Presenter: Dave Coen

2. Your licensed Presenter
Dave Coen 714-813-1703
Welcome to the
College Planning
America Workshop

3. Back in the
day…
We never
thought we
would grow up
Now our kids
are laughing…
Because we think
they won’t grow
up either

4. We still see them as kids
When in reality…
This is the next step

5. Many parents are not financially
and emotionally prepared for their
kids to go to college

6. Just because
your student is
leaving the
nest…
Does not mean
they have to take
your nest egg with
them!

7. Our focus is:
Knowledge.
With knowledge you are
empowered to have more control

8. • We all have different
circumstances
• Each family is unique
• This requires timely
information and proper
guidance, hopefully some
of which you will get from
our workshop tonight
I am in the same boat as you…

9. What you might
experience at the
end of this:
• This is a little overwhelming
• I need more information
• Why so early? Comment we most often get!
• Who are we?
• How do I get scholarships?
• You are just trying to sell something
• Speak with one of us after the meeting for
specific questions
• And to schedule your no cost, 90-minute
appointment

10. There are two sides to
this story
 $’s and Financial
moves
 Lowering of EFC
 Strategic planning
 Plugging the holes
 Assessments
 Career
 Majors
 Schools
 Scholarships
 % pass rate
Parents and Students Parents

11. What makes a “FIT” college
MAP IT OUT
M eet the Requirements for the School
A ccepted to the school
Pay for it

12. The College process is intimidating:
Choosing a school
Choosing a career
Choosing to live on campus or
commute
This is the most
expensive time for
your family
College and Retirement
Both Are Possible!

13. Today’s “Classic” Household
• The last 17 years have flown by
• Total savings between 1% and 5% of annual income
• Has less than half of one year’s tuition banked
• Has more consumer debt than ever before
• May have to sacrifice retirement to pay for
college

14. Path to Prosperity:
Have a Plan!
Educate: Do not assume.
Map it out: Category, estimated
family contribution (EFC) and the
school’s award history, money
saving strategies and
alternatives.
Accomplish: A college
strategy that preserves
retirement assets.

15. Financial Aid is a LANGUAGE OF ITS OWN!
Warning… This may be disturbing
COA- Cost of Attendance
EFC- Expected Family Contribution
FAFSA- Free Application for Federal Stude
FAD- Financial Aid Director
FAO- Financial Aid Director
FDSLP- Federal Direct Student Loan Program
FFELP- Federal Family Education Loan
GSL- Guaranteed Stafford Loan
PLUS- Parent Loan for Undergraduate Stud

16. What do these Acronyms mean?
COA- Cost of Attendance
EFC- Expected Family Contribution
FAFSA- Free Application for Federal
Student Aid
FAD- Financial Aid Director
FAO- Financial Aid Officer
FDSLP- Federal Direct Student
Loan Program
FFELP- Federal Family Education Loan Program
GSL- Guaranteed Stafford Loan
PLUS- Parent Loan for Undergraduate Students

17. Common Terms to Learn
• Federal
Methodology
• Institutional
Methodology
• Award Package
• Asset Allowance
• Base Year
• Category
• Expected Need
• Profile Form
• Work Study

18. Present Day Cost
Of College
College expenses are increasing 5- 12% each year
The average increase for PUBLIC schools: 6.6%
The average increase for PRIVATE schools: 6.3%
Source: Collegeboard.com

19. The Cost of an
Undergraduate Degree
Put these schools in order Based on Cost? $$
1. San Diego State University
2. UCLA
3. California State University, Fresno
4. Concordia University
5. California State University, Fullerton
6. Stanford University
7. University California, Davis
8. University Southern California
9. Pepperdine University
10.University of San Diego

20. Average Cost
of Attendance (COA)
Cost of Attendance Includes: Tuition, Room and Board,
Book, Fees, Transportation, Miscellaneous Costs
STATE SCHOOL in the area
$ 40,132 per year
PRIVATE SCHOOL in the area
$ 53,702 per year
Source: CPA Research

21. California Area School Cost
Increase since 2003
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
2002-2003
2012-2013
Source: CPA Research

22. Based on Average Award, 7% Tuition rate and $20,000 EFC
6. Stanford University $73,080
1. San Diego State University $96,764
3. California State University, Fresno $102,208
5. California State University, Fullerton $114,372
8. University Southern California $123,264
10. University of San Diego $134,384
4. Concordia University $138,436
7. University California, Davis $138,552
2. UCLA $138,996
9. Pepperdine University $153,796
Schools in Order
Based on Cost
Source: CPA Research

23. What is the REAL COST of
College?
The most expensive thing about
college…
• Is not Graduating
The Second most expensive thing about
college…
• Switching Majors/ Switching
schools
What % of students graduate
in 4 years?

24. How many students are
Graduating in 4 Years?
Graduation Rate for Public State Schools
California State University, Fresno
California State University, Fullerton
San Diego State University
UCLA
University of California, Davis
Source: CPA Research

25. How many students are
Graduating in 4 Years?
Graduation Rate for Private Schools
Concordia University
Pepperdine University
Stanford University
University of San Diego
University of Southern California
Source: CPA Research

26. FINANCIAL AID MYTHS
• “We make too much MONEY”
• “Our home is worth too much”
• “My Child’s grades are too low”
• “I have too much DEBT”
• “Getting Financial Aid is easy”
• Students who are independent get more aid”
 False- must be 24, have children, married, veteran, Ward of the State,
or Completed Undergrad and working on an Advanced Degree

27. Classic Approach to Paying
for College
• How much MONEY do we have?
• Can we get more MONEY?
• Do we have a BUDGET?
SPEND IT ALL!
BORROW IT!
SQUEEZE IT!
• Do we qualify for
financial aid ?

28. • Know your EFC…
• What is my EFC?
• is it a fixed number?
• Same as a credit score?
How do I get
Financial Aid?

29. Know Your EFC!
Expected Family Contribution
– Parent Income
– Parent Assets
– Student Income
– Number of Children in College
– Parents Age(s)
– Number of People in Household
Also Consider… SCHOOL SELECTION!
2 Types of EFC

30. Formula for EFC
Parent
Contribution
depends on
Student
Contribution
depends on
Adjusted
Income
Discretionary
Assets
AGI
+
Untaxed
Benefits
Investments
Real Estate
Child Assets
Savings
FICA
S.S
I.P.A
E.E.A
Retirement
Insurance
Home Equity
A.P.A.
Adjusted
Income
Discretionary
Assets
AGI
+
Untaxed
Benefits
Investments
Real Estate
Child Assets
Savings
FICA
S.S
I.P.A
E.E.A
AID ADVANTAGE TAX ADVANTAGEBucket Advantage

31. Determination of
Need Eligibility
Cost of
Attendance
(COA)
Expected
Family
Contribution
(EFC)
Financial
Need
• Tuition
• Room
• Board
• Books
• Living Expenses
• Transportation
• Parent Income
• Parent Assets
• Student Income
• Student Assets
• # in College
• Parents Age
• # in Household
The Maximum
Amount of Aid
a Family May
Receive

32. Do you have any of these?
Bonds Grandparent Contributions
Cookie Jar Minor’s Accounts
Stock Options CD’s Stocks
Mutual Funds
Student Owned Assets Savings Accounts
Money Market
Trust Accounts Vacation Home
Rental Property
These may reduce your
financial aid.

40. $10,304 less $4,385 less

41. $7,172 X 4 = $28,688
$7,975 X 4 =
$31,900
$18,593 X 4 =
$74,372

43. • Full Time
• Part time
• During the Summer
• Udacity.com
• Coursera.org
• MOOC – Massive Open Online Course
[UC’s]
Have you considered
Community College?

44. The problem with
529 plans?

45. The 5 most expensive things about College
1. Not graduating
2. Changing schools or courses
3. Saving in the wrong financial vehicle
4. OOPS – Out Of Pocket expenses
5. Structuring how to pay for college
Our focus is:
Preventing the OOPS!
There are steps that can be taken to
minimize the possibility of all 5 of these.

46. •The average parent asks, “Can you help me find grants
and scholarships?”
–YES!
•But is that the only place to look and how much money is
available from those sources?
•It might make more sense to approach college planning
with a TOTAL approach.
Let’s take a look at some areas of increasing wealth
without any money out of pocket.
Where do most people focus their attention
for college money?
And…where do most of the savings
come from with proper planning?

47. The Transition from College
Planning to College Funding
All our finances are connected.
Just because we compartmentalize them does not
separate the consequences

48. • When trying to fill a
bucket, does it make more
sense to pour more in or to
plug the holes?
• Where does it make more
sense to focus on first?
• Our focus is to plug the
holes FIRST and then
there are a number of
areas that we should look
at as they all work in
tandem with each other.
Our focus is:

52. Our focus is:

53. There are two sides to
this story
 $’s and Financial
moves
 Lowering of EFC
 Strategic planning
 Plugging the holes
 Assessments
 Career
 Majors
 Schools
 Scholarships
 % pass rate
Parents and Students Parents

54. Our focus is:
Have A Plan!
✔
✔
✔
✔
Prioritize Financial Objectives
Understand total
OUT OF POCKET expense
Eliminate Wealth Leakage
Determine what options
are available

55. What is NEXT?
• The answer is different for everyone
• Number of students and their ages
• Financial constraints/opportunities
• Personal/ professional/ family goods
• Condition of retirement accounts
• How close ARE YOU to retirement?

56. Register today for a no cost,
90- minute appointment
and get four free gifts
1. Strengths and communication profile for
both student and parents
2. EFC estimate
3. Your category
4. Our College Planning Email Letter

57. Get your free Communication
profile for you
AND your student

59. Descriptors
Bold
Driving
Pioneering
Direct
Competitive
Determined
Descriptors
Peaceful
Agreeable
Cautious
Cooperative
Humble
Mild
Problem Solving (L Scale)
Neutral
INFIELDEROUTFIELDER

60. Thank you for attending the
CPA workshop
www.collegeplanningamerica.com
Your licensed Presenter
Dave Coen 714-813-1703