How To Afford College

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Lynn O'Shaughnessy of TheCollegeSolution.com shares how to cut the price of college on her college blog, her book (The College Solution) and her online class for parent, independent counselors, financial professionals and high school counselors. You can reach her at Lynn@TheCollegeSolution.com.

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How To Afford College

  1. 1. TheCollegeSolution.com LYNN O’SHAUGHNESSY
  2. 2. Stressing about the leap to college?
  3. 3. College Is Priced Like Airline Tickets
  4. 4. Scholarship/Grant Sources Federal government Employers Private scholarships State governments Colleges 40% 35% 11% 7% 6%
  5. 5. Will I Qualify for Financial Aid? EFC Calculators: College Board
  6. 6. Hypothetical Family $55,000 Adjusted Gross Income Cash/taxable investments $15,000 2 parents, 1 college freshman, 12-yr. sister
  7. 7. EFC for Hypothetical Family Parents Contribution for Students Student’s Contribution Federal Methodology (FM) Results Institutional Methodology (IM) Results Total Estimated IM Contribution $5,128 $0 $1,800 $3,880 $5,128 $5,680
  8. 8. Hypothetical Family $150,000 AGI Cash/taxable investments $100,000 2 parents, 1 college freshman, 12-yr. sister $150,000 Home equity
  9. 9. EFC for Hypothetical Family Parents Contribution for Students Student’s Contribution Institutional Methodology (IM) Results Total Estimated IM Contribution $32,031 $100 $1,925 $25,880 $27,805 Federal Methodology (FM) Results $32,131
  10. 10. Same Family with 2 in College Parents Contribution for Students Student’s Contribution Federal Methodology (FM) Results Institutional Methodology (IM) Results Total Estimated IM Contribution $17,263 $100 $1,925 $17,432 $17,363 $19,357
  11. 11. Federal Financial Aid income qualifies for full < $24,000 $5,645 grant Pell Grant: Biggest Federal Grant Low-middle income families eligible
  12. 12. Cal Grants FAMILY SIZE INCOME CEILING New Middle-Class Scholarship $74,700 $76,500 $83,100 $89,100 $96,100
  13. 13. CA University Merit Aid University Count of frosh merit Aid UC Santa Cruz UCSD UCSB UC Berkeley UC Davis UCLA Cal Poly SLO 70 of 3,599 frosh 58 of 3,944 frosh 37 of 3,696 frosh 225 of 4,081 frosh 193 of 4,337 frosh 234 of 4,715 frosh 173 of 3,880 frosh $10,817 $9,036 $7,936 $5,612 $5,496 $5,026 $1,785
  14. 14. Private Scholarships Things to Know: Financial aid trap for those who need $. Scholarship search engines mediocre. Local scholarships usually aren’t in databases.
  15. 15. Growing Popularity of Merit Aid
  16. 16. College Rankings Influence
  17. 17. State University Aid
  18. 18. Out-of-State Merit Aid Schools that cut price for top non-residents: University of Washington University of Arizona Arizona State University University of Colorado Indiana University University of Michigan University of North Carolina University of Maryland University of Connecticut University of Vermont Ohio State University University of Missouri
  19. 19. Highest-Priced State Schools for Non-Residents University Total Price In-State Students Total Price Out-of-State Students University of California-Santa Cruz University of California-Berkeley University of California-Merced University of California-Santa Barbara University of California-Los Angeles University of California-Davis University of California-Riverside University of California-San Diego University of California-San Irvine $33,015 $32,632 $31,938 $31,691 $31,556 $31, 199 $30,335 $29,506 $29,425 $55,893 $55,510 $54,816 $54,569 $54,439 $54,077 $53,213 $52,384 $52,303
  20. 20. University Total Price In-State Students Total Price Out-of-State Students University of Michigan-Ann Arbor University of Virginia-Main Campus University of Colorado Boulder College of William and Mary The University of Texas at Austin University of Vermont Miami University-Oxford Pennsylvania State University-Main Campus $25,204 $23,986 $27,236 $24,974 $24,714 $27,558 $30,536 $31,002 $50,352 $48,980 $48,414 $47,804 $47,426 $47,198 $45,708 $43,084 Highest-Priced State Schools for Non-Residents
  21. 21. Cutting Out-of-State Tuition Western Undergraduate Exchange Alaska Washington Oregon Nevada California Utah Hawaii Arizona Colorado South Dakota North Dakota Wyoming Montana Idaho
  22. 22. WUE Examples Western Washington University University of New Mexico Colorado State University Montana State University University of North Dakota University of Utah Southern Oregon University University of Nevada Northern Arizona University Look for honors colleges at state schools
  23. 23. Private Colleges & Universities
  24. 24. Stanford % Aid Average Grant Pomona Harvey Mudd USC University of Redlands Willamette University Cal Arts Cal Lutheran University Point Loma Nazarene 100% 100% 100% 100% 90% 87% 74% 70% $39,429 $37,639 $32,835 $27,217 $29,025 $24,876 $14,987 $20,870 West Coast Financial Aid Packages 65% $15,899
  25. 25. High Debt/High Cost Schools Percent of Need Met NYU Drexel Santa Clara University Emerson Texas Christian Loyola Marymount University of San Diego Pace University Fordham University Chapman 59% 61% 73% 70% 70% 72% 72% 78% 74% 79%
  26. 26. Merit Award Examples for Affluent USC Northeastern U. Harvey Mudd College Tulane University Smith College Beloit College Chapman U. $20,752 $18,338 $8,275 $22,360 $16,176 $17,592 $18,894
  27. 27. University of Northwestern Johns Hopkins University Duke University University of Notre Dame Boston College Wellesley College University of Chicago Schools Offering Small Merit Scholarships include:
  28. 28. Schools that don't aid wealthy students rank highest These Schools Enjoy High College Rankings Swarthmore Reed Dartmouth Haverford Williams Harvard Pomona Cal Tech Penn Wellesley Princeton Brown
  29. 29. Where the Values Are Interior West, Midwest, South, Mid-Atlantic
  30. 30. Finding Institutional Money: College Board
  31. 31. College Board Tool: Pomona College
  32. 32. College Board Tool: Santa Clara University
  33. 33. COLLEGEdata
  34. 34. COLLEGEdata
  35. 35. Net Price Calculator Net price calculators provide a personal estimate of what a family will pay for one year in college. COST OF SCHOOL - SCHOLARSHIPS/GRANTS NET PRICE Where to Find Net Price Calculators? Every school must offer a net price calculator for freshmen on its website. Easiest way to find a calculator is through Google
  36. 36. What Calculators Can Leave Out Calculators using federal template can be misleading. Calculators don’t include merit scholarships. These calculators depend on old cost data.
  37. 37. Beware Calculator Income Ranges
  38. 38. Net Price Detective Work
  39. 39. Use Net Price Calculators to Measure Different Impacts on Awards
  40. 40. Will Your Investments Hurt Financial Aid Chances? Savings Rarely Hurts Aid Chances. Percentage of aid applicants who possess enough assets to impact financial aid. A large percentage of wealth not counted.7%
  41. 41. FAFSA Formula FAFSA ignores: Retirement accounts Home equity Family-owned business with < 100 f/t workers
  42. 42. FAFSA & Divorce FAFSA also ignores income from noncustodial parent
  43. 43. PROFILE Formula PROFILE ask for Adjusted net worth of business or farm Home equity Financials from non-custodial parent
  44. 44. What All Aid Formulas Care About Taxable Investments Child Assets College Accounts
  45. 45. Age of older parent as of 12/31/2013 Two parents One parent 44 $35,400 $10,300 45 46 47 48 49 50 51 $36,200 $10,600 $37,100 $10,800 $38,000 $11,100 $39,000 $11,300 $39,900 $11,600 $40,900 $11,900 $42,100 $12,200 Education Savings & Asset Protection Allowance 52 53 $43,100 $12,500 $44,200 $12,800 54 $45,500 $13,100
  46. 46. Age of older parent as of 12/31/2013 Two parents One parent 55 $46,800 $13,400 56 57 58 59 60 61 62 $47,900 $13,700 $49,300 $14,100 $50,800 $14,400 $52,200 $14,800 $53,500 $15,100 $55,000 $15,600 $56,900 $16,000 Education Savings & Asset Protection Allowance 63 64 $58,500 $16,400 $60,100 $16,900 65 or over $61,800 $17,400
  47. 47. Asset Case Study Families receive an asset allowance 55-yr-old parent’s asset allowance: $46,800 Family saves $100,000 in 529 account Calculations $100,000 – $46,800 = $53,200 $53,200 X 5.64% = $3,000 (represents EFC increase)
  48. 48. Biggest Influencers of Fin Aid Parent non-retirement assets Income from tax return Children’s assets and income (UGMA/UTMA, Grandparent donations) Number of children in college
  49. 49. Custodial Accounts If aid is a possibility, consider moving UGMA/UTMA money to custodial 529 account.
  50. 50. What About Grandparent Assets? TO AVOID JEOPARDIZING NEED-BASED AID: Grandparents should help with college costs after last financial aid forms filed.
  51. 51. Appealing an Award “NEGOTIATE” Mention other competing awards. Be specific about what you need. Ask for a professional judgment. Don’t use the word
  52. 52. Federal College Loans Types of loans: Direct Student Parent PLUS Interest rate: 3.4% $5,500 Frosh $6,500 Sophomore $7,500 Jr/Sr. 6.4% interest 4.2% fee of loan amt.
  53. 53. Private Student Loans For parents with high credit ratings! Requires cosigners Variable & fixed rates No consumer protections Check credit unions Credit Union Student Choice 1 2 3 4 5
  54. 54. Grad Rate Source: College Completion
  55. 55. Chronicle of Higher Education: College Completion
  56. 56. Chronicle of Higher Education: College Completion
  57. 57. Check Four-Year Grad Rate University UCLA UniversityRate Rate UC Berkeley 67% 56% UC Irvine 58% 52.5% UCSD UC Santa Barbara UC Davis UC Santa Cruz UC Riverside 66% 50% 49% 39% Sonoma State San Jose State U 26.5% 14% Cal State Long Beach 12% 15.5% San Francisco State Cal State Fullerton Cal Poly Pomona Cal Poly SLO San Diego State 8% 19.5% 26% 30%
  58. 58. Check Four-Year Grad Rate University U. of Notre Dame UniversityRate Rate Princeton University 90% 80% Northwestern U. 86% 79% Occidental College New York University U. Of Colorado 90% 41% USC U. of Michigan 72% 56% University of Denver 56% 50% U. Of San Francisco Chapman University U. of Oregon 72% 44%
  59. 59. Increasing Admission Odds
  60. 60. Finding the Right Match
  61. 61. UC Berkeley’s Admission Factors Admission factor source: COLLEGEdata
  62. 62. What if Test Scores So-So? 1/3 of top 100 liberal arts colleges test optional: Pitzer College Lewis & Clark College Bard College Smith College Lawrence U. Dickinson College Mount Holyoke College Test-Optional Schools: FairTest.org
  63. 63. Cheap/FreeSAT/ACT Resources Test prep options: Kahn Academy PWN the SAT Testive.com Perfect Score Project The Critical Reader SAT “Blue Book” College Essay Help
  64. 64. Attending School Far from Home BROADEN YOUR HORIZON! 84% California 58% Missouri 67% Illinois 43% Massachusetts 55% Pennsylvania 74% Florida 87% Texas Of students attend college 500 miles or more from home14%
  65. 65. Use Talents as Leverage ACTING, ART, LEADERSHIP, SINGING, VOLUNTEERING
  66. 66. Identify Talent Scholarships at MeritAid.com: Honors Scholarship Music Scholarship Presidential Scholarship Robbins Eagle Scout/ Gold Award Scholarship Scholarships for National Merit Scholar Designees Science Scholarship $14,000 $3,000 - $5,000 $18,000 $3,000 $20,000 $3,000
  67. 67. Elite Schools: Class Rank Elite schools look for students in top 10% of their class because U.S. News cares. High schools that don’t rank doesn’t deter admission offices.
  68. 68. Use Gender as Leverage Women represent 57% of college students Girls have advantage at science/tech schools, boys at LAC’s MIT accepts 9% Male and 22% Female applications.
  69. 69. A Gender Advantage Factor Overall Vassar College Skidmore College Women Men 33% of 7,908 42% of 5,702 (applicants were admitted) (applicants were admitted) (applicants were admitted) 38% of 3,813 50% of 1,88933% of 2,475 18% of 5,433
  70. 70. Engineering School Acceptances Increasing Engineering Options: 3-2 Engineering Programs Liberal Arts College + Engineering School at University Feeder Schools: Columbia University Washington University Engineering School Acceptances School Men Women Olin College Harvey Mudd Cal Tech Carnegie Mellon RPI Lehigh U. 19.5% 74.5% 17% 48% 9% 23% 28% 34% 38% 44% 36% 40%
  71. 71. Advantage for Wealthy Students
  72. 72. Racial Diversity
  73. 73. Show Demonstrated Interest Growing number of schools say demonstrated interest is important How to show interest: Ask for materials. Visit school. Email admission officer. Join college chats. Visit school’s Facebook. 1 2 3 4 5
  74. 74. Athletic Scholarships
  75. 75. Number of players Track scholarship Men’s football Woman’s track Average value 1,000,000 <29,000 9,888 $13,000 $8,100 603,000 2% Chance of scholarship Another money source: Division III Jocks have 40% greater chance of admission at Ivy League
  76. 76. Exploring Colleges
  77. 77. Ivy League Worship Students who apply to, and are accepted by, elite schools are likely to be high-achievers. High-achieving students are likely to have high earnings regardless Alan B. Krueger, Princeton economist, Co-author of Ivy League studiesss of where they go to school.
  78. 78. Latest Harvard Law Class Augustana College Baruch College-CUNY Biola University Bethel University Boise State University Cal Poly SLO Centre College Clark Atlanta University Clemson University Embry-Riddle Aeronautical U. Florida Institute of Technology Hofstra University Oregon State U. Oral Roberts University Morehead State U. Point Loma Nazarene Wofford College Washburn University
  79. 79. Flawed College Rankings
  80. 80. Looking for Schools CollegeResults.org COLLEGEdata.com Center for College Affordability & Productivity Do-It-Yourself College Rankings College Navigator College Reality Check CollegeXpress The College Finder (book) PossibilityU.com CollegeAppMap.org
  81. 81. CollegeMeasures.org
  82. 82. Salary Differences: Colorado Biz Majors
  83. 83. Picking Schools by Size
  84. 84. Colleges vs. Universities
  85. 85. Big Schools
  86. 86. Small Schools
  87. 87. Liberal Arts Colleges and Graduate Schools Source: Google “Reed College & PhDs”
  88. 88. Medium-Sized Schools
  89. 89. Community Colleges Study for English and Math placement tests! 3 out of 10 Californians (ages 18-24) are attending community colleges. 25% of all community college students are enrolled in California. 60% of Cal State grads transferred from community college. 30% of U of California grads transferred from community college.
  90. 90. Questions? LYNN O’SHAUGHNESSY THECOLLEGESOLUTION.COM

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