College Costs,
Financial Aid &
Savings Options
for Parents of
High School Students
Presented by:
The NHHEAF Network Organizations’ Center for College Planning
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The Center for
College Planning
A Free Resource for New
Hampshire Students and Parents
• Free Financial Aid Counseling
• College Planning Library – Concord
• Monthly e-newsletters
• Special Events and Programs
• Presentations to NH K-12 schools
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Potential Cost of College
in New England
Your Child’s
Current Age
Public
College
Private
College
9
$130,010
$305,896
12
$112,308
$264,245
15
$97,016
$228,265
17
$87,996
$207,043
2010-2011 average amounts for New England schools provided by CollegeBoard.
These numbers reflect 4 years of college tuition, room & board and reflect a 5% annual increase.
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Cost of College (2011-2012)
One Year of Tuition, Fees and Room & Board
NHTI – Concord’s Community College
$12,682
University of New Hampshire
$24,702
UMASS Amherst
$34,698
Northeastern University
$51,362
Dartmouth College
$55,365
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Cost of Attendance
Billable Expenses
Non-Billable Expenses
•
•
•
•
•
•
•
•
Tuition and Fees
Room and Board
Books and Supplies
Equipment (i.e. computers, software)
Transportation
Miscellaneous Personal Expenses
Loan Fees
Study Abroad Costs (when applicable)
While the bill from the college will only
include the “Billable Costs” families need to
budget for the additional expenses students
will have during their year at school.
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Understanding Financial Aid
Financial Aid Philosophy:
While financial aid can make college more affordable, parents & students are expected
to take primary responsibility for paying for post-secondary education.
FAFSA
Free Application for Federal Student Aid
www.fafsa.ed.gov
CSS Profile
www.collegeboard.org
Institutional Form
College’s financial aid page
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Types Of Aid
• Gift Aid: Grants and Scholarships
- Need-based
(determined through the financial aid process)
- Merit-based
(determined through the admission or
recruitment process)
• Self-help Aid: Loans and Employment
- Need-based
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How Financial Aid Is Awarded
Cost of Attendance (COA)
The amount a school has budgeted for a student’s tuition, room and board,
books, fees, supplies and any related expenses.
Expected Family Contribution (EFC)
The amount, as determined by federal methodology, that represents your
family’s ability to pay for one year of college.
COA
45,000
- EFC
16,000
Eligibility 29,000*
* It is important to note that while a
student may be eligible for this
amount, there is rarely a guarantee
that the student will actually receive
this amount.
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Award Letter Sample
Cost of Attendance
Expected Family Contribution
Eligibility for Financial Aid
45,000
-16,000
29,000
Financial Aid Package
- University Grant
- Presidential Scholarship
- Federal Student Loan
- College Work Study
Total Award
10,500
2,500
5,500
1,500
20,000
Eligibility
- Financial Aid
Gap
29,000
20,000
9,000
Gap
+ EFC
+ Federal Student Loan
+ College Work Study
Total Family Share
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9,000
16,000
5,500
1,500
32,000
EFC Calculators
Visit:
www.fafsa4caster.ed.gov
To find out what your EFC
would be today!
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How Saving Affects Your EFC
Myth
Saving for college will negatively impact
a family’s financial aid eligibility.
Davis Family
Smith Family
– Dad is 50, Mom is 48
– Two Children
– Have a combined income of
$95,000
– Saved $1,000 for college
expenses
– Dad is 50, Mom is 48
– Two Children
– Have a combined income of
$95,000
– Saved $60,000 for college
expenses
EFC = $16,391
EFC = $17,023
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Value of Saving
Saving
Borrowing
Saving $200 monthly for 5 years (total
invested is $12,000) at a 3% interest
rate will yield a total of $12,961
Borrowing $13,000 at a 7.9% interest
rate equals a monthly payment of
$157 for 10 years with a total payback
of $18,844
Total Savings of $5,844
Saving any amount towards college can decrease
the total borrowed and amount owed per month.
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Impact of Popular Savings
Vehicles on the FAFSA
Parent’s Asset
Student’s Asset
(Maximum Assessed is 5.64% above
Asset Protection Allowance for Parents)
(Assessed at 20% with no Asset
Protection Allowance for Students)
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•
•
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529 Plans
Coverdell ESA
Savings Bonds
UTMA/UGMA (Uniform Gift to
Minor/Uniform Trust to Minor)
•
(if parent is the primary owner)
Savings Bonds
(if student is the primary owner)
Parent Asset Protection Allowance
Age 45
Age 60
Two parents - $42,900
Two parents - $59,700
One parent - $14,900
One parent - $20,400
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Net Price Calculators
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Don’t Let the Numbers Scare You!
College Can Be Affordable
How do most families pay for college?
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•
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•
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Savings
Current Income
Tuition Payment Plans
Federal/Direct PLUS Loans
Private Student Loans
About Direct PLUS Loans
• Fixed rate of 7.9%
• 4% loan origination fee
• No set limit – determined
by the cost of education
less financial aid received
by the student
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Applying For Scholarships
National Search
– www.fastweb.com
– www.collegeboard.org
Local Search
– High School/Guidance Department
– Employers & Professional Associations
– Library & Community Organizations
– www.nh93.com
– www.nhcf.org
– www.iamcollegebound.org
Note:
–Avoid Scholarship Scams!
–Find out each college’s policy on the treatment of outside scholarships.
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Questions?
The NHHEAF Network Organizations’
Center for College Planning
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