for parents of middle and junior high school students

for Parents of Middle for Parents of Middle and Junior High and Junior High School StudentsSchool Students

The Road to The Road to CollegeCollege

COLLEGEThe NHHEAF The NHHEAF

NetworkNetwork

Center for Center for College College

PlanningPlanning800-525-2577 x119800-525-2577 x119We’re here for you!We’re here for you!

Help Your Children Help Your Children Aspire Aspire to Their Potential!to Their Potential!

• Make paying for your child’s future education a top financial goal.

When higher education is an expectation rather than a mere possibility,

students come to understand the importance of challenging themselves.

• Expand your child’s options for education beyond high school.

The Role of The Role of ParentsParents

In Early College In Early College AwarenessAwareness

• Show your children that you value education.

• Reinforce the importance of going to college in relationship to your child achieving personal, career and life goals.

Studies show that children whose parents take an

active role in their education tend to do

better in school.

Enrichment Enrichment ActivitiesActivities

•Community Service

•Career Exploration

•Summer Programs

•Mentors

Powerful Opportunities for Powerful Opportunities for GrowthGrowth

Career exploration begins with exposure to

different types of jobs

The High School YearsThe High School Years

Encourage your student to go above and beyond high school graduation requirements.

In addition to personal

development, students should work to achieve

specific aptitudes, including writing

ability, math skills, a sense of history,

a grasp of the scientific method, and facility with a foreign language.

Academic Planning for Academic Planning for CollegeCollege

The High School YearsThe High School Years

A student should aim to

take the highest level course

possible while still maintaining a B- or better. Keep in mind that certain

majors require certain

foundation courses.

Academic Planning for Academic Planning for CollegeCollege

Consult with your child’s guidance counselor before she enters high school to develop a four-year plan that preserves her options after graduation.

What’s the Difference?What’s the Difference?

There are over 3,600 colleges

and universities in the United

States, no two are alike.

The Five College TypesThe Five College Types

•Liberal Arts Colleges

•Universities

•Specialized Schools

•Community Colleges

•Historically Black Colleges & Universities

* From the College Board GrO Magazine, 2001 Edition

What Colleges Are Looking What Colleges Are Looking ForFor

• Solid Academic Record– Courses selected

– Difficulty of curriculum

– Class rank

– GPA

• Standardized Test Scores– Scholastic Aptitude Test

SAT I: Reasoning Test SAT II: Subject Tests

– American College Testing (ACT)

– Preliminary SAT (PSAT)

The College ApplicationThe College Application

• College Essay– Helps to personalize an

otherwise impersonal process

– Provides insight about the student’s character, personality, creativity, experiences, values and ability to think critically

• Recommendations– Guidance Counselors

– Teachers

– Other adult mentors

Affording Education Affording Education Beyond High SchoolBeyond High School

College Costs, Saving College Costs, Saving & Financial Aid & Financial Aid

How a college education pays offLevel of education Mean annual earnings

Not a high school graduate $16,121High school graduate $24,572Bachelor’s degree $45,678Master’s degree $55,641Ph.D. $86,833Professional (business, law,medicine)

$100,987

Source: U.S. Census Bureau, March 2000.

College is an College is an InvestmentInvestment

The Cost The Cost of Collegeof College

Cost of Attendance* at New Hampshire Colleges

– NH Technical Institute

• $10,800

– University of NH

• $16,480

– Franklin Pierce College

• $28,755

– Dartmouth College

• $38,390

Potential Cost of 4 Years

Your Child’s

Age

Public College

Private College

Newborn $149,540 $325,527

3 $125,557 $273,318

6 $105,420 $229,483

9 $88,512 $192,679

12 $74,317 $161,777

15 $62,398 $135,831

17 $55,534 $120,880

Tuition PossibleTuition Possible

• How do most families pay for college?– Savings

– Current Income

– Tuition Payment Plans

– Loans

– Financial Aid

Don’t Let the Numbers Scare You - Don’t Let the Numbers Scare You - College Can Be Affordable College Can Be Affordable

While Financial Aid can make college more affordable,

parents and students are

expected to take primary

responsibility for paying for post-secondary

education.

What is Financial Aid?What is Financial Aid?

•NEED-Based

•MERIT-Based

•Gift Aid

•Self-Help Aid

Every Applicant is Every Applicant is EligibleEligible

Financial AidFinancial Aid

• Cost of Attendance – The amount

budgeted for a student to pay tuition, room and board, books, fees, supplies and any related expenses.

• Expected Family Contribution (EFC)– The amount, as

determined by federal methodology, that represents your family’s ability to pay for one year of college.

How Financial Aid is AwardedHow Financial Aid is Awarded

Cost of Attendance$20,000Expected Family Contribution (EFC) 6,000

Eligibility for Financial Aid 14,000

-=

Financial AidFinancial Aid

Cost of Attendance 20,000

Estimated Family. Contribution - 6,000

Eligibility for Financial Aid 14,000

Financial Aid Package- University Grant 5,000- Presidential Scholarship 2,000- Federal Student Loan 2,625- College Work Study 1,500

Total Award 11,125

Determining the Financial Aid Determining the Financial Aid PackagePackage

Eligibility 14,000

Financial Aid - 11,125

Gap = 2,875

GAP 2,875

+EFC 6,000

=Total Family Contribution 8,875

OnlineOnline ScholarshipScholarship DatabasesDatabases

Saving for Saving for CollegeCollege

• Smith Family– Dad is 50, Mom is 48

– Two Children

– Have a combined income of $55,000

– Saved $50,000 for college expenses

How Saving Affects Your How Saving Affects Your EFCEFC

• Davis Family– Dad is 50, Mom is

48

– Two Children

– Have a combined income of $55,000

– Saved $1,000 for college expenses

EFC = $4,912

EFC = $4,843

Saving for CollegeSaving for CollegeYou Can’t Afford Not To!You Can’t Afford Not To!

• Benefits of Saving– More options for

higher education.

– Saving may not affect financial aid eligibility.

– You and your child may have to borrow less.

• Invest for a goal, not for a child– Know how much you will

need to pay for college.

– Target your saving to that amount.

• Calculate your EFC.

Spreading out the cost of college over time will

lessen the impact on your lifestyle during the years

your child attends college.

Saving for CollegeSaving for College

• Savings Bonds

– Series EE

– Series I

• Education IRA

– Coverdell Savings Accounts

• 529 Plans

– State-sponsored tuition savings and tuition payment plans

• UGMA/UTMA

– Uniform Gift to Minors

Resources for Research

• MotleyFool.com

• FinAid.org

• SavingForCollege.com

• Savingsbonds.gov

• AmericanFunds.com

• Upromise.org

Options for FamiliesOptions for Families

Upromise is a great way to supplement your college

savings. You earn college savings contributions as you

spend with some of America’s leading companies.

Saving for CollegeSaving for College

• A savings plan that takes advantage of Tax Code 529, designed to help families meet the cost of higher education.

– Earnings grow deferred from federal income tax.

– Qualified withdrawals (beginning January 2002) are tax-exempt. Withdrawals made before 2002 are taxed at the child’s rate.

– Low initial investment.

– High contribution limits.

• Financial Aid Implications– This plan is viewed

as an asset of the account holder, not the child.

– Low weighting in eligibility formulas.

New Hampshire’s 529 Plan is the Unique College

Savings Plan managed by Fidelity: (800) 544-1722 www.fidelity.com/unique

529 Plans529 Plans

The Key MessagesThe Key Messages

• Show your children that you value education.

• Help your children to develop good study habits.

• Encourage your student to go beyond high school

graduation requirements.

• Colleges are looking for students with strong academic

records and quality involvement in

extracurricular activities.

• Financial aid can help to make college costs more

affordable

• Make paying for your child’s education a top financial

goal.

College is PossibleCollege is Possible