1.888.7.graduate x119 [email protected] college costs, financial aid & savings options...
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1.888.7.GRADUATE x119 www.nhheaf.org
College Costs, Financial Aid &
Savings Optionsfor Parents of
High School Students
Presented by: The NHHEAF Network Organizations’ Center for College Planning
1.888.7.GRADUATE x119 www.nhheaf.org
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
1.888.7.GRADUATE x119 www.nhheaf.org
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.
1.888.7.GRADUATE x119 www.nhheaf.org
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
1.888.7.GRADUATE x119 www.nhheaf.org
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.
1.888.7.GRADUATE x119 www.nhheaf.org
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
1.888.7.GRADUATE x119 www.nhheaf.org
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.
1.888.7.GRADUATE x119 www.nhheaf.org
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
1.888.7.GRADUATE x119 www.nhheaf.org
EFC CalculatorsVisit:
www.fafsa4caster.ed.govTo find out what your EFC
would be today!
1.888.7.GRADUATE x119 www.nhheaf.org
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.
1.888.7.GRADUATE x119 www.nhheaf.org
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.
1.888.7.GRADUATE x119 www.nhheaf.org
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
1.888.7.GRADUATE x119 www.nhheaf.org
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
1.888.7.GRADUATE x119 www.nhheaf.org
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.
1.888.7.GRADUATE x119 www.nhheaf.org
Questions?
The NHHEAF Network Organizations’Center for College Planning
1.888.7.GRADUATE x119www.nhheaf.org