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Tom Bottorf Founder, GetCollegeFunding, Dana Point, CA GetCollegeFunding

GetCollegeFunding WELCOMES You. Tom Bottorf Founder, GetCollegeFunding, Dana Point, CA www.GetCollegeFunding.org 7 Mistakes Families Make When Planning for College ... but Don't Know Until It's Too Late Join Tom for his College Planning show Wednesdays at noon (CA time)

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Tom Bottorf Founder, GetCollegeFunding, Dana Point, CA GetCollegeFunding

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  1. GetCollegeFunding • WELCOMES You Tom Bottorf Founder, GetCollegeFunding, Dana Point, CA www.GetCollegeFunding.org 7 Mistakes Families Make When Planning for College ... but Don't Know Until It's Too Late Join Tom for his College Planning show Wednesdays at noon (CA time) www.GetCollegeFunding.tv

  2. GetCollegeFunding • WELCOMES You Tom Bottorf Founder, GetCollegeFunding, Dana Point, CA www.GetCollegeFunding.org 7 Mistakes Families Make When Planning for College ... but Don't Know Until It's Too Late Join Tom for his College Planning show Wednesdays at noon (CA time) www.GetCollegeFunding.tv blunders

  3. www.GetCollegeFunding.org

  4. textGCFmobileto 69302

  5. Why Text Us? • Free subscription to GCFmobile • Important Deadlines • SAT/ACT/PSAT • Admissions • Financial Aid Forms • College News • College Planning Events

  6. College Readiness Report Card

  7. College Readiness Report Card • How ready are you for college ...REALLY? • 10 questions, 2 minutes • Graded within 3 biz days

  8. Live WebCasting

  9. Wednesdays at Noon (CA) www.GetCollegeFunding.tv

  10. For Copy of Presentation • GetCollegeFunding.org/handout • You’ll also receive: • Link to Archived Broadcast (A/V) • EFC Calculator Software Download • and more...

  11. What’s the GOAL?

  12. How ‘bout... Getting DOWN? 65% of the deaths Occur on the way DOWN

  13. College Planning OUR THEME atGetCollegeFunding

  14. College Planning OUR THEME atGetCollegeFunding It’s not just about getting them INTO college...

  15. College Planning OUR THEME atGetCollegeFunding It’s not just about getting them INTO college... It’s about gettin’ ‘em OUT!

  16. GRADUATION RATES Undergraduates • 4 Years 35.3% • Public: 27.9% • Private (non-profit): 50.2% • Private (profit): 22.1% • 6 Years 53.1% • Public: 54.1% • Private (non-profit): 64.0% • Private (profit): 29.1% Source: National Center for Education Statistics (www.nces.ed.gov)

  17. 7 MISTAKES • Not Understanding “EFC” • My EFC is the same at all colleges • We make too much for ANY financial aid • We should apply EA/ED for a big edge • Our scholar student will receive merit scholarships wherever he/she goes • Creating a college list is easy • We've got it covered

  18. 7 MISTAKES • Not Understanding “EFC” • My EFC is the same at all colleges • We make too much for ANY financial aid • We should apply EA/ED for a big edge • Our scholar student will receive merit scholarships wherever he/she goes • Creating a college list is easy • We've got it covered

  19. Mistake #1:Not Understanding “EFC”

  20. EFC: What It IS and What It Is NOT EFC IS: Expected Family Contribution The means to determine a family’s legitimate FINANCIAL NEED for college Only the STARTING point of determining need-based financial aid eligibility Inherently CONFUSING (misleading?) by its very name

  21. EFC: What It IS and What It Is NOT EFC Is NOT: A GUARANTEE of what we as a family will pay for college (with few exceptions) - even though the name IMPLIES otherwise A determination of MERIT-based Financial Aid

  22. Not Understanding EFC 2 Typical Phone Calls to GetCollegeFunding from parents of high school seniorsEVERY March/April Phone Conversation #1 Parent: There MUST be a mistake on our child’s Financial Aid Award GetCollegeFunding: What’s your EFC? Parent: EFC? What’s THAT?

  23. Not Understanding EFC Phone Conversation #2 Parent: There MUST be a mistake on this Financial Aid Award. We went to Financial Aid Night at our high school in January and learned all about EFC. Our EFC is $15K and our daughter got accepted to UCLA. Next year’s cost is $33K. We thought we were responsible for $15K and “someone else” would be paying the difference. We just received the Financial Aid Award letter and we received NOTHING but loans!

  24. Not Understanding EFC Phone Conversation #2 Parent: There MUST be a mistake on this Financial Aid Award. We went to Financial Aid Night at our high school in January and learned all about EFC. Our EFC is $15K and our daughter got accepted to UCLA. Next year’s cost is $33K. We thought we were responsible for $15K and “someone else” would be paying the difference. We just received the Financial Aid Award letter and we received NOTHING but loans!

  25. Not Understanding EFC Phone Conversation #2 Parent: There MUST be a mistake on this Financial Aid Award. We went to Financial Aid Night at our high school in January and learned all about EFC. Our EFC is $15K and our daughter got accepted to UCLA. Next year’s cost is $33K. We thought we were responsible for $15K and “someone else” would be paying the difference. We just received the Financial Aid Award letter and we received NOTHING but loans!

  26. Not Understanding EFC Phone Conversation #2 Parent: There MUST be a mistake on this Financial Aid Award. We went to Financial Aid Night at our high school in January and learned all about EFC. Our EFC is $15K and our daughter got accepted to UCLA. Next year’s cost is $33K. We thought we were responsible for $15K and “someone else” would be paying the difference. We just received the Financial Aid Award letter and we received NOTHING but loans!

  27. Not Understanding EFC Phone Conversation #2 Parent: There MUST be a mistake on this Financial Aid Award. We went to Financial Aid Night at our high school in January and learned all about EFC. Our EFC is $15K and our daughter got accepted to UCLA. Next year’s cost is $33K. We thought we were responsible for $15K and “someone else” would be paying the difference. We just received the Financial Aid Award letter and we received NOTHING but loans!

  28. Not Understanding EFC Phone Conversation #2 Parent: There MUST be a mistake on this Financial Aid Award. We went to Financial Aid Night at our high school in January and learned all about EFC. Our EFC is $15K and our daughter got accepted to UCLA. Next year’s cost is $33K. We thought we were responsible for $15K and “someone else” would be paying the difference. We just received the Financial Aid Award letter and we received NOTHING but loans!

  29. Not Understanding EFC GetCollegeFunding: When would you like to come in to discuss loan options?

  30. Cost Of Attendance (COA) • Direct Costs • Tuition & Fees • Room & Board • Indirect Costs • Books • Living Expenses • Transportation

  31. College Costs (COA) Average 4-Yr Public College: ~$20K CSU System (23 schools): $18K - $25K UC System (10 schools): $25K - $33K Private Schools: $28K - $53K Highly-Selective Privates: $48K - $60K+

  32. EFC vs COA Need-based Financial Aid is basedon a simple formula: The “Needs-Analysis Formula” COA (Cost of Attendance) - EFC (Expected Family Contribution) Financial NEED

  33. EFC vs COA Need-based Financial Aid is basedon a simple formula: The “Needs-Analysis Formula” COA (Cost of Attendance) $55K - EFC (Expected Family Contribution)$20K Financial NEED $35K

  34. EFC vs COA Need-based Financial Aid is basedon a simple formula: The “Needs-Analysis Formula” COA (Cost of Attendance) $25K - EFC (Expected Family Contribution)$70K Financial NEED $0K

  35. EFC vs COA You DO Qualify forNeed-Based Financial Aid IF: EFC < COA EFC represents the MINIMUM out-of-pocket costs for college, based on “need eligibility” - but by NO means should a family assume this is the “GUARANTEED MINIMUM”.

  36. EFC vs COA You DON’T Qualify forNeed-Based Financial Aid IF: EFC > COA In this case, EFC is nothing more than a GAUGE. The actual number means nothing!It simply indicates “Need-Ineligibility”. EFC does NOT effect MERIT Aid!

  37. EFC... WHEN? When should a family learn their EFC? Before ANY Financial Aid Applications and ideally BEFORE any ADMISSION Applications are submitted! The Sooner, The Better !

  38. 7 MISTAKES • Not Understanding “EFC” • My EFC is the same at all colleges • We make too much for ANY financial aid • We should apply EA/ED for a big edge • Our scholar student will receive merit scholarships wherever he/she goes • Creating a college list is easy • We've got it covered

  39. Mistake #2:My EFC Is The Same At All Colleges

  40. Financial Aid Forms First of all, THE purpose ofFinancial Aid Forms is:To Calculate Your Family’s EFC

  41. Financial Aid Forms 3 Types of Financial Aid Forms FAFSA CSS PROFILE INSTITUTIONAL

  42. FAFSA Form FreeApplication forFederalStudentAid

  43. FAFSA Form Administered by ED Required to qualify for NEED-Based:Federal Aid State Aid Some Institutional Aid ED provides the SAME EFC to you AND ALL of the colleges applied to EFC computation based on FM

  44. So When Does EFC Vary? SO... If ED provides the SAME EFC to you and ALL of the colleges applied to, what do I mean when I say that different colleges compute DIFFERENT EFC’s?

  45. So When Does EFC Vary? SO... If ED provides the SAME EFC to you and ALL of the colleges applied to, what do I mean when I say that different colleges compute DIFFERENT EFC’s? This applies primarilyto PRIVATE colleges, and ESPECIALLY to “PROFILE Colleges”

  46. CSS PROFILE Form Administered by College Board IM Used by ~250 Colleges Required to qualify for Need-Based Institutional Financial Aid College Board provides EFC ONLY to the colleges applied to, NOT to you EFC can vary DRAMATICALLY from college to college! (hmm...)

  47. 10 California PROFILE Schools • Cal Tech • Claremont Colleges Claremont McKenna, Harvey Mudd,Pitzer, Pomona, Scripps • Occidental • Santa Clara • Stanford • USC

  48. INSTITUTIONAL Forms Required by mostPRIVATE colleges

  49. How Is The FAFSA EFC Calculated? Parent Contribution Due to Income 47% (max) Student Contribution Due to Income 50% over IPA Parent Contribution Due to Assets 5.64% (max) over APA Student Contribution Due to Assets 20%

  50. EFC Examples (FM) TOTAL PARENT INCOME $50K $100K $150K $250K EXPECTED FAMILY CONTRIBUTION $2,407 $15,307 $30,221 $59,448 • ASSUMPTIONS • 4 in Household 1 Student in College • Student Income < $5250 Parent Assets < $50K • No Student Assets Older Parent is 50

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