1. By: Scott Kessler LPL Financial SmartCollegeFunding.com
Planning
By: Scott Kessler
LPL Financial
SmartCollegeFunding.com
LPL Financial Member FINRA/SIPC

2. Financial Aid Basics - HOPE
3.0 high school HOPE GPA across core academic subjects (evaluated by GSFC)
3.0 across ALL college courses attempted
Evaluated at the end of every Spring semester AND at 30, 60, and 90 attempted hours
Can LOSE HOPE at any of these checkpoints
Can only GAIN HOPE at 30, 60 and 90 attempted hours
LPL Financial Member FINRA/SIPC

3. Financial Aid Basics – Zell Miller
ZELL MILLER SCHOLARSHIP ELIGIBILTY
Graduate as the valedictorian or salutatorian; OR
Graduate with a 3.7 GPA (as calculated by GSFC); AND 1200 on the math and reading portions of the SAT or 26 on the ACT – One test administration, not highest combined score
Must maintain 3.3 GPA across ALL college courses attempted
Evaluated at the end of Spring term AND at 30, 60, and 90 attempted hours
LPL Financial Member FINRA/SIPC

4. Financial Aid Basics
Common Requirements between HOPE and Zell Miller Scholarship
GA resident at high school graduation – must be GA resident for 12 months prior to receiving HOPE/ZMS in college
Not a GA resident at high school graduation – must be GA resident for 24 months prior to receiving HOPE/ZMS in college
Lose and Regain only ONE time
Can lose ZMS and maintain HOPE eligibility if above 3.0 college GPA
LPL Financial Member FINRA/SIPC

5. Financial Aid Basics
Common Requirements between HOPE and Zell Miller Scholarship
127 Attempted Hour Limit
ATTEMPTED HOURS
Hours of record after drop/add – “If it appears on the transcript”
Includes F grades and withdrawals
Seven Year Limit following high school graduation
LPL Financial Member FINRA/SIPC

6. We know why college matters
According to Pew Research Center – on average college grads earn $17,500 more per year than high school grads
By 2020, 65% of all U.S. jobs will require a degree beyond high school
Unemployment rates by educational level as of 4/2015
8.6% Less than high school diploma
5.4% High school, no college
4.7% Some college
2.7% College or greater
LPL Financial Member FINRA/SIPC

7. Graduation Rates 4 Year Graduation Rates 6 Year Graduation Rates
Public Colleges 31%
Private Colleges 53%
6 Year Graduation Rates
Public Colleges 58%
Private Colleges 65%
LPL Financial Member FINRA/SIPC

8. 6 Year Graduation Rate - 2015 Univ. of Florida 86.5% Univ. of Georgia
Univ. of Florida
86.5%
Univ. of Georgia
82.2%
Univ. of So. Carolina
72.7%
Univ. of Tennessee
67.5%
University of Arkansas
60.1%
GCSU
61.2%
University of North GA
52.8%
Georgia Southern
50.5%
LPL Financial Member FINRA/SIPC

9. Research Graduation Rates
An excellent place to check graduation rates is College Completion which is a microsite of The Chronicle of Higher Education
Collegecompletion.chronicle.com

10. Average Cost of College (COA) per College Board 2016-2017
Public University:
In State $20,090 per year
Out of State $35,370 per year
Private University $45,370 per year
Elite Private University $68,000+ per year
LPL Financial Member FINRA/SIPC

11. Which price will YOU pay?
Paying for College
There are two very different prices for college: one for the informed buyer & one for the uninformed buyer
Which price will YOU pay?
LPL Financial Member FINRA/SIPC

12. Retail vs. Wholesale Only $119! I paid $369
When you fly do you pay the same as the person sitting next to you?
Which seat would you rather sit in?
Only
$119!
I paid $369
LPL Financial Member FINRA/SIPC

13. Financial Aid Formula
COA (Cost of Attendance) - EFC (Expected Family Contribution) = FN (Financial Need) The difference between the COA and EFC numbers is your “financial need” or eligibility for financial aid at a particular school.
LPL Financial Member FINRA/SIPC

14. Cost of Attendance (COA)
Includes direct costs to the college (tuition/fees)
Also includes indirect costs for related educational expenses
Room/Board
Books/Supplies
Transportation
Miscellaneous Living Expenses
LPL Financial Member FINRA/SIPC

15. Expected Family Contribution (EFC)
A measure of how much the student and his or her family can be expected to contribute to the cost of the student’s education for the year
EFC is calculated by a formula specified in federal law
Factors include but are not limited to:
Assets
Adjusted gross income
Federal tax liability
Number in household
Number in college
Student’s dependency status
LPL Financial Member FINRA/SIPC

16. Estimate Your EFC
You can attempt to estimate your Expected Family Contribution by typing EFC Calculator into the search box on the College Board’s home page.
However, it will NOT suggest or provide any guidance in strategies to potentially reduce your EFC

17. It matters where you keep your assets and how you pay your portion
Savings account
Checking account
Money Markets
Stocks
Bonds
Mutual Funds
Students savings
Home Equity
529 plans
UTMA/UGMA
Life Insurance
IRA
401K/403B
Investment Real Estate
Annuities
LPL Financial Member FINRA/SIPC

18. Free Money
Scholarships
&
Grants
LPL Financial Member FINRA/SIPC

19. Loans Must be paid back Direct Loans (Stafford) - students
PLUS - parents
LPL Financial Member FINRA/SIPC

20. Financial Aid Basics – Federal Programs
Free Application for Federal Student Aid (FAFSA)
The gateway for all Federal Student Aid programs
Includes student and parent loan programs
LPL Financial Member FINRA/SIPC

21. Financial Aid Basics – Loan Programs
Direct Subsidized Loans
Gov’t pays interest while student is enrolled in school at least half-time
Need-based
1.066% origination fee withheld by US Dept. of Education prior to disbursement
Interest Rate is 4.45% (fixed)
Unsubsidized Direct Loans
Interest accrues on loan while student is enrolled in school
Student has option to defer or pay interest while in school
1.066% origination fee withheld by US Dept. of Education prior to disbursement
Interest Rate is 4.45% (fixed)
LPL Financial Member FINRA/SIPC
LPL Financial Member FINRA/SIPC

22. Annual Direct Loan Limits
Academic Maximum Annual Limit Total Annual Level that may be subsidized Limit Freshman $3500 $5500 Sophomore $4500 $6500 Junior/ $5500 $7500 Senior
LPL Financial Member FINRA/SIPC

23. Aggregate (Lifetime) Direct Loan Limits
Status Subsidized Limit Combined Limit Undergraduate $23,000 $31,000 Dependent Undergraduate $23,000 $57,500 Independent Graduate $65,500 $138,500 Student
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24. PLUS Loan for Parents Apply at www.studentloans.gov
Origination Fee of 4.264%
Interest rate for = 7.00%
Can borrow up to the Cost of Attendance minus other aid
Credit Check required
LPL Financial Member FINRA/SIPC

25. Which University Is More Expensive?
University A
University B
COA $25,000
EFC ,000
FN ,000
Loan ,000
Grant ,000
Scholarship ,000
Un-Met Need ,000
Real $ Cost ,000
COA $45,000
EFC ,000
FN ,000
Loan ,000
Grant ,000
Scholarship ,000
Un-Met Need
Real $ Cost ,000
LPL Financial Member FINRA/SIPC

26. Financial Aid Requires the understanding of: Need to know:
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
LPL Financial Member FINRA/SIPC

27. 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

28. Scott Kessler 678.456.4227 SmartCollegeFunding.com
The opinions voiced in this material are for general information only and are not intended to provide specific advise or recommendations for any individual. To determine what may be appropriate for you, consult a financial professional.
LPL Financial Member FINRA/SIPC