1. Welcome to… Higher Education U (You)
Thanks for coming today…it’s our own higher education university…in less than an hour.
Before we start, to get an idea of our audience, how about a show of hands.
Question 1: How many of you are parents or grandparents looking to help fund a college education for a child?
Question 2: Anyone here because their saving for their OWN higher education…maybe for a new career or vocation?
Question 3: How many of you have already looked into college costs seriously?
Question 4: How about actually started some sort of savings plan?
Presenter (Optional): Go around the room for introductions and/or ask what audience wants to learn….or what their perceived biggest challenge is when thinking about paying for future college costs.

2. Curriculum 101: College Costs & Considerations 201: Savings Options
301: 529 Plans — Smarter By the Numbers
401: Investing For the Future
501: Extra Credit with Financial Aid
Here’s what we’ll cover today.
Speaker: go over agenda

3. MI 529 Advisor Plan 101: College Costs & Considerations
First, lets cut to the chase…some college cost and consideration basics

4. The trend is not your friend…
U.S. college tuition, fees, room and board for fulltime undergraduate students based on 1 academic year.
Projected cost of college for four years with inflation: public and private colleges
2018 Dollars (adjusted for inflation)
Actual (not adjusted for inflation)
Academic Year
Public 4 year college (in-state rate)
Private 4 year college
$16,410
$38,700
$14,744
$34,771
$21,370
$48,510
% Change
30%
25%
45%
40%
Main Point: The trend is not your friend – college inflation needs to met head on by investing wisely.
The cost of college continues to rise. While these numbers can appear scary, there are a number of steps to tackle this head-on. It’s important to know your options when it comes to saving for higher education and take steps now. As mentioned, that’s why we’re here today.
Attending this seminar means you realize planning needs to be in place. My goal, as a financial advisor, is to help steer you towards developing a plan and provide key information when it comes to saving for college.
Example assumes attending school at age 18 for 4-years. The chart to the right assumes 4-years at an annual college cost inflation rate of 5%. Public college costs based on in-state rates.
Source: The College Board, 2018

5. Are any of these on your list?
Estimated Cost of a College Education – Tuition Pricing Only
Annual Cost Estimate*
4 Year Estimate*
University of Chicago
$57,006
$228,024
Duke University
$55,695
$222,780
Harvard University
$50,420
$201,680
University of Michigan
$15,262
$61,048
Michigan State University
$14,460
$57,840
Central Michigan University
$12,960
$51,840
Western Michigan University
$12,483
$49,932
Eastern Michigan University
$13,959
$55,836
How many of you have these colleges in your sites?
Speaker note: Highlight that these numbers go up quite a bit when you add room and board. Not to mention – these are today’s cost – not taking college inflation into consideration for future years.
MI college costs are in-state tuition and fees. Room & Board not included.
All other costs are out-of-state tuition and fees. Room & Board not included.
* Inflation not factored in.
Source: collegeboard.org, annual college costs

6. Wherever you go: Learning = Earning
Average lifetime earnings expectations rise with level of education.
High school graduates: $1.5 million
Bachelor’s degrees: $2.6 million
Master’s degrees: $3.1 million
Doctoral degrees: $4.5 million
Professional degrees: $5.6 million
(examples: medicine, law, engineering):
$1.1 million difference between a high school and bachelor’s degree
Main Point: Having a college degree (or any advance degree) will help your children possibly earn more – opening up the door for great opportunities.
A college education can give your child (or grandchild) the experiences and knowledge that can open doors and create exciting possibilities. These days, a college degree can be a necessity for many professional opportunities, growth and advancements.
Let’s take a look at some of those opportunities…
Source: U.S. Census Bureau, Current Population Survey, 2016 Annual Social and Economic Supplement. The figures are based on 2015 earnings projected over a typical work life, defined by the Census Bureau as the period from ages 25 through 64.

7. Do what you love, but do consider…
Best Jobs for the Future
Job
Growth Rate ( )
Median Annual Salary
Physician Assistant
35.3%
$104,986
Nurse Practitioner
35.2%
$103,947
App Developer
30.4%
$100,857
Information Security Analyst
27.2%
$95,506
Physical Therapist
27.1%
$85,694
Marketing Research Analyst
24.4%
$62,828
Health Services Manager
21.0%
$96,517
Financial Manager
19.1%
$122,733
Computer Systems Manager
14.4%
$138,142
Physician
13.7%
$200,774
Main Point: While students should always be encouraged to pursue their passions, it doesn’t hurt to consider where the greatest opportunities may lie going forward.
Here, we see a list of some of the best-potential jobs over the next decade.
In general, students who major in Science, Technology, Engineering and Mathematics (STEM) can expect to earn the most after graduation, and students who major in the arts and humanities can expect to earn the least.
If possible, students should aim to keep debt at graduation in sync with their expected starting salaries. Some of the lowest-paying fields of study, however, may qualify for loan forgiveness programs such as Public Service Loan Forgiveness, making it possible for college graduates to pursue careers in related occupations despite the low pay and high debt.
All Jobs
7%*
$37,040*
Source: Kiplinger.
*Source: Bureau of Labor Statistics

8. In every case: The sooner you start, the less it will cost
The benefits of starting to save early
Assumes your Beneficiary will attend a public in-state university in 18 years, costing $222,466
If you start saving…
Your monthly contribution will be…
Now
$480
In 3 years:
$623
In 5 years:
$751
In 9 years:
$1,145
Main Point: If at all possible, it makes sense to start early – if you didn’t start early – you can start now.
Source: SavingforCollege.com. The Price of Procrastination Calculator. Assumes a hypothetical 5% rate of education inflation over 18 years. Your monthly contribute assumes a hypothetical investment growth of 6% assuming no additional contributions or withdrawals and all earnings are reinvested. Your investment will vary and may perform better or worse than these examples which are for illustrative purposes only and do not represent any specific investment.

9. MI 529 Advisor Plan 201: Savings Options
So lets talk savings. We already established that starting sooner is better
But it’s also important to make the most of the money you do save.
How? By finding the right vehicle for your college-dedicated assets.
In other words, you have to plan the best way to pay.
Lets take a look at some popular college savings plans.

10. Commonly Used Vehicles to Save for College
Comparison of college-savings investment-option benefits
529 College
Savings Plans
Coverdell Education Savings Account
UTMA/UGMA Account
Contribution limit
Up to $500,000
$2,000 per student per year
None
No limits on contribution age1
Until 18 years of age
Until child reaches maturity (18 or 21)
Account owner always remains in control of the account
Changes to Beneficiary permitted
Withdrawals for qualified expenses are free from federal taxes2
Choice of investments
Varies by Plan. Choice of portfolios, managed by professional managers
Owner/custodian researches and chooses investments
Owner researches and chooses investments
Main Point: There are 529s (like MI 529) and others like Coverdells and UGTA/UGMAs to save for higher education.
Speaker note: Go over table/key features.
As you can see, 529s are the only vehicle to check each box – not to mention – they were created by our government specially to help Americans save for post secondary expenses (trade schools, college/universities, community college and many more). Other also include US Savings Bonds, Individual Retirement Accounts, etc.
Also, as you can see, we’ve highlighted the tax benefits of 529 plans. This is one of the most important points we’ll discuss today.
Each MI 529 Advisor Plan account is subject to a service fee, state administrative fee, program management fee, underlying fund fees and a sales charge.
1. Some state plans do have their own age and/or time limits.
2. Withdrawals that are not used for qualified higher education expenses may be taxed as ordinary income and may be subject to a 10% additional penalty tax.

11. Federal Income Tax-Free Growth?
4/6/2019 4:00 AM
Federal Income Tax-Free Growth?
Coverdell Education Savings Account
529 College Savings Plan
UGMA/
UTMA
Main Point: Let’s look federal tax free growth(read page)
Yes. Money grows income tax free and qualified distributions are income tax free
No. Earnings are taxed at the parent’s or the minor’s rate
Yes. Money grows income tax free and qualified distributions are income tax free
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12. Coverdell Education Savings Account 529 College Savings Plan UGMA/
4/6/2019 4:00 AM
Who Controls Assets?
Coverdell Education Savings Account
529 College Savings Plan
UGMA/
UTMA
Main Point: Finally – its important to note who “owns” the assets (read page)
Plan Owner
Custodian, until minor reaches age of majority (varies by state)
Responsible Individual
529_SEM_0117

13. Why 529 plans move to the head of the class
The benefits of tax-free growth
Accelerate your savings with
tax-free growth potential!
*Chart does not represent the past performance of any Nuveen Fund. For fund performance visit nuveen.com.
Main Point: When it comes to saving for higher ed – you may as well save in a tax-advantaged vehicle.
529 plans provide compounding growth potential in a tax-free account, which may provide substantially more growth potential over time than a taxable account, as shown by the illustration.
To quote Albert Einstein, “compounding is the 8th wonder of the world.” Add in the tax-free component and it’s even more impressive…and important when it comes to super-charging your saving power.
529 Tax-free account
Taxable savings account
Tax advantages add up over time
This example assumes an initial investment of $5,000, monthly contributions of $100, and a 6% annual rate of return over 15 years. The taxable account assumes a 28% federal and 5% state taxable rate. The calculations are for illustrative purposes only and the results are not indicative of the performance of any investments. Account values will fluctuate based upon several factors, including general market conditions. Past performance does not predict future results. The assumed rate of return is not guaranteed. The assumption includes the reinvestment of dividends and capital gains. For non-qualified withdrawals, earnings are subject to income taxes and may be subject to additional tax penalties. Please consult your tax professional.

14. MI 529 Advisor Plan 301: 529s — Smarter by the Numbers
So we’ve established that 529 plans make a lot of sense for college savings.
We touched briefly on the tax benefits, but there’s so much more.
Let’s dig in.

15. Quick look: 529 College Savings Plans
Tax-advantaged education-savings account¹
Named after a section of the Internal Revenue Code
Funds pay for college and related qualified higher education expenses
Pays tuition at thousands of higher education institutions, in the U.S. and abroad²
Almost anyone can contribute, making it a family affair³
Main Point: 529s have very few limitations
Speaker Note: Go over the list
¹Although contributions are not deductible, earnings in a 529 plan grow federal tax-free and will not be taxed when the money is taken out to pay for college. As of January 1, 2018, tax-free withdrawals may also include up to $10,000 in tuition expenses for private, public or religious elementary and secondary schools (per year, per beneficiary).
²Funds can be used at 529 eligible institutions, which includes any college, university, vocational school, or other post-secondary institute recognized by the Department of Education.
³Must be a U.S. citizen/resident alien, corporation, entity & trusts with valid tax ID numbers

16. With almost no limitations on account owners or beneficiaries.
Mom
Dad
Grandparent
Brother/Sister
Friend
Aunt/Uncle
Child
Grandchild
Yourself
Loved one
Anyone
Friend
Account Owner
No income limitations
No state residency required
Full control
U.S. citizen/resident alien
Corporations, entities & trusts with valid tax ID numbers
Beneficiary = Future Student
No age restrictions
No time restrictions
No state residency requirement
U.S. citizen/resident alien
Can be changed to another eligible family member
A College Education
Main Point: 529s have very few limitations
Speaker Note: Go over the list

17. 529 Plan assets pay for… At… Tuition School Fees
4/6/2019 4:00 AM
529 Plan assets pay for…
At…
Qualified Higher Education Expenses (QHEE)
Tuition
School Fees
Books (physical and eBooks)
Supplies
Computers (including software and internet fees)
Room and board (must attend at least half time)
K-12 tuition expenses up to $100,000 per year
Colleges
Graduate schools
Universities
Trade schools
Private or public institutions
In- or out-of-state, including many abroad
Qualified
Expenses
Main Point: 529 plans are extremely flexible when it comes to the institution chosen and they expenses that may be covered with 529 plan assets (QHEE).
Qualified expenses include not only tuition but also room and board (if attending at least half time), fees, books, required supplies and required equipment at school.
And, 529s may be used a wide variety of higher education institutions. Who wants to go to cooking school?
529_SEM_0117

18. 10 Reasons to Consider the MI 529 Advisor Plan
No annual maintenance fee*
No income restrictions
Account Owner controls the assets
Wide investment manager selection
Broad investment diversification¹
Sophisticated glide path design within the age-based investment portfolio option
High contribution limits at $500,000 per beneficiary
Low contribution requirement (starting at $25 per investment portfolio or $15 per pay period for payroll deduction option)
Contributions receive favorable gifting and estate tax treatment²
Advisor expertise and oversight
Main Point: Here’s a look at 10 key benefits of 529 plans.
Speaker Note: Read slide
Diversification bullet note: Wide variety of asset classes including emerging markets, real estate, socially responsible investing and a principal plus interest option backed by a guaranteed investment contract.*
*A guaranteed investment contract issued by TIAA-CREF Life Insurance Company (“TIAA-CREF Life”) that provides a guaranteed rate of return to the Advisor Plan on the amounts allocated to it by the Investment Portfolios. The minimum effective annual interest rate will be neither less than 1% nor greater than 3% at any time. TIAA-CREF Life may credit interest in addition to the effective annual interest rate at its discretion. The Funding Agreement does not guarantee any rate of return to you or an Account.
*Other fees apply. ¹Diversification does not assure a profit or guarantee against loss. ²refer to page 20

19. “Great Lakes State” bonus points
Tax Advantages for MI Taxpayers
Individual Deduction: up to $5,000 each year
Married Filing Jointly Deduction: up to $10,000 each year
Earnings grow federal income tax free
Qualified withdrawals are free from federal and MI state income tax
Contributions receive favorable gifting and estate tax treatment*
Main Point: The State of Michigan offers an attractive state tax deduction on contributions – worthy of noting.
*Refer to page 20 This material is provided for informational purposes only and is not to be construed as tax, legal or investment advice. Michigan and federal tax rules may change in the future and tax benefits are conditioned on meeting certain requirements. For non-qualified withdrawals, earnings are subject to income taxes and may be subject to additional tax penalties. Please consult your tax professional.

20. More MI 529 Advisor “smart numbers”
Estate Benefits
Annual Gifting:
$15,000 for individuals
$30,000 for married couples.
5-in-1 Super-Funding:
Up to $75,000 per individual/per beneficiary
Up to $150,000 per married couple per beneficiary
One-year investment is treated same a 5-year period, free of federal gift tax, so long as no other contributions are made to the same beneficiary in that 5-year period.*
5 Years (at once) Annual Tax Exclusion
Date
Tax Year
Type
Amount (individual)
Amount (Married)
Today
Current Year
$75,000
$150,000
2019
Accelerated Year
$15,000
$30,000
2020
2021
2022
2023
Main Point: There are more smart numbers to consider regarding 529 plans…especially related to estate planning.
One of the most appealing features is that contributions may qualify for the $15,000 annual gift tax exclusion and, if there is a desire to accelerate gifting—sometimes called super-funding) the contribution can be increased to $75,000 (or $150,000 if married)
*Contributions are generally considered completed gifts for federal transfer tax purposes and are, therefore, potentially subject to federal gift tax. Generally, if a contributor’s contributions to Accounts for a Designated Beneficiary, together with all other gifts by the contributor to the Designated Beneficiary, do not exceed the “annual exclusion” amount of $15,000 per year (or $30,000 for a married couple), no federal gift tax will be imposed on the contributor for gifts to the Designated Beneficiary during that year.

21. MI 529 Advisor Plan 401: Investing For the Future
Now, it’s not just the vehicle that’s important for your college-savings strategy.
It’s how you invest your assets within that vehicle.
Here we’ll show you how MI 529 advisor offers investment options for all college savers.

22. Nuveen and TIAA Tuition Financing, Inc.
Nuveen is based in Chicago. Nuveen Securities, LLC is a subsidiary of Nuveen, LLC.
Nuveen is a global investment manager that works in partnership with clients to create outcome-focused solutions and help secure financial futures.
Nuveen ranks among the 15 largest asset managers in the world with over $930 billion is assets as of 2018.
Nuveen is one of the leading distributors of open & closed-end funds and separately managed accounts in the nation.
TIAA-CREF Tuition Financing, Inc. (TFI) was one of the first program managers to enter the 529 college savings plan market, and is one of the top program managers in the industry.
TFI administers 8 state plans totaling over $25 billion in assets across 1.2 million accounts.
Nearly 20 years experience in dedicated 529 program management.
Committed to ensuring all families have opportunity and access to higher education.
Main Point: When investing with the MI529 Advisor Plan – you get the power of both Nuveen and TIAA – lots of expertise in the college savings space.
Nuveen, a global asset manager, was founded in 1898, that ranks amongst the 15 largest with over $930 billion in AUM in 2018.
TIAA, founded in 1918 by Andrew Carnegie, was established to help provide a retirement solution for college professors. TIAA-CREF Tuition Financing, Inc. (TFI) was one of the first program managers to enter the 529 college savings plan market, and is one of the largest program managers in the industry. TFI administers 8 state plans totaling over $25 billion in assets across 1.2 million accounts.
TIAA acquired Nuveen in 2014 – Nuveen now serves as the distributor for both legacy Nuveen investment products and TIAA retail investments

23. An array of flexible investment options…
20 Investment Portfolios:
1 Age Based Track
(9 Age Bands)
2 Target Risk
Portfolios
1 Multi-Fund
Portfolio
16 Individual
Main Point: The plan offers a large array of investment choices
No matter your college saving goals or investment preferences, there are truly investment options for all.
Speaker Note: Let’s look at each category (next few slides break each category up in more detal).
= Investments for all
* See fund risks at the end of presentation.

24. Age-Based Portfolios: Set-it-and-forget-it
Age-based Portfolios adjust allocations automatically over time based on a manager’s “Glide Path”
9 Age-Bands:
0-4 years
5-8 years
9-10 years
11-12 years
13-14 years
Age 15
Age 16
Age 17
Age 18 +
Main Point: The plan offers age-based portfolios that are created to almost set-it-and-forget-it. As the allocations shift automatically as your beneficiary gets older.
The allocation shift of age-based portfolios are based on a manager’s “glide path”
As you can see in the chart, the allocations shift gradually over time – from more aggressive to conservative.
Our plan offers nine age-bands to be able to align our investments and risk exposure more closely with the beneficiary’s age and investment time horizon.

25. Target-Risk Portfolios: Pick your spot
Static, target-risk portfolios offer diversified investment solutions based on your risk tolerance
Allocations of target-risk portfolios
Target risk conservative allocation
Target risk capital appreciation
A broad range of asset classes provide greater diversification
Risk based options provide easy levers to increase/decrease risk levels
Often used with age-based portfolios to increase or decrease risk exposure
Main Point: With the Target Risk portfolios, you can pick your spot when it comes to the potential risk level.
Whether you choose more conservative investments with less volatility (but less potential) or more aggressive investments with more volatility and greater growth potential, there’s an option for you.
These static portfolios can offer diversified investment solutions based on your risk tolerance. Sometimes we will use these investment options to increase or decrease investment risk in conjunction with age-based portfolios.
CONSERVATIVE
AGGRESSIVE

26. Multi-Fund Portfolio: All-in-one alternative
The Alternative Income Portfolio
This portfolios seeks to provide a moderate to favorable long-term total return by investing in multiple mutual funds that invest across the capital structure of a wide range of companies as well as in fixed income sectors.
Nuveen Alternative Income Portfolio
Main Point: There is one multi-fund investment option that combines 3-core income funds called the Alternative Income Portfolio

27. Individual Portfolios: Create your own strategy
Asset Class
Investment Portfolio
Underlying Fund
Morningstar Fund Category
Domestic
TIAA Large Cap U.S. Equity Index Portfolio
TIAA-CREF S&P 500 Index Fund
Large Blend
Santa Barbara Dividend Growth Portfolio
Nuveen Santa Barbara Dividend Growth Fund
TIAA Large Cap Value Portfolio
TIAA-CREF Large Cap Value Fund
Large Value
Harbor Capital Appreciation Portfolio
Harbor Capital Appreciation Fund
Large Growth
Ariel Portfolio
Ariel Fund
Mid Cap Value
TIAA U.S. Small Cap Portfolio
TIAA-CREF Small Cap Fund
Small Growth
Global & International
Harding Loevner Global Equity Portfolio
Harding Loevner Global Equity Fund
World Large Stock
Oakmark International Portfolio
Oakmark International Fund
Foreign Large Blend
DFA Emerging Markets Portfolio
DFA Emerging Markets Core Equity Portfolio
Diversified Emerging Markets
Fixed Income
MetWest Total Return Bond Portfolio
MetWest Total Return Bond Fund
Intermediate-Term Bond
Nuveen Strategic Income Portfolio
Nuveen Strategic Income Fund
Multisector Bond
Nuveen Inflation-Linked Portfolio
Nuveen Inflation-Protected Securities Fund
Inflation-Protected Bond
Social Choice
TIAA Social Choice Equity Portfolio
TIAA-CREF Social Choice Equity Fund
TIAA Social Choice Bond Portfolio
TIAA-CREF Social Choice Bond Fund
Real Assets
Nuveen Real Asset Income Portfolio
Nuveen Real Asset Income Fund
World Allocation
Short-term/cash
Principal Plus Interest Portfolio
TIAA Life Funding Agreement
N/A
Menu provides diverse high quality options across major asset categories and sub-asset classes
Investment options include strategies from proprietary and third party providers for the asset classes
Many individual portfolios invest in highly rated mutual funds by Morningstar
Can be used as a compliment to age-based, target risk and multi-fund options
Main Point: With 16 individual portfolios, we can get creative and craft a totally unique strategy customized to your goals and investing preferences.
This choice offers the ultimate in terms of investing flexibility.

28. MI 529 Advisor Plan 501: Extra Credit with Financial Aid
Let’s talk a bit about financial aid.
How many here are likely to consider seeking some form of financial aid?

29. How Americans pay for college
More than half of families relied on
borrowing in
…and student loan debt has soared
Students borrowing 14%
Student income & savings 13%
Parents borrowing 10%
Total student loan debt
Average class of graduate debt
Average monthly payment (20- to 30-year old)
Parent income & savings 34%
$1.56 trillion
$29,800
$393
Scholarships 57%
Main Point: Let’s look at how Americans are paying for college today
This is research from Sallie Mae, the nation’s largest provider of education funding.
As you can see, due to the high costs of higher education, Americans get creative when it comes to paying for college, using many different funding options.
The most current research showed the share of college costs covered by scholarships and grants was the highest in this report’s history, covering almost one third—28 percent—of costs. While scholarships and grants remained the number one source of funding, the contribution from students was the highest since , and nearly equaled the contribution from parents. Through a combination of income, savings, and borrowing, students covered 13 percent of costs in , while parents covered 34 percent.
Borrowed money paid for 24 percent of costs. Student borrowing paid for 14 percent of college costs, the highest proportion student borrowing has paid since
On the right, you can see the staggering numbers that are being racked up in terms of student debt.
And, since borrowed money is an important source of college funding, it’s important to be smart about it.
Grants 56%
Source: SallieMae, “How America Pays for College 2018”
Source: via federalreserve.gov, newyorkfed.org and clevelandfed.org

30. The “1-2-3 Approach” to smart (cheaper) borrowing
Take advantage of federal student loans
Start with money you WON’T have to pay back
Main Point: When it comes to paying for college, Sallie Mae recommends a three-pronged approach
First, start with money you won’t have to pay back. Supplement your college savings and income by maximizing scholarships, grants, and work-study…and of course, your own savings
Second, explore federal student loans. Apply by completing the Free Application for Federal Student Aid (FAFSA), which we will discuss today.
And third, consider a responsible private student loan. Use private loans to fill the gap between your available resources and the cost of college.
Fill any gaps with private loans

31. Borrow Wisely
“72% of student loan borrowers use only federal loans, 5% use only private loans, and 22% use both.”
-Sallie Mae, “How America Pays For College 2017”
Main Point: Unlike grants an scholarships, a loan is money you borrow and must pay back with interest.   
If you decide to take out a loan, make sure you understand who is making the loan and the terms and conditions of the loan.
Student loans can come from the federal government or from private sources such as a bank or financial institution. Loans made by the federal government, called federal student loans, usually offer borrowers lower interest rates and have more flexible repayment options than loans from banks or other private sources.
However, as you can see, it’s possible to combine loans to cover your higher education costs.
So let’s look at the main types.

32. Loans > Must pay back (with interest)
Direct Subsidized Loans: Undergrads with financial need
Direct Unsubsidized Loans: Undergrad & grad, no financial need requirement
PLUS Loans: Grad students & parents of undergrads
Check out studentaid.ed.gov!
Main Point: Loans must be paid back (usually with interest).
In short, Direct Subsidized Loans have slightly better terms to help out students with financial need.
Here’s a quick overview of Direct Subsidized Loans:
Direct Subsidized Loans are available to undergraduate students with financial need.
Your school determines the amount one can borrow, and the amount may not exceed your financial need.
The U.S. Department of Education pays the interest on a Direct Subsidized Loan while you’re in school at least half-time, for the first six months after you leave school (referred to as a grace period*), and during a period of deferment (a postponement of loan payments).*
*Note: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.
On to Direct Unsubsidized Loans:
Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.
Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive.
You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. 
If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).
To receive either type of loan, you must be enrolled at least half-time at a school that participates in the Direct Loan Program. Generally, you must also be enrolled in a program that leads to a degree or certificate awarded by the school.
Recap Point: Direct Subsidized Loans are available only to undergraduate students who have financial need. Direct Unsubsidized Loans are available to both undergraduates and graduate or professional degree students. You are not required to show financial need to receive a Direct Unsubsidized Loan.
Finally, there are PLUS Loans.
PLUS loans are federal loans that graduate or professional students and parents of dependent undergraduate students can use to help pay for college or career school.
PLUS loans help pay for education expenses not covered by other financial aid.
The U.S. Department of Education makes Direct PLUS Loans to eligible borrowers through schools participating in the Direct Loan Program.
With Direct PLUS Loans:
The U.S. Department of Education is your lender.
You must not have an adverse credit history.
The maximum loan amount is the cost of attendance (determined by the school) minus any other financial aid received.

33. File your FAFSA (Free Application For Federal Student Aid)!
What to know:
Apply October 1, the year before classes begin
Apply each year you seek aid
Apply even if you think you can’t qualify
How to access:
Fill out the online form:
Download a hard copy form:
Call: FED.AID
Main Point: You must submit a FAFSA if you want to apply for federal and state financial aid
Many colleges and universities, especially public institutions, also require the FAFSA.
Families can file their Free Application for Federal Student Aid (FAFSA) each October 1 of the year before college classes begin, using income and tax information from two years before college. You cannot submit the form before this deadline because the need analysis process uses your financial information from the prior tax year when calculating eligibility for the upcoming award year. We’ll dig more into deadlines in a minute.
Also, you must submit the FAFSA every year that you want aid.
The best option is to complete the web-based version of the FAFSA at  known as FAFSA on the Web. It includes step-by-step instructions for completing the online FAFSA as well as preapplication worksheets.
However, you can also call FEDAID or download the form, fill it in and mail it.
Finally, many families mistakenly think they can’t qualify for aid, so prevent themselves from receiving aid by failing to apply for it. As we just described, there are a few sources of aid such as PLUS loans that are available regardless of need.
The FAFSA is free. Always apply!

34. Don’t miss your “due dates”
Important!
The college deadline
The state deadline
The federal deadline
Main Point: Just like a term paper, applying for financial aid involves due dates. There are a few critical deadlines when it comes to the FAFSA form.
All the entities shown on the screen award their financial aid money differently and at different times. What they all have in common, though, is that they use the FAFSA form to assess eligibility for their aid programs. By submitting your FAFSA form late, you might be forfeiting big money that can help you pay for college.
College: The first type of deadline comes from colleges themselves, and it’s typically pretty early. These deadlines vary by school, but they usually come well before the academic year starts. If you’re applying to multiple colleges, be sure to look up each school’s FAFSA deadline and apply by the earliest one.
Many of these FAFSA due dates are priority deadlines, meaning you need to get your FAFSA form in by that date to be considered for the most money. You should be able to find this date on the school’s financial aid pages, or by calling the financial aid office.
State: The second deadline is determined by your home state. Starting on Oct.1, you can check your states deadlines on the FAFSA website. Some states have hard deadlines and other states have suggested deadlines to make sure you get priority consideration. Some states offer first-come, first-served financial aid. If your state’s deadline is “As soon as possible after Oct. 1, 2017,” submit your FAFSA ASAP. Many states award financial aid funds only until they run out. That means, the sooner you apply, the better your chances.
Federal: This deadline is from the U.S. Department of Education--the FAFSA folks. Know that each year’s FAFSA form becomes unavailable on June 30 at the end of the academic year it applies to. So the 2018–19 FAFSA form (which will be available on Oct. 1, 2017) will disappear on June 30, 2019, because that’s the end of the 2018–19 school year.

35. After FAFSA SAR (Student Aid Report)
COA
(Cost of Attendance)
EFC (Expected Family Contribution)
Financial Need –
Main Point: After you submit your FAFSA form, you’ll get a Student Aid Report -- a paper or electronic document that summarizes the information you provided on your application, including some basic information about your eligibility for federal student aid.
You can see the first page of the SAR on the screen.
Note the highlighted EFC number. That’s the Expected Family Contribution, or the amount a family is expected to pay for their student's college education. It short, the EFC has an effect on how much federal grant money you will be given for college expenses.
The EFC is a measure of your family's financial strength and is calculated according to a formula established by law. Your family’s taxed and untaxed income, assets, and benefits (such as unemployment or Social Security) are all considered in the formula.
Importantly: Your EFC is not the amount of money your family will have to pay for college, nor is it the amount of federal student aid you will receive. It is a number used by your school to calculate how much financial aid you are eligible to receive based on how much your family is expected to save and contribute. =

36. Two (of many) reasons to use a 529 college savings plan:
Tax-free growth…plus,
Savings is always cheaper than borrowing
529 Savings
Estimated EFC Amount $0
$17,504
$10,000
$17,810
$25,000
$18,660
$50,000
$20,070
$100,000
$22,890
Difference of $1,120 in EFC when saving $25,000 in a 529 Plan.
Main Point: Here’s some great news regarding the impact of savings…like in a 529 plan…on your ability to receive financial aid.
Savings actually count far less than income when calculating your eligibility and EFC for federal financial aid purposes when its considered a parental asset. In fact, it can only count up at a maximum rate of 5.64%.
As you can see, the family with substantial 529 savings, have only a small decrease in financial aid. It’s easy to argue its worth saving in 529 vs. borrowing with loans and only owing the “school” a difference, in the example on the screen, of ($ = $1120)
And, of course, with more savings their debt burden will be significantly decreased.
To frame it: What is more beneficial when it comes to college expenses, a slight reduction in EFC or savings in a 529 plan? 
Assumptions: State of Michigan Residents only. This is provided for educational purposes only and is not meant as legal, tax, estate planning or investment advice. You should review your overall tax plan with a tax professional. The results of these calculations are estimates based on the assumptions of the calculator program via savingforcollege.com/financial-aid-calculator. In addition, the inputs that were used assume a married couple with an adjusted gross income (AGI) of $100,000 and non-retirement assets of $15,000. It also assumes a family of four, the age of the oldest spouse is 48 and the child has no assets to their name.

37. The golden rule: always do your homework!
collegeboard.org
edvisors.com
finaid.org
fastweb.com
fafsa.ed.gov
fafsa4caster.ed.gov
salliemae.com
savingforcollege.com
studentaid.ed.gov
Main Point: Resources are readily available
To wrap up this segment, here’s a great list of resources you may want jot down, some of which we’ve already mentioned. They are in alphabetical order, not order of value.
We can’t emphasize enough how important it is to know all about financial aid options and opportunities. Using the right resources can measurably enhance your student’s education and their life after college -- when it’s time to repay the loan.

38. MI 529 Advisor Plan Ready, set, go!
So that’s it. We’re ready to wrap up.
But first….

39. Is a 529 Plan for you? POP Quiz…
Do you have children, grandchildren, nieces, nephews…
or anyone…you’d like to help get to college?
Yes!
Is a
529 Plan for you?
Do you have a higher education goal?
Yes!
Are you interested in gifting and estate planning benefits?
Yes!
Would you value potential tax benefits, like deductions for MI residents?
Yes!
Is it important for you to maintain control of your invested assets?
Yes!
There’s a pop quiz.
But I promise, it’s easy.
So lets ask a few questions.
Speaker: Go over questions, could ask for a show of hands if answer is “yes”
Would you value the ability to contribute up to $500,000 per Beneficiary?
Yes!

40. Take Action Today: College Savings in 3 Easy Steps
4/6/2019 4:00 AM
Take Action Today: College Savings in 3 Easy Steps
Do your research – visit MI529advisor.com.
Sit down and make a plan with your financial advisor.
Start investing with the MI 529 Advisor Plan.
Main Point: Call to action.
By attending this seminar, you’ve already taken an important first step. You’ve learned about the importance of developing a college savings strategy early and how 529 plans can help you.
Next, leverage the benefit of a financial advisor and identify an appropriate investment strategy for your personal situation.
If you would like to discuss developing a 529 investment strategy, please speak to me after this presentation. We can set up a personal consultation and tailor a plan specifically for you.
Thank you for your time.
Any questions?
529_SEM_0117

41. Questions
& Answers
Q&A and Thank you

42. Thank You

43. Important Disclosures
MI Advisor Plan is offered by the State of Michigan. TIAA-CREF Tuition Financing, Inc. is the Program Manager and Nuveen Securities, LLC is the Distributor. RISK CONSIDERATIONS There are various risks associated with an investment in the Advisor Plan; principal loss is possible. Each 529 Investment Portfolio is also subject to the risks of the underlying fund(s) in which it invests. To fully understand the investment policies and risks of the underlying fund(s), please refer to the current prospectuses for the Underlying Funds which can be obtained on the MI Advisor Plan website.

44. Important Disclosures Contd.
RISK CONSIDERATIONS CONTD The Age-Based Investment Portfolio is currently divided into nine age-bands, each of which has a different investment strategy. Depending on the Designated Beneficiary’s age, contributions to the Age-Based Investment Portfolio are invested in one of the nine age-bands. The age-bands for younger Designated Beneficiaries seek a favorable long-term return by investing primarily in mutual funds that invest primarily in equity securities, which typically have a higher level of risk, but may have greater potential for returns than mutual funds that invest primarily in debt securities. The Target Risk Portfolios are currently comprised of two Investment Portfolios. The Target Risk Portfolios are designed for Account Owners who prefer a diversified Investment Portfolio with a fixed risk level rather than a risk level that changes as the Designated Beneficiary ages.

45. Important Disclosures Contd.
Before investing, carefully consider the investment objectives, risks, charges and expenses of the MI 529 Advisor Plan, including whether the investor's or the Designated Beneficiary's home state offers any state tax or other benefits that are only available for investment in such state's qualified tuition program. Other state benefits may include financial aid, scholarship funds, and protection from creditors. For this and other information that should be read carefully, please request a Plan Disclosure Booklet at or visit MI529advisor.com. Participation in the MI Advisor Plan does not guarantee that the account’s assets will be adequate to cover future tuition or other higher education expenses, or that a Designated Beneficiary will be admitted to or permitted to continue to attend an institution of higher education. Contributions to an Account and the investment earnings if any, are not guaranteed or insured by the State of Michigan, The Michigan Department of the Treasury, the State Treasurer of Michigan, the Michigan Education Savings Program the Federal Deposit Insurance Corporation, any other government agency or entity or any of the service providers to the Michigan Education Savings Program, including, but not limited to, TIAA-CREF Tuition Financing, Inc. and Nuveen Securities, LLC.
INV-Y-03/20