Some of the best things in life are free…
unfortunately college isn’t one of them.
College Costs,
Student Loans
& Scholarships
NH Higher Education Assistance Foundation –
Continuum of Services
There is clear evidence that rising attainment rates in other
countries reflect genuine economic demand for a better-educated
workforce.
College Pays During Challenging Times
"
The recession hit those with less
schooling disproportionately
hard—nearly four out of five jobs
lost were held by those with no
formal education beyond high
school. At the other end of the
spectrum, workers who had
completed a four-year college
degree or higher were largely
protected against job losses
during the recession and some
had job gains. The job recovery
has only increased the divide
between the less-educated and
more educated.”
Lumina Foundation Goal
Why increase the percentage of
Americans with high-quality degrees
and credentials
to 60 percent by the
year 2025?
Higher education
is a prerequisite to success in a
knowledge-based society and economy.
“The social and economic opportunities facing
our country can best be addressed by educating
many more people beyond high school. As we
attain the goal, we improve the economy,
strengthen civic engagement and reduce the
costs of crime, poverty and health care and, in
short, improve the human condition.”
College Degree Attainment is Key to Short-term
Economic Recovery and Long-term Prosperity.
Maximum and Average Pell Grant in 2011
Dollars, 1976-77 to 2011-12
• SOURCE: The College Board,
Trends in Student
Federal Student Loan 2-Year Cohort Default Rate
Median Earnings and
Tax Payments
of full-time Workers Ages 25 and
Older, by Education Level, 2008
Estimated Cumulative Earnings Net of Loan
Repayment for Tuition and Fees
The College Board, Education Pays 2010
The typical four-year college graduate makes up for time out
of the labor force and for paying tuition by age 30.
State Appropriations for Higher Education per $1,000 in Personal
Income, 2011-12 and 5-Year Change from 2006-07 to 2011-12
• SOURCE: The College Board,
Trends in College
Need-Based & Merit Grants for Undergrads
Remarks on Signing the Higher Education Act of 1965
President Lyndon B. Johnson's Remarks at Southwest Texas State College
November 8, 1965
The President's signature upon this legislation passed by this Congress will swing open a new door for the young people of America. For them, and for this entire land of ours, it is the most important door that will ever open—the door to
education. And this legislation is the key which unlocks it…To thousands of young men and women, this act means the path of knowledge is open to all that have the determination to walk it. It means that a high school senior anywhere in this great land of ours can apply to any college or any university in any of the 50 States and not be turned away because his family is poor…Here the seeds were planted from which grew my firm conviction that for the individual, education is the path to achievement and fulfillment; for the Nation, it is a path to a society that is not only free but civilized; and for the world, it is the path to peace—for it is education that places reason over force. As a student, I lived in a tiny room above Dr. Evans' garage. I lived there 3 years before the business manager knew I occupied those quarters and submitted me a bill. I shaved and I showered in a gymnasium that was down the road. I worked at a dozen different jobs, from sweeping the floors to selling real silk socks. Sometimes I wondered what the next day would bring that could exceed the hardship of the day before. But with all of that, I was one of the lucky ones—and I knew it even then. I left this campus to become a teacher under one of the great teachers that I have known. He came here and looked over my credentials and somehow or other offered me a job at $125 a month to teach a Mexican school at Cotulla when I was a sophomore, and it was necessary that I leave that year to teach.
I shall never forget the faces of the boys and the girls in that little Welhausen Mexican School, and I remember even yet the pain of realizing and knowing then that college was closed to practically every one of those children because they were too poor. And I think it was then that I made up my mind that this Nation could never rest while the door to knowledge
remained closed to any American. So here, today, back on the campus of my youth, that door is swinging open far wider than it ever did before. The rest is up to you.
If you think education is expensive,
try ignorance
.
The Message is Always Changing…
The more you learn, the more you earn…
NOW:
Choosing the right vocation
will lead to wealth formation…
New:
Net Price Calculators
New federal requirement that all schools must
provide a Net Price Calculator to “enable current and
prospective students, families, and consumers to
determine an estimate of a current or prospective
student's individual net price at a particular
institution”.
***The calculator’s results are not a guaranteed amount
that you will receive, but as a potential amount based on
information reported.***
“It’s worth the extra $14,500 to go there.”
“But is it worth the extra $91,875?”
Annual Net Price After Financial Aid
School A
$18,658
School B
$33,200
Four-Year Net Price
$79,229
$140,980
Actual Price Difference
After Interest Expense During 10-year
Repayment Period
$153,419
$245,294
Calculate Loan Payments
Federal Direct Stafford Loan
*Assumes a freshman student will borrow
$5,500 in an unsubsidized loan with an interest
Can’t Find Your Loan Information?
National Student Loan Data System
Encourage them not to get discouraged
through the process.
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.
COA
45,000
- EFC 16,000
Eligibility 29,000*
Expected Family Contribution
(EFC)
The amount, as determined by federal methodology, that represents your
family’s ability to pay for one year of college.
* It is important to note that while
a student may be eligible for this
amount, there is rarely a
guarantee that the student will
EFC Calculators
How Saving Affects Your EFC
Davis Family
– Dad is 50, Mom is 48
– Two Children
– Have a combined AGI of $95,000
– Saved $6,000 for college expenses
EFC = $16,391
Smith Family
– Dad is 50, Mom is 48
– Two Children
– Have a combined AGI of $95,000
– Saved $60,000 for college expenses
EFC = $17,023
“Will saving for college ‘hurt’ my chances of receiving financial aid?”
The average parents’ savings will not negatively impact a family’s financial
aid eligibility.
Parent Asset Protection Allowance
Age 45
Age 60
Two parents - $42,900
Two parents - $59,700
www.savingforcollege.com
Excellent
Resource for
Learning
About
& Evaluating
College Savings
Options
Go confidently in the direction
of your dreams. Live the life you
have imagined. –
Henry David Thoreau
"The dream begins, most of the
time, with a teacher who believes
in you, who tugs and pushes and
leads you on to the next plateau,