Saving for college is easy. As the Massachusetts Educational Financing Authority, MEFA is here to help you navigate how to pay for college.

1. Your Massachusetts Educational Financing Authority. The one Authority
you can trust to be on your side when it comes to paying for college.
Make College a Reality

2. There are many options when it comes to choosing
a college to attend based on cost:
SOURCE: The College Board, Trends in College Pricing 2012, Figure 1.

3. There are many sources of Undergraduate Student
Aid. In 2011-12, over $185 billion was distributed
to students in many different forms:
SOURCE: The College Board, Trends in Student Aid 2013
3 Types of
Financial Aid:
1. Grants &
scholarships
2. Loans
3. Work-study

4. Paying for College – The Basics.
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> Parents and students have the primary responsibility for financing
college costs
> A family’s ability to pay is evaluated on standard methodologies, the
financial aid formula:
Cost of Attendance (COA)
_ Expected Family Contribution (EFC)
= Financial Aid Eligibility/Financial Need

5. The Financial Aid Formula
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Cost of Attendance (COA) is the total cost of attending college, including
living expenses. The COA is not what a family is expected to pay.
-
Cost of Attendance (COA)
Expected Family Contribution (EFC)
Financial Aid Eligibility/Financial Need=
Visit www.mefa.org to learn more about the financial aid
process and calculate your estimated EFC.

6. The Expected Family Contribution (EFC) is a number that estimates the
amount of college costs you can absorb relative to other families, but makes no
particular assumptions about how you will finance that contribution.
Cost of Attendance (COA)
Expected Family Contribution (EFC)
= Financial Aid Eligibility/Financial Need
The Financial Aid Formula
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-
Visit www.mefa.org to learn more about the financial aid
process and calculate your estimated EFC.

7. Your EFC will be based on:
1. An analysis of your annual adjusted gross income, which counts for about 22% - 47% in the EFC
formula
2. Your assets, which colleges may define as savings and investments, other real estate, 529 plan
assets, a business, etc.
a. Your assets figure at about 3% - 5.6% of the EFC. Note that a much higher percentage of your income,
rather than your assets, will be considered available to pay for college. Also consider that a 529 plan
account is considered to be an asset of the Participant.
3. 50% of the student’s earned income over $6,310 is considered
4. 20% of the student’s assets. Custodial accounts are considered to be an asset of the beneficiary (i.e.,
child)
Cost of Attendance (COA)
Expected Family Contribution (EFC)
= Financial Aid Eligibility/Financial Need
The Financial Aid Formula
7
-
Visit www.mefa.org to learn more about the financial aid
process and calculate your estimated EFC.

8. Here’s how the elements of
your financial situation will
affect your EFC:
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The Financial Aid Formula: Your EFC

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Source: www.finaid.org
The EFC formula above is used for the Federal Methodology.
$$ $ $+ + + = $
EFCParental assetsParental income
0% to 47% of
adjusted gross
income minus
all taxes and
allowances
Student income
50% over
$6,310
Student assets
20% of all
assets
3% to 5.6% of
nonretirement
assets
• 529 College
Savings Plans
• Brokerage and/or
mutual funds
• Coverdell
Education
Savings
Accounts
• Prepaid Tuition
Programs
• UGMA/UTMA
accounts
• Other savings
The Financial Aid Formula: Your EFC

10. The Financial Aid Formula
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Financial Need is the difference between the Cost of Attendance and your
Expected Family Contribution. Colleges try to meet your Financial Need
with a Financial Aid Package.
Financial Aid policies differ from college to college. Some meet full need, while
others meet a part of your need.
Cost of Attendance (COA)
Expected Family Contribution (EFC)
Financial Aid Eligibility/Financial Need
-
Visit www.mefa.org to learn more about the financial aid
process and calculate your estimated EFC.

11. Net Price Calculators provide a personal net price at each college.
(Learn more about Net Price here)
College Navigator (Department of Education): College search tool
with college-specific admissions, academic, & cost information
CollegeNavigator.gov
College Scorecard (White House)
College search tool that shares a college’s average net price, loan default
rates, and median loan debt
CollegeCost.ed.govScorecard
Financial Aid Shopping Sheet
Financial aid award letter template with personal net price & college
information
There are a number of FREE resources available to
families.

12. “Saving for college means no financial aid.”
Prevailing myths about saving for college…
We want families to know the truth:
The benefit of saving for college far outweighs
the expectation that you can pay more toward
college costs.

13. Parent income remains the same, while assets increase
Concerned that savings will impact financial aid?
This example is an estimate only. Based on 2014-15 Federal Methodology (one child in college).
Family
A
Family
B
Family
C
Income $60,000 $60,000 $60,000
Assets $0 $75,000 $150,000
EFC $5,040 $6,765 $10,635
Difference $1,725 $5,595
• Assets have minimal impact
to the EFC, as it is primarily
an income-driven formula
• Having saved for college or
having other assets that you
can use to help pay for
college is a good thing; it
gives you options for paying
the balance due.

14. “It’s not worth saving for college if I can’t save
the entire cost.”
Prevailing myths about saving for college…
We want families to know the truth:
Any amount saved, small or large, will be a
help when the time comes to pay college bills.

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Families decide the best plan to
meet the balance due at the
college based on their own
personal finances. The options
fall under three major categories:
Past Income
• Savings
• Other Assets
Present Income
• Salary
• Payment Plans (Can you afford
$100/month now to eliminate
borrowing later?)
Future Income
• Parent Loans
• Student Loans
*Based on 10 years at an interest rate of 7%.
This example is an estimate only and market
conditions may change.
Saving vs. Borrowing

16. “Times are tough. I can’t save at all.”
Prevailing myths about saving for college…
We want families to know the truth:
Watch this short video to learn how real
families are managing to put a small amount
aside for college.

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Strategies for Saving
> Start saving as early as
possible. Use time to your
advantage.
> Use automatic transfers
> Get the word out and let
your family and friends
know that they may
contribute or open a
plan up on behalf of your
child.
> Involve your child in the
process. There are great
savings tools for kids
online.

18. Your Massachusetts Educational Financing Authority. The one Authority
you can trust to be on your side when it comes to paying for college.
MEFA’s Savings
Options

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The Massachusetts College Savings Plans
MEFA U.Fund College Investing Plan
How it works:
> Save for qualified higher education expenses such as
tuition, fees, room, board, books, supplies and equipment.
> Savings can be used at any accredited college or university nation wide
> Minimum Initial Investment - $50 lump sum or $15/ monthly automatic
investments
> Combined Account Maximum - $350,000
> Annual Account Maintenance Fee - No Fee
> Multiple investment options (active management; indexed portfolio; individual
allocation portfolios)
> FDIC insured option
Enroll online at fidelity.com/ufund a
or by calling 800.544.2776 to get started.
Established in 1999

20. How it works:
> Allows you to prepay up to 100% of tuition & fees at
80 MA public and private colleges & universities
> By purchasing Tuition Certificates now, you lock in today’s
tuition and mandatory fee rates
> U.Plan Tuition Certificates:
> Represent interest in Commonwealth General Obligation Bonds
> Are backed by the full faith and credit of the Commonwealth of Massachusetts
> Are not subject to market fluctuation
> $300 minimum to get started
> Annual enrollment period: May 1st to June 30th each year
Enrollment Kit and Purchase Request Forms
may be accessed at mefa.org/uplan
The U.Plan Prepaid Tuition Program