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College Planning America

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Presenter: Dave Coen

Presenter: Dave Coen


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  • 1. Your licensed Presenter Dave Coen 714-813-1703 Welcome to the College Planning America Workshop
  • 2. Back in the day… We never thought we would grow up Now our kids are laughing… Because we think they won’t grow up either
  • 3. We still see them as kids When in reality… This is the next step
  • 4. Many parents are not financially and emotionally prepared for their kids to go to college
  • 5. Just because your student is leaving the nest… Does not mean they have to take your nest egg with them!
  • 6. Our focus is: Knowledge. With knowledge you are empowered to have more control
  • 7. • We all have different circumstances • Each family is unique • This requires timely information and proper guidance, hopefully some of which you will get from our workshop tonight I am in the same boat as you…
  • 8. What you might experience at the end of this: • This is a little overwhelming • I need more information • Why so early? Comment we most often get! • Who are we? • How do I get scholarships? • You are just trying to sell something • Speak with one of us after the meeting for specific questions • And to schedule your no cost, 90-minute appointment
  • 9. There are two sides to this story  $’s and Financial moves  Lowering of EFC  Strategic planning  Plugging the holes  Assessments  Career  Majors  Schools  Scholarships  % pass rate Parents and Students Parents
  • 10. What makes a “FIT” college MAP IT OUT M eet the Requirements for the School A ccepted to the school Pay for it
  • 11. The College process is intimidating: Choosing a school Choosing a career Choosing to live on campus or commute This is the most expensive time for your family College and Retirement Both Are Possible!
  • 12. Today’s “Classic” Household • The last 17 years have flown by • Total savings between 1% and 5% of annual income • Has less than half of one year’s tuition banked • Has more consumer debt than ever before • May have to sacrifice retirement to pay for college
  • 13. Path to Prosperity: Have a Plan! Educate: Do not assume. Map it out: Category, estimated family contribution (EFC) and the school’s award history, money saving strategies and alternatives. Accomplish: A college strategy that preserves retirement assets.
  • 14. Financial Aid is a LANGUAGE OF ITS OWN! Warning… This may be disturbing COA- Cost of Attendance EFC- Expected Family Contribution FAFSA- Free Application for Federal Stude FAD- Financial Aid Director FAO- Financial Aid Director FDSLP- Federal Direct Student Loan Program FFELP- Federal Family Education Loan GSL- Guaranteed Stafford Loan PLUS- Parent Loan for Undergraduate Stud
  • 15. What do these Acronyms mean? COA- Cost of Attendance EFC- Expected Family Contribution FAFSA- Free Application for Federal Student Aid FAD- Financial Aid Director FAO- Financial Aid Officer FDSLP- Federal Direct Student Loan Program FFELP- Federal Family Education Loan Program GSL- Guaranteed Stafford Loan PLUS- Parent Loan for Undergraduate Students
  • 16. Common Terms to Learn • Federal Methodology • Institutional Methodology • Award Package • Asset Allowance • Base Year • Category • Expected Need • Profile Form • Work Study
  • 17. Present Day Cost Of College College expenses are increasing 5- 12% each year The average increase for PUBLIC schools: 6.6% The average increase for PRIVATE schools: 6.3% Source: Collegeboard.com
  • 18. The Cost of an Undergraduate Degree Put these schools in order Based on Cost? $$ 1. San Diego State University 2. UCLA 3. California State University, Fresno 4. Concordia University 5. California State University, Fullerton 6. Stanford University 7. University California, Davis 8. University Southern California 9. Pepperdine University 10.University of San Diego
  • 19. Average Cost of Attendance (COA) Cost of Attendance Includes: Tuition, Room and Board, Book, Fees, Transportation, Miscellaneous Costs STATE SCHOOL in the area $ 40,132 per year PRIVATE SCHOOL in the area $ 53,702 per year Source: CPA Research
  • 20. California Area School Cost Increase since 2003 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2002-2003 2012-2013 Source: CPA Research
  • 21. Based on Average Award, 7% Tuition rate and $20,000 EFC 6. Stanford University $73,080 1. San Diego State University $96,764 3. California State University, Fresno $102,208 5. California State University, Fullerton $114,372 8. University Southern California $123,264 10. University of San Diego $134,384 4. Concordia University $138,436 7. University California, Davis $138,552 2. UCLA $138,996 9. Pepperdine University $153,796 Schools in Order Based on Cost Source: CPA Research
  • 22. What is the REAL COST of College? The most expensive thing about college… • Is not Graduating The Second most expensive thing about college… • Switching Majors/ Switching schools What % of students graduate in 4 years?
  • 23. How many students are Graduating in 4 Years? Graduation Rate for Public State Schools California State University, Fresno California State University, Fullerton San Diego State University UCLA University of California, Davis Source: CPA Research
  • 24. How many students are Graduating in 4 Years? Graduation Rate for Private Schools Concordia University Pepperdine University Stanford University University of San Diego University of Southern California Source: CPA Research
  • 25. FINANCIAL AID MYTHS • “We make too much MONEY” • “Our home is worth too much” • “My Child’s grades are too low” • “I have too much DEBT” • “Getting Financial Aid is easy” • Students who are independent get more aid”  False- must be 24, have children, married, veteran, Ward of the State, or Completed Undergrad and working on an Advanced Degree
  • 26. Classic Approach to Paying for College • How much MONEY do we have? • Can we get more MONEY? • Do we have a BUDGET? SPEND IT ALL! BORROW IT! SQUEEZE IT! • Do we qualify for financial aid ?
  • 27. • Know your EFC… • What is my EFC? • is it a fixed number? • Same as a credit score? How do I get Financial Aid?
  • 28. Know Your EFC! Expected Family Contribution – Parent Income – Parent Assets – Student Income – Number of Children in College – Parents Age(s) – Number of People in Household Also Consider… SCHOOL SELECTION! 2 Types of EFC
  • 29. Formula for EFC Parent Contribution depends on Student Contribution depends on Adjusted Income Discretionary Assets AGI + Untaxed Benefits Investments Real Estate Child Assets Savings FICA S.S I.P.A E.E.A Retirement Insurance Home Equity A.P.A. Adjusted Income Discretionary Assets AGI + Untaxed Benefits Investments Real Estate Child Assets Savings FICA S.S I.P.A E.E.A AID ADVANTAGE TAX ADVANTAGEBucket Advantage
  • 30. Determination of Need Eligibility Cost of Attendance (COA) Expected Family Contribution (EFC) Financial Need • Tuition • Room • Board • Books • Living Expenses • Transportation • Parent Income • Parent Assets • Student Income • Student Assets • # in College • Parents Age • # in Household The Maximum Amount of Aid a Family May Receive
  • 31. Do you have any of these? Bonds Grandparent Contributions Cookie Jar Minor’s Accounts Stock Options CD’s Stocks Mutual Funds Student Owned Assets Savings Accounts Money Market Trust Accounts Vacation Home Rental Property These may reduce your financial aid.
  • 32. $10,304 less $4,385 less
  • 33. $7,172 X 4 = $28,688 $7,975 X 4 = $31,900 $18,593 X 4 = $74,372
  • 34. • Full Time • Part time • During the Summer • Udacity.com • Coursera.org • MOOC – Massive Open Online Course [UC’s] Have you considered Community College?
  • 35. The problem with 529 plans?
  • 36. The 5 most expensive things about College 1. Not graduating 2. Changing schools or courses 3. Saving in the wrong financial vehicle 4. OOPS – Out Of Pocket expenses 5. Structuring how to pay for college Our focus is: Preventing the OOPS! There are steps that can be taken to minimize the possibility of all 5 of these.
  • 37. •The average parent asks, “Can you help me find grants and scholarships?” –YES! •But is that the only place to look and how much money is available from those sources? •It might make more sense to approach college planning with a TOTAL approach. Let’s take a look at some areas of increasing wealth without any money out of pocket. Where do most people focus their attention for college money? And…where do most of the savings come from with proper planning?
  • 38. The Transition from College Planning to College Funding All our finances are connected. Just because we compartmentalize them does not separate the consequences
  • 39. • When trying to fill a bucket, does it make more sense to pour more in or to plug the holes? • Where does it make more sense to focus on first? • Our focus is to plug the holes FIRST and then there are a number of areas that we should look at as they all work in tandem with each other. Our focus is:
  • 40. Our focus is:
  • 41. There are two sides to this story  $’s and Financial moves  Lowering of EFC  Strategic planning  Plugging the holes  Assessments  Career  Majors  Schools  Scholarships  % pass rate Parents and Students Parents
  • 42. Our focus is: Have A Plan! ✔ ✔ ✔ ✔ Prioritize Financial Objectives Understand total OUT OF POCKET expense Eliminate Wealth Leakage Determine what options are available
  • 43. What is NEXT? • The answer is different for everyone • Number of students and their ages • Financial constraints/opportunities • Personal/ professional/ family goods • Condition of retirement accounts • How close ARE YOU to retirement?
  • 44. Register today for a no cost, 90- minute appointment and get four free gifts 1. Strengths and communication profile for both student and parents 2. EFC estimate 3. Your category 4. Our College Planning Email Letter
  • 45. Get your free Communication profile for you AND your student
  • 46. Descriptors Bold Driving Pioneering Direct Competitive Determined Descriptors Peaceful Agreeable Cautious Cooperative Humble Mild Problem Solving (L Scale) Neutral INFIELDEROUTFIELDER
  • 47. Thank you for attending the CPA workshop www.collegeplanningamerica.com Your licensed Presenter Dave Coen 714-813-1703

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