college costs, financial aid & savings options for parents of high school students

1.888.7.GRADUATE x119 www.nhheaf.org

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College Costs, Financial Aid &

Savings Optionsfor Parents of

High School Students

Presented by: The NHHEAF Network Organizations’ Center for College Planning


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The Center for College Planning

• Free Financial Aid Counseling

• College Planning Library – Concord

• Monthly e-newsletters

• Special Events and Programs

• Presentations to NH K-12 schools

A Free Resource for New Hampshire Students and Parents


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Potential Cost of Collegein New England

Your Child’s Current Age

PublicCollege

PrivateCollege

9 $130,010 $305,896

12 $112,308 $264,245

15 $97,016 $228,265

17 $87,996 $207,043

2010-2011 average amounts for New England schools provided by CollegeBoard.

These numbers reflect 4 years of college tuition, room & board and reflect a 5% annual increase.


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Cost of College (2011-2012)One Year of Tuition, Fees and Room & Board

NHTI – Concord’s Community College$12,682

University of New Hampshire$24,702

UMASS Amherst$34,698

Northeastern University $51,362

Dartmouth College$55,365


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Cost of Attendance

Billable Expenses• Tuition and Fees• Room and Board

Non-Billable Expenses• Books and Supplies

• Equipment (i.e. computers, software)

• Transportation

• Miscellaneous Personal Expenses

• Loan Fees

• Study Abroad Costs (when applicable)

While the bill from the college will only include the “Billable Costs” families need to budget for the additional expenses students

will have during their year at school.


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Understanding Financial AidFinancial Aid Philosophy:

While financial aid can make college more affordable, parents & students are expected to take primary responsibility for paying for post-secondary education.

FAFSAFree Application for Federal Student Aid

www.fafsa.ed.gov

CSS Profilewww.collegeboard.org

Institutional FormCollege’s financial aid page


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Types Of Aid• Gift Aid: Grants and Scholarships

- Need-based

(determined through the financial aid process)

- Merit-based (determined through the admission or recruitment process)

• Self-help Aid: Loans and Employment - Need-based


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How Financial Aid Is AwardedCost of Attendance (COA)

The amount a school has budgeted for a student’s tuition, room and board, books, fees, supplies and any related expenses.

COA 45,000- EFC 16,000Eligibility29,000*

Expected Family Contribution (EFC)The amount, as determined by federal methodology, that represents your family’s ability to pay for one year of college.

* It is important to note that while a student may be eligible for this

amount, there is rarely a guarantee that the student will actually receive

this amount.


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Award Letter SampleCost of Attendance 45,000

Expected Family Contribution -16,000

Eligibility for Financial Aid 29,000

Financial Aid Package

- University Grant 10,500

- Presidential Scholarship 2,500

- Federal Student Loan 5,500

- College Work Study 1,500

Total Award 20,000

Gap 9,000+ EFC 16,000+ Federal Student Loan 5,500+ College Work Study 1,500 Total Family Share 32,000

Eligibility 29,000- Financial Aid 20,000 Gap 9,000


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EFC CalculatorsVisit:

www.fafsa4caster.ed.govTo find out what your EFC

would be today!


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How Saving Affects Your EFC

Davis Family– Dad is 50, Mom is 48

– Two Children

– Have a combined income of $95,000

– Saved $1,000 for college expenses

EFC = $16,391

Smith Family– Dad is 50, Mom is 48

– Two Children

– Have a combined income of $95,000

– Saved $60,000 for college expenses

EFC = $17,023

MythSaving for college will negatively impact

a family’s financial aid eligibility.


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Value of Saving

Saving Saving $200 monthly for 5 years (total invested is $12,000) at a 3% interest rate will yield a total of $12,961

Borrowing

Borrowing $13,000 at a 7.9% interest rate equals a monthly payment of $157 for 10 years with a total payback of $18,844

Total Savings of $5,844

Saving any amount towards college can decrease the total borrowed and amount owed per month.


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Impact of Popular Savings Vehicles on the FAFSA

Parent’s Asset (Maximum Assessed is 5.64% above Asset Protection Allowance for Parents)

• 529 Plans

• Coverdell ESA• Savings Bonds

(if parent is the primary owner)

Student’s Asset (Assessed at 20% with no Asset Protection Allowance for Students)

• UTMA/UGMA (Uniform Gift to Minor/Uniform Trust to Minor)

• Savings Bonds (if student is the primary owner)

Parent Asset Protection Allowance

Age 45 Age 60

Two parents - $42,900 Two parents - $59,700

One parent - $14,900 One parent - $20,400


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Net Price Calculators


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How do most families pay for college?

• Savings• Current Income • Tuition Payment Plans• Federal/Direct PLUS Loans• Private Student Loans

College Can Be Affordable

Don’t Let the Numbers Scare You!

About Direct PLUS Loans

•Fixed rate of 7.9%

•4% loan origination fee

•No set limit – determined by the cost of education less financial aid received by the student

About Direct PLUS Loans

•Fixed rate of 7.9%

•4% loan origination fee

•No set limit – determined by the cost of education less financial aid received by the student


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Applying For ScholarshipsNational Search– www.fastweb.com

– www.collegeboard.org

Local Search

– High School/Guidance Department

– Employers & Professional Associations

– Library & Community Organizations

– www.nh93.com

– www.nhcf.org

– www.iamcollegebound.orgNote:–Avoid Scholarship Scams!

–Find out each college’s policy on the treatment of outside scholarships.


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Questions?

The NHHEAF Network Organizations’Center for College Planning

1.888.7.GRADUATE x119www.nhheaf.org

[email protected]

college costs, financial aid & savings options for parents of high school students

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