Private Scholarship
• School Selection
• Test Prep
• Tax Aid
• 100% of Need Met
• EFC Reduction
• Timely Applications
• School Selection
• Test Prep
• Tax Aid

How Can You Cut the Cost of College?

1.

• 1. Hig

High Mer erit/ Lo Low Nee eed 3.

• 3. Hig

High Mer erit/ Hig igh Nee eed 4.

• 4. Lo

Low Mer erit/ Hig igh Nee eed 2.

• 2. Lo

Low Mer erit/ Lo Low Nee eed

SLIDE 40

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SLIDE 41

Expected Family Contribution (EFC) Is the minimum amount a student is expected to contribute toward the cost of college based on the parent’s and student’s income and assets, the size of the family and number of students in college. If there are two students in college at the same time, the parent’s portion of the family contribution split between each child (great if they qualify for aid). How do I know – my financial fit? Three Formulas Used to Determine a Student’s EFC ▪ Federal: Look at Fewer Assets, Determines Federal Aid Awards (Most Colleges) ▪ Institutional: Counts More Assets, Used for Institutional Aid Awards (300 Colleges) ▪ Consensus: Use by 23 Private Colleges

How Do I Get Financial Aid?

SLIDE 42

PARENT ASSETS

CALCULATION ASSESSEMENT RATE TOTAL

Checking & Savings

$25,000

Asssessable Parent Assets

$100,000

529

$35,000

(-) Asset Protection Allowance

$18,800

Mutual Funds

$30,000

Total Assessable Parent Assets

$81,200

x 5.64%

$4,580

Stocks, Bonds, etc.

$10,000 $100,000

STUDENT ASSETS CALCULATION

ASSESSMENT RATE

TOTAL

Checking & Savings

$2,000

Asssessable Student Assets

$12,000

UTMA

$10,000

(-) No Allowance

$0

Mutual Funds

$0

Total Assessable Student Assets

$12,000

x

20% $2,400

Stocks, Bonds, etc.

$0 $12,000

PARENT INCOME*

CALCULATION ASSESSEMENT RATE TOTAL Parent AGI

$150,000

Total Parent Income

See Chart

Parent Contribution*

$31,933

(-) Taxes & Living Allowance

See Chart

*See EFC Quick Reference Table Total Available Income (AI)

Total x 22 to 47% $31,933

STUDENT INCOME

CALCULATION ASSESSMENT RATE TOTAL

$2,400

Total Student Income

$2,400

(-) Income Protection Allowance & Taxes

$6,350

Total Available Income (AI)

• $3,910

x

50% *

$0

Y

Your EFC $38,913

FAFSA EFC – DIY Worksheet

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▪ Some Schools Will Meet 100% of Need - Some 30-50% or Less ▪ Some Schools Will Modify Your Need! ▪ 3 Methodologies for Figuring Out EFC: Federal (FM), Institutional (IM), Consensus (CM) ▪ You MUST Know These Statistics Before Applying!

COA

Tuition & Fees Room & Board Books Transportation Miscellaneous Expenses

EFC

Parent Income Parent Assets Student Income Student Assets The Maximum Amount of Need-Based Aid a Family May Receive

Need

$60,000 $20,000 $40,000

Calculating Financial Aid

H ow d o th e co lleges d etermin e if my stu d ent is elig ib le?

SLIDE 44

FAFSA

Free Application for Federal Student Aid Federal Formula (FM) fafsa.ed.gov Class of 2018 Open October 1, 2017

Financial Aid Application

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▪ Everyone Must Complete This Form to Receive Aid ▪ FREE – No Cost to Complete ▪ You Cannot Apply for Federal Loans Without It ▪ Schools Required to Audit ▪ Administered by the US Department of Education’s Federal Student Aid Office ▪ Used by Almost All State Schools and Most Private Schools to Distribute Both Federal and Institutional Need-Based Financial Aid ▪ Calculates Expected Family Contribution (EFC) for Each Student, Using the Federal Methodology (As Opposed to the Institutional Methodology Used By Some Private Schools) ▪ Distributes EFC to All Schools (Up to 10) Designated (Note: EFC will be the same at all schools.) ▪ Each School Will Use this Information to Calculate a Student’s Financial Aid Eligibility ▪ Filing Opens Every Year on October 1st for the Academic Year Beginning the Following Fall ▪ Parents of High School Seniors Fill It Out for the First Time in October of Their Student’s Senior Year ▪ File ASAP! PLUS, If Done Incorrectly, It Usually Gets Bumped Adding Additional Time for Processing Which Might Result in Lost Aid! (Five Sections – A Majority of the Forms Submitted Are Turned In with Errors or Inconsistencies) ▪ Each School Sets a “PRIORITY” Deadline, But Can File Up to a designated day in June ▪ NOT a One-Time Thing! FAFSA Must Be Filed Every Year. Filing Begins Every October for Students Returning to School the Following Academic Year

Understanding Financial Aid

FA FSA ( F ree A p p lication for Fed eral S tu d ent A id )

SLIDE 46

Financial Aid for Class of 2018

College Begins Fall 2018 College Admission Applications Fall 2017

(Apply by Nov. 1st)

FAFSA Available October 1, 2017

(File by Nov. 1st)

Tax Year Figures Used (Base Year) 2016 (Prior, prior year) Asset Figures Used As of the day you file

Financial Aid for Class of 2018+

SLIDE 47

PARENT CONTRIBUTION STUDENT CONTRIBUTION INCOME ASSETS INCOME ASSETS

AID ADVANTAGE or TAX ADVANTAGE?

Calculating EFC

H ow N eed -B ased F in an c ial A id is Calc u lated = E FC

SLIDE 48

Countable

▪ Cash (Wallet, Purse, Under Mattress, etc.) ▪ Checking Account ▪ Savings Account ▪ Stocks ▪ Bonds ▪ CDs ▪ Money Market ▪ Mutual Funds ▪ 529 Accounts for All Children

(Not Just College Bound Student)

▪ Rental Property ▪ Vacation Home ▪ Stock Options ▪ Trust Accounts ▪ Student-Owned Assets ▪ Small Business Equity (Not “Family”) ▪ Retirement Accounts ▪ Annuities ▪ Home Equity ▪ Permanent Life Insurance CV ▪ Family Farm ▪ Small Business Assets (“Family” Owned and Controlled – Fewer Than 101 Employees)

NOT COUNTABLE

What Helps & Hurts Your Financial Aid

W h at A ssets are C o u ntab le?

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SLIDE 50

▪ Many Private Schools Want This Form (In Addition to the FAFSA) ▪ Exceptions: University of Michigan, Georgia Tech, and University of North Carolina at Chapel Hill are STATE Schools that Use IM ▪ Includes Home Equity and More Detailed Explanation of Income, Assets, Expenses ▪ DON’T TRIGGER AN AUDIT OR VERIFICATION – Must Be Consistent with FAFSA! ▪ There are 12 Sections and Approximately 250 Questions ▪ Not Easy to Fill Out or Understand ▪ Of the Roughly 4,000 Institutions Nationwide, About 3,600 Require Only FAFSA, 400 Require CSS Profile Form ▪ Deadline Set By Each School – KNOW THE DATE!

Is the FAFSA the Only Form?

Th e C S S Pro file Fo rm – In stitu tion al M eth od olog y ( IM )

SLIDE 51

FAFSA (Majority of Schools)

Federal Formula (FM) fafsa.ed.gov October 1st

CSS Profile (Select Elite Colleges)

Institutional Formula (IM) collegeboard.org October 1st

Financial Aid – Applications and Formulas

SLIDE 52

568 Presidents Group

SLIDE 53

The Power of Forms

Income $155,000 Investments $290,000 Other Real Estate $250,000 Number in Family 5 Number in School 2 Cost of Attendance $47,825 Family EFC $39,923

Financial Aid Award $8,902

Family A

FAFSA, The Power of ONE Form (Case Study, Multiple Students) Income $155,000 Investments $290,000 Other Real Estate $250,000 Number in Family 5 Number in School 2 Cost of Attendance $47,825 Family EFC $14,705

Financial Aid Award $33,120

Family B

Their Knowledge

Potential $24,000 Mistake EVERY Year

They Got Help

SLIDE 54

Where’s the Money

SLIDE 55

*How America Pays for College 2014 Sallie Mae

Private Scholarships 13% Athletic Scholarships 1% Intstitutional Grants and Scholarships 86%

Scholarships paid for 31% ($155 Billion) of the total cost of education

Private Scholarships Athletic Scholarships Intstitutional Grants and Scholarships

What About Scholarships?

SLIDE 56

Merit Aid = Gift Aid Institutional Scholarships

SLIDE 57

Grid Scholarships – University of Alabama

Collegiate Scholar With a 28 ACT, 1250-1280 old SAT score or 1310-1340 new SAT score and a minimum GPA of 3.5 a student will be named a Collegiate Scholar and will receive $16,000 over four years ($4,000 per year). Foundation in Excellence Scholar A student with a 29 ACT, 1290-1320 old SAT or 1350-1380 new SAT score and at least a 3.5 GPA will be named a Foundation in Excellence Scholar and will receive $52,000 over four years ($13,000 per year). UA Scholar If a student has a 30-31 ACT, 1330-1390 old SAT score or 1390-1440 new SAT score and at least a 3.5 GP, he or she will be named a UA Scholar and will receive the value of two-thirds tuition, or $71,904 over four years ($17,976 per year). Presidential Scholar A student with a 32-36 ACT, 1400-1600 old SAT score or 1450-1600 new SAT score and at least a 3.5 GPA will be selected as a Presidential Scholar and will receive the value of tuition, or $107,800 over four years ($26,950 per year). Students graduating with remaining tuition scholarship semester(s) may utilize these monies toward graduate school and/or law school study at UA.

SLIDE 58

University of Alabama – Grid / Automatic

ACT Score (+3.5 GPA) Per Year Award Four Year Award 27 $3,500 $14,000 28 $4,000 $16,000 29 $13,000 $52,000 30-31 $17,976 $71,904 32-36 $26,950 $107,800

SLIDE 59

Merit Based Aid 100% of Need Met www.collegedata.com

Merit vs. Need Based Financial Aid Policy

SLIDE 60

Denison University ($62,480) – College Board

SLIDE 61

Yale University ($68,950) – College Board

SLIDE 62

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SLIDE 63

▪ Don’t be fooled by Public vs. Private ▪ Every School has an “Award History”

▪ What percentage of a family’s need is the school going to meet? ▪ What type of aid is the school likely to give?

▪ Merit Based Aid (Based on Student’s FAFSA, Awarded by Schools) ▪ Academic Scholarship ▪ Athletic Scholarships ▪ Need Based Aid (Based on Student’s FAFSA, Awarded by Schools) ▪ Gift Aid – Scholarships and Grants DO NOT Have to be Paid Back ▪ Self Help Aid – Loans and Work Study DO Have to be Paid Back

The Devil is in the Details

SLIDE 64

What about families who WILL NOT qualify for need-based financial aid?

▪ Consider Tax Advantaged Planning ▪ Shifts income and/or assets from the parents to the student, by combining education tax incentives with income tax strategies, within the constraints of the Gift Tax Limits, the Kiddie Tax Rules, and the Student’s Tax Capacity. ▪ Who benefits from tax advantage planning? ▪ Category 3 Families who are not eligible for need-based financial aid. ▪ Must Own a Small Business ▪ How is it different from aid-advantaged planning? ▪ Income and Assets Better Off in Student’s Name ▪ Increases Family Funds available for future college costs by reducing taxation

Understanding Tax Advantage

SLIDE 65

How Are You Going to Pay?

SLIDE 66

Coll College ge Fina Financ ncial ial Pla Plann nning ing COLLEGE SELECTION TAX AX AID AID FINANCIAL AID

▪ Admissibility ▪ Fit ▪ Price ▪ Merit Based ▪ Need Based Aid ▪ Three Formulas ▪ Two Application ▪ Tax Credits ▪ Income Shifting ▪ Investing ▪ Income, Cash Flow Planning ▪ Assets, Loans, Gifts ▪ Awards, Appeals

College Dream Builder Plan

SLIDE 67

Prioritize Your Objectives Key Questions

Should educating your child cost your life savings? You can borrow for college, can you borrow for retirement?

? ?

Being a champion in college funding should not mean retirement failure!

Ask Yourself

SLIDE 68

PREPARE FOR THE COST OF COLLEGE Freshman/Sophom

• re/Junior Year

APPLY FOR ADMISSION AND SCHOLARSHIPS September - November Senior Year APPLY FOR FINANCIAL AID October of Senior Year ANALYZE & APPEAL FINANCIAL AID OFFERS March – April

• f Senior Year

CHOOSE THE RIGHT SCHOOL AND ACCEPT YOUR AWARD April of Senior Year EVALUATE OPTIONS TO COVER THE SHORTFALL May of Senior Year 1 2 3 4 5 6

1 2 4 5 6

College Funding Timeline

SLIDE 69

• Demonstrated

Student Interest

• Academic Common

Mkt.

• ROTC or Service

Academies

• Max out the SAT/ACT
• Appeals
• Scholarships
• CLEP
• AP Tests
• Pick the right college
• Max out the GPA
• Guaranteed Tuition

Programs

• 1. College Selection
• 2. Financial Aid System
• 3. College Financial Planning
• 4. Tax Scholarships
• 5. Tuition Rewards

Employ These 5 Strategies to Cut Costs

SLIDE 70

▪ FAFSA Optimization / Financial Aid Leveraging ▪ Asset Re-Position ▪ Tax Advantaged Planning ▪ Income Shifting ▪ Employee Stock Purchase Techniques ▪ Collegiate Bypass Trust ▪ Sage Tuition Rewards ▪ Smart Loan Planning ▪ Appeal Strategies

Which Financial Strategies Can You Use?

SLIDE 71

AOTC

American Opportunity Tax Credit ▪ Worth Up to a $2,500 Credit ▪ Per Student, Per Year, Through 2017 ▪ Phase-Out is from $160-$180K of MAGI ($80-$90K Single) ▪ 100% of First $2,000 of Tuition, Fees, and Books – 25% of Next $2,000 ▪ The credit is refundable up to 40%, or $1,000, whichever is less. A student cannot receive a refund claiming the credit on his/her own tax return unless the student provides over half of his/her income from earned income only. ▪ The Lifetime Learning Tax Credit still exists as well as the Hope Scholarship Credit.

SLIDE 72

Cash Flow Scholarships Loans 529 / Coverdale Grandparents Tax Credits ROTH Account

RESOURCES

ROR vs. Cost Impact to Financial Aid Other Financial Objectives

T I MI NG

Put Some Skin In the Game!

RESPONSI B I L I T Y Being in control of your money is a great stress reliever.

Reducing Front end cost Asset Re-Position Paying the Bill Handling Loans

ST RAT EGI ES

Doing It the Right Way Counts!

SLIDE 73

Case Studies

SLIDE 74

EFC = $75,000 Cost of Attendance = $63,250 Need Eligible = $0 Merit Scholarship = $0 Net Cost To Attend = $63,250

4 year Total Cost = $253,000

EFC = $75,000 Cost of Attendance = $59,634 Need Eligible = $0 Merit Scholarship = $20,000 Net Cost To Attend = $39,634

4 year Total Cost = $158,536

Net Cost is All that Matters – No Need

SLIDE 75

EFC = $75,000 Cost of Attendance = $59,634 Need Eligible = $0 Merit Scholarship = $20,000 Net Cost To Attend = $39,634

4 year Total Cost = $158,536

EFC = $75,000 Cost of Attendance = $59,634 Need Eligible = $0 Merit Scholarship = $25,000 Net Cost To Attend = $34,634

4 year Total Cost = $138,536

BEFORE AFTER

Analyze and Appeal

SLIDE 76

Andi C.

▪ Studying Biology ▪ ACT 31 – ACT 34 ▪ Four Colleges Initially (Then Applied to 10 Colleges) ▪ Family Income $166,000 ▪ $90,000 in Home Equity, $65,000 in Mutual Funds, $55,000 in College Accounts – Coverdell - UGMAs ▪ Initial EFC was $43,500, REDUCED TO $31,545 ▪ Four Family Members

I can’t afford it! We must stay in-state.

Case Study #1

John Hopkins for $20,650 COA is $58,000

DRIVEN RESULTS # 1

SLIDE 77

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SLIDE 78

Case Study #3

Keven B.

▪ Studying Business ▪ SAT 1380 / 2100 ▪ Four Colleges Initially, Then Applied to 10 Colleges ▪ Family Income was $106,000 ▪ $60,000 in Home Equity, $65,000 in Mutual Funds, $125,000 in Stocks ▪ Initial EFC was $38,500, Reduced to $22,665 ▪ Four Family Members

I can’t afford an elite school

Dartmouth

Received: $38,800 in Scholarships

COA: $61,570 Bottom Line Cost: $22,700 Ivy League Education at Less Expense than In- State Cost of Public Schools Dartmouth has a 96% - 4 Year Grad Rate

DRIVEN RESULTS # 3

SLIDE 79

Case Study #5-8

Wait!

My kid isn’t an “A” Student

DRIVEN RESULTS # 4-6

▪ No Worries! ▪ The Majority of Our Families are Not “A” Students! ▪ There is Money for EVERY STUDENT!

▪ High Income – Tim P. Low Test Scores: $435,000 AGI ACT of 17 Received 6 Offers! (Highest was $25,000 at Jacksonville University) ▪ Business Owner – Daras Family Average Income B Student, ACT of 29 Received 7 Offers (Able to Appeal 2) Belmont University for Less Than Their EFC Total Offer of Over $35,000 Tax Planning savings of $7,000 a year on top ▪ Single Parent – Kim K.

Low Grades Low Test Scores Received 4 Offers Worth Over $150,000 a Year Combined

SLIDE 80

Where to Start

SLIDE 81

Putting It All Together

Savings College Retirement Investments Our Solution

SLIDE 82

• 100% of Need Met
• Merit Aid
• Private Scholarship
• Test Prep
• EFC Reduction
• Non Need Merit Aid
• Private Scholarship
• School Selection
• Test Prep
• Tax Aid
• 100% of Need Met
• EFC Reduction
• Timely Applications
• School Selection
• Test Prep
• Tax Aid

How Can You Cut the Cost of College?

1.

• 1. Hig

High Mer erit/ Lo Low Nee eed 3.

• 3. Hig

High Mer erit/ Hig igh Nee eed 4.

• 4. Lo

Low Mer erit/ Hig igh Nee eed 2.

• 2. Lo

Low Mer erit/ Lo Low Nee eed

SLIDE 83

• Maximize Aid with EFC Reduction Strategies
• College Selection
• FAFSA vs CSS Profile
• % of Need Met
• Merit Scholarship
• Smart College Lending Strategy
• Tax Scholarships & Personal Resource Planning
• American Opportunity Tax Credit
• Gifting Assets
• Cash Flow Maximization
• Income Shifting

Comprehensive College Funding Plan

SLIDE 84

• Federal Direct Stafford Student Loan
• Subsidized (Need Based) –1.069% Fee/ 3.76% Fixed –
• No interest until repayment
• Unsubsidized (Not Need Based) – 1.069% Fee/ 3.76% Fixed –
• Interest Accrues Immediately
• $27,000 Max over 4 Years ($5,500, $6,500, $7,500, $7500)
• Use it or lose it each year
• Federal Direct Parent PLUS Loan – (Not Need Based)
• 4.752% Fee / 6.31% Fixed, Interest Accrues Immediately
• Borrowed by parent up to the full COA
• Non Transferrable
• Interest on Federal Direct loans adjusts every July 1
• Private Student Loans – (Not Need based)
• Fixed and Variable Interest Rate programs
• Borrowed by the student from Banks and Credit Unions
• Co-signer typically required

Have a Smart Lending Strategy

SLIDE 85

Net Cost Comparison

Calendar Year Projected Annual COA 2016 $46,668 2017 $49,001 2018 $51,451 2019 $54,024 Projected Four Year Total Cost* $201,145

School Name: Illinois Cost of Attendance: $46,668 Projected 4 Year Total Cost: $201,145 *Assumes 5% Annual Increase

PROJECTED ANNUAL COSTS Description Amount EFC Method Used by School Federal Methodology Estimated COA - $46,668 EFC $53,000 Demonstrated Financial Need $0 Description Amount Self Help Awarded $5,500 Gift Aid Awarded $10,000 Total Financial Aid Awarded $15,500 Projected Cost / Financial Aid Amount Unmet Cost + $31,168 Self Help Awarded $5,500 Total Family Contribution $36,668

SLIDE 86

What you need to pay for!

Year 1 Year 2 Year 3 Year 4 TOTAL

Self Help $5,500 Unmet Cost $31,168

TRUE NET COST TO ATTEND

$36,668 $39,001 $41,451 $44,024

$161,145 How you're going to Pay for it!

Private Scholarship $0 $0 $0 $0 $0 Parent Cashflow $4,800 $4,800 $4,800 $4,800 $19,200 Workstudy $0 $0 $0 $0 $0 American Education Oppty Credit $2,500 $2,500 $2,500 $2,500 $10,000 529 $6,250 $6,250 $6,250 $6,250 $25,000 Other Assets $3,000 $0 $0 $0 $3,000 Grandparent/Family Help $5,000 $0 $0 $0 $5,000 Perkins Loan $0 $0 $0 $0 $0 Subsidized Student Stafford Loans $0 $0 $0 $0 $0 Unsubsidized Student Stafford Loans $5,500 $6,500 $7,500 $7,500 $27,000 Parent Plus/Student Loan For Difference $9,618 $18,951 $20,401 $22,974 $71,945

COLLEGE FUNDING COMPLETE

$36,668 $39,001 $41,451 $44,024

$161,145 Total Loans

TOTAL LOANS

Perkins Loans $0 $0 $0 $0 $0 Subsidized Stafford (Self Help) $0 $0 $0 $0 $0 Unsubsidized Stafford $5,500 $6,500 $7,500 $7,500 $27,000 Parent Plus/ Student Loan $9,618 $18,951 $20,401 $22,974 $71,945 $15,118 $25,451 $27,901 $30,474

$98,945

# of Years

• Int. Rate

Monthly Pmt Total Repayment 10 6%

• $1,093
• $131,163.15

25 6%

• $634
• $190,299.54

SLIDE 87

DIY or Seek Professional Help

▪ Go It Alone – But to Achieve a Best Outcome You Will Require: ▪ Time ▪ Effort ▪ Expertise ▪ Patience ▪ Schedule a FREE 30 Minute Call with a Peachtree Advisor

SLIDE 88

The 1 Page College Funding Plan

COLLEGE PRE-APPROVAL™ Worksheet (Sample) PARENT RESOURCES

TOTALS

529 Savings

$25,000

(A) PARENT RESOURCES $57,200

Other Assets

$3,000

(B) PARENT LOANS $0 Monthly Cash Flow ( $400 x 48 months)

$19,200

(C) STUDENT RESOURCES $9,600

Annual American Opportunity Tax Credit ($10,000 Max over 4 years)

$10,000

(D) STUDENT LOANS $27,000

TOTAL PARENT RESOURCES (A)

$57,200

(E) OTHER HELP $5,000

PARENT LOANS

Your 4 Year Pre-Approval Amount

$98,800

PARENT PLUS / PRIVATE LOANS (B)

$0

STUDENT RESOURCES

STUDENT PLANS

Student Savings (UTMA, Savings, etc.)

$0

Anticipated Major / Career

Education

Monthly Workstudy / PT Job ($200 x 48 months)

$9,600

Average Starting Salary = Max Loan $40,267

TOTAL STUDENT RESOURCES (C)

$9,600

STUDENT LOANS

Average Starting Salary By Discipline* Student Stafford Loans ($27,000 Max over 4 years)

$27,000

Engineering $62,891 Private Student Loans Computer Science $62,103

TOTAL STUDENT LOANS (D)

$27,000

Business $57,229

OTHER HELP

Communications $48,253

GRANDPARENT / FAMILY HELP (E)

$5,000

Math & Sciences $44,299 Education $40,267 Humanities & Social Sciences $38,049 Overall $48,707

*Nation Association of Colleges and Employers Class of 2014 salary survey

SLIDE 89

Where Do You Go From Here?

▪ The answer is different for everyone: ▪ Number of Students and Ages ▪ Financial Constraints / Opportunities ▪ Personal / Professional / Family / Goals ▪ Condition of Retirement Accounts ▪ How Close to Retirement

SLIDE 90

Answers about the Process Free One Hour Consultation to Ask Any Questions Your Plan, EFC Review, Current College Choices are good fit Insight & Advice on Existing Plan

(Completed Evaluation Form is Required)

Know Where to find the Money We will determine if you are a Tax Advantaged Family Or Aid Advantaged Family

VALUABLE INFORMATION DURING YOUR FREE CONSULTATION

Y O U R P L A N ?

SLIDE 91

Schedule Your Complimentary Consultation or Call

Schedule Your Meeting Schedule Your 30 Minute Call