College planning - Avoid Costly Mistakes

COLLEGE PLANNING
How to get FREE money and
graduate with minimum debt.
Awareness & Educational program
By
www.Speak-To-Connect.com

My why?
© 2017 Speak To Connect. All rights reserved. www.Speak-To-Connect.com

➢ My background
➢ College Planning Journey
➢ Life Long Learner & Team Builder
Who is Mushi...
Public Speaker, financial advisor and entrepreneur.
Experience – 20+ years of professional entrepreneurial and working
experience in many industries such as
• Energy (Chevron, Marathon Oil)
• Life Sciences ( Pfizer, BMS, Merck, Johnson & Johnson)
• Government (Department of Commerce)
• Manufacturing ( Miller Coors )
• Investment Management ( NYSE, UBS)
• Non-Profit (Gate Foundation, Robin Hood Foundation)
• Insurance ( CNA, Zurich, New York Life)
• Banking (Merrill Lynch, Citi Bank, Ing Bank, TD Ameritrade)
• Technology ( Accenture, Microsoft)
• Telecommunication ( AT&T)
Entrepreneurial – Founder, CEO and Investors of
Synesis IT, Matrix Consulting, Several subscription based portals,
Hospitality (Nandoss.com), Real Estate and Non-Profit (Turning
Point.org) , Brooks21.com, Speak To Connect – Communication
Platform.
My Personal Site
www.CloudThoughtLeader.com

➢ My background
➢ College Planning Journey
➢ Life Long Learner & Team Builder
Who is Ally...
Public Speaker, financial advisor and educator.
Experience – 20+ years of professional teaching and working
experience in industries such as
• Education (Kent State, University of Minnesota, Noor-Ul-Iman)
• Technology (Matrix Consulting, Synesis IT)
• Publishing and writing
• College Planning
• Co-founder of Speak To Connect
www.hife-usa.org

Disclaimers...
• Not all of the information presented will apply in every state.
Every state has its own regulations, so consult with your local
experts for correct information.
• This video is meant to help parents whose children are planning
for college.
• There are no shortcuts - you have to plan early to get the best
results for your children.
• However, with the tips and information we will share, the work
becomes much easier!
• This overview will set a good foundation for your college planning
journey.

• We are not GURUs of College Admissions
• We have no background of doing this for a living
• College Planning has a lot of moving pieces, we may not all
struggle with the same issues
• Topics may not be covered thoroughly enough.
More Disclaimers

✓ Discuss common misconceptions about
college applications
✓ Explore financial responsibilities and
opportunities
✓ Discover how you can maximize the
amount of financial aid your child will
receive / how you can minimize out-of-
pocket expenses for your family
✓ Identify the steps your child needs to take
as s/he gets ready to apply for college.
✓ Q&A
What is our goal? Objectives

If we promise you
GREAT CONTENT
Do we have your promise to take 2
minutes to leave a comment below
about what you liked or learned?
Is that fair?

✓ My income is too high to qualify for financial aid.
✓ I won't qualify because I own a home.
✓ My taxes have to be done before I file.
✓ Aid is only for the poor or other special groups.
✓ It's an easy process.
Common misconceptions
✓ Guidance and financial aid people can help.
✓ If I don't think I will get any financial aid, why bother?
✓ The school with the prestigious name is the best school for my child.
✓ Private colleges cost more than state colleges.
✓ What they give I have to take.

✓ College tuition has increased faster than any other expense.
(722% since 1983)
✓ College costs are much higher due to poor student planning.
✓ There are too few high school counselors to support the
number of students needing guidance.
✓ The average college student takes 6 years or more to
graduate ... more semesters cost more money!
✓ Proper student assessment, the right major, and the right
college can make a huge financial difference.
✓ Approximately 44% of college graduates are unable to find a
job in their chosen profession and take jobs in unrelated
fields.
✓ 60% of FAFSA forms are rejected or suspended due to
some type of error.
The reality

Available funds
Source: HIFE

Categories of Aid
Source: Institution,
Foundation and
Scholarship
Organization
Based on: Student
achievement
Merit-
based
Source: Federal,
State and College
Based on:
FAFSA and CSS
Profile Data
Need-
based

Real Scenario : Jones Family Case
Source: HIFE

Case Study 1 (Before Planning)
Wife : 50; Husband: 57
Annual Income: $270,000.00
Bank Saving + 529: $220,000.00
Home Value: $700,000.00, Mortgage: $0
Daughter: 2 year before applying for college
Son: 5 year before applying for college
✓Source: WFG Financial Services. Illustration for educational purpose.

Case Study 1 (After Planning)
✓Source: WFG Financial Services
Solutions: Combinations of long- and
short-term solutions to excludable assets
Daughter: Admitted to 3 top arts colleges,
Chose one she liked in MA
Fin Aid: $25,000.00 per year
Illustration for educational purpose.

Real Scenario : Case Study 2
Single income: $140K
Cash: $200K
Mortgage: $0
Fin Aid: $0!!!

Double income: $150k
Invested in land: $200k
Financial Aid: $4K only
Thought kid can only go to state college,
but end up going Univ. of Chicago!

Double income: $250k
Saving: $160k cash in 7702
Home Equity: $100k
Financial Aid: $20k Grants

College planning best practices
Right Preparation
Assessment, Career
Exploration, Essay Review,
Resume Building, Financial
Planning, SATs/ACTs
Right College
College Selection,
Cost Comparison,
Admissions Process , Majors
Right Career
Graduation
Job Preparation
Internship Guidance
Post-Grad Preparation
START EARLY!

• Take initiative to learn about the admissions process
• Get help from experts:
✓Career Planning and College Planning
✓Financial Planning
Your investments will pay off!
It’s complicated!
Strategies:
• Initiate communications with your child
• Guide kids to make the journey easy for them
• Helpful sites for scholarships added at the end

Basics about financial aid

✓Source: www.collegeboard.com
Where does financial aid come from?

Need-based Financial Aid
• Grants & Scholarships – Free Money
• Available from Fed./State/College/Private Organizations
• Two major Federal Grants
• Federal Pell Grant
• FSEOG-Federal Supplemental Educational Opportunity Grant
• Loans – Need to Pay Back
• Subsidized / Unsubsidized Stafford Loan
• Perkins Loan
• PLUS Loan
• Work-study – Need Time and Pay Tax
• Choose on-campus
• Earn at least the current federal minimum wages

How much aid can a student get?
Cost of
Attendance
COA
Family’s
Contribution
EFC
Financial
Need

How much does college cost?

Cost breakdown:
College costs are sky rocketing
▪ Tuition, room and board, living expenses,
fees, computer and phone, etc.
▪ 4 years can cost $80,000 to $250,000 for
just one child.
▪ Multiply by the number of kids you have.
▪ Keeps going up by 7–8%, every single year.

Up and up it goes!

Know your numbers
Private Cost of Attendance Public Cost of Attendance
Harvard: $69,600 Perdue University: $41,994
Princeton: $58,965 U of Michigan: $57,432
U Penn: $66,800 Berkeley: $57,116
Duke: $63,530 UC Davis: $56,916
Carnegie Mellon: $65,895 U of Maryland: $45,736
MIT: $63,250 U of Washington (nonresidents):
$49,339
✓ Source: COA for 2015-2016 school year undergraduate found on
each school’s web site

How is a Family Supposed to come up with all the money
Skip College All
Together?
Savings?
Loans?
Scholarships?
Go To a Cheaper School?
PLAN EARLY!

Why start preparing early?

When to start saving for college?
Age Start Early Wait Longer
1 10k 10,000
2 10k 20,800
3 10k 32,464
4 10k 45,061
5 10k 58,666
6 10k 73,359
7 10k 89,228
8 10k 106,366
9 10k 124,876
10 10k 144,866 30k 30,000
11 10k 166,455 30k 62,400
12 10k 189,771 30k 97,392
13 10k 214,953 30k 135,183
14 10k 242,149 30k 175,998
15 10k 271,521 30k 220,078
16 10k 303,243 30k 267,684
17 10k 337,502 30k 319,099
18 10k 374,502 30k 374,627
Total
Investment
$180k
$374k
Total
Investment
$270k
$374k
START EARLY!

Understanding Financial Need (FN)
FN = COA – EFC
COA: Cost of Attendance
EFC: Expected Family Contribution

Understanding Financial Need (FN)
FN = COA – EFC
COA: Cost of Attendance
EFC: Expected Family
Contribution
EFC (Expected Family Contribution)
EFC = A X p1 + B X p2 + C X s1 + D X s2
Grading factor estimation:
• A - Parents Income - 10% to 40%
• B - Parent Asset - 6%
• C - Student Income - 50%
• D - Student Asset - 20%

EFC Parent Income
Lower MAGI – modified adjusted income
401k deductions will be counted back in EFC
2 years before college entry
Business expenses can be excluded

How to Get More Financial Aid
EFC (Expected Family Contribution) =
Parents’ income x 10%-40% +
Parents’ asset x 6% +
Child’s income x 50% +
Child’s asset x 20%
Financial Aid = Cost – EFC
Includable
Checking/Saving/CD
Stock, Mutual /Trust Fund
529 / Coverdell
Investment Property
Resident Home*
Excludable
IRA/401k
Use it after 59 1/2
Annuity
Use it after 59 1/2
7702
Use it as you want
WFG Private Use Only. Do not copy or distribute.

The Whole Process
START
TODAY!

Summary
START TODAY!
• Take action: the earlier, the better
• Save smart / Invest wisely. EFC.
• Professional help can make
meaningful difference

Final Gift
Helpful sites for scholarships:
• www.fastweb.com (Scholarship Directory)
• https://studentaid.ed.gov/sa/about/announcements/fafsa-changes
• www.finaid.org (FAFSA Calculator)
• Limited two FREE Consultations
• Financial Review
• Both parents must be present
Visit www.Speak-to-connect.com/goingon
for events near you.

100%
Profit
will go
to Non-
Profit

https://www.facebook.com/speak2connect
http://speak-to-connect.com/
contactus@speak-to-connect.com
@speaktoconnectu
Speak To Connect
Connect with us
➢ Ally
Ally@speak-to-connect.com
➢ Mushi
Mushi@speak-to-connect.com
➢ Javed
Javed@speak-to-connect.com

Environment

College planning - Avoid Costly Mistakes

Recommended

Recommended

More Related Content

Similar to College planning - Avoid Costly Mistakes

Similar to College planning - Avoid Costly Mistakes (20)

Recently uploaded

Recently uploaded (20)

College planning - Avoid Costly Mistakes