© MEFA - All Rights Reserved © MEFA. All rights reserved. 1 Cover from parent ECP book

© MEFA - All Rights Reserved © MEFA. All rights reserved. 2 About MEFA MEFA is a not-for-profit state authority that works to make higher education more accessible and affordable through community education programs, college savings plans and low-cost financing options. MEFA created the U.Fund ® and the U.Plan ® college savings plans and has provided affordable fixed interest rate college loans for nearly 30 years. MEFA has assisted hundreds of thousands of families in financing a college education.

© MEFA - All Rights Reserved © MEFA. All rights reserved. 3 Planning for College Financing Overview of Financial Aid Financial Aid Awarding Options for Paying the Balance Due MEFA’s College Savings Options Free Services for Families

© MEFA - All Rights Reserved © MEFA. All rights reserved. 4 Common Financial Aid Questions Do I make too much money to be eligible for financial aid? Will we be eligible for more financial aid since we have a lot of personal debt? If I save money for college, will that hurt my chances of getting financial aid? Do I need to apply for financial aid if my child plans to receive scholarships for athletics, academic achievement, or musical or artistic talents?

© MEFA - All Rights Reserved © MEFA. All rights reserved. 5 Overview of Financial Aid Three components of financial aid: – Grants & scholarships – Loans – Work-study Merit and Need Based Financial Aid

© MEFA - All Rights Reserved © MEFA. All rights reserved. 6 How do people qualify for merit-based aid? Applications vary by college and organization FAFSA application may be required as well Often distributed in recognition of student achievements Applications may be compared against other students who apply Aid is usually a scholarship

© MEFA - All Rights Reserved © MEFA. All rights reserved. 7 How do people qualify for need-based aid? File the FAFSA with family financial information Some colleges may require additional forms Standardized formula calculates how much you can afford to contribute Includes grants, loans, and/or work-study

© MEFA - All Rights Reserved © MEFA. All rights reserved. 8 Expected Family Contribution (EFC) Measure of what a family is expected to contribute toward student’s education for one year Family has the primary responsibility for contributing to the student’s education Calculated using standard methodology formula. Largely based on parent and student income and assets; household size and number in college. Visit to access an EFC Calculator.

© MEFA - All Rights Reserved © MEFA. All rights reserved. 9 Cost of Attendance (COA) _ Expected Family Contribution (EFC) = Financial Aid Eligibility/Financial Need Financial Aid Formula

© MEFA - All Rights Reserved © MEFA. All rights reserved. 10 How the Formula Works Cost of Attendance Visit college’s websites to utilize their net price calculators.

© MEFA - All Rights Reserved © MEFA. All rights reserved. 11 Asset Impact – Family Size: 4 Parent income remains level, assets increase This example is an estimate only. Based on Federal Methodology Family AFamily BFamily C Income$60,000 Assets$0$75,000$150,000 EFC$4,259$5,339$8,856 Difference$0$1,080$4,597

© MEFA - All Rights Reserved © MEFA. All rights reserved. 12 Income Impact – Family Size: 4 Parent assets remain level, income increases Family AFamily BFamily C Income$60,000$100,000$150,000 Assets$50,000 EFC$4,454$16,346$28,464 Difference$0$11,892$24,010 This example is an estimate only. Based on Federal Methodology

© MEFA - All Rights Reserved © MEFA. All rights reserved. 13 Options for Paying the Balance Due Past Income Savings Other Assets Present Income Salary Payment Plans Future Income Parent Loans Student Loans

© MEFA - All Rights Reserved © MEFA. All rights reserved. 14 MEFA’s College Savings Options U. Fund Massachusetts sponsored 529 College Investing Plan Use to pay for qualified higher education expenses at accredited post-secondary schools anywhere in the U.S. Qualified distribution are free from federal and Massachusetts income tax when used to pay for higher education. U. Plan Massachusetts sponsored Prepaid Tuition Program. Allows you to lock in tomorrow’s tuition at today’s rates. Use to pay tuition and mandatory fees at participating Massachusetts public and private colleges and universities. Keeps pace with tuition at participating schools.

© MEFA - All Rights Reserved © MEFA. All rights reserved. 15 Other College Savings Plans Uniform Gift to Minors Act and Uniform Transfer to Minors Act (UGMA/UTMA) Coverdell Education Savings Account Savings Bonds Certificate of Deposit (CD) Traditional Savings Account Not all options on this list share the tax benefits associated with the U. Fund and U. Plan. Please consult your financial advisor before making your decision.

© MEFA - All Rights Reserved © MEFA. All rights reserved. 16 Planning for College Admissions Academic preparation College Entrance and Placement Tests Activities outside the classroom Exploring Colleges

© MEFA - All Rights Reserved © MEFA. All rights reserved. 17 Make An Academic Plan Course plan recommended by MA Department of Higher Education to prepare for college and career.

© MEFA - All Rights Reserved © MEFA. All rights reserved. 18 Academic Readiness Exceeding minimum requirements Relevance to college plans Good grades vs. challenging classes Improvement over time Favorite subjects

© MEFA - All Rights Reserved © MEFA. All rights reserved. 19 College Entrance & Placement Tests PSAT and PLAN: 10 th grade or early 11 th grade SAT and ACT: 11 th and early 12 th grade SAT Subject Tests: Check college’s requirements Advanced Placement Exams Visit mefacounselor.org to register for the SAT and ACT tests.

© MEFA - All Rights Reserved © MEFA. All rights reserved. 20 Activities Outside the Classroom Explore interests Develop skills outside of the classroom It’s not what students join, but what they do –Extracurricular activities –Sports –Community service/volunteering –After-school job

© MEFA - All Rights Reserved © MEFA. All rights reserved. 21 Exploring Colleges College Search Resources –Internet –Publications –People Visiting Colleges –Informal vs. formal visits Thinking about fit

© MEFA - All Rights Reserved © MEFA. All rights reserved. 22 mefa.org Your one-stop resource for free college enrollment information from a source you trust Download college financing e-books Access on-line seminars and videos Use “Ask the MEFA Expert” tool to get answers to your financial aid and financing questions Link directly to YourPlanForTheFuture access financial aid applications, calculators, a scholarship search engine, and more

© MEFA - All Rights Reserved © MEFA. All rights reserved. 23 MEFA s assistance semi-monthly relating to deadlines, helpful hints, recommendations Support throughout high school and college, topics are based on student's grade level and stage of college planning process Sample Topics January – Admissions Myths March– FAFSA4Caster May – Financial Aid Myths Sign up by visiting mefa.org

© MEFA - All Rights Reserved © MEFA. All rights reserved. 24 FREE college and career planning tool Resources include: –Skills and interest assessments –Career exploration –College search –SAT, ACT, and MCAS test prep tutorials –Financial aid and scholarship information Available in English and Spanish YourPlanForTheFuture.org

© MEFA - All Rights Reserved © MEFA. All rights reserved. 25 What You Can Do Now Sign up for MEFA Counselor s. Create your YourPlanForCollege account and start using the many college and career planning tools. Start a family dialog to discuss preparing for and paying for college. Research what courses are offered at the high school and the prerequisites.

© MEFA - All Rights Reserved © MEFA. All rights reserved. 26 Thank you. Questions?