© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 1 So, You Want To Go To College…...
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Transcript of © Copyright 2013 Mountain Financial, LLC. All Rights Reserved 1 So, You Want To Go To College…...
© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 1
So, You Want To Go To College…
How the heck do we pay for it?
© Copyright 2013 Mountain Financial, LLC. All Rights Reserved 3
Let’s Define Terms COA – Cost of Attendance
EFC – Expected Family Contribution
Need – COA minus EFC
FAFSA – Free Application for Federal Student Aid
CSS/Profile – College Board’s application
Base Year – Junior Spring to Senior Fall Semester
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Who is responsible?
http://www.photographyblogger.net/railroad-tracks/ Copyright © 2013 Photography Blogger.
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Student Responsibilities
What increases gift aid? Doing your best in school, in society and in your
interests Choosing optimal schools Applying well to these optimal schools Confirming that the offer is as good as it can be Clear career direction
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Clarifies high school choices
Clarify Your Career DirectionBeing clear about your direction:
Clarifies college choices
Better gift aid offers, graduate sooner, more earnings in career
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Choose endowed schools Good schools have grateful graduates who then
give back
Apply to several of these schools
Ignore cost of attendance (COA) during search
How do they use their endowment?
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Choosing the schools Focus on “Fit” first
Full freshman class vs. revenue
“Financial aid leveraging”
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Make Yourself Attractive
On your application, leverage the advantages you’ve built up to now Academic program ACT/SAT test scores Extra-curricular activities Community service Recommendation letters
Ask for help early
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You’re In Charge
You have what the schools want
Apply to 6 or more colleges for both admission and financial aid
The colleges see where else you’re applying
Let them compete
If offers are less than you expect, be ready
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Should I Apply for Scholarships? For scholarship sources, which is the largest?
Private Sources
Government
Colleges
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Federal & State
Private Sources
Colleges
Money for College
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Parent ResponsibilitiesWhat is most efficient and least stressful? Eliminate mistakes on the aid applications
Stay on top of the process
Understand optimal use of financial tools
Optimize cash flow
Optimize the use of existing assets
Confirm that the offer is as good as it can be
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Eliminate Application Mistakes
Over 70% have mistakes that are not to the family’s advantage
Have your data checkednow
Make entries from an answer key
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Apply Early for Financial Aid Financial Aid is first come, first serve. Be at the
head of the line.
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Apply for Financial Aid
Some believe it is impossible to receive financial aid because their income is high
This is simply not true.
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Fund Savings Elsewhere
Find places to save funds for college that: Are not included in the formulas Are accessible Have friendly rules
If offers are low, funds are available If offers are high, good place to leave it Supports retirement regardless
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Reduce What is Reported
Reduce or postpone income Reposition assets Must be completed during base year Can run contrary to
traditional planning or tax advice
Synchronize with retirement goals
Must improve financial efficiency
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Three Levels of Families
1. EFC of 0 – Qualifies for all need-based aid
2. EFC within COA range – EFC and Efficiency improvements possible
3. EFC above COA range – Efficiency improvement focus
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Find money you don’t know you’re losing and don’t need to lose
Leave your lifestyle and spending the same
What is “efficiency”?
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Improving Financial Efficiency Find and eliminate transfers in at least 5
major areas
Eliminate opportunity costs now
Retain compounding as long as possible
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Retain Compounding
1 2 3 4 5 6 7 8 9 10
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Retain Compounding
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49
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Effect of Finding Transfers
Single-income family, Mother homeschools 4 children Initial monthly savings: $187/month Locate and redirect $630/month Percent of income: 8.40%
Double-income family, 2 children in public High School Initial monthly savings: $2,292/month Locate and redirect $2,068/month Percent of income: 7.94% Plus lump sums redirected to more efficient positions
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Learn and Follow the ProcessWhat families receive the most money for college?
“Those that know the most about the process.”
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Helping you:
Pay for college efficiently and comfortably Optimize your need- and merit-based aid
Increase the funds available for college and retirement
Reduce stress, while increasing your confidence
All without changing what you’re spending now