FINANCIAL AID ELIGIBILITY – WHAT YOU SHOULD KNOW
Three basic ingredients determine how much need- based aid your child is eligible for.
The cost of the school your child is considering or already attending. Every school calculates its “cost of attendance” or “COA” based on federal guidelines. As you might expect, many private colleges have a high COA while public universities and colleges have a relatively low COA for state residents.
The dollar amount of “resources” provided to the student from outside sources. Scholarships, for example, are considered a resource. So are payments of tuition directly to the college by a grandparent or employer. A resource will reduce the COA and therefore the need based aid award, on a dollar-for-dollar basis.
The “expected family contribution” or “EFC.” This is the amount your family will be expected to pay for college based on your particular financial circumstances. This figure is determined each school year by the federal government with data you provide on the Free Application for Federal Student Aid (FAFSA). The calculation considers the student’s income and assets and the parent’s income and assets. (For independent students, parental income and assets are excluded.) The parents’ contribution is divided by the number of family members attending college at least half-time.
Assume, for example, that your child is planning to attend a private college costing $25,000 a year. Your expected family contribution is $15,000, consisting of the student’s contribution of $2,000 and your contribution of $13,000. A local civic organization has awarded your child a $1,000 scholarship. Your child’s financial need is determined to be $9,000 computed as follows:
RESOURCES: –$ 1,000
FINANCIAL NEED: $ 9,000
(COA–EFC–RESOURCES = FINANCIAL NEED)
The school will attempt to put together an aid package that covers the $9,000 in need. This package can be a combination of grants, loans, and work-study from federal, state and college sources.
Message From The Dean – Bob Fulcomer
As the school year ends and students prepare for the next year it is a critical time for those that will be seniors. Beginning now the upcoming seniors need to be getting ready for college applications and scholarship applications.
It is also a critical time for the parents to make any last minute adjustments to their assets before completing the FAFSA in January of 2014.
I want to remind everyone of some of the recent changes in our HIFE College Planning Program:
We have implemented 3 payment options for the HIFE College Planning Program. A. $1,795 or B. $799 Down + $199/month for 6 consecutive months or C. $299 Down + $299/month for 6 consecutive months.
- There is now a minimum production requirement to continue as a CPP consultant. A CPP College Consultant must enroll at least 2 families per year to be eligible to remain in the program.
You probably already know college grads have an easier time finding jobs, and earn more those who only have a high school diploma. But that’s not the whole story. Some college majors offer a much worse return on investment, with starting salaries that are no better than high school grads’ pay, according to a new study released Wednesday. The study, conducted by the Georgetown University Center on Education and The Workforce, looked at 2010 and 2011 salaries and unemployment rates among college grads between the ages of 22 and 26. The startling conclusion: Some majors have starting salaries no better than the average salary of a high school grad, which is about $29,900 a year, according to the U.S. Department of Education.
Low Pay And High Unemployment: The worst paying majors tended to be in the arts, where the low pay in creative work is matched by high unemployment rates, with an overall average of 9% unemployment for arts majors. The overall unemployment for all recent grads is 7.9%. Several arts disciplines, however, lead to double digit unemployment, according to the study. That doesn’t mean those who major in those fields are worse off in every way. In fact, as Forbes has reported, studies of college graduates show that liberal arts majors are “are as satisfied or more satisfied with their lives as their classmates in other disciplines.”
- Drama / Theater Starting Salary: $25,000. Unemployment Rate: 6.4%.
- Anthropology / Archaeology Starting Salary: $27,000. Unemployment Rate: 12.6%.
- Physical Fitness / Parks Recreation Starting Salary: $29,000. Unemployment Rate: 5.2%.
- Fine Arts Starting Salary: $29,000. Unemployment Rate: 10.1%
- Social Work Starting Salary: $29,000. Unemployment Rate: 8.2%
- Philosophy/Religious Studies Starting Salary: $29,000. Unemployment Rate: 9.5%.
- Psychology Starting Salary: $30,000. Unemployment Rate: 9.2%.
- Criminal Justice / Fire Protection Starting Salary: $30,000. Unemployment Rate: 8.9%.
- Hospitality Starting Salary: $30,000. Unemployment Rate: 6.0%.
- Film, Video and Photographic Arts Starting Salary: $30,000. Unemployment Rate: 6.5%.
Featured University – University Of Nebraska–Lincoln
A Leader In Higher Education
The University of Nebraska– Lincoln, chartered in 1869, is an educational institution of international stature. UNL is listed by the Carnegie Foundation within the “Research Universities (very high research activity)” category. UNL is a land-grant university and a member of the Association of Public and Land-grant Universities (APLU). The university is accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools.
A Strong Foundation
Always a place of high ambition, this was one of the first institutions west of the Mississippi River to award doctoral degrees — the first was granted, in physics, in 1896. The University of Nebraska established the world’s first undergraduate psychology laboratory. The discipline of ecology was born here, and the campuses reflect that tradition, being recognized as botanical gardens and arboreta.
Today, the University of Nebraska–Lincoln is one of the nation’s leading teaching institutions, and a research leader with a wide array of grant-funded projects aimed at broadening knowledge in the sciences and humanities.
Financial Trends in Higher Education For 2013
Many families are experiencing a diminished ability to pay for a college education. Compared to pre- recession levels, median household income, home equity, and net worth are all down. Meanwhile, college tuition costs have continued to climb steadily, even after financial aid is factored in. The annual net price of tuition, fees, room, and board at a private nonprofit institution ($23,840) now averages almost half of what the median household earns in a year.
Even more families are reevaluating the price they are willing to pay for a college education. The cost of a college education is bumping up against the ceiling of what families will consider paying. Even students from upper- middle-income families are experiencing higher levels of student debt and factoring in the cost of post-graduate study and the ROI of majoring in certain fields.
Media coverage and legislative attention are shaping public opinion about the value of a college degree. While an overwhelming majority of the public believes a college education is necessary to get ahead, a “value gap” has opened up in the polling because far fewer people believe going to college at any price will be worth the financial investment. Government funders, as well, are looking to make their appropriations contingent upon institutional performance measures.
ROI IS KING
Families are seeking evidence of successful results to justify their college investment. Higher education has become less an end in itself and increasingly a means to an end—primarily an economically viable career path. In calculating a college’s value proposition, families factor in outcomes as well as cost and prestige. They expect proof of high graduation rates and graduate employment at acceptable salary levels.
The number of high school graduates is shrinking, but the proportion who are ethnically diverse is growing. The country’s changing demographics, combined with a widening gap between the nation’s rich and poor, is producing more first-generation students and students from socioeconomic backgrounds that not only make paying for college a challenge, but also leave them underprepared for college-level study.
Financial Quick Stats
Source: THE LAWLOR GROUP
Ways To Pay For College
– Dave Bromeier, CFEd®, ChFC®, Investment Advisor
An average college student will have a debt of $22,250 by the time he/she graduates from college. You must first look into available options to save for college before you consider borrowing money.
Here are some strategies you may consider that may provide some tax benefits:
A.529 Savings Plan
B.Pre-paid Tuition Plan
C.Coverdell – ESA
G. Cash Value Life Insurance
Saving for college ahead of time is an ideal approach. However, not everyone can afford to do so with their current financial condition.
But if you have no other option but to borrow money, it is important that you consider borrowing the “smart way”.
You should first consider government sponsored loans such as Stafford loans which provides a flexible repayment plan with a fixed interest rate. It also allows you to defer your payment until 6 months after you graduate provided you maintain your eligibility requirements.
We will discuss the pros and cons in each program in the u p c o m i n g S c h o l a r s Newsletter.
Message From HIFE CPP Enrolled Student
Just a few weeks after signing up with Heartland, I found out that I received a scholarship of $2500. It could not have been a better timing.
All of the money went towards my tuition but that just meant I didn’t have to borrow that much in private loans.
I want to say thank you to Heartland, my College Planning Coach Paul for guiding me and also my consultant Victoria for introducing me to this program.
HIFE CPP Coaches Bio
COACH A: I have taught for over twenty-two years at colleges and universities as a professor and worked with many, many students. During that time, I worked with a variety of students and helped them decide their majors, the best school for them, and ways to get scholarships and grants. I spent a significant amount of time working in financial aid and advising to better serve students. These skills are all utilized in the position as coach.
COACH B: I have 25 years experience in education. I worked with students through the full process: recruiting, application, assessment, registration, financial aid, tutoring, appeals, graduation, etc. I have my AAS in the Interpreter Training Program, BA in Psychology and second one in Interpreting for the Deaf, and an MA in Agency Counseling. I have two sign language certifications: Certificate of Interpretation (CI) and Certificate of Transliteration (CT).
COACH C: I work directly with students, as an academic advisor, to develop plans for college courses and careers. I provide students with information on degrees, certificates and courses and provide information on transfer program requirements, and vocational programs. I assist students in scheduling classes, work with different students to develop an action plan for their education goals and use different communication styles to assist a diverse student population on various educational needs. I have been in education for twenty years.
We are in a period of transition. The students are all progressing to a new year and we will be transitioning with them. It is exciting.
This is an important time for the students who were juniors this past year. We will be working with them for colleges, majors, and scholarships. So much of this must be done in early fall. Please encourage the students, and parents, to work with us on these goals.
As always, we appreciate your support as we help these students reach their educational goals.