Financial Aid Planning for College
Presented by: OMH Partner Group, Inc.
OMH Partner Group, Inc. provides financial aid consultation services for a fee. Our services will determine the factors that impact your aid eligibility. You will be provided with appropriate recommendations to maximize college financial aid packages, or demonstrate as much financial need as legally possible. This does not guarantee any college financial aid, nor does it guarantee that we can increase your aid eligibility. Ultimately it is beyond our control and all financial aid packages are independently determined by
each college that you are applying for need based financial aid. Need based financial aid packages can and will include a combination of Federal Loans/Grants, Federal Work Study, State Grant Programs, Institutional Grants/Scholarships, and other various loan programs. Investment advisory services provided by Redhawk Wealth Advisors, Inc.,
an SEC-registered investment advisor. Insurance and Annuity products are sold separately through OMH Partner Group, Inc. Nothing contained in our website or this material is intended to provide tax or legal advice. Consult with your tax advisor and/or legal counsel for suitability regarding your specific situation. Hypothetical or
historical rates of return are not a guarantee of future results. Copyright 2013. OMH Partner Group, Inc. All rights reserved.
We Would Like to
Welcome You to Our
Workshop!
Costs of Education
$0
$10
$20
$30
$40
$50
$60
$70
State
Out of State
Private
Ivy League
2012 Costs
2002 Costs
Myths about Financial Aid
•
Myth #1
•
I make too much
money!
•
Myth #2
•
Let’s just fill out a
form and see what
happens!
FAFSA & CSS Profile Forms
•
Free Application for Federal Student Aid
(FAFSA) Financial Aid Form
–
All Colleges Require Form
–
Submit Electronically After January 1
st
of Senior Year
–
Uses Federal Methodology
–
Free to File
–
www.fafsa.ed.gov
•
CSS Profile Financial Aid Form
–
Not All Colleges Require Form (Check with your colleges)
–
Can Submit Electronically as Early as October of Senior Year, Usually Done with
FAFSA in January of Senior Year
–
Uses Institutional Methodology
–
Charges an Application Fee and Charges Per College
–
http://profileonline.collegeboard.com
The Information Entered On the
FAFSA and CSS Profile Financial Aid
Forms…
Goes Through One or Both of the
Methodologies. These Formulas
Determine Your Expected Family
Contribution Level or EFC
The EFC is Used to Determine
Financial Need at a College…
You Must Demonstrate Financial
Need in Order to be Eligible for
“Need Based” Financial Aid…
Demonstrating Need
Hypothetical Example
0
10
20
30
40
50
60
70
State
Out of State
Private
Ivy League
Need
EFC
Costs
Where Does Aid Come From?
•
Federal Financial Aid Sources
–
Grants Programs (Require Low EFC Levels)
–
Loans (Subsidized and Unsubsidized Student Loans)
–
Work Study Programs
•
State of Illinois Financial Aid Sources
–
Grant Programs (Monetary Assistance Program or MAP)
–
State Resident Going to an Illinois College (Public or Private)
–
Eligibility Requirements (Required Certain EFC Limits)
•
Institutional or College Financial Aid Sources
–
Grant Programs (Includes Need, Merit, Academic, or Athletic)
–
Proprietary Institutional Loan Programs
Award Letter
•
Once the student has been admitted and the
college has everything they need, they will issue
an award letter
•
This is your financial aid offer, they are not set in
stone.
•
Colleges will have an appeal process if needed
•
Shop, compare, and contrast is to your advantage
•
Multiple Award letters will give your more
Special Circumstances
•
What is Considered a Special Circumstance?
•
Unemployment
•
Child Support Being Reduced or Eliminated
•
High Out of Pocket Medical
•
Other Financial Hardships
•
Letter of Special Circumstance Goes to Each
Hypothetical Award Letter
College A
College B
Actual College Cost
$48,000
$48,000
EFC
$20,000
$20,000
Need
$28,000
$28,000
Federal Aid
Loans
$5,500
$5,500
Grants
$0
$0
Work Study
$2,500
$0
State Aid
Grants
$2,000
$0
Institutional Aid
Grants
$12,000
$22,500
Total Aid
$22,000
$28,000
Understanding the Formulas & Process
•
If you understand the FORMULAS and
PROCESS in how they can impact your
eligibility, you could be at a significant
advantage over someone who does not
understand the different methodologies or
process.
A NEW PARADIGM…
FINANCIAL AID PLANNING
STRATEGIES!
Students Assets & Income
Student Assets
Highest Assessment
20% Dollar One!
(25% for Profile)
Student Income
Student EFC
After $1,750
50%
Parental Assets & Income
Parent Assets
After
Allowances
0-6%
Parent Income
Parent EFC
After
Allowances
0-47%
Student EFC & Parental EFC
Expected Family Contribution Level (EFC)
Parents
EFC
Students
What Assets Are Included?
REPORTABLE ASSETS (FAFSA)
•
Checking Accounts
•
Savings Accounts
•
Money Market Accounts
•
Mutual Funds
•
Corporate or Government
Bonds
•
Individual Stocks
•
Value of Business (Over 100
Employees)
•
Value of Property (Other Than
Primary Residence)
•
Farm (You Do Not Live On)
NON-REPORTABLE ASSETS
(FAFSA)
•
Family Home (Primary
Residence)
•
Cash Value of Life Insurance
•
Cash Value of IRA’s, 401K’s,
or Pensions
•
Annuities
•
Value of Business (Under
100 Employees)
•
Family Farm (You Live On)
529 Savings Plans & 529 Prepaid
Tuition Plans
•
Both types of plans are treated identical with
regards to FAFSA & CSS Profile
•
Parent Owned 529’s are reportable on the
PARENTS side of the FAFSA & CSS Profile
•
Even Though UGMA/UTMA accounts are
Student owned assets…they are reportable on
the PARENTS side of the FAFSA & CSS Profile
Source:
Retirement Plans and Contributions
HOW ARE RETIREMENT
CONTRIBUTIONS TREATED FOR
FAFSA?
•
Income
•
All Employee Deductable
Contributions to a Qualified
Retirement Plan are ADDED
Back on the INCOME side of
the FAFSA
HOW ARE RETIREMENT VALUES
TREATED FOR FAFSA?
•
Not Reportable as an Asset
•
Once the money is in the
qualified asset (IRA, 401K,
Pension, 403B, etc) the cash
value of that asset is not
reportable
How many family members in college?
•
Always Count the Student that is applying for aid
•
Do not include your parents
•
Include others only if they will attend, at least
half-time in 2013-2014, a program that leads to a
college degree or certificate
•
If your EFC is 20K for the Family, than if there are
two in school it will be 10K for each family
member
Widowed, Married, Remarried, or
Divorced Parents
•
Answer the questions as of the date you will complete and sign
your FAFSA.
•
If your parent is widowed or single, answer the questions about
that parent.
•
If your widowed parent is remarried, answer the questions about
that parent and your stepparent.
•
If your parents are divorced or separated, answer the questions
about the parent you lived with more during the past 12 months.
•
If you did not live with one parent more than the other, give
answers about the parent who provided more financial support
during the past 12 months.
•
If this parent is remarried, answer the questions about that parent
and your stepparent.
Independent vs. Dependent
•
Can I Make My Student Independent?
•
Were you born before January 1, 1989?
•
On the day you submitted your FAFSA, were you married?
•
At the beginning of the 2013-2014 school year, will you be Graduate Student?
•
Active Duty in the US Armed Forces
•
Veteran of the US Armed Forces
•
Have Children (Receive More Than ½ Support)
•
Dependents of Your Own (Receive More Than ½ Support)
•
Parents Deceased, Ward of Court, or Foster Child
•
Emancipated Minor Determined By Court
•
Were You In Legal Guardianship Determined By Court
•
Determined to be an Unaccompanied Homeless Youth (As Determined by School
District, Emergency Shelter, Transitional Housing, Runaway or Homeless Youth
Center)
•
NOT TOO MANY HIGH SCHOOL SENIORS!
What Does OMH Partner Group, Inc.
Do?
•
Provide Our Clients Comprehensive Financial Aid Planning Services
•
INVESTIGATE:
A thorough analysis of your financial situation as it
applies to the financial aid process and system
•
RECOMMEND:
Make any recommendations any strategies to
maximize your financial aid eligibility, use proven methods
•
IMPLEMENT:
We have the ability to implement the strategy so that
everything is set up correctly
•
FAFSA Preparation included, CSS Profile Preparation for an
additional cost
•
It is a comprehensive service that is designed to get you through
the entire year in which you are applying for financial aid!
What’s Next?
If you are interested in using our
services please contact our office!
OMH Partner Group, Inc. provides financial aid consultation services for a fee. Our services will determine the factors that impact your aid eligibility. You will be provided with appropriate recommendations to maximize college financial aid packages, or demonstrate as much financial need as legally possible. This does not guarantee any college financial aid, nor does it guarantee that we can increase your aid eligibility. Ultimately it is beyond our control and all financial aid packages are independently determined by
each college that you are applying for need based financial aid. Need based financial aid packages can and will include a combination of Federal Loans/Grants, Federal Work Study, State Grant Programs, Institutional Grants/Scholarships, and other various loan programs. Investment advisory services provided by Redhawk Wealth Advisors, Inc.,
an SEC-registered investment advisor. Insurance and Annuity products are sold separately through OMH Partner Group, Inc. Nothing contained in our website or this material is intended to provide tax or legal advice. Consult with your tax advisor and/or legal counsel for suitability regarding your specific situation. Hypothetical or
historical rates of return are not a guarantee of future results. Copyright 2013. OMH Partner Group, Inc. All rights reserved.
OMH Partner Group, Inc.
Paul Daly, Investment Advisor
401 South Carlton Avenue, Suite 204
Wheaton, IL 60187
O: 630-510-3126
F: 630-510-3127
paul@omhpartnergroup.com
www.omhpartnergroup.com
We would like to Thank You for
coming to our seminar and look
forward to working with you and
your family!
