By: Scott Kessler

LPL Financial

www.smartcollegefunding.com

LPL Financial Member FINRA/SIPC

COLLEGE PLANNIN

G

We know why college matters

Bachelor’s degree holders earn $1 million more over a lifetime than high school graduates

By 2020, 75% of all U.S. jobs will require a degree beyond high school

Unemployment rates by educational level as of 5/2013 11.1% Less than high school diploma 7.4% High school, no college 6.5% Some college 3.8% College or greater

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Graduation Rates

4 Year Graduation Rates Public Colleges 31% Private Colleges 53%

6 Year Graduation Rates Public Colleges 56% Private Colleges 65%

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6 Year Graduation Rate - 2011

University of Florida

University of Georgia

University of So. Carolina

University of Tennessee

University of Arkansas

GCSU University of North

GA Georgia Southern

83.7%82.4%70.2%63.2%59.0%55.3%52.8%46.5%

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www.collegeresults.org

Average Cost of College (COA) per College Board 2013-2014

Public University $22,826 per year

Private University $44,750 per year

Elite Private University $50,000+ per year

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Tuition Inflation - per the Consumer Price Index cumulative percent price changes since 1983

Apparel 29% Cars 47% Coffee 109% Housing 129% Gas 217% Medical Care 326% College Tuition 645%

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Paying for College

There are two very different prices for college:

one for the informed buyer & one for the uninformed buyer

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Retail vs. Wholesale

When you fly do you pay the same as the person sitting next to you? WHY?

Which seat would you rather sit in?

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Only$119!

I paid $369

EFC

Expected Family Contribution (EFC) – The portion of your income and assets that you will be expected to contribute towards college costs.

How is it determined? From January of the students Junior Year to December of their Senior Year. This is called the Base Year.

Cost of Attendance – EFC = Financial Need

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Free Money

Scholarships &

Grants

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Loans

Must be paid back Stafford - students PLUS - parents

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Which University Is More Expensive?

COA $25,000 EFC -10,000 FN 15,000

Loan 5,000 Grant 2,000 Scholarship

6,000 Un-Met Need 2,000

Real $ Cost 17,000

COA $45,000 EFC -10,000 FN 35,000

Loan 3,000 Grant 12,000 Scholarship

20,000

Un-Met Need 0

Real $ Cost 13,000

University A University B

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Where does your portion come from?

Savings account Checking account Money Markets Stocks Bonds Mutual Funds Students savings

529 plans UTMA/UGMA Life Insurance IRA 401K/403B Real Estate Annuities

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Financial Aid

Requires the understanding of: Forms required by the school (FAFSA, Profile) Knowing your EFC Prudent planning strategies to increase

financial aid eligibility

Need to know: Average % of Financial Need met by the

university The university’s 4 and 6 year graduation rates

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Planning

Effective planning for financial aid occurs before filing FAFSA/Profile – NOT AFTER!

DO NOT PROCRASTINATE! - Early planning gives you the best chance to position yourself for financial aid

Learn as much as possible about the financial aid process and seek out the assistance of experts in the field for guidance

LPL Financial Member FINRA/SIPC

LPL Financial Member FINRA/SIPC

Scott Kessler678.456.42

27scottkessler@outlo

ok.com

www.smartcollegefunding.com