© College Inroads, LLC. 2014, all rights reserved
© GuidedPath, 2014, all rights reserved
Cyndy McDonald
Michael Davila
HE...
 Cyndy McDonald
 Owner McDonald & Associates College Consulting
& GuidedPath/MyCCA.net
 25 years of experience
 Nation...
 Open the mystery box of college
funding for families
 Help families make appropriate
college choices, including college...
 One size DOES NOT fit all people.
 Families need to know how their family situation will fit into
the financial aid pro...
Education in the 21st Century
 Physical resources
 Investment in “best” of everything on campus
 Deferred Maintenance Costs
 Intellectual Assets
 H...
Cost of Attendance:
College MSRP
 The average public university costs:
$22,828 per year
 The average private university...
(c) College Inroads, LLC. 2014, all rights reserved
(c) College Inroads, LLC. 2014, all rights reserved
 Enrollment management contributes to process
 Merit scholarships offered, especially for ½ and Merit categories
 Incre...
(C) 2009 College Inroads, All rights reserved
 Definition: Enrollment Management is the strategic and selective
use of offers of financial aid to shape the incoming fr...
 Increase “net tuition revenue” streams
 Increase “full pays”
 Lower the discount rate
 Increase the enrollment yield
...
(C) 2009 College Inroads, All rights reserved
 “A student’s willingness to pay is the most important factor in
determining the size of an aid package” Noel Levitz Whit...
“Good luck getting any institution to tell you exactly
how they handle ability to pay as a driver in their
admit decision,...
(C) 2009 College Inroads, All rights reserved
 In the last ten years, colleges have increased the number of
scholarships they offer to students.
 Of the private colle...
 Where do Merit $$$ come
from?
 From schools
 From high schools
 From outside sources
 Use Net price calculators
from...
 Scholarships
 Early College Start
 CLEP
 AP Tests
 Pick the right college
 Max out the GPA
 Guaranteed Tuition Pro...
Tailoring college affordability to family needs
 Josie’s family:
 Dad is a teacher, mom shares a teaching position so she can
be home more with the kids. AGI is a $120,...
 Enrique’s family:
 Single parent mom, works as nurse’s aid at the local hospital; has 3
other children, no child suppor...
Financial Aid
Whole
1/2 - 1/2
Merit
Merit
½ - ½
Whole
Josie EFC:
Derek EFC:
Enrique EFC:
1/2-1/2
Merit
Whole
$25,700
$180,...
Whole:
Eligible for all grants/aid available.
Should have substantial aid package
with Pell Grants, university grants, &
w...
 Q: Why do families want a scholarship?
 A: To replace family contribution
 Real A: Scholarships are part of financial ...
1. Help families calculate
their Estimated Family
Contribution
2. Use the EFC to calculate
their family flavor
 Use net a...
Affordability Strategy: Whole
 Apply to colleges where the student’s academic profile
is in the top range
 Makes awards ...
Affordability Strategy: ½ -1/2
Compare Financial Aid Awards
 Merit or need based scholarships may replace:
 Student loa...
Affordability Strategy:
 Help families find Merit Scholarships
 Find schools that offer merit awards through
meritaid.co...
Feel Free to Contact Us:
Cyndy McDonald: cyndy@mycca.net
Michael Davila: mike@collegeinroads.com
College Affordability 2014
College Affordability 2014
Upcoming SlideShare
Loading in …5
×

College Affordability 2014

540 views

Published on

Cyndy McDonald of MyCCA.net/GuidedPath and Michael Davila of College Inroads 2014 NCAG presentation on college affordability and trends in college costs.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
540
On SlideShare
0
From Embeds
0
Number of Embeds
59
Actions
Shares
0
Downloads
16
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Ask for someone to take notes
  • http://online.wsj.com/news/articles/SB10001424052702304561004579135293814151928
  • A picture is worth a thousand words
  • College Affordability 2014

    1. 1. © College Inroads, LLC. 2014, all rights reserved © GuidedPath, 2014, all rights reserved Cyndy McDonald Michael Davila HECA Jan. 2012
    2. 2.  Cyndy McDonald  Owner McDonald & Associates College Consulting & GuidedPath/MyCCA.net  25 years of experience  Nationally recognized as having expertise in this area  Does training at national/regional level  Michael Davila  Owner/Director College Inroads  attended US Naval Academy & taught there  MS degree with emphasis on Strategic Enrollment management from UT Austin
    3. 3.  Open the mystery box of college funding for families  Help families make appropriate college choices, including college scholarships  Be proactive with families  Families of ANY means want to know how to best manage their resources for paying for college. © GuidedPath, 2014 all rights reserved
    4. 4.  One size DOES NOT fit all people.  Families need to know how their family situation will fit into the financial aid process. © GuidedPath, 2014 all rights reserved
    5. 5. Education in the 21st Century
    6. 6.  Physical resources  Investment in “best” of everything on campus  Deferred Maintenance Costs  Intellectual Assets  High Costs of Star Faculty Salaries  “Baumol’s Cost Disease”  Administration Staffing  Number of administrators ballooning  Teaching loads reduced  Unprepared Students  Division I Sports  Competitiveness amongst Colleges…and consumers  Market within Higher Ed  Many others (c) College Inroads, LLC. 2014, all rights reserved
    7. 7. Cost of Attendance: College MSRP  The average public university costs: $22,828 per year  The average private university costs: $44,757 per year  The average elite private university costs: $65,000 to $70,000 per year (c) College Inroads, LLC. 2014, all rights reserved And, college prices are trending up…up…and away…
    8. 8. (c) College Inroads, LLC. 2014, all rights reserved
    9. 9. (c) College Inroads, LLC. 2014, all rights reserved
    10. 10.  Enrollment management contributes to process  Merit scholarships offered, especially for ½ and Merit categories  Increases in merit awards has outpaced increases in need based awards © GuidedPath, 2014 all rights reserved
    11. 11. (C) 2009 College Inroads, All rights reserved
    12. 12.  Definition: Enrollment Management is the strategic and selective use of offers of financial aid to shape the incoming freshman class in furtherance of the institution’s goals. It is distinguished from the allocation of financial aid based on student needs or on academic merit. (C) 2009 College Inroads, All rights reserved
    13. 13.  Increase “net tuition revenue” streams  Increase “full pays”  Lower the discount rate  Increase the enrollment yield  Increase the academic profile of entering freshman class  Increase diversity  Increase retention  Can all of these be simultaneously achieved? (C) 2009 College Inroads, All rights reserved
    14. 14. (C) 2009 College Inroads, All rights reserved
    15. 15.  “A student’s willingness to pay is the most important factor in determining the size of an aid package” Noel Levitz White Paper “Connecting Enrollment and Fiscal Management”  What is “willingness to pay” vs “ability to pay”?  Hint: Look at what the College Enrollment Managers look at! Table Analysis… (C) 2009 College Inroads, All rights reserved
    16. 16. “Good luck getting any institution to tell you exactly how they handle ability to pay as a driver in their admit decision," said one enrollment manager who requested anonymity. "What they will say is 'We're need-blind.' That's bull(expletive deleted). They would never tell you exactly how they do it, but they do it all the time.” Quirk, M. (2005, November ). The Best Class that Money Can Buy. Retrieved November 15, 2007, from http://www.theatlantic.com/doc/200511/financial-aid-leveraging/4 (C) 2009 College Inroads, All rights reserved
    17. 17. (C) 2009 College Inroads, All rights reserved
    18. 18.  In the last ten years, colleges have increased the number of scholarships they offer to students.  Of the private colleges/universities in the United States,  94% offer some merit scholarships.  100% of the public colleges/universities offer some sort of merit scholarships. (NACAC, 2007) © GuidedPath, 2014 all rights reserved
    19. 19.  Where do Merit $$$ come from?  From schools  From high schools  From outside sources  Use Net price calculators from college websites or College Navigator. College Finance Pie Federal Loans College Fed/State Colleges Private Other © GuidedPath, 2014 all rights reserved
    20. 20.  Scholarships  Early College Start  CLEP  AP Tests  Pick the right college  Max out the GPA  Guaranteed Tuition Programs  Start at a community college  Move out of state and establish residency for out of state public colleges  Attend a “work college”  Demonstrated Student Interest  ROTC or Service Academies  Max out the SAT/ACT  Attend a less “visible” college  Appeals  Be the Shining Star! (c) College Inroads, LLC. 2014, all rights reserved
    21. 21. Tailoring college affordability to family needs
    22. 22.  Josie’s family:  Dad is a teacher, mom shares a teaching position so she can be home more with the kids. AGI is a $120,000. They have $50,000 in the bank, $100,000 in house equity, and a younger sibling just starting high school.  Derek’s family:  Dad and mom are professionals, both bring home high salaries, dad owns his own financial firm. They have an AGI of $375,000. They have extensive assets, and a lot of home equity. Their younger daughter is a sophomore in high school. © GuidedPath, 2014 all rights reserved
    23. 23.  Enrique’s family:  Single parent mom, works as nurse’s aid at the local hospital; has 3 other children, no child support. AGI is $45,000. Enrique works too, earning about $3000 per year. Mom has no home equity or savings. © GuidedPath, 2014 all rights reserved
    24. 24. Financial Aid Whole 1/2 - 1/2 Merit Merit ½ - ½ Whole Josie EFC: Derek EFC: Enrique EFC: 1/2-1/2 Merit Whole $25,700 $180,000 $2600 © GuidedPath, 2014 all rights reserved
    25. 25. Whole: Eligible for all grants/aid available. Should have substantial aid package with Pell Grants, university grants, & work study. 1/2 - 1/2 : Same out of pocket expense for attending public/private schools. At the public school family foots most of the bill. At the private school ½ paid by student, ½ paid by school. Merit: Scholarships are fundamental to college financing- $ in the pocket. Only source of grants/scholarships MERIT ½ - ½ WHOLE © GuidedPath, 2014 all rights reserved
    26. 26.  Q: Why do families want a scholarship?  A: To replace family contribution  Real A: Scholarships are part of financial aid  Scholarships DO NOT replace family contribution Affordability strategy: Help families understand how scholarships are actually used in college financing. Using the 3 flavor strategy will help. © GuidedPath, 2014 all rights reserved
    27. 27. 1. Help families calculate their Estimated Family Contribution 2. Use the EFC to calculate their family flavor  Use net aid calculators, FAFSA forecaster, www.finaid.org, col lege board, etc. to calculate EFC. Category Approximate EFC Whole $11,000 & less ½- ½ $11,100-$30,000 Merit (Skim) $45,000+ Check out the College Board list of colleges using their NPC: http://netpricecalculator.collegeboard.org/participating-schools © GuidedPath, 2014 all rights reserved
    28. 28. Affordability Strategy: Whole  Apply to colleges where the student’s academic profile is in the top range  Makes awards more gift rather than self-help heavy  Apply to colleges that have eliminated self help aid for low income students. These policies include:  Reducing or eliminating parent contribution or parent/student loans  Examples: Amherst, Bowdoin, Brown, Dartmouth, Stanford, Yale List available at www.finaid.org  Apply to colleges who will fully or come close to fully funding financial need  Use websites or databases for searching (College Navigator, collegedata.com, other)  Usually high need met ≠ high merit  Write letters of special circumstances to appeal financial aid offers as needed © GuidedPath, 2014 all rights reserved
    29. 29. Affordability Strategy: ½ -1/2 Compare Financial Aid Awards  Merit or need based scholarships may replace:  Student loans/work  Student scholarships- offered by the college  Parent loans Check college policies  Write letters of special circumstances to appeal financial aid offers as needed  Use “1st choice” strategy © GuidedPath, 2014 all rights reserved
    30. 30. Affordability Strategy:  Help families find Merit Scholarships  Find schools that offer merit awards through meritaid.com, collegetreasure.com, mycca.net, other resources  Match academic profile to school profile  View academic profiles in Wintergreen Orchard House, Common Data Set, College Navigator, College Board, other  Develop outstanding quality to bring to college:  Athletics  Recognition  Performing Arts
    31. 31. Feel Free to Contact Us: Cyndy McDonald: cyndy@mycca.net Michael Davila: mike@collegeinroads.com

    ×