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www.vuefolio.com
www.vuefolio.com
PLAN YOUR HIGH SCHOOL STUDENT’S
COLLEGE FINANCES
SUNNYVALE COMMUNITY CENTEROindrila Ray
Vuefolio is a SEC Registered Investment Adviser
Do not distribute without permission
www.vuefolio.com
Disclaimers
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• All materials, graphs and analysis are solely for educational purposes.
• This is not a pitch for any investment product.
• Please do not consider this as financial or investment advice.
• We are not tax lawyers or accountants.
• We do not represent nor endorse any college, educational institution or
any funds that may be mentioned in the presentation.
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As PARENTS,
we try to SUPPORT our CHILD’s
ASPIRATIONS and EFFORTS
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College Desirability, Aspiration and Expense
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Cost of Attendance: Narrow band.
Mostly Need blind. Most offer only
need based aid.
Wide spectrum of cost.
Mostly Need sensitive.
Wide range of aid.
Different cost of
attendance for residents
and non-residents. Need
blind for residents.
Other
Private
Colleges
Elite
Private
Colleges
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Cost of Attendance: Snapshot
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Elite Private College: Dream schools
Flagship Public Colleges:
Dream, Reach and Safety Schools
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Cost of Attendance
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Does everyone pay these
prices?
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Cost of Attendance
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NO!
Different families may pay
different amounts.
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Your Price Tag for College
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Your Family Income
# of kids attending college
Assets (private colleges
consider your home equity)
Financial Aid available
Your “Actual Cost of College” or Net Price depends on:
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Financial Aid
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Need based Aid
• Income
• Assets
• Family profile
Merit Aid
• GPA
• Leadership
• Sports, etc
Types of Financial Aid
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Financial Aid
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Federal Grants State Grants Institutional Aid
Federal Student Loans
Need based Aid
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Grant By College Type
Source: College Board “Trends in Student Aid” 2014
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Takeaways
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• More institutional aid is available in Private Colleges.
• Rule of thumb: Elite Private Colleges have the most institutional grant aid.
• Rule of thumb: Elite Private Colleges have v. low acceptance rates.
• Research institutional grant aid at other private colleges.
• Don’t forget Public Colleges.
• Federal and State grants phase out by $100,000 family income.
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To get financial aid
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Free Application for Federal Student Aid (FAFSA)
CSS Profile
Institution’s own Aid Form (some private colleges only)
Need to file
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Merit Aid Facts
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• Elite private colleges do not offer merit aid.
• Most merit aid is available at 2nd and 3rd tier private colleges.
• Limited number of merit aid available at public universities.
• UC Regents scholarship: top 1-2 % entering freshman.
• Some state universities have more merit aid as compared to others.
Even for out of state students.
• Some colleges may require the student to file FAFSA and CSS for
merit aid.
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First Year Merit Aid: Private Colleges
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Private CollegeCost of
AttendanceAdmission
RateFinancial Aid
Avg. Merit Grant
Vanderbilt $62,970 13.0% Need + Merit $18,797
Northwestern $65,844 15.0% Need + Merit $2,740
Johns Hopkins $64,679 17.0% Need + Merit $32,379
Rice $56,415 17.0% Need + Merit $20,132
Georgetown $62,000 17.0% Need Based -
Harvey Mudd $65,200 19.0% Need + Merit $8,275
USC $64,694 20.0% Need + Merit $20,752
Wellesley $62,088 29.0% Need Based -
Boston College $62,822 32.0% Need + Merit $32,461
NYU $66,000 32.0% Need + Merit $26,202
Carnegie-Mellon $63,822 40.0% Need + Merit $7,053
Only 10-20% of students actually get merit aid.
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Merit Aid : Private Colleges
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Most of the Merit Aid is available in tiers below the Elite Private Colleges
Source: College Board “Trends in Student Aid” 2014
Merit Aid/other aid almost more
than need based aid
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How can families in Bay Area get Financial Aid?
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• Demonstrate need based on income …before application try out the college’s online
net price calculator.
• Multiple kids in college at the same time.
• Apply to Private Colleges which offer Merit Aid … research those colleges.
• Some Out of State Public Colleges have Merit Aid … find those colleges.
• Many colleges will send offers even before application based on SAT and other
scores.
• External Scholarships.
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How do most families
working in tech, software, medicine, finance
pay for college?
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How Parents Pay For College
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Savings and Investments
Current Income
Loans
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Savings and Investments
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529 PlansInvestment/
Savings Accounts
Custodial Accounts
(child’s savings)ESPP
Money from retirement accountsRoth IRA
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Loans
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Federal Student Loans
Students borrow, not parents
Parent Plus Loans
Home Equity Loans/Line of Credit
Private Education Loans
Loans against 401k accounts
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Federal Student Loans
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Subsidized
• Need based
• Interest accrues after graduation
• Annual Limit
Unsubsidized
• Not need based
• Interest starts accruing immediately
• Annual Limit
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Paying for College: Federal Student Loan
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Pros
Student has a responsibility towards education and employment
Grace period of 6 months after graduation for repayment
Income based repayment of loans
Does not affect credit score. Does not put parent on the hook
Cons
It’s a loan. Student debt is a problem. Can affect later financial decisions
Cannot discharge loan in bankruptcy.
Annual and maximum limits. Max limit covers just 1 yr at a UC!
Have to file the FAFSA every year to get loans for all years of study
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Paying for College: Pros and Cons
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Visit https://www.vuefolio.com/
To learn about PROS and CONS
529 PlansInvestment/
Savings Accounts
Custodial Accounts
ESPP
Roth IRA
Federal Student Loans
Parent Plus Loans
Home Equity Loan/Line of Credit
Private Education Loans
Loans against 401k accounts
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Choosing a college …
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College
& Major Acceptance
Academics
Extra Curricular
Personality Fit
Financials
ROI: Employability
after graduation
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Thank you for your time.
To learn more, check out our website
https://www.vuefolio.com
Disclaimer: Vuefolio does not render legal, accounting, or tax advice. This presentation is solely for informational purposes and is not a
solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Vuefolio is not responsible for any
college costs, financial aid, student or any other kinds of loans, investment performance of the 529 state plans. Any data quoted
represents historical information. Any past performance quoted is no guarantee of future results. Vuefolio is a SEC registered Investment
Adviser.