By: Scott Kessler
LPL Financial
SmartCollegeFunding.com
LPL Financial Member FINRA/SIPC
Financial Aid Basics - HOPE
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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
Financial Aid Basics – Zell Miller
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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
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
Financial Aid Basics

Common Requirements between HOPE and Zell
Miller Scholarship
 127
Attempted Hour Limit
 ATTEMPTED
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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
We know why college matters

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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
LPL Financial Member FINRA/SIPC
Graduation Rates
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4 Year Graduation Rates
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Public Colleges 31%
Private Colleges 53%
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6 Year Graduation Rates
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Public Colleges 58%
Private Colleges 65%
LPL Financial Member FINRA/SIPC
6 Year Graduation Rate - 2013
www.collegeresults.org
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University of Florida
University of Georgia
University of So. Carolina
University of Tennessee
University of Arkansas
GCSU
University of North GA
Georgia Southern
86.5%
82.2%
72.7%
67.5%
60.1%
61.2%
52.8%
50.5%
LPL Financial Member FINRA/SIPC
Average Cost of College (COA)
per College Board 2014-2015
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Public University $23,410 per year
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Private University $44,272 per year
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Elite Private University $55,000+ per year
LPL Financial Member FINRA/SIPC
Paying for College
There are two very different prices for college:
one for the informed buyer &
one for the uninformed buyer
LPL Financial Member FINRA/SIPC
Retail vs. Wholesale


When you fly do you pay the same as the person
sitting next to you?
Which seat would you rather sit in?
I paid
$369
Only
$119!
LPL Financial Member FINRA/SIPC
Cost of Attendance (COA)
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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
Expected Family Contribution (EFC)
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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
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EFC is calculated by a formula specified in federal law
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Factors include but are not limited to:
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Assets
Adjusted gross income
Federal tax liability
Number in household
Number in college
Student’s dependency status
LPL Financial Member FINRA/SIPC
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
Free Money
Scholarships
&
Grants
LPL Financial Member FINRA/SIPC
Loans
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Must be paid back
Direct Loans (Stafford) - students
PLUS - parents
LPL Financial Member FINRA/SIPC
Financial Aid Basics – Federal Programs

Free Application for Federal Student Aid (FAFSA)

www.fafsa.gov

The gateway for all Federal Student Aid programs
 Includes
student and parent loan programs
LPL Financial Member FINRA/SIPC
Financial Aid Basics – Loan Programs
Direct Subsidized Loans
Unsubsidized Direct Loans
 Gov’t pays interest while
 Interest accrues on loan while
student is enrolled in school at
student is enrolled in school
least half-time
 Student has option to defer or
 Need-based
pay interest while in school
 1.073% origination fee
 1.073% origination fee
withheld by US Dept. of
withheld by US Dept. of
Education prior to disbursement
Education prior to
disbursement
 2015-2016 Interest Rate is
4.29% (fixed)
 2015-2016 Interest Rate is
4.29% (fixed)
LPL Financial Member FINRA/SIPC
Annual Direct Loan Limits
Academic Annual Limit
Level
(Sub & Unsub)
Additional Total Annual
Unsub Limit
Limit
Freshman
$3500
$2000
$5500
Sophomore $4500
$2000
$6500
Junior/
Senior
$2000
$7500
$5500
LPL Financial Member FINRA/SIPC
Aggregate (Lifetime) Direct Loan Limits
Status
Undergraduate
Dependent
Subsidized Limit
$23,000
Combined Limit
$31,000
Undergraduate
Independent
$23,000
$57,500
Graduate
Student
$65,500
$138,000
LPL Financial Member FINRA/SIPC
PLUS Loan for Parents
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Apply at www.studentloans.gov
Origination Fee of 4.292%
Interest rate for 2015-2016 = 6.84%
Can borrow up to the Cost of Attendance minus
other aid
Credit Check required
LPL Financial Member FINRA/SIPC
Which University Is More Expensive?
University A
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COA
EFC
FN
University B
$25,000
-10,000
15,000
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COA
EFC
FN
$45,000
-10,000
35,000
5,000
2,000
6,000
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Loan
Grant
Scholarship
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Loan
3,000
Grant
12,000
Scholarship 20,000
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Un-Met Need 2,000
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Un-Met Need
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Real $ Cost
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Real $ Cost
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17,000

0
13,000
LPL Financial Member FINRA/SIPC
Where does your portion come from?
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Savings account
Checking account
Money Markets
Stocks
Bonds
Mutual Funds
Students savings
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529 plans
UTMA/UGMA
Life Insurance
IRA
401K/403B
Real Estate
Annuities
LPL Financial Member FINRA/SIPC
Financial Aid

Requires the understanding of:
Forms required by the school (FAFSA, Profile)
 Knowing your EFC
 Prudent planning strategies to increase financial aid
eligibility

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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
Planning
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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