Discover the Insider Secrets to College Financial Planning

1. The Little Known Secrets
Of How To Get Maximum
Money For College!
How To Legally Arrange Your Financial Situation To
Pay For College With As Little Out Of Pocket As
Possible!

2. Carol Klamo
College Funding Strategist
College Planning & Funding Strategies, LLC
927 Beville Road, Suite 111
South Daytona, Florida, 32119
Phone: (386) 236-9944
http://www.collegefundingstrategies.org

3. Keep in mind…
 The information in this presentation is based on
current laws and regulations. The information is
general in nature, seeing that everyone’s personal
financial situation is complex and very different. Due
to this, we offer a FREE no-obligation consultation to
those who participate in this presentation where we
will take 1 hour of one-on-one time to review your
specific and individual situation. We will further discuss
details of the consultation later in the presentation.

4. Our Research of Parent’s Biggest Concerns
 Missing deadlines
 Making mistakes
 Developing a plan to pay for college
 Not having the time to do everything involved
 Doing something that will hurt their child’s chances
for college admission
 Doing something that will cause them to not get the
most financial aid possible

5. Today's High Cost Of College!
§ Why is it so ridiculously expensive?
• Less aid from government sources.
• Teacher's salaries going up.
• Costs of maintenance, upkeep, repairs,
infrastructure, etc., all going up.
• Changes in technology.
• Each year, college cost are increasing
faster than inflation rates!

6. It's Expensive No Matter Where
Your Kids Go!
§Average Yearly Cost
 Not just tuition - includes Of Private Schools
books, room and board, Versus State
living expenses, etc.
Schools!
 4 years can cost $69,960 to $45,000
$143,440 ...or even more! $40,000
$35,000
 Multiply by number of kids. $30,000
$25,000 Private
 Each year, college costs $20,000 State
increase faster than $15,000
inflation rates! $10,000
$5,000
$0

7. How Is A Family Supposed To
Pay For All That?
• Savings?
• Borrow?
• Scholarship?
• Go To Lesser
School?
• Not Go At All?

8. Savings
 Take from the $200,000 that is burning a hole in
your pocket
 If you have savings, I highly recommend that you
reserve one of the FREE consultation appointments
I’ll be discussing a little later in the presentation.
 $10,000 in savings could potentially cost you $500 to
$3,500 in college grant money.
You need to know what to do BEFORE you play the game…

9. Borrow
 There are several different ways to borrow the money for college…
 If you’re going to borrow money, would you rather…
 Get a tax deduction or not get one?
 Have a fixed monthly payment or a variable increasing payment?
 Have interest-free student loans or high-interest student loans?
 Have to take a loan each and every semester or have the funds
readily available prior to college beginning?
Example: 4 ½ years “Same As Cash”
Once again, you must know what your options are before you play the game.

10. Scholarships
 What % of the $169 billion dollars available in
Student Aid came in the form of scholarships?
 www.fastweb.com
 Just like in Las Vegas or Day Trading, you only hear
about the winners…
“Weekend Warriors”
- If someone tells you that ‘Your student has been
selected to apply for grants from Federal Gov’t. All
you have to do is pay us $2,000 tonight’… RUN!!!

11. Financial Aid
§Who Is Eligible?
Myths vs. reality-
• Income too high. Financial Aid Certificate
• Grades too low. Due to your financial situation, you are accepted to the
University of Hard Knocks, and are eligible for $5,000 of
financial aid in your freshman year!
• Own a home. PRESENTED TO:
Our kid
• Aid is only for special by
this day of
Type name here
, 199 ,
groups.
• It's an easy process.
• School people can help.

12. How Much Aid Is Available?
There is about $169 Billion of Aid
(and tax relief) available, if you
know where to get it!
Cost Chart - Billions of Dollars - (2008 Academic Year)
89 Billion
Student/ 169
Parent Share Billion
Student Aid

13. How Much Aid Is Available?
The 2008 Aid Pie (Billions)
Federal Loans
Federal Grants
The States
13.1% Private Sources
Tuition Tax 6.1%
$22.1
Credits $10.4
8.2% Employer Paid Tuition
$10.5
Military Collegiate Resources
4%
$6.8
Military
Tuition Tax Credits
The States
Collegiate
Resources Federal Grants
19.2 % Federal Loans
Employer-Paid Tuition
$32.48 Private Sources 43.8 %
3.95 %
3.7 %
$6.7 $74
$6.3

14. How Do They Determine
If I'm Eligible?
§ COA - EFC = Need-
• COA stands for Cost of Attendance.
 (Includes tuition, books, room/board, etc.)
• EFC stands for Expected Family Contribution.
 (Based on parent's and student's income, assets,
ages, number of people in school.)
• Need is how much aid the family is eligible for.
3 Categories of People

15. Three Kinds Of Families
That Need Proper College Funding!
 Families with total financial need! (C1)
 Those who get financial aid wherever they go
to school. However, everything must be done
100% accurately and on time to get the
maximum amount of FREE money and less
loans.

16. Three Kinds Of Families
That Need Proper College Funding!
 Families with partial financial need! (C2)
 Those who will get financial aid DEPENDING
on which school they choose and how their
assets & income are positioned.
(… the majority of people participating in this workshop)

17. Three Kinds Of Families
That Need Proper College Funding!
 Families who make too much money to qualify for
“need based” financial aid! (C3)
 Those who will not qualify for “NEED based” aid but
still must go through the process to get the “MERIT
based” money. These people must also be
concerned with paying for college in the most tax-
efficient fashion and must take into consideration
how this will effect all other financial and retirement
goals they may have.

18. Sources Of
Financial Aid!

19. Where To Get Money!
 Feder al Gover nment.
• Pell Gr ants
• SEOG Grants
• Colle ge Wor k/Study
• Subsidized and Unsubsidized
Staf for d Loans
• Per kins Loans
• PLUS Loans and SLS Loans

20. Where To Get Money!
 Feder al Gover nment.
 State Gover nment.
• Special programs for in-state
residents.
• Teacher s, health pr ofessionals,
minorities, etc.
• Contact state higher education
agency for more infor mation.

21. Where To Get Money!
 Feder al Gover nment.
 State Gover nment.
 Colle ges And Univer sities.
• Private univer sities have
endowment funds, outside of federal
and state funds.
• Awar ded on a fir st come, fir st
ser ved basis.

22. Where To Get Money!
 Feder al Gover nment.
 State Gover nment.
 Colle ges And Univer sities.
 Private Sour ces.
• Are private scholar ship ser vices wor th
it?
• Ver y small % of all the aid.
• Don't spend your time looking for

23. How Do You Apply?
The FAFSA. (Free Application for Federal Student Aid.)
A large % go in with errors or inconsistencies.
EVERYONE must fill out this form to get aid!
You cannot apply for Federal Loans if you do not
fill one out!
If it is done wrong, it usually gets bumped,
adding another 4-6 weeks processing
time…which often results in lost financial aid!

24. How Do You Apply For Aid?
The FAFSA.
The CSS/Financial Aid PROFILE And
Registration Form.
Many private schools want this form as well.
Registration and application can only be
submitted online via the Internet.
Asks about home equity, more detailed
explanation of income, assets and expenses.
Must be consistent with FAFSA!
Not easy to understand or fill out!

25. How Do You Apply For Aid?
The FAFSA.
The CSS/Financial Aid PROFILE And
Registration Form.
The School's Own Institutional Forms.
Some schools will make you fill out their own
additional forms.
They must be consistent with the other forms.
Usually will ask similar questions to the other
two forms.

26. How Do You Apply For Aid?
The FAFSA.
CSS/Financial Aid PROFILE And
Registration Form.
The School's Own Institutional Forms.
Additional Forms:
Business/Farm Supplement.
Divorced/Separated Agreement.

27. Financial Aid Forms: End Result
„ As a national average, Parents &
Students will fill out 5-9 forms for
Financial Aid, spending 15-20 hours
processing them, and still 75% are
completed with errors or
inconsistencies.

28. Which Colleges Give You The
Best Shot At Getting Money?

29. The Best Shot!
 Percentage Of Need Met.
– Some schools meet 100%
of need.
– Others only meet 30-60%!
– (COA-EFC = Need)
– COA: ($20K) - EFC: (10K) = Need ($10K)
– 10K - 60% = $4,000 + 10K = $14,000 your
new EFC.
– You MUST KNOW these statistics
BEFORE APPLYING!

30. The Best Shot!
 Percentage Of Need Met.
 Percentage Of Gift Aid.
– Some schools meet most
needs in FREE money, while
others give mostly loans.
– You MUST also know about
this BEFORE applying!

31. The Best Shot!
 Percentage Of Need Met.
 Percentage Of Gift Aid.
 Percentage Of Self-Help Aid.
– Some schools meet most or all of needs in work/study
or loans. (You do not want to find out in June that they
met most of your need in loans!)
– You must have a history on what that school has done
in the past!
 Know BEFORE applying!

32. JONES FAMILY: CASE STUDY
Northwestern Univ: Univ of Central FL:
Cost - $45,167 Cost - $18,282
EFC - $7,878 EFC - $7,878
Need - $37,285 Need - $10,404
School A: School B:
Meets 100% need. Meets 58% need = $6,034 ($4,370 short!)
Gift aid - 76% Gift aid - 57%
Self help - 24% Self help - 43%
What you actually pay at each school:
School A: School B:
Total EFC = $7,878 EFC = $7,878
Total Gift = $28,337 + Unmet Need = $4,370
Total Self = $8,948 Total EFC = $12,248
Total Gift = $3,439
Total Self = $2,595
Family actually pays $4,370 more out of pocket to send their child to the "cheaper" school!
Don't make the huge mistake of picking schools based on cost of attendance only!
Your family may not get the best education...because you didn't know the inside secrets of
college funding!

33. How To Negotiate
For The Best Possible Package!
You must know your options
to get the best deal!

34. How To Negotiate
For The Best Possible Package!
• Some schools mis-award.
• Some schools under-award.
• Some schools will try to compete with other
schools.
– You must know whether or not to accept the first
award letter!
– You must know how to to talk to these people in the
financial aid offices!

35. “Financial Aid Leveraging”
 65% of private schools and 27% of public
schools engage in financial aid leveraging.*
This process is used by universities to determine
HOW LITTLE AID needs to be awarded to a
particular student to still get the student to enroll.
* Quoted from Money magazine

36. How To Get More Need-Based
Aid For College!
You Can Re-Arrange Your Affairs
To Get More Money By Learning
The Legally Established Rules!

37. Financial Aid Legal "Loopholes"
 It is perfectly legal and Knowing more, gets you
ethical to make use of more!!
rules that allow you to
get more money!
$10,000
 It's no different than
$8,000 Not
using legal tax Knowing
$6,000
"loopholes" to save Loopholes
Knowing
$4,000
money! Loopholes
$2,000
 You may get thousands
$0
more just by knowing the
rules that they don't want
you to discover!

38. Example of two parents –
one took control!
Family A: Family B:
Income: $95,000 Income: $95,000
Assets: (Excluding home) $60,000 Assets: (Excluding home) $60,000
Other real estate: $50,000 Other real estate: $50,000
Number in family: 4 Number in family: 4
Number in school: 1 Number in school: 1
EFC - $26,685 EFC - $9,613
• Difference of $17,072 per year (more than $68,000 over 4 years),
because Family B took the time to understand the process, how the pieces
of the puzzle fit together...and take control!

39. Educational Laws & Amendments
 $1.35 Trillion Economic Growth - Tax Relief
Reconciliation Act Of 2001
 Deficit Reduction Act of 2005
 Higher Education Reauthorization Act Of 2006
 Second Higher Education Extension Act of 2007
 College Cost Reduction & Access Act Of 2007
You must understand these complicated laws and tax provisions,
and most importantly, how they impact many areas of college
funding. There are many opportunities and pitfalls you have to
watch out for!

40. WARNING!
Don’t Even Think About Applying For College
Funding Until You Fully Understand These
Educational Laws & Tax Provisions That Directly
Affect Education Costs!
 1. HOPE Scholarship Credit
 2. Lifetime Learning Credit
 3. College Tax Deduction
 4. Student Loan Interest Deduction
 5. Coverdell ESAs (formerly called Education IRAs)
 6. Penalty Free IRA Withdrawals
 7. Employee Education Assistance Plan Extension
 8. Qualified State Prepaid Tuition Program Tax Advantages
 9. Changes To Eligibility Formulas, Loan Limits & Interest Rate
Calculations

41. Tax Credits vs. Tax Deductions!
 Tax Deductions Reduce  Tax Credits Reduce
Taxable Income. Income Tax.
 A $1,000 Tax Deduction  A $1,000 Tax Credit In
In A 28% Tax Bracket ANY Bracket Saves You
Saves You $280 In $1,000 In Taxes!
Taxes!

42. Section 529 Plans
Are they all they’re cracked up to be???
What are the “so-called” Benefits?
How do they affect Financial Aid?

43. 529 Plans: Are they right for you?
If you own a 529 plan, make sure you have a
competent college funding advisor exam it
BEFORE you apply for financial aid!

44. Getting Maximum Money For College Under The Confusing And
Complicated Laws and Tax Provisions Is No Easy Task!
 Will taking advantage of one of these new tax provisions actually cost you
by reducing the amount of aid you would otherwise qualify for?
 Should you elect the HOPE Scholarship Credit or the Lifetime Learning
Credit?
 Do you make too much money to qualify for the HOPE Credit or the
Lifetime Learning Credit?
 Should you take advantage of the student loan interest deduction?
 Should you refinance your home to pay for college?
 Do you qualify for, or should you start a Coverdall ESA?
 What are the restrictions on IRAs used for college expenses?
 Are Qualified State Tuition Programs a viable option?
Can You Honestly Answer All of These
Questions???

45. How NOT To Become A Casualty Of These
Complicated Laws & Tax Provisions !
 Start your financial and tax planning early... NOW!
 Make sure your tax professional is completely aware of
the required integration and coordination necessary
between your tax and college funding situations!
 Don't even think about filling out either your tax or
college financial aid forms without doing PROPER
PLANNING FIRST!!!

46. If You Choose to Have Someone Help
You, Make Sure You Ask Them These
Questions:
 Can you show me how to lower my EFC & maximize my eligibility
for aid?
 Can you help me pick schools that will give me the best aid package -
meet most need, more FREE money, less loans, etc.?
 Can you help me fill out the FAFSA & CSS/Financial Aid PROFILE
Forms line by line?
 Will you help me negotiate if I get a bad package or less than I
expected from each school?
 Can you show me how to pay for college on a tax
favored basis if I don’t qualify for financial aid?

47. “But What If I Make Too Much Money
To Qualify For Need Based Aid?”
 College Funding Planning Isn’t Only
Trying To Get Need Based Aid!
 Other Planning Strategies Are Available
To Reduce Your Out Of Pocket Costs!
 There Are Many Legal Ways To Skin
The College Funding Beast That Most
People Never Heard Of…And Their
Current Advisors Don’t Know About!

48. What Are Your Options?
What can you do?

49. What Are Your Options?
• Do it yourself!
 The colleges will love you for it!
• Let your accountant do it for you!
 Tax formulas are totally different than financial
aid formulas!
 Filling out tax returns is totally different than
filling out college aid forms!
 Accountants tend to apply accounting principles
to financial aid, which will destroy the results!
 Accountants are experts in accounting, not
financial aid!

50. Using The Services Of A
College Funding Consultant!
A Specialist In A Little Known, But Very Important Niche!

51. Questions To Ask A College Funding
Specialist!
• What exactly will they do for you?
– Income and asset planning.
– Pick best schools.
– Fill out forms.
– Negotiate with schools.
• Do they offer any guarantees?
• When should you start planning?
• What's the next step?

52. The Mission For Our Clients!
• Eliminate the administrative nightmare, which is littered
with countless opportunities for errors causing families to
lose some or all of their financial aid.
• Integrate sound financial planning strategies with the
financial aid rules and regulations.
• Implement programs that help families more easily afford
to send their children to the college of their dreams.

53. Our GUARANTEE To You!
 We GUARANTEE we will:
– a.) Do income and asset planning recommendations
to reduce your EFC as much as possible.
– b.) Help you pick the schools that give the best financial
aid packages!
– c.) Help you fill out the financial aid forms, (or in some cases
actually fill the forms out for you!)
– d.) Negotiate on your behalf to get the best possible
financial aid packages!
– e.) Create a personalized plan to pay your family’s out-of-pocket
expenses in the most tax-efficient way possible.
If we do not do all this in a professional, timely manner in YOUR opinion, and
you’re not satisfied with our performance…we’ll refund absolutely 100% of
your fee with no hassles, no hard feelings!

54. Services We Provide: Student Counseling
Student Assessment
• Personality Profile Evaluation
• Advanced Search Of Careers, Majors & Studies Based On Specific Student Interests
• Innovative College Search Based On Demographics & Personalized Areas Of Importance
• Personalized Private Student Interview with a Private Admission Counselor From the National Association of
College Admission Counselors – Designed By A Ph.D., An M.I.T. Graduate & Former University Professor
Extremely Knowledgeable About Admissions Practices
• SAT Prep Course Entitled “The Little-Known Secrets of Acing the SAT!”
• On Average, Students Who Have Participated In This Course Have Increased Their SAT Scores By 225 POINTS!
• ACT Prep Course Entitled “Everything You Must Know To Master The ACT!”
• On Average, Students Who Have Participated In This Course Have Increased Their ACT Scores By 4 POINTS!
• Admission Essay Review
• In-Depth Personalized Analysis On Your Chances Of Enrollment At Up To 5 Colleges
• Follow-Up Student /Parent Q&A Interview With Your Very Own Private NACAC Counselor / Admissions Coach
• Unlimited Q&A Email Access To Our Highly-Acclaimed Expert SAT / ACT Team

55. Services We Provide: College Funding Strategies
• Calculate Expected Family Contribution (EFC)
• Provide Planning Recommendations To Reduce EFC
• Provide Financial Aid Award Estimates For An Unlimited Number of
Schools & Recommend Additional Schools To Be Considered
• Provide Recommendations For The Best Way To Pay Your Share Of
College Costs
• Provide Tax-Efficient Borrowing Strategies To Help Keep Financial
Goals In Line, Along With Cash Flow Strategies For College Years &
Beyond
• Provide Complete Financial Overview On College, Taxes, Cash Flow,
Retirement & Develop A Plan To Improve Each Area
• Provide Strategies That Legally Protect Your Savings & Retirement
Accounts From The Financial Aid Formulas

56. Services We Provide: Financial Aid Data Gathering &
Processing
• College Planning Checklist With All Timelines & Deadlines That Is
Updated Electronically & E-Mailed Every Time Something Is Completed
&/Or Missing
• Free Bonus – Complete Free Application For Federal Student Aid
(FAFSA)
• Register Your Student For The CSS PROFILE
• Complete CSS PROFILE & Walk Families Through All Supporting
Documentation
• Complete Any Additional Forms Required By The Individual Schools
• Confirm The Accuracy Of The Student Aid Report (SAR)
• Make Any Necessary Adjustments To The SAR
• Advise & Counsel On Stafford & PLUS Loan Applications
• Provide Protection From Being Overlooked For Grants, Scholarships Or
Loans Due To Mistakes On Your Financial Aid Forms

57. Services We Provide: Appeals
• Spreadsheet Up To 3 Award Letters & Professionally
Evaluate If Your Offer Was Fair
• Provide Tested Appeal Letters If You Were Under-
Awarded

58. Services We Provide: Value Added
Services
• Sponsor “Client-Only” Teleconferences Throughout The Year For Parents & Students
On Topics Ranging From Essay Writing To Admission Tips
• Provide Easy-To-Use Parent & Student Manuals
• Provide a Monthly E-Letter To Parents & Students To Keep Them Updated On
Everything They Need To Be Aware Of Along The Way With A Weekly College
Funding “Tip of the Week”
• E-Mails Submitted Monthly To Both Parents & Students On What They Need To Be
Doing That Month To Maximize Their College Admissions & Financial Aid Results
• Personalized Financial Aid FAQ Page
• Interactive Online Page For Each Parent / Student
• Provide Parent / Student Feedback On Specific Colleges
• Unlimited Support For Parents & Students
• Copy Of Our “Student Handbook For Success”
• Copy Of Our “College Admissions Boot Camp Handbook”
• A One-Stop Shop to Always Have Your Questions Answered With Personalized
Contact
• Provide “Peace of Mind

59. Ask Yourself This Question…
How many of you are interested in knowing…
$ What your financial aid package might look like at the
schools you are considering BEFORE you apply
AND
$ If there are any strategies you can take advantage of
to help make paying for college more easily
affordable?

60. Requirements of Free Consultation
• Must be scheduled within 2 weeks of Workshop date
• If married, both parents must be present
• In order to facilitate the volume of free consultations we hold,
we ask you to provide a number where you can be reached
tomorrow between 9AM and 12PM.
– If you can’t be reached between 9AM and 12PM, please provide a
time during business hours you would prefer to be called.
– Seeing that almost everyone ends up requesting the FREE
Consultation…If the FREE Consultation is not scheduled by the end
of the day tomorrow, we cannot guarantee that any available FREE
Consultation spots will be left.

61. 1 Out Of 3 Things Will Happen
• You will get all of the added info you were looking for
so that you can do this yourself.
• You will decide that you want to do part and you want
us to do part.
• You will decide that you want absolutely nothing to do
with the financial aid nightmare and let us take
everything off of your plate.

62. Develop a PLAN!
“A fool with a plan is better than a genius
with none.”
-T. Boone Pickens – July 2008