Helping Families Conquer College Costs
28
CONQUERING COLLEGE COSTS 20 steps to: pay for college without excessive debt save thousands of dollars of college costs Frank Palmasani
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Transcript of Helping Families Conquer College Costs
CONQUERING COLLEGE
COSTS
20 steps to:
pay for college without excessive debt
save thousands of dollars of college costs
Frank Palmasani
Changes in Family Income: 1967-
2012
2012 Constant Dollars
Since 1966, family income for every
income group has increased.
Changes in Family Income: 2000-
2012
2012 Constant Dollars
But since 2000, it is down as much as
14%.
How Do Colleges Respond?
On average, private colleges in Illinois
have increased tuition 29% since 2004.
This is adjusted for inflation.
What Is the Problem?
College Sticker Prices are incredibly high
Resources are limited
Borrowing has skyrocketed/ national crisis
Student > 25k; Parent > 35k
Right College, Right Price(The Perfect Fit)
Have a discussion with your
student about reasonable
student debt
Have a discussion with your
student about working on the
college campus
Have a discussion with your
student about summer job
savings
Analyze your own financial
situation and determine
reasonable parent debt
Using FAFSA4caster, calculate
your estimated EFC number
Understand the key aspects of
the EFC number
< than 6000 = PELL GRANT
ELIGIBILITY
< than 9000 = Illinois State Grant (MAP)
< cost of college = NEED BASED
COLLEGE GRANT?
Analyze your personal
affordability threshold
Tax credits?
Cash flow?
Available savings?
Reasonable borrowing?
Get the academic data ready
Test score (ACT, SAT, PSAT)
GPA
Understand value of Net Price
Calculators
Department of Education mandate
October 2011
Estimate net price at any college in country
EFC number, composite test score, GPA
Review the 7 college categories
and the 2 back up options
Flagship State School (in state)
Non-flagship State School (in state)
Flagship State School (out of state)
Non-flagship State School (out of state)
Highly Selective Private
Mid-size Private
Traditional Private
Back ups (Commuting / Community
College)
Take multiple tests
Resume and relationship
Pursue independent
scholarships
Local scholarships
Regional scholarships
National scholarships
Organize self financially
CSS Profile after October 1 of
senior year, only those schools
that require
FAFSA after January 1 of senior
year, list all of the colleges
FAFSA updates
Once taxes are completed, update the information you recorded on FAFSA
Do not miss amount you paid in federal taxes
IRS Data retrieval system
Plan out your appeal strategy
Loss of income
Medical expenses
Private grade/high school costs
College expenses
Unusual circumstances
Parent loan options
Equity against your home
Borrowing from your 401k/403b
PLUS
Colleges acting like bank
Alternative student loan (co-sign)
Await award letters
March or April
Don’t decide too soon
Analyze award letters
properly
Conversation
Not negotiation
Must have a plan
Honesty
Financial Fit program available at
www.collegecountdown.com
Questions?
Cyndy McDonaldPresident, Co-Founder of
GuidedPath
et
Frank PalmasaniCreator of Financial Fit and author
of Right College, Right Price
