How to Pay for College in This EconomyAndrew Lockwood,  J.D.<br />College Funding Specialists<br />497 South Oyster Bay Ro...
Key Topics:<br />How Much College Really Costs<br />The “Double Secret” Formula Used to Decide How Much You’ll Get - Grant...
Who is Andy Lockwood and Why Should You Pay Attention to Him?<br />Owner, College Funding Specialists – Plainview, Miami, ...
The “Never Pay Retail For College” ©College Funding System<br />Tax Strategies – “Tax Scholarships”<br />Title IV Financia...
College Is Expensive!!(Thank You, “Captain Obvious”)<br />Average Cost Of <br />Private Versus State <br />Schools!<br /><...
Four years* can cost $80,000 to $200,000…plus!
  Multiply this cost by # of kids!
  Keeps going up by 6–8%, every year (15% in some states)!</li></ul>--------------------------------- <br />* If your kid ...
How Is A Family Supposed To Pay For All That?<br /><ul><li>Savings?
Borrow?
Scholarships?
Go To LessDesirableSchool?
Not Go At All?</li></ul>7<br />
Five-Year College “Net” Cost<br />Tax<br />Brackets<br />Public<br />$70,000<br />Private<br />$140,000<br />Elite<br />$2...
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College Fundin

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College Fundin

  1. 1. How to Pay for College in This EconomyAndrew Lockwood, J.D.<br />College Funding Specialists<br />497 South Oyster Bay Road<br />Plainview New York 11803<br />Miami – Boca Raton – Weston (FL)<br />
  2. 2. Key Topics:<br />How Much College Really Costs<br />The “Double Secret” Formula Used to Decide How Much You’ll Get - Grants, Scholarships, etc.<br />The Strange Reason That An Expensive, Private College Can Cost You Less Out of Pocket Than a So-called “Cheap” Public University!<br />Money-making “Loopholes” - Especially for the “Forgotten Middle Class” - and Money Losing ”Landmines” to Avoid Like the Swine Flu<br />What to Do When You’ve Been “Hosed” by the Financial Aid Office<br />
  3. 3.
  4. 4. Who is Andy Lockwood and Why Should You Pay Attention to Him?<br />Owner, College Funding Specialists – Plainview, Miami, Boca Raton<br />Author – Never Pay Retail For College<br />Radio Host – The College Planning Power Hour<br />ESPN Radio - FL <br />Corporate lawyer NYC, then in-house counsel to publicly-traded broker dealer - “insider” education in financial services industry<br />Wesleyan University (B.A.) St. John’s University Law School (J.D.) - $100,000 student loans<br />Frequently in the media – BankRate.com, Miami Herald, Live With Lisa Wexler Radio – 1400 – Southern CT and North Shore Long Island<br />
  5. 5. The “Never Pay Retail For College” ©College Funding System<br />Tax Strategies – “Tax Scholarships”<br />Title IV Financial Aid System<br />Student “Positioning”<br />
  6. 6. College Is Expensive!!(Thank You, “Captain Obvious”)<br />Average Cost Of <br />Private Versus State <br />Schools!<br /><ul><li>It’s not just tuition – books, room and board, living expenses, etc. “Cost of Attendance”
  7. 7. Four years* can cost $80,000 to $200,000…plus!
  8. 8. Multiply this cost by # of kids!
  9. 9. Keeps going up by 6–8%, every year (15% in some states)!</li></ul>--------------------------------- <br />* If your kid can graduate in four years!<br />
  10. 10. How Is A Family Supposed To Pay For All That?<br /><ul><li>Savings?
  11. 11. Borrow?
  12. 12. Scholarships?
  13. 13. Go To LessDesirableSchool?
  14. 14. Not Go At All?</li></ul>7<br />
  15. 15. Five-Year College “Net” Cost<br />Tax<br />Brackets<br />Public<br />$70,000<br />Private<br />$140,000<br />Elite<br />$200,000<br />25%<br />28%<br />33%<br />35%<br />$102,941<br />$107,692<br />$116,667<br />$125,000<br />$205,882<br />$215,385<br />$233,333<br />$250,000<br />$294,118<br />$307,692<br />$333,333<br />$357,143<br />Key Concept: Pay for College With After-Tax Dollars<br />*Assumes additional 6% state and local tax and only ONE child’s college expenses<br />
  16. 16. Examples of Tax-Advantaged Strategies Buried in the Tax Code<br />1. HOPE Scholarship Credit <br />2. Lifetime Learning Credit<br />3. College Tax Deduction<br />4. Student Loan Interest Deduction<br />5. Coverdell ESAs (formerly called Education IRAs)<br />6. Penalty Free IRA/401K Withdrawals<br />7. Employee Education Assistance Plan Extension<br />8. Qualified State Prepaid Tuition Programs<br />
  17. 17. The Financial Aid System<br />Courtesy - Department of Education<br />
  18. 18. The Five Biggest, Most Persuasive Financial Aid Myths<br />“I earn too much to qualify.”<br />“My kid’s grades are too low.”<br />“I own a home...”<br />Aid is only for “special” groups.<br />It’s an easy process.<br />School people - Financial Aid Officers and/or Guidance Counselors - can help.<br />
  19. 19. EFC stands for__________ ____________ __________<br />Average EFC for a family earning $120,000: _____<br />Formula Every College in U.S. uses to calculate your financial aid package:<br />COA<br />- EFC<br />= Need<br />Show Me the Money!EFC and the “Double Secret” Formula<br />
  20. 20. EFC in Action - Case Study<br />School A - Ivy or Equivalent:<br />COA- $50,000<br />EFC - $10,000<br />Need - $40,000 <br />School A:<br />Meets 100% need - $40,000!<br />Gift aid – 80%<br />Self help – 20%<br />School B – State U:<br />COA - $20,000<br />EFC - $10,000<br />Need - $10,000 <br />School B:<br />Meets 60% need = $6,000 ($4,000 short!) <br />Gift aid – 50%<br />Self help – 50%<br />How Much Each College Really Costs – Out of Pocket:<br />School A:<br />Total Cost = $10,000 <br />Total Gift = $32,000<br />Total Self = $8,000<br />School B:<br />EFC = $10,000 <br />+ Unmet Need = $ 4,000<br />Total Cost = $14,000<br />Family pays $4,000 more for the “cheaper” school! <br />Don’t rule out schools based on “sticker price”!!!<br />
  21. 21. How Do “They” Calculate What I’ll Get?<br />
  22. 22. For More Info:<br />516.882.5464<br />info@collegeplanningadvice.com<br />www.CollegePlanningAdvice.com<br />Andy Lockwood<br />Peter “College Pete” Ratzan<br />College Funding Specialists<br />497 South Oyster Bay Road<br />Plainview, New York 11803<br />
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