Strategies for Saving on College Costs 2.11.2020

Strategies for Saving on College Costs February 11 2020 Source: US Dept of Education Agenda • Anticipate the Process • Understand College Pricing & Types of Aid • Forecast Your Cost • Know Where to Look • Ask Good Questions • Seek Out Resources Anticipate the Process • Search for colleges & prep for financial aid process 9th, 10th, 11th grade • • FAFSA/ WASFA fall of senior year Financial aid application parallel to but not intertwined with college application process 9th - 11th GRADES Look at Finances Calculate EFC Search for Colleges Use Financial Fit Tools SPRING 11th GRADE Research College Requirements Deadlines Other forms 12th GRADE FALL Complete FAFSA or WASFA 12th GRADE Provide Documentation As colleges request 12th GRADE SPRING Evaluate Offers Accept desired aid at one school Timeline FAFSA • Free Application for Federal Student Aid • Opens October of Senior Year • Based on prior-prior year tax return* • Income is primary factor • Often required for merit as well as need-based aid • Determines eligibility for federal & state aid • Fill out every year in college *Starting college: Fall 2021? Use 2019 taxes Fall 2022? Use 2020 taxes Fall 2023? Use 2021 taxes Side Note: FAFSA Parent Not necessarily who claims the student on taxes Should I complete the FAF $ A or WA$ FA? YES NO Do I have at least one parent who is a US Citizen or eligible non citizen? Complete the WASFA OTHER NOTES NO YES Complete the FAFSA Complete the FAFSA Note: If the student’s PARENT is undocumented, the following: Use all zero’s for parent’s social security number Hit “submit” button twice (first time it will fail, stay with it) Parent will not be able to sign electronically, so click “print signature page” to sign on paper and mail to Department of Ed WASFA • Washington Application for State Financial Aid • For students with alternate citizenship / immigration status • Starts with a questionnaire about status • Opens October • Based on prior-prior year tax information • Only for in-state colleges • Fill out every year in college WASFA Eligibility Lived in WA for 36 months (3 years) before HS graduation or GED Earned HS diploma or GED in WA Sign affadavit Source: http://readysetgrad.org/residency-citizenship Definition of an Eligible Non-Citizen US permanent resident card (Green card) OR Conditional permanent resident (I-551C), I-94 with designation “Refugee”, “assylum granted”, “indefinite parole”, “Humanitarian parole”, “Cuban-Haitian Entrant” OR a citizen of the republic of Palau, Marshall Islands or Federated states of Micronesia Source: https://fafsa.ed.gov/help/fotw15a.htm Students with a parent who is a US permanent resident (green card holder) and not a citizen will use the parent’s ARN instead of social security number, but they will not be able to get a PIN to electronically sign They will also print the signature page CSS Profile • • • • • Required by some colleges College Board tool Open October - February 15 senior year Application fee Based on income and assets; requires more parent information if multiple parents • Fill out every year in college After You Submit • Will find out preliminary Estimated Family Contribution (EFC) • Info sent to colleges you list on FAFSA/ WASFA • Colleges often ask for verification • Colleges send financial aid offers • Merit scholarship notification may come first, with acceptance Source: Federal Student Aid College Sticker Prices It’s not actually this simple! Source: The College Board CollegeData.com Source: CollegeData.com, Pacific Lutheran University • Access colleges’ Common Data Sets • Look at Money Matters • Look up average size of award & % of students receiving need-based or meritbased awards Search for Colleges by Type of Aid • Find various lists online • Use a tool like DIY College Rankings’ College Search Spreadsheet • Use Big Future for % of need met + other factors Source: DIY College Rankings Comprehensive College Search Spreadsheet Know Where to Look Source: Forbes • Not all colleges offer the same sort of aid • Look up Need Coverage / Merit Offering • Look beyond brand names Private Colleges Might be Less Expensive For You Source: Council of Independent Colleges Consider WUE Western Undergraduate Exchange • www.wiche.edu/wue • pay 150% of in-state tuition rather than 300% • some public colleges participate • restrictions & requirements vary Source: Cal Poly Pomona Consider ROTC • Reserve Officer Training Corps • Go to college w/ a generous scholarship • Join the military as an officer • Serve active duty after you graduate • Air Force, Army, Navy • Can also join during college Consider Military Academies Air Force Academy, Colorado Springs for high achievers Look at Graduation Rate • • • • • Washington State Look at 4- and 6-year rates Use CollegeResults.org or CollegeCompetion.Chronicle.com 44.1% Public Year 57.8% Private Year Rate is largely an input rather than an output 68.1% 70.8% 25.8% 37.3% For Profit Year Don’t obsess; there are some factors that won’t apply to all students Washington graduation rates are higher than the national average 0% 20% 40% 60% 80% year grad rate year grad rate Data from CollegeCompletion.Chronicle.com Look at Average Indebtedness • Look up on CollegeScorecard.ed.gov or CollegeInsight.com * • National average student loan debt: $29,200 class of 2018 • Washington average: $23,524; 48% of students w/ debt *College Insight & Project on Student Debt are by the Institute for College Access & Success Source: Forbes Side Note: Loan Remix • Relatively new programs reduce risk to student borrowers • Loan Repayment Assistance Programs if you make under a certain salary • Income Share Agreements operate like a loan but you start paying back only after you make a certain salary Payment is a % of salary • Review all details & conditions carefully What About Scholarships? • Outside scholarships make up average of 2-6% • Possible but very rare to finance bulk of cost • • 5% 6% Sources of Student Aid 22% Best tools? Naviance Scholarship List, WashBoard.org, BigFuture, others on SW Scholarships page 67% Federal government grants, loans, other aid True that we have very few applicants for great local scholarships College grants, scholarships Private/ employer scholarships State government grants scholarships Data from Big Future What About the College Bound Scholarship? Source: WA State College Bound • Signed up for WA State program in Middle School; based on income • Fill out FAFSA/ WASFA to activate • Three in-state private colleges have excellent supplemental scholarships: Pacific Lutheran, Seattle Pacific, Whitworth • See College Bound Scholarship page on www.shorelineschools.org/ swcollegeandcareer What about Running Start & AP? • These could help with college costs by reducing time at a 4-year college • Surest way: Running Start credits for an in-state school; must be courses for which the university has equivalency • College policies vary greatly: check them out What If a Relative Wants to Help? • Don’t give student $$ while in high school; cash gift could reduce aid • Can gift $ to parents to pay school (within family gift limits) • Can pay school directly or from a 529; best during 3rd & 4th years of college • 529: Method depends on who owns the account Source: Forbes, Wall Street Journal Source: Adobe Stock Photo Resources • StudentAid.gov; HomeRoom Blog US Dept of Education • Big Future on CollegeBoard.org • CollegeData.com; CollegeCompletion.Chronicle.com; CollegeScorecard.ed.gov • DIY College Rankings/ Michelle Kretzschmar • Best Bet Colleges for Merit & 50/50 Lists • College Comparison Spreadsheet ($42; look @ sample and watch intro video before buying) • The College Solution/ Lynn O’Shaughnessy: blog, book, articles • “Most Students Receiving Merit Aid” US News ... Future on CollegeBoard.org • CollegeData.com; CollegeCompletion.Chronicle.com; CollegeScorecard.ed.gov • DIY College Rankings/ Michelle Kretzschmar • Best Bet Colleges for Merit & 50/50 Lists • College. .. prior-prior year tax information • Only for in-state colleges • Fill out every year in college WASFA Eligibility Lived in WA for 36 months (3 years) before HS graduation or GED Earned HS diploma... questions Look Up Aid by College • Search college name + merit / need-based aid or • Look on Financial Aid pages of college site or • Look on CollegeData.com CollegeData.com Source: CollegeData.com,