College Fundin
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College Fundin

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