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By: Scott Kessler LPL Financial smartcollegefunding

College Planning. By: Scott Kessler LPL Financial www.smartcollegefunding.com. We know why college matters. Bachelor’s degree holders earn $1 million more over a lifetime than high school graduates By 2020, 75% of all U.S. jobs will require a degree beyond high school

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By: Scott Kessler LPL Financial smartcollegefunding

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  1. LPL Financial Member FINRA/SIPC College Planning By: Scott Kessler LPL Financial www.smartcollegefunding.com

  2. We know why college matters • Bachelor’s degree holders earn $1 million more over a lifetime than high school graduates • By 2020, 75% of all U.S. jobs will require a degree beyond high school • Unemployment rates by educational level as of 5/2013 11.1% Less than high school diploma 7.4% High school, no college 6.5% Some college 3.8% College or greater LPL Financial Member FINRA/SIPC

  3. Graduation Rates • 4 Year Graduation Rates • Public Colleges 31% • Private Colleges 53% • 6 Year Graduation Rates • Public Colleges 56% • Private Colleges 65% LPL Financial Member FINRA/SIPC

  4. 6 Year Graduation Rate - 2011 www.collegeresults.org • University of Florida • University of Georgia • University of So. Carolina • University of Tennessee • University of Arkansas • GCSU • University of North GA • Georgia Southern 83.7% 82.4% 70.2% 63.2% 59.0% 55.3% 52.8% 46.5% LPL Financial Member FINRA/SIPC

  5. Average Cost of College (COA) per College Board 2013-2014 • Public University $22,826 per year • Private University $44,750 per year • Elite Private University $50,000+ per year LPL Financial Member FINRA/SIPC

  6. Tuition Inflation - per the Consumer Price Index cumulative percent price changes since 1983 • Apparel 29% • Cars 47% • Coffee 109% • Housing 129% • Gas 217% • Medical Care 326% • College Tuition 645% LPL Financial Member FINRA/SIPC

  7. Paying for College There are two very different prices for college: one for the informed buyer & one for the uninformed buyer Which price will YOU pay? LPL Financial Member FINRA/SIPC

  8. Retail vs. Wholesale • When you fly do you pay the same as the person sitting next to you? WHY? • Which seat would you rather sit in? Only $119! I paid $369 LPL Financial Member FINRA/SIPC

  9. EFC • Expected Family Contribution (EFC) – The portion of your income and assets that you will be expected to contribute towards college costs. • How is it determined? From January of the students Junior Year to December of their Senior Year. This is called the Base Year. • Cost of Attendance – EFC = Financial Need LPL Financial Member FINRA/SIPC

  10. Free Money Scholarships & Grants LPL Financial Member FINRA/SIPC

  11. Loans • Must be paid back • Stafford - students • PLUS - parents LPL Financial Member FINRA/SIPC

  12. Which University Is More Expensive? University A University B • COA $25,000 • EFC -10,000 • FN 15,000 • Loan 5,000 • Grant 2,000 • Scholarship 6,000 • Un-Met Need 2,000 • Real $ Cost 17,000 • COA $45,000 • EFC -10,000 • FN 35,000 • Loan 3,000 • Grant 12,000 • Scholarship 20,000 • Un-Met Need 0 • Real $ Cost 13,000 LPL Financial Member FINRA/SIPC

  13. Where does your portion come from? • Savings account • Checking account • Money Markets • Stocks • Bonds • Mutual Funds • Students savings • 529 plans • UTMA/UGMA • Life Insurance • IRA • 401K/403B • Real Estate • Annuities LPL Financial Member FINRA/SIPC

  14. Financial Aid • Requires the understanding of: • Forms required by the school (FAFSA, Profile) • Knowing your EFC • Prudent planning strategies to increase financial aid eligibility • Need to know: • Average % of Financial Need met by the university • The university’s 4 and 6 year graduation rates LPL Financial Member FINRA/SIPC

  15. Planning • Effective planning for financial aid occurs before filing FAFSA/Profile – NOT AFTER! • DO NOT PROCRASTINATE! - Early planning gives you the best chance to position yourself for financial aid • Learn as much as possible about the financial aid process and seek out the assistance of experts in the field for guidance LPL Financial Member FINRA/SIPC

  16. www.smartcollegefunding.com Scott Kessler 678.456.4227 scottkessler@outlook.com LPL Financial Member FINRA/SIPC

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