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COMPLETE GUIDE TO COLLEGE FUNDING

COMPLETE GUIDE TO COLLEGE FUNDING. For parents of high school students. Class 1 of AMEDF’s Scholars Methodology™ 2018-19. WHY ATTEND COLLEGE?. INVESTMENT: Improved employment opportunities Prepare for post-Bachelor’s studies EDUCATION: Become a more enlightened individual

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COMPLETE GUIDE TO COLLEGE FUNDING

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  1. COMPLETE GUIDE TO COLLEGE FUNDING For parents of high school students Class 1 of AMEDF’s Scholars Methodology™ 2018-19

  2. WHY ATTEND COLLEGE? • INVESTMENT: • Improved employment opportunities • Prepare for post-Bachelor’s studies • EDUCATION: • Become a more enlightened individual Which is the PRIMARY objective?

  3. RISKS AND REWARDS OF A COLLEGE INVESTMENT an EDUCATION • How much? • How many will GRADUATE? • How many will find a JOB MATCHING EDUCATION INVESTMENT?

  4. 2017-18 Cost of Attendance (COA) for academic year (fall & spring semesters) DATA: Trends in College Pricing, College Board, 2018 for 2017-18

  5. RISKS AND REWARDS OF A COLLEGE INVESTMENT an EDUCATION • How much? • How many will GRADUATE? • How many will find a JOB MATCHING EDUCATION INVESTMENT?

  6. How Many Students Will GRADUATE? Starting at Community College: Only 17% of students who began at two-year schools ended up completing a degree at four-year institutions with the six-year period DATA: NCES, 2016-17;ACT Retention and Graduation Rates 2017

  7. RISKS AND REWARDS OF A COLLEGE INVESTMENT an EDUCATION • How much? • How many will GRADUATE? • How many will find a JOB MATCHING EDUCATION INVESTMENT?

  8. How Many Graduates Will Find a JOB MATCHING THEIR EDUCATION? • Unrelated: “Only 27 percent of college grads have a job related to their major…” Washington Post, May 2013 • Underemployed: “ Nearly halfof the 41.7 million graduates of four-year colleges in the work force hold jobs that require less than a bachelors degree…” Bureau of Labor Statistics, 2013 (Emphasis added…)

  9. How Many Graduates Will Find a JOB MATCHING THEIR EDUCATION? • 43% of recent college graduates were employed in jobs that didn’t require a college degree • Of these “underemployed” graduates, two-thirds were still underemployed after 5 years • Of these underemployed, three-quarters were still underemployed 10 years after graduating Source: “The Permanent Detour”, underemployment’s long-term effects on the careers of college grads, Strada Institute and Burning Glass, May 2018

  10. College Success: 12%!

  11. Our Mission • Ensure success through better college preparation • Not-for-profit, tax-exempt organization independent of government or schools • Provide resources directly to families • Member of College Board and National College Access Network (NCAN) • 13 States since 1997

  12. Help Us Help You • Take ACTION! • Participate in additional programs • Evaluate- your feedback is critical • Spread the word • AMEDF as alternative to commercial services • Register and designate AMEDF to benefit from use of Goodsearch.com , Goodining.com and Goodshop.com • Make a donation (check on employer match)

  13. IMPROVING THE ODDS • Academic Readiness • Emotional Readiness • Financial Readiness SOURCE: ACT

  14. ACADEMIC READINESS FOR COLLEGE-LEVEL WORK *ACT: Highly correlated predictor of 1st year GPA, retention, final college GPA, and degree attainment

  15. I. Academic Readiness:How Prepared Are We? • 2015 SAT: Only 41.9% (lowest in history)of SAT takers achieved readiness • 1,120 is readiness composite benchmark • 2015 ACT: Only 28% met readiness in all 4 subject areas (1 in 4) • 31% did not meet readiness in any of the 4 subjects (1 in 3) • ACT test benchmarks: English 18, Reading 22, Math 22, Science 23

  16. College Remediation Rampant • 41% of students enrolled in college are not ready in 2010 and had to pay $886 million in remediation costs AFTER arriving at college • Only 1 in 10 remedial students graduate! • 4 out of 5 had high school GPA of 3.0 or higher • 59% reported their high school classes were easy • SOURCE: Complete College America

  17. SAT Data & Culture Flip on Assessments • 2 of 3 students raise their score when they re-take the SAT • Students who take the PSAT get higher SAT averages than students who don’t • Students who take the FREE Khan SAT test prep curriculum gain an average of 115 points • Students who take AP Math or AP English score +294 & +251 than students who didn’t take either SOURCE: College Board Summer Institute 2017 & 2018

  18. II. EMOTIONAL READINESS:“Hidden” Costs Derailing Success • Fees and “Resort” Amenities • Price of “Freedom” • Travel/vacation, comfort eating, social exploration • “Career Exploration” • Undecided vs. targeted curriculum • Not starting with the end in mind can DOUBLE the cost of degree attainment!

  19. The Four-Year Myth • Average public college student graduates with 134 credits vs. 120 needed to graduate • Only 50% of public college students take sufficient credits to graduate on-time • Only 5% of students in 2-year associates degree programs graduate on-time • DATA: NCES, Condition of Education , April 2017; Four-Year Myth, Complete College America, 2014

  20. Battle between the present and the future… “To abstain from the enjoyment which is in our power, or to seek distant rather than immediate results, are among the most painful exertions of the human will” N.W. Senior 1836 OR ???

  21. We consistently underestimate the future pain and overestimate the present pleasure- our brains systematically misjudge what will make us happy • What helps is to make the future more vivid in terms of imagery Dan Gilbert, Psychologist, Harvard University

  22. Career Focus • Identify college degree and major needed to compete • Connect and correlate future income to college needs • Provide motivation to overcome barriers and maintain focus • Allows the student to take appropriate high school courses to properly prepare ACT: Students who have career interests consistent with their college major are more likely to remain in college (BUT…)

  23. Make a Fact-Based Decision According to ACT: More students are expressing a desire to enter certain fields than there are positions while other high need occupations have more positions than students desiring to enter

  24. Suitable Career • Adequate income, enjoyment and lifestyle • Sufficient to pay living expenses, education loans and savings • Daily tasks match interests and skills • Job needs (# hours worked, requirements, conditions) acceptable • Return on Investment (ROI) in time and money

  25. Addressed in Upcoming Class: EXPLORE CAREERS AND MAJORS TOPICS COVERED WHO SHOULD ATTEND At least one parent and the student in middle or high school Parent and High school Freshmen and Sophomores Parent and High school Juniors and Seniors who are still unsure about careers and majors to pursue • Identifying suitable careers based on personality, personal preferences and individual aspirations • Matching career goals to college majors • Comparing and contrasting career opportunities based on outlook and incomes • Aligning high school curriculum to college Major

  26. III. FINANCIAL READINESS • Are you prepared? • How much can you afford per year? • How much can you afford toward college completion? • How much should you pay? • Select a college that that suits your student’s career goal and your family finances

  27. FINANCIAL READINESS GUIDE • What a college charges is not what most students pay and not what the college needs • Perception vs reality • Incorporate financial aid and discounts • Budget for time to completion instead of on an annual basis • ROI analysis- not all Majors created equal! • Balancing lifestyle and retirement needs with college needs

  28. Ex. Princeton University, COA = $67,100

  29. Why Establish a Higher COA? • PRICE establishes a perception of VALUE • Make the DISCOUNT more attractive • Average “discount rate” at private colleges approaching 50%* • Maintains net tuition revenue even when “discounts” are given • Channels more GOVERNMENT AID *Source: “Is Higher Tuition What the Public Wants?” Daniel de Vise, College Inc. Jan 2012

  30. Net Price Calculator (NPC) • Mandated Fall 2011 • Attempt to provide accurate, transparent consumer information about actual payment vs. sticker price based on individual student circumstances • Basis for calculation differs • “…will not substitute for good guidance and mentoring by professional counselors…the role of counselors is critical.” College Board

  31. COST & Need-Based Aid 2017-18 DATA: College Board Big Future

  32. NY EXCELSIOR SCHOLARSHIP & ENHANCED TUITION AWARDS EXCELCIOR • Tuition-free for NY public 2& 4-yr colleges • 2018-19 up to $110k in 2016 AGI (then $125k in 2017 AGI) using prior prior year AGI • Integrates with TAP and Pell • 30 credits/yr; passing GPA; on-time completion and residency/work post-graduation in NY required ENHANCED TUITION • Up to $6k/yr for NY private colleges • Same AGI requirements • Integrates with TAP and other aid • School must opt-in • Application window opens in May for school year starting in the Fall • Both for NY residents only HESC.NY.Gov

  33. SUNY AT BUFFALO BUT • Excelcior is free tuition for NY Residents and integrated with TAP and Pell, but comes with strings attached, so should you apply?

  34. Components of Aid In Action:Cost Reduction vs. Aid Maximization Need and Methodology COA (tuition, R& B, fees, etc) • Less Merit Scholarships or tuition discount • Less Private and Non-Need Aid/ Scholarships • Approaches: • Cost Reduction & non-need aid • Need-based aid & Quality maximization = Equals Net COA • Less EFC (IM vs. FM) Hierarchy & Ratios Need-Based Eligibility - Less Government Need-Based Aid = Equals School Need-Eligibility

  35. Expected Family Contribution (EFC) Federal Methodology (FM) CSS Profile (vs FAFSA) Parents: Custodial + naturalparent income, support & assets Siblings assets Home, business and retirement assets considered Student: Minimum contribution 25%asset assessment 529 & Coverdell counts as student’s asset Institutional Methodology (IM) FAFSA • Custodial Parent(s) income & assets • 22% - 47% of NAI • 5.6% of NAA above allowance • Students Income & assets • 50% of NAI • 20% of NAA • 529 & Coverdell counts as custodian’s assets • Income includes taxable, pretax & tax-free • Assets exclude home, retirement, insurance, small business

  36. EFC (continued) FM Rules of Thumb: IM Rules of Thumb: Minimize student income & assets Shift assets from includable to excludable Two-year look back on income Filing starts Oct 1stof year before college • Minimize student income above $6k & assets • Shift assets from includable to favorable or excludable • Two-year look back (prior prior) on income • Filing starts Oct 1stof year before college

  37. How Merit Affects Need-Based Aid Eligibility COST OF ATTENDANCE (COA) NEED-BASED ELIGIBILITY COA less EFC = NEED less Gov’t Aid = Remaining Need less School Aid = Unmet Need • Tuition & fees (net) • Room & board • Books & supplies • Transportation & miscellaneous Goal: Get the lowest (zero) unmet need!

  38. Financial Preparation:Plan of Action • Session 2 Conference: • Estimate COA & need-based aid eligibility (COA - EFC) at Session 2 conference • Evaluate strategies for increasing need • Compare eligibility and admission profile to college’s aid history & policy • Determine non-need aid possibilities • Establish range of bottom-line outcomes for each college (NET cost to attend) • Attend upcoming classes for Careers/Majors, College Selection, Financial Aid and Financial Coordination

  39. PUTTING IT ALL TOGETHER:AMEDF Scholars Methodology™ • Goal: To better prepare students and parents for college and help families select colleges based on academic, major and financial Fit • Actions and Activities: 18 hours • Establish family budget (internal) and EFC (external) • Identify likely aid sources and amounts (Government, school and private) • Increase eligibility and align various financial needs (lifestyle, retirement and college) • Integrate academics, careers and finances to goal • Organize everything into a cohesive plan of action

  40. AMEDF Scholars Methodology™Additional Classes/Workshops (45 min. each) EXPLORE CAREERS AND MAJORS • Improve student motivation, focus and readiness COLLEGE SELECTION AND ADMISSIONS • Minimize time to completion and maximize opportunities post-graduation MAXIMIZE FINANCIAL AID • Reduce financial burden and expand available colleges FINANCIAL COORDINATION AND PLANNING • Aligning college needs with family circumstances, budgeting and proper uses of student and parental debt Workshops are FREE!

  41. CLASS: EXPLORE CAREERSAND MAJORS(Wed, May 22nd at Julia Boyer Reinstein Library) TOPICS COVERED WHO SHOULD ATTEND At least one parent and the student in middle or high school Parent and High school Freshmen and Sophomores Parent and High school Juniors and Seniors who are still unsure about careers and majors to pursue • Identifying suitable careers based on personality, personal preferences and individual aspirations • Matching career goals to college majors • Comparing and contrasting career opportunities based on outlook and incomes • Aligning high school curriculum to college Major

  42. CLASS: COLLEGE SELECTIONAND ADMISSIONS(Wed, May 22nd at Julia Boyer Reinstein Library) TOPICS COVERED WHO SHOULD ATTEND At least one parent and the student Suitable for all years in high school • Identifying suitable colleges to pursue based on career and major aspirations • Matching student profile to admissions competitiveness • Comparing and contrasting colleges based on admissions, environment and other attributes • Preparing for college admissions and financial aid

  43. CLASS: MAXIMIZE FINANCIAL AID(Wed, June 5th at Clearfield Library) TOPICS COVERED WHO SHOULD ATTEND At least one parent and the student Care givers and others who will be helping with college costs Suitable for high school sophomores, juniors and seniors • Determining aid eligibility for Federal, State and Institutional aid • Matching student profile to merit and need-based aid sources • Comparing and contrasting colleges based on aid policies and financial fit • Structuring finances to increase eligibility and maximize aid opportunities

  44. CLASS: FINANCIAL COORDINATION AND PLANNING(Wed, June 5th at Clearfield Library) TOPICS COVERED WHO SHOULD ATTEND Parents of juniors and seniors Care-givers and others who will be helping with college costs Also suitable for parents of high school sophomores • Organizing a financial budget for college • Evaluating various debt options including parental loans, co-signed student loans and home equity loans • Balancing retirement needs with college funding • Structuring finances to increase ability to pay

  45. Next Step: Sess 2 • Session 2 (see details in handouts) • Assessment of aid eligibility, academic prep, career/major direction, admissions profile • Apply concepts explored in this workshop to identify gaps and recommend actions • Fully AMEDF funded (FREE) • 30 – 45 minutes • Enroll via your Evaluation

  46. Additional Resources & Actions • Programs details and additional resources on www.AMEDF.org and AMEDF on Facebook • Career & Majorsand College Selectionclass materials • College Financial Aidand Financial Coordination class materials • Tax benefits for Higher Education • Provide EMAIL to receive updates and program schedules • Help us get the word out! • Goodsearch, Goodshop, Goodining & donation • Year-end giving and Matching Donations!

  47. OTHER WEB RESOURCES • College Scorecard U.S. Department of Education resource that has the most reliable data on college costs, graduation rates, and loan indebtedness rates. • Federal Student Aid U.S. Department of Education resource that outlines federal student aid which is distributed at about $120 billion a year. • Financial Aid Award Letter Comparison Tool from College Board A free resource for counselors, students, and families to compare financial aid packages. • NASFAA State Financial Aid Programs  NASFAA (National Association of Student Financial Aid Administrators) has the most up-to-date national directory of state agency aid resources. Each student has at least one grant/scholarship to residents. • Pell Abacus  Free search site that helps students get financial aid estimates directly from schools.

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