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College Planner Referral Program

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Planners, add a financial component to your college coaching practice in the easiest way possible. You arrange for a video-conference between us and the student's parents and we handle everything about minimizing the impact of college on the family's finances.

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College Planner Referral Program

  1. 1. College Financing Under (Parent) Control Add Value to Your Client Relationships A Referral System for College Planners www.referral.educate4less.com answers@educat4less.com © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  2. 2. About UsEducation Funding Solutions, Inc., (EFS) was founded in 2001 to accommodate parents of college-bound students who have no idea how to navigate America’s complex and counter-intuitive financial aiddelivery system. Originally, EFS’s services consisted primarily of maximizing families’ eligibility for need-based financial aid.It did not take long to notice, however, that in our local market - America’s fourth and sixth highest-income counties - many families would not qualify for need-based aid regardless of our efforts. Unfortunately,we also noticed that these same families did not have the required money saved to afford to pay for college andthat they would need to finance at least a part of its cost.EFS began an intensive inspection of the various finance alternatives and found each of them wanting, with some of them being downrightdeceptive. We concluded that, for eligible families, borrowing at a fixed rate from the equity they have in their homes is often the least expensiveway to finance college. One of the most glaring deficiencies in all of the college loan alternatives - and even every other college planning firm’ssuggestion of using home equity - was that parents were never informed of what the total, effective cost of college would end up being for each ofthe different loan types.That subterfuge (after all, it’s easier to sell someone a product if they don’t really know its cost) ended with the 2004 invention of theedCelerator™ - America’s only application that shows parents what college will ultimately cost and what every other alternative finance option willcost as well. Parents use edCelerator™ to help them analyze all of their college finance alternatives to identify the best one. WE shine the light on college finance. © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  3. 3. LeadershipEducation Funding Solutions, Inc., (EFS) was founded by a 30-year veteran of finance andinvestment planning. Our first “college plan” was actually completed in 1996 at the behest ofone of the founder’s wealthiest investment clients who recognized the need for hisgrandchildren’s collegiate careers to be funded and who further recognized that his childrenwere not on track to fund them.Undertaking the college planning assignment fifteen years ago led us to the decision to beginoffering a sub-speciality of college planning to our investment practice. As word spread thatwe had become the local experts in college planning, that part of the practice grew to the point where,in 2001, we launched Education Funding Solutions and laser-focused on helping families navigate the maze of financial aid rules and ultimately, topay less to educate their children. The stock-brokerage, investment advisory and accounting industries do not offer effective college solutions.In the years since our founding, we’ve noticed that no loan vendor, no government agency and no other college planning firm demonstrated toparents how much financing college ended up actually costing. And to this day, none does. In order for parents to maximize their net worth asthey approach retirement, it is essential that they understand the impact that financing a college education (or two or three) will have upon thatnet worth. By analyzing ALL of parents’ available funding options, and not just the “popular” ones, we and our national network of edCelerator-Certified College Planners help parents make the best choices to ensure a future bright for their children and for themselves. © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  4. 4. ConceptYou do a fabulous job “coaching kids up” to shine on the SATs and excel academically.You help them identify their best career, the right major and the right college. You are almostsingle-handedly resposible for their acceptance into their “dream college.” Your professionalassistance helped the student receive a generous merit-aid offer. And then Mom or Dad asks,“How do I pay for this?”You arrive at your Moment of Truth. You can respond in a number of ways: (a) You can muddle your waythrough the financial aid maze and the myriad funding alternatives on your own, unprotected by either a financial license or Errors & Omissionsinsurance; (b) you can send your client back to the Guidance Department to learn how to fill out a 100-question aid application form but to learnnothing about proper college financial planning and the effect improper planning has on retirement; (c) you can refer your valuable client to alocal college funding agent who contnues to promulgate the tired, often ineffective, “we’ll get you more financial aid” canard and sells your client’sperfectly good assets to buy new assets on which the college funder earns commissions.Or you can call us.If you call us, your client will get the truth about college financial planning - that “qualifying for more financial aid” usually just means getting moregovernment loans. Your valuable client will also get an in-depth analysis of ALL their finance options and the pros and cons of each. Your client willget all this from the convenience of their home and they will know their options, including our guaranteed approach, PRIOR to making a purchasedecision. And you will receive a generous referral fee and the goodwill of a family whose college finance problem you just helped solve. © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  5. 5. Who Controls How Much Financing College Costs?1. Stafford Loans: Rate, Fees, Terms at the whim of Congress, annually © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  6. 6. Who Controls How Much Financing College Costs?1. Stafford Loans: Rate, Fees, Terms at the whim of Congress, annually2. PLUS Loans: Rate, Fees, Terms at the whim of Congress, annually © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  7. 7. Who Controls How Much Financing College Costs?1. Stafford Loans: Rate, Fees, Terms at the whim of Congress, annually2. PLUS Loans: Rate, Fees, Terms at the whim of Congress, annually3. 401-k Loans: Rate by Plan, Terms by IRS (repay within 5 yrs) © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  8. 8. Who Controls How Much Financing College Costs?1. Stafford Loans: Rate, Fees, Terms at the whim of Congress, annually2. PLUS Loans: Rate, Fees, Terms at the whim of Congress, annually3. 401-k Loans: Rate by Plan, Terms by IRS4. Private Loans: Lender sets Variable Rate, Fees and Terms © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  9. 9. Who Controls How Much Financing College Costs?1. Stafford Loans: Rate, Fees, Terms at the whim of Congress, annually2. PLUS Loans: Rate, Fees, Terms at the whim of Congress, annually3. 401-k Loans: Rate by Plan, Terms by IRS (5 years or 90 days)4. Private Loans: Lender sets Variable Rate, Fees and Terms5. Heloc Draws: Variable Rate fluctuates with Interest Rates © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  10. 10. Who Controls How Much Financing College Costs?NONE of these options empowers Parents to LOCK IN their cost of financing college. © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  11. 11. Who Controls How Much Financing College Costs?NONE of these options empowers Parents to LOCK IN their cost of financing college. NONE of these options empowers Parents to predict what college will actually cost. © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  12. 12. Who Controls How Much Financing College Costs? edCelerator™ does! © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  13. 13. What if...1. We showed parents how to have TOTAL CONTROL over their cost of college? © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  14. 14. What if...1. We showed parents how to have TOTAL CONTROL over their cost of college?2. We told Parents how much working with us was GUARANTEED to save them on college? © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  15. 15. What if...1. We showed parents how to have TOTAL CONTROL over their cost of college?2. We told Parents how much working with us was GUARANTEED to save them on college?3. We avoided “Financial Aid Manipulation” strategies that often, result in just more loans? © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  16. 16. What if...1. We showed parents how to have TOTAL CONTROL over their cost of college?2. We told Parents how much working with us was GUARANTEED to save them on college?3. We avoided “Financial Aid Manipulation” strategies that often, results in only more loans?4. We showed Parents how to borrow for college at an FIXED Effective Rate under 2%? © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  17. 17. Would YOU be of more Value to your client Family? © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  18. 18. Introducing...ed·Cel·er·a·tor™Pronunciation: ed- se-lə- rā-təra: one that accelerates: speeds college loan payoff © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  19. 19. Introducing...ed·Cel·er·a·tor™Pronunciation: ed- se-lə- rā-təra: one that accelerates: speeds college loan payoffb: a system that reduces college loan cost; makes college cheaper © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  20. 20. Introducing...ed·Cel·er·a·tor™Pronunciation: ed- se-lə- rā-təra: one that accelerates: speeds college loan payoffb: a system that reduces college loan cost; makes college cheaperc: a system whereby families borrow for college at an effective FIXED RATE under 2% © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  21. 21. Introducing...ed·Cel·er·a·tor™Pronunciation: ed- se-lə- rā-təra: one that accelerates: speeds college loan payoffb: a system that reduces college loan cost; makes college cheaperc: a system whereby families borrow for college at an effective FIXED RATE under 2%d: a Tool to QUANTIFY the cost of college and illustrate exactly how much the family willsave by working with us, something no other college planning firm does. © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  22. 22. Step One: Finance College© 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  23. 23. Step One: Finance CollegeStep Two: “Enhance” Financial Aid* * Only if Necessary and Helpful. © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  24. 24. Step One: Finance CollegeedCelerator Funding is Guaranteed to Work. TM © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  25. 25. Step Two: “Enhance” Financial AidOften Unnecessary and Pointless. If “Enhancing Financial Aid Eligibility” will result in nothing but an offer of loans, is it really necessary? © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  26. 26. Save on College, regardless of Financial Aid We Show Parents how to Borrow Smarter. We Provide a Date-Certain Loan Payoff. We Improve Their Retirement Picture. We Pay off College and Mortgage Faster. © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  27. 27. Client Family Profile $100,000 Income $350,000 Home $200,000 Mortgage $200,000 401-k $53,000 Savings/Investment College annual post-aid cost: $20,000 Monthly College Budget: $1,000College is Georgetown. Family received $33,000 in Financial Aid, leaving about $20,000 annually left to finance. © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  28. 28. College Finance Options and CostPayment Method Amount & Duration Effective Cost of College Cash $10,000, 2x/year $80,000 College Ten-Pay $2,000/month, 10x/year $80,000 401-k Loan $1,904/month, 5 years $114,285 PLUS Program $966/month, 10 years $115,968 PLUS Extended $612/month, 25 years $183,648 NJCLASS Loan $754/month, 15 years $134,640 NJ Class Defer $928/month, 15 years $141,400 Private Loan $960/month, 15 years $156,712 1. Current PLUS and Private loan information from www.simpletuition.com (4/14/11). 2. 401-k loans are limited to the Lesser of $50k or 50% of the vested Plan balance. 3. 401-k loans are repaid with after-tax (30% tax bracket) dollars, plus 401-k interest. 4. Variable-rate, no caps - amounts can change at any time. 5. Private loan information is for average Parent credit score. © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  29. 29. College Finance Options and CostPayment Method Amount & Duration Effective Cost of College Cash $10,000, 2x/year $80,000 College Ten-Pay $2,000/month, 10x/year $80,000 401-k Loan $1,904/month, 5 years $114,285 PLUS Program $966/month, 10 years $115,968 PLUS Extended $612/month, 25 years $183,648 NJCLASS Loan $754/month, 15 years $134,640 NJ Class Defer $928/month, 15 years $141,400 Private Loan $960/month, 15 years $156,712edCelerator™ $1,000/month, 4 years $66,904 How is this even remotely possible?! © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  30. 30. edCelerator Analysis TMCurrent Debt Scenario $200,176 Balance Payment: $1,799/month Time to Payoff: 13.58 Years Cost to Payoff: $293,237 © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  31. 31. edCelerator Analysis TM College Debt ScenarioBalance: $280,176New Payment: $1,547edCelerator™ Injection: $1,252Cost to Payoff: $369,391Time to Payoff: 11 Years edCelerator™ Injection = Monthly College Budget +/- Difference between Old and New Mortgage Payment © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  32. 32. edCelerator Analysis TM College Debt Scenario Bi-WeeklyBalance: $280,176New Payment: $1,547edCelerator™ Injection: $1,252Cost to Payoff: $360,141Time to Payoff: 10 YearsEffective Interest Rate: 1.75% “Using Bi-Weekly Payments, you would pay the same amount of interest as refinancing your mortgage at 1.75%.” © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  33. 33. The Effective Cost to Finance $80,000 of CollegeIs the Difference Between the Cost to Pay Off the CollegeMortgage and the Cost to Pay Off the Current Mortgage = $360,141 - $293,237 = $66,904 Hmm, Not Bad! © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  34. 34. The Effective Cost to Finance $80,000 of CollegeWe just saved the Family $49,064 (a 42% discount)relative to their next best finance option (PLUS loans). What does it cost the Family to decide how much they can save of college? © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  35. 35. Nothing. Analysis: Free College Cost Reduction: $49,064 “Mrs. Client, can I refer you to our college finanicial planning expertsand their Guaranteed Finance Plan or would you rather “Wing It” for the $116,000 PLUS cost, about $49,000 more for college than necessary? If, after receiving their FREE Analysis of college finance options, they elect to move forward and save $49,064 the edCelerator™ software costs $249. $249 to stay on track to save $49,000. © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  36. 36. How Can Georgetown Cost Only $20,000?Effective college financial planning analyzes income, assets, cashflow and loan possibilities. Prior to the family filing the CSSProfile, we sheltered $200,000 the family had in money markets.In this case, financial aid asset sheltering made sense. Next is our Analysis of the benefit. © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  37. 37. How Does Georgetown Cost Only $20,000? Financial Aid Benefit to Sheltering $200,000• $200,000 x 5.64% (parent asset) = $11,280 financial aid loss• 75% of Georgetown awards are Gift-Aid (free money) = $8,460• $8,460 / $200,000 asset = 4.23% after-tax “return” on strategy• $8,460 x 4 = $33,840 in Free Money Cost Reduction• $200,000 asset earns ~3%, insured and liquid, while sheltered Total return on sheltering strategy = 7.23% annually Strategy makes sense if current asset location does not provide > 7.23% rate of return. © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  38. 38. How Much Did Our Strategies Save? College Finance Strategy Savings: $49,000 Financial Aid Strategy Savings: $34,000 Total Savings to Your Clients: $83,000Working together, we saved your client family $83,000 on College. Does that help answer the question, “How do I pay for this?” © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  39. 39. How Much Did Our Strategies Save? Actually, we saved the family more than $83,000. Had they not worked with you and EFS, they would NOT have received $8,460 in annual gift aid. Had they not received $8,460 in annual gift aid, they would have had to finance $114,000. Had they financed $114,000 of net college cost via PLUS, college would have cost them $165,254.Working together, college will cost this family $66,904 above their current mortgage - a savings of $98,350. Working with us, you helped reduce this family’s effective cost to finance college by 60%! © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  40. 40. Working together, we Saved the Family 60% on College... Analysis: FREE College Savings: $83,000 And preserved funds that can help finance Retirement. © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  41. 41. What if We Did This, too... Software: $249 College Savings: $83,000 Referral Fee to You: ??? * Would an Additional Revenue Stream be a bad thing?* Compensation is variable, based upon College Finance case complexity; contact us for details. Compensation is paid on cases that implement the plan and after FAFSA is filed. College Planner (you) is required to do nothing more than refer us the family. © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  42. 42. What Do You Need to Do to Get Started?Just set up a video-conference or phone call with your client and one of our college financial planning specialists. We’ll do the rest! © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com
  43. 43. We look forward to Partnering with You! View our Referral Marketing Website at www.referral.educate4less.com Contact us at answers@educate4less.com © 2013 Education Funding Solutions, Inc All Rights Reserved. www.referral.educate4less.com

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