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Chuck Moore, CCFC, CAMC, CAFC Louisville, Kentucky 502-721-8646 ▪ tuition2@insightbb

Chuck Moore, CCFC, CAMC, CAFC Louisville, Kentucky 502-721-8646 ▪ tuition2@insightbb.com www.collegeliteracyacademy.com. What Is College Financial Aid.

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Chuck Moore, CCFC, CAMC, CAFC Louisville, Kentucky 502-721-8646 ▪ tuition2@insightbb

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  1. Chuck Moore, CCFC, CAMC, CAFC Louisville, Kentucky 502-721-8646 ▪ tuition2@insightbb.com www.collegeliteracyacademy.com

  2. What Is College Financial Aid Student financial aid refers to funding intended to help students pay educational expenses including tuition and fees, room and board, and books/supplies, and miscellanious costs, for education at a college, university, or private school. Financial aid may be classified into two types, merit-based or need-based.

  3. Where Does Most College Financial Aid Come Form Most student aid is provided by the federal government. Students received more than $109 billion in federal aid during the 2010–2011 academic year. Most federal student aid is awarded as grants and low-interest loans.

  4. Planning for College Should Be Analyzed Just As Any Other Major Family Purchase

  5. Value vs. Return • Total Cost - 4 + Years • Name Brand Syndrome • Loans- Student & Parent • Fit of College • Net Cost vs. Sticker Price

  6. WHY COLLEGE COST IS GOING UP… UNDERSTANDING THE PROBLEM Most States Have Cut College And University Funding By Millions Of Dollars Over The Last Several Years -Therefore… • Tuition Costs Have Out Paced Inflation As Well As Family Income Over The Last 10 Years Due To Colleges Increasing Costs Because of Budget Cuts And Lack Of State Funding - However…

  7. Three Types Of Financial Aid Families WHO HAS THE LEAST OUT-OF-POCKET EXPENSE

  8. The Financial Aid Process FAFSA and CSS Profile

  9. The FAFSA cannot be filed until after January 1 of the student’s senior year of high school. Furthermore, it must be filed each year the student is seeking financial assistance while in college. • The Federal Methodology Formula that calculates the family’s EFC is based mainly on the parents’ and student’s income and assets minus certain deductions and allowances.

  10. Completing The FAFSA • Simple To Complete • Complicated To Understand

  11. FAFSA Formula Similar To Tax Formula • Income Protection Allowance • Asset Protection Allowance • Employment Allowance • Deductions For Certain Taxes Paid

  12. Income Protection Allowance

  13. Income Protection Allowance Example AGI: $85,000 Number In Household 4 Number In College 1 Income Protection Allowance -25,210 Available Income $59,790

  14. Asset Protection Allowance Example Oldest Parent 46 Allowance $42,300 Exposed Assets - 20,000 Adjusted Available Assets $0

  15. Employment Allowance Example Number Of Parents Working 2 Lowest Earner Amount $26,000 Employment Allowance % X 35% $ 9,100 Maximum Allowance $ 3,500

  16. Tax Allowance Example Federal Taxes $5,250 Social Security Taxes 7.65% $6,120 State Taxes 4%(Varies By State)$3,200 Total Tax Allowance $14,570

  17. Total Allowance Income Allowance $25,790 Asset Allowance $0 Employment Allowance $3,500 Tax Allowance $14,570 Total Allowances $43,860

  18. Adjusted Available Income Of Parents Total Income $85,000 Total Allowances -$43,860 Adjusted Available Income $41,140

  19. Adjusted Available Income Of Parents

  20. Adjusted Available Income Of Parents Available Income $41,140 Adjustment Factor - 29,601 Adjustment Factor Left $11,539

  21. Adjusted Available Income Of Parents First $29,601 Assessed $8,007 Second $11,539 Assessed 47% +5,423 EFC Of Parents $13,430

  22. Student’s EFC First $6,000 - $0 (50% thereafter minus taxes) Assets 20% (No Asset Protection Allowance) In our family example, student did not have income over $6,000 but had $5,000 in assets

  23. Student’s Attends State University Total Cost Of Attending $ 20,000 EFC Of Parents - 13,430 EFC Of Student ($5,000 Assets)- 1,000 Financial Need $ 5,570

  24. What Will Student Qualify For While Attending In State College Direct Loans - $5,500 American Opp. Tax Credit $2,500 PLUS Loan Amount over other FA Alternative Loan Amount can vary

  25. What Will Student Not Qualify For While Attending An In-State College • PELL Grant • FSEOG • State Need-Based Grants • Perkins Loan • Federal & State Work-Study

  26. What Parents And Students Should Do Before Appling For Financial AidDevelop A Plan!

  27. Chuck Moore, CCFC, CAMC, CAFC Louisville, Kentucky 502-721-8646 ▪ tuition2@insightbb.com www.collegeliteracyacademy.com www.gearup.ed.com

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