My Mission Support parents of college bound kids who struggle with how to pay for college by educating them about financial aid, and how college is priced so they can realize significant discounts on the cost of college Way to the Quad Save Thousands On The Cost of College HECA Conference April 2021 Copyright © 2021 - Way to the Quad - All content © Way to the Quad 2021 My Objectives My Approach I teach parents how to approach the college buying process so they can take a PROACTIVE approach to paying for college instead of REACTING to the cost after the college gives their child an offer ➢ Gain an understanding of the financial aid system ➢ Introduce you to the four-step process that all families go through It's important that parents understand this process In this process knowledge really is power ➢ Gain an understanding of how colleges are discounting the cost of college and what planning opportunities families may have Most parents: ➢ Have no idea how it works or ➢ They think they know how it works based on friends and family Copyright © 2021 - Way to the Quad - 3 Copyright © 2021 - Way to the Quad - 4 Three Kinds of Fit Academic Personal Financial Copyright © 2021 - Way to the Quad - 5 Copyright © 2021 - Way to the Quad - 6 It’s a Buyer’s Market DON’T worry about the sticker price! Copyright © 2021 - Way to the Quad - 7 Copyright © 2021 - Way to the Quad - 8 Public School $27,110 Private School $50,775 12,397 10,833 1,200 2,680 36,535 9,900 1,074 3,266 Expected Family Contrib EFC Financial Need Total Financial Aid $21,500 $5,610 $5,500 $21,500 $29,275 $29,000 Merit Scholarship Grants Work Study Federal Subsidized Loan at 0% Fed Unsubsidized Loan at 4.29% 0 3,500 2,000 15,500 5,000 3,000 3,500 2,000 $21,610 $27,110 $21,775 $30,275 Total Estimated COA Tuition & Fees Room & Board Books & Supplies Pers Exp & Transp & Loan Fees Cost after aid (COA – Fin Aid) True Cost (COA – Gift Aid) Source: 2018 NACUBO Tuition Discounting Study Your actual aid offer may vary depending on income, assets, GPA, etc Copyright © 2021 - Way to the Quad - 9 Copyright © 2021 - Way to the Quad - 10 10 Financial aid comes in two forms … What it all boils down to for need-based aid… Need-based/Self Help Aid Ability to “pay” Cost of Attendance (COA) - Expected Family Contribution (EFC) Merit Aid Ability to “play” academically, athletically, etc Financial Need Copyright © 2021 - Way to the Quad - 11 11 Copyright © 2021 - Way to the Quad - 12 12 Expected Family Contribution (EFC) The minimum annual amount a student is expected to contribute toward the cost of college Main Drivers of the EFC Calculation ✓ Parent Income ✓ Parent Non-Retirement Assets ✓ Child’s Income ✓ Child’s Assets Three methodologies: •Federal •Institutional •Consensus ✓ Voluntary Pre-Tax Retirement Contributions ✓ Crossover Years (through 2022 – 2023 school year) Copyright © 2021 - Way to the Quad - 13 13 Copyright © 2021 - Way to the Quad - 14 14 FAFSA Free Application For Federal Student Aid Key Highlights: ➢ No Retirement Accounts ➢ No Primary Home Equity ➢ No Family-owned business with less than 100 FT employees (through 2022-2023 school year) Copyright © 2021 - Way to the Quad - 15 15 Copyright © 2021 - Way to the Quad - 16 16 Barbie & Ken • Divorced • Mom: • Makes $41,000 with child support • $45,000 in assets • No home • Dad: • Makes $240,000 • $100,000 in assets • $355,000 in home FAFSA & Divorce FAFSA also ignores income and assets from noncustodial parent (through 2022–2023 school year) $3,449 vs $78,800 EFC Copyright © 2021 - Way to the Quad - 17 17 Copyright © 2021 - Way to the Quad - 18 18 CSS Profile ✓ Administered by College Board ✓ Less than 300 Colleges ✓ Key Differences from FAFSA: ▪ Primary Home Equity? ▪ Non-Custodial Parent? ▪ Businesses All the colleges the same? Planning Opportunity No! That would be too easy ☺ Copyright © 2021 - Way to the Quad - 19 19 Copyright © 2021 - Way to the Quad - 20 20 Consensus Methodology The institutional methodology except… Primary Home Equity is capped at 1.2x Total Income and Student’s Assets are assessed up to 5% instead of 25% Planning Opportunity Total Income = $120,000 Home Equity = $400,000 Maximum Equity Included in the EFC Calculation as a Parent Asset $120,000 x 1.2 = $144,000 $144,000 x 5% = $7,200 added to EFC vs $400,000 x 5% = $20,000 added to EFC Copyright © 2021 - Way to the Quad - 21 21 Copyright © 2021 - Way to the Quad - 22 22 568 President’s Group Member Colleges Amherst College Boston College CA Institute of Technology Claremont McKenna College Columbia University Cornell University Dartmouth College Davidson College Duke University Georgetown University Grinnell College Massachusetts Institute of Technology Middlebury College Northwestern University Pomona College Rice University Swarthmore College University of Notre Dame Wellesley College Williams College Yale Planning Opportunity Source: http://www.568group.org/home/?q=node/24 List is current as of 3/24/2021 Copyright © 2021 - Way to the Quad - 23 23 Copyright © 2021 - Way to the Quad - 24 24 How It All Works ✓ Prior-Prior Year: Income Base Year is Year Going to College – ✓ Starting College in 2022 – your income years are 2020, 2021, 2022, & 2023 ✓ Assets – Value on Day of Submission ✓ Forms Go Live on October ✓ Get Federal Student Aid (FSA) ID – student & parent e-signing FAFSA Planning Opportunity Copyright © 2021 - Way to the Quad - 25 25 Copyright © 2021 - Way to the Quad - 26 26 Merit Aid Financial aid comes in two forms … ✓Office of Admissions Need-based/Self Help Aid Ability to “pay” ✓Enticement For Student To Attend ✓Usually Based On Grades/Test Scores Merit Aid Ability to “play” academically, athletically, etc ✓Different Awarding Methodologies Copyright © 2021 - Way to the Quad - 27 27 Copyright © 2021 - Way to the Quad - 28 28 Planning Opportunity Copyright © 2021 - Way to the Quad - 29 29 Copyright © 2021 - Way to the Quad - 30 30 All The Applications Are In What’s Next? ✓You Are Accepted For Admission – Yay ☺ ✓Enrollment Management Steps In ✓Financial Aid Award Letters ✓Compare Awards ✓Appeal – Yes You Can! – Amy Copyright © 2021 - Way to the Quad - 31 31 Copyright © 2021 - Way to the Quad - 32 32 Copyright © 2021 - Way to the Quad - 33 33 Copyright © 2021 - Way to the Quad - 34 34 Copyright © 2021 - Way to the Quad - 35 35 Copyright © 2021 - Way to the Quad - 36 36 Direct Student Loans Subsidized vs Unsubsidized Use It Or Lose It $3,500/$5,500 - Freshman $4,500/$6,500 - Sophomore $5,500/$7,500 - Junior $5,500/$7,500 –Senior TOTAL - $27,000 ➢ ➢ ➢ ➢ 2020-2021 School Year Interest Rate 2.75% Copyright © 2021 - Way to the Quad - 37 37 Copyright © 2021 - Way to the Quad - 38 38 FAFSA Simplification Act Effective for the 2023–2024 School Year The first redesigned FAFSA will go live on October 1, 2022 Services Check out my webinar and share with your families! WayToTheQuad.com/BigChangesComingtoFAFSA Copyright © 2021 - Way to the Quad - 39 39 Copyright © 2021 - Way to the Quad - 40 40 You will learn: ✓ Every aspect of college financing ✓ How to fill out your financial aid forms flawlessly ✓ How to successfully appeal financial aid award letters Journey To College Made Easy Course ✓ How to proactively save thousands of dollars by building a list of colleges that affordable ✓ Your College Pre-Approval – what you can afford to pay $497 ✓ And More! https://waytothequad.com/jtcme https://waytothequad.com/jtcme Copyright © 2021 - Way to the Quad - 41 41 Copyright © 2021 - Way to the Quad - 42 42 Pay Less For College Program Understand what discounts you can get at what type of colleges Detailed walk through of the two financial aid forms View actual financial aid award letters and learn about appeal strategies One-on-One with Peg Deep Dive into the First Step of the Process Bringing it all together to create your best strategy to pay for college Includes merit scholarship and outside scholarship databases and ongoing access to college financial planning software Ongoing access to my college planning technology (available only to planning professionals) populated with your family’s own financial data as you complete each step of the process, so you have a plan that is specifically tailored to your unique circumstances $750 https://waytothequad.com/jtcme https://waytothequad.com/services/#payless Copyright © 2021 - Way to the Quad - 43 43 Copyright © 2021 - Way to the Quad - 44 44 Consulting Services Forms and Figures FAFSA and CSS Profile Review and Completion for Submission You’re In Financial Aid Award Letter Analysis and Implementing Appeal Strategy Your Adventure Awaits Bringing it all together with asset distribution strategies, developing loan plans, and cash flow analysis Consulting services billed hourly at $175 https://waytothequad.com/services/#one Copyright © 2021 - Way to the Quad - 45 45 Copyright © 2021 - Way to the Quad - 46 46 Peg Keane Keough, AIF® College Financial Planning Advisor peg@waytothequad.com www.waytothequad.com Copyright © 2021 - Way to the Quad - 47 47 ... - Way to the Quad - 12 12 Expected Family Contribution (EFC) The minimum annual amount a student is expected to contribute toward the cost of college Main Drivers of the EFC Calculation ✓ Parent... - Way to the Quad - 21 21 Copyright © 2021 - Way to the Quad - 22 22 568 President’s Group Member Colleges Amherst College Boston College CA Institute of Technology Claremont McKenna College Columbia... type of colleges Detailed walk through of the two financial aid forms View actual financial aid award letters and learn about appeal strategies One -on- One with Peg Deep Dive into the First Step of