Transcript Financial Aid Workshop

Secrets to Maximized Financial Aid
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Allen Leung & Winnie Shiao, Attorneys
ANAHEIM
CERRITOS
IRVINE
PASADENA
SAN DIEGO
WALNUT
Retirement Vs. College Costs
 UC Costs $30K per year
 Private Schools cost $60K/per year
 So 1 kid can costs $250K for 4 years
 How Can You Retire?
 Answer: Financial Aid
 Have Financial Aid ---- Save Your
Retirement
 Personal Finance – For kids
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Consumer Reports
 Who Reads “Consumer Reports” to Buy a
Car, Dish Washer, Computer, Etc?
 Shouldn’t We also do it for Education?
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Which of the Following Schools is Most
Expensive for CA Students?
1) Univ of Texas – Austin;
2) Univ of Michigan;
3) UCLA;
4) UC- Berkeley
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Smart Concepts
DON’T Apply to out-ofstate Public Schools
 #1 –
 Ex. U of Mich/ U of VA / U of Illinois / U of Texas
 Source of Money: Fed/State/School;
 YOU are paying $50K for other people’s tuition
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If you want to study Computer
Science, Which of the following
Schools Should you attend?
1) Carnegie (Ranked #1/ $0 FinAid)
2) Harvard (Ranked #17/$25K FinAid)
3) Rice (Ranked #20/$35K FinAid)
4) Princeton(Ranked #8/$30K FinAid)
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Smart Concepts
#3 – DON’T be misleading by
College Ranking
Kids change major all the time
Fit school has better connection
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Smart Concepts
Colleges Priced Like Airline
Tickets!
 #3 –
 College are Businesses
 Look for Best Value- Ed Judo
 Best Education for Student- ED Judo
 Protect Parents’ retirement fund Satisfy Students’ Career Goals-Ed Judo
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#4: Financial Aid integrate
w/Admission
You Must be Admitted in order to Receive
Financial Aid!
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Smart Concepts
 #5 –Higher
Ranked Private Schools
+ Liberal Arts Has $Most Money$
 HYPS – Look at Our “Scoreboard”
 Can Anyone Name the “Little Three” ?
 –Pomona/CMC/Colby
 Look for Hidden College Gems – See Our Book Ed.
Judo
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Smart Concepts
 Our Book: Education Judo, by Allen Leung, on
Amazon
 Details 68 Schools who are “Generous” and we
detail strategy to get admitted
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Smart Concepts
 #6– Highly
Ranked Lib Arts > UC
Schools
 Better Education and maybe even Cheaper
(according to our Book)
 Williams v. UC San Diego
 Amherst v. UC Irvine
 Avg Grant/Scholarship from Williams
= ? (Please Guess)
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Smart Concepts
 #7– Math
> Business for Major
 Why are so few Students study Math (about 1%) in
College?
 Why so many want to Study Business Adm?
 Follow Sergei Brin (Google Founder): Math in
college; Computer Science for Master
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Smart Concepts
 #8 – Top
Schools NOT looking for
“Well-Rounded” student
 They are looking for “Well-Rounded” Class;
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Smart Concepts
 #9 – Apply Early will HELP You for top
Schools (HYPS)
 ED=binding?
 Harvard Early admit rate = 18%;
 What is the Regular Admit rate ? (Guess)
 Like a Hotel, top schools fills up their class (30-50%)
during EARLY, and then becomes picky;
 If you want to get into top school, MUST apply Early
 Which school has higher ED rate? Our Bk has it
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Smart Concepts
 #10 –Does Applying for Financial Aid
Help or Hurt Admissions?
 “Need- Blind” vs. “Need Sensitive”
 “Remember – If you Qualify for FinAid and NOT
apply, will HURT you
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Common Questions
I have a house
and/or rental
homes, am I
qualified?
#1-
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Common Questions
I own a business,
am I qualified?
#2-
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Common Questions
Does all schools provide
SAME money?
#3-
 No. With UC’s - different;
 Private School = all different;
 Which school is More “Generous” – See Our
Book (“Education Judo”) on Amazon”
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Common Questions
st
1
My kid is in UC, and did
NOT receive money, what
should I do for 2d kid?
#4-
 Answer: do NOT apply to UC
 Private School = more money
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Different Income Levels
Parent’s Annual
Income
$90,000
$90,000 ~
$180,000
More than
$180,000
Cost of College
$55,000
$55,000
$55,000
Strategy:
UC + Pvt
Top Pvt School
(ex Yale)
USC/CMC/Olin;
Merit- Based
Possible needbased financial
aid
$40,000
Up to
$30,000
Up to
$25,000
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Cal Grants
Who Wants to Know How to
Obtain
Per Year  $13,000
4 Year  $50,000
 Deadline = March 2 (Also GPA Verification Form)
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Cal Grant Income Ceiling
Family Size
Income Ceiling (AGI)
2 People
$72,000
3 People
$73,800
4 People
$80,200
5 People
$85,900
6 or more
$92,700
Un-Tax Income= add back to AGI (have to look at W2 & Tax Return)
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Cal Grant Assets Ceiling
Dependent Students
$62,000
Independent Students
$29,500
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Formula
COA
--
EFC
=
Financial Aid
Based on the following factors :
Tuition
Income (AGI)
Grants
Room
Assets
Work-Study
Board
# in Household
Loan
Supply
# Kids in College
COA= Cost of Attendance
EFC= Expected Family Contribution
Financial aid= tuition discount
Income= Tax Return (un-tax income will be added back)
Assets= home equity + investment equity+ business value+ saving+ stock
(mutual fund)+529+UGMA (UTMA)
Parents’ Income= 20%
Kid’s Income and Assets= 33%
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Parents’ Assets= 5.6%
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How do you apply & Get $$?
FAFSA
Primary
residence
equity?
Stock/mutual fund
Investment Real Estate
CSS
College
own Retirement act, 401K
form Life Style-car model
Life insurance (CSV)
 Info provided must be 100% consistent with each other
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UC- 4 years graduation rate
 UCLA = 67 %
 UC- Berkeley = 66%
 UCSD = 56 %
 UCI = 57 %
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Secret to Success: Liberal Arts
Liberal Art College
Small class (=focused)
University
Big lecture room
Professor teaching
TA can’t speak English
Higher Grade
Lower Grade
Graduate in 4 years
Take 5~ 6 years
Higher % get in
graduate school
Kids feel lost
Ex: Reed rank #4 for entering PhD.
program
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The Best Graduation Rates
 Williams College (MA) 93%
 Princeton University (NJ) 90%
 Yale University (CT) 90%
 University of Notre Dame (IN) 90%
 Bowdoin College (ME) 89%
 Pomona College (CA) 89%
 Davidson College (NC) 89%
 Duke University (NC) 89%
 Carleton College (MN) 89%
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 Boston College (MA) 88%
 Harvard University 88%
 Vassar College (NY) 88%
 Wesleyan University (CT) 88%
 Georgetown University 88%
 Bucknell University (PA) 88%
 Haverford College (PA) 88%
 University of Pennsylvania 88%
 Washington and Lee U. (VA) 88%
 Northwestern University (IL) 87%
 University of Chicago (IL) 86%
 Bates College (ME) 86%
 Claremont McKenna College (CA) 86%
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Which of the Following Schools Has the
Highest Mid-Career Salary?
 1) Northwestern;
 2) Johns Hopkins;
 3) Washington U – St. Louis;
 4) Bucknell
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Use Talents as Leverage
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Top Schools Strategy
School
Strategy
Harvard
Run 40 Yds in 4.5 Sec
MIT
Female Athlete
USC
Math Major
Upenn
Math or Physics Major
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Essay as Leverage
 If you are not an athlete, or don’t have special
Talents, ESSAY can get you in;
 Pomona Dean – “First thing I look at is Essay;
 Must be Philosophical, NOT Story-telling;
 Must have a Title/Theme;
 Must have your “Inner Voice”
 Ex: Curly Hair / Leaving a Village / Curiosity
Without Borders/ Poems
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Special Program as Leverage
 Low Income = “Plus”;
 QuestBridge Scholarship Program
 Easier to get in top schools;
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Use Gender as Leverage
Girls represent 57% of college students
Male from CA Female from
advantages
CA advantages
East Coast
Liberal Art
College
Example:
MIT
All Girl School Acceptance rate:
or Science/Engr. Male: 9%
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Female: 23%
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Use Geography as leverage
[East Coast Schools Loves CA students]
Texas
87%
California
86%
Florida
74%
Massachusetts
43%
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Use Financial Aid
Appeal as Leverage
 Must be in Writing;
 We are Lawyers, who is good in Writing
 Example:
1 letter = $10,000 more
from school
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Financial Aid Timeline
Grade
9 ~ 10 Grade
Reminder
11th Grade
“Base Tax Year”
Tax Planning
12th Grade (Nov 15) Early Applications
12th Grade (Jan 1)
FAFSAS Starts
12th Grade (April)
Choose among offers & Appeal if
Necessary
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Our Scoreboard
HS Class of 2012
Rank
School
1
Williams
2
Colby
3
USC
4
Northwestern
5
Scripps
6
Bryn Mawr
7
Harvard
8
Claremont
9
10
Grant/Yr
$52,500
4 Yr Total
$210,000
$50,500
$48,875
$47,870
$202,000
$195,500
$191,400
$47,550
$46,850
$44,550
$190,200
$187,400
$178,200
Princeton
$42,750
$37,550
$171,000
$150,200
Stanford
$37,500
$150,00
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