1. How to Pay for College in This EconomyAndrew Lockwood, J.D. College Funding Specialists 497 South Oyster Bay Road Plainview New York 11803 Miami – Boca Raton – Weston (FL)
2. Key Topics: How Much College Really Costs The “Double Secret” Formula Used to Decide How Much You’ll Get - Grants, Scholarships, etc. The Strange Reason That An Expensive, Private College Can Cost You Less Out of Pocket Than a So-called “Cheap” Public University! Money-making “Loopholes” - Especially for the “Forgotten Middle Class” - and Money Losing ”Landmines” to Avoid Like the Swine Flu What to Do When You’ve Been “Hosed” by the Financial Aid Office
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4. Who is Andy Lockwood and Why Should You Pay Attention to Him? Owner, College Funding Specialists – Plainview, Miami, Boca Raton Author – Never Pay Retail For College Radio Host – The College Planning Power Hour ESPN Radio - FL Corporate lawyer NYC, then in-house counsel to publicly-traded broker dealer - “insider” education in financial services industry Wesleyan University (B.A.) St. John’s University Law School (J.D.) - $100,000 student loans Frequently in the media – BankRate.com, Miami Herald, Live With Lisa Wexler Radio – 1400 – Southern CT and North Shore Long Island
15. Five-Year College “Net” Cost Tax Brackets Public $70,000 Private $140,000 Elite $200,000 25% 28% 33% 35% $102,941 $107,692 $116,667 $125,000 $205,882 $215,385 $233,333 $250,000 $294,118 $307,692 $333,333 $357,143 Key Concept: Pay for College With After-Tax Dollars *Assumes additional 6% state and local tax and only ONE child’s college expenses
16. Examples of Tax-Advantaged Strategies Buried in the Tax Code 1. HOPE Scholarship Credit 2. Lifetime Learning Credit 3. College Tax Deduction 4. Student Loan Interest Deduction 5. Coverdell ESAs (formerly called Education IRAs) 6. Penalty Free IRA/401K Withdrawals 7. Employee Education Assistance Plan Extension 8. Qualified State Prepaid Tuition Programs
18. The Five Biggest, Most Persuasive Financial Aid Myths “I earn too much to qualify.” “My kid’s grades are too low.” “I own a home...” Aid is only for “special” groups. It’s an easy process. School people - Financial Aid Officers and/or Guidance Counselors - can help.
19. EFC stands for__________ ____________ __________ Average EFC for a family earning $120,000: _____ Formula Every College in U.S. uses to calculate your financial aid package: COA - EFC = Need Show Me the Money!EFC and the “Double Secret” Formula
20. EFC in Action - Case Study School A - Ivy or Equivalent: COA- $50,000 EFC - $10,000 Need - $40,000 School A: Meets 100% need - $40,000! Gift aid – 80% Self help – 20% School B – State U: COA - $20,000 EFC - $10,000 Need - $10,000 School B: Meets 60% need = $6,000 ($4,000 short!) Gift aid – 50% Self help – 50% How Much Each College Really Costs – Out of Pocket: School A: Total Cost = $10,000 Total Gift = $32,000 Total Self = $8,000 School B: EFC = $10,000 + Unmet Need = $ 4,000 Total Cost = $14,000 Family pays $4,000 more for the “cheaper” school! Don’t rule out schools based on “sticker price”!!!
22. For More Info: 516.882.5464 info@collegeplanningadvice.com www.CollegePlanningAdvice.com Andy Lockwood Peter “College Pete” Ratzan College Funding Specialists 497 South Oyster Bay Road Plainview, New York 11803
