Hi All
Here is the report on college costs. The good news is that they are decreasing a bit.
Cheers, George
George A. Letchworth, Ph.D.
Why We Should All Think About Planning Ahead. No, Seriously.
Hi All
The three College Board 2013 reports provide some great data on college benefits (college pays), college costs and college financial aid.
Below is the link to financial aid.
In Oregon we are aware of the “pay it forward” legislation and the concern regarding college debt, from $27,000 to 30,000 depending on the report you read. What is not addressed is whether the student or family did any planning regarding paying for college.
We ASPIRE folks can make a huge contribution by working with families and encouraging them to plan for college costs. If we can get families to plan and save (OK, I know it is un-American and not fun) we can reduce Oregon college student debt. It would be nice to be #1 in the lowest college student debt.
Will and I are going to bat some ideas around on how to reduce debt so stay tuned.
Cheers, George
George A. Letchworth, Ph.D.
FAFSA Financial Aid Tool Kit
Hi All,
Here is the web site that provides you with a lot of FAFSA information. You might wish to complete the FAFSA Demonstration.
Since the FAFSA uses skip logic you should be knowledgeable regarding the Automatic-Zero EFC (jackpot, since the student qualifies for maximum federal financial aid, the Oregon Opportunity Grant and the college’s need-based aid, FSEOG). The Simplified Needs Test is for families with an AGI less than $50,000.
The FAFSA | Federal Student Aid – Financial Aid Toolkit
Cheers, George
George A. Letchworth, Ph.D.
Top Seven Things to Keep in Mind During the School Year
- First Things First
This one really important for Seniors and Families who have applied for admittance to schools and universities. The subject is: Evaluating College Financial Aid Award Letters. Learn how to assess each award letter and compare the award letters in order to make informed financial decisions. The largest award package is not always the best option!
- SCHOLARSHIP SEARCH: Check the Websites
Seniors – are you checking the ASPIRE website frequently for updated scholarship info?
- SAT TESTING: Junors – Heads UP!
All JUNIORS planning or even thinking about attending a 4-year university should be registered for a testing session sooner than later. Take the test in May so if you are disappointed with results, you’ll have the whole summer to prepare for a retake in September. Remember, only the best scores are sent on to your selected schools. Register at CollegeBoard.org.
- SAT PREPARATION: A Key to Success
It’s a fact – those who prepare do better! CollegeBoard offers free Question of the Day, Sample Test Questions, and a Complete Practice Test on its website. Pick the SAT tab. CollegeBoard has just announced they are also using Khan Academy (www.khanacademy.org/sat) as a partner for SAT preparation. We suggest you sign up there and give it a try.
5. MANAGED SCHOLARSHIPS: Watch for Application Details
Please note that the 4 OSAC Personal Statements are required. Several other scholarships ask for additional essay work.
- COMING EVENTS: College Campus Visits
Make sure you are attending some college visits to really get a feel for what you’d be in for if you attended that college.
- GRADES: Don’t Lettum Slip!
We noticed a few GPAs drop last semester. PLEASE – don’t stumble this semester. Spring is a challenging and tempting time for focus on studies. Do yourself a favor and really work on your academics. There’s big payoff for the effort; even more payoff than prom, track, baseball, fishing, daydreaming, wishing, or sun tanning! Remember that it takes a 2.75 or greater cumulative GPA to get into a 4-year university. AND – NO D’s in core subjects.
FROM YOUR ASPIRE STAFF
How Much Do You Need To Save For College
Some Myths About the 529 Savings Plan
Hi All
As you are aware I am a big fan of planning ahead. Here are five myths regarding 529 college savings plans and the correct information.
Myth #1 addresses how 529 savings are treated on the FAFSA
Clearing up the Confusion: Five Popular 529 Plan Myths
PS: WARNING, I’M GOING TO THROW A LOT OF NUMBERS AT YOU.
The American Opportunity Tax Credit is only for qualified educational expenses (tuition & fees and books). If a family pays for up to $4,000 these they can qualify for up to $2,500 in tax credits. So the net cost is $1,500. If you have 529 savings you can use those for room and board as well as books, supplies and equipment. Bonus, the Oregon 529 College Savings Plan is state tax deductible at 9%
Contributions made to accounts in the Plan are deductible up to an annual limit. The deduction limit is indexed annually for inflation. For 2013, the total allowable annual state tax deduction for contributions made by the taxpayer to all accounts in the Network (“Network accounts”), including all accounts in the Plan, is $4,455 for taxpayers who file a joint return and $2,225 for all others.
The bottom line is that with good planning a family can save ~$400 per year on Oregon state taxes by contributing to a 529 plan. The funds grow and come out tax free. While in college if they pay up to $4,000 in tuition and fees and they owe federal taxes they can qualify for up to $2,500 in tax credits.
I am contributing the maximum allowed by Oregon each year for my grandson, Nathan. I began when he was born and will contribute while he is in college, so 22 years of contributions. I get the Oregon tax deduction each year. His parents will pay the tuition and fees and books while he is in college and claim the American Opportunity Tax Credit. The 529 funds grow and come out tax free. Anyone like to calculate the potential tax savings? Is it under or over $50,000?
Cheers, George
George A. Letchworth, Ph.D.
Check Out This College Search Tool.
Hi All
Here is a college search tool that is really neat. Click on the top row headings and you get a ranking by graduation rate, net price, Pell eligible folks, undergrad enrollment, etc,
To me net price and graduation rates are important selection factors. What do you think of this tool?
Cheers, George
George A. Letchworth, Ph.D.
College Budgeting & College Shopping Sheets
Hi All
I just received an e mail with this link. This is a great source since it includes the “Scorecard” for choosing a college, the “Shopping Sheet” for understanding the college award letter and a “Comparing costs” link that is really great. The Comparing cost allows you to compare three colleges in terms of COA and how it is funded. Be sure to click on the pull down menus for each of the headings on the side. I pulled down all the menus and printed out a copy to study.
Paying for College > Consumer Financial Protection Bureau
Looking over College Award Letters I have identified a number of mistakes that families have made. Some submitted FAFSAs that were not correct. Some thought they had applied for a scholarship online and it was not received. Students chose not to apply for scholarships or did so at the last minute. In the workshop tomorrow I will cover sources of funding outside of the award letter and it will be interesting to see who attends the workshop. My sense is most families leave money on the table. What has been your experience?
Cheers, George
George A. Letchworth, Ph.D.
The Impact of Attending a Poor High School
Hi All,
Below is a link that addresses the impact of a high school education on college achievement. The research has a great deal of relevance for those of us working in small, rural schools.
Many of our students qualify for free and reduced lunches and have challenging family contexts that impact their high school achievement. If they receive inadequate high school preparation they have two strikes against them.
The challenge for those of us working in ASPIRE is what can we do to better prepare our students for college.
Study finds impact of attending poor high school follows one to college | Inside Higher Ed
Cheers, George
George A. Letchworth,
Financial Aid Planning Tools
Hi All,
These are two of the financial aid planning tools that are useful for families: the FAFSA4CASTER and the Net Price calculator.
The link below describes the output elements of the Net Price Calculator. It also details the different elements included in COA.
The Integrated Postsecondary Education Data System – Net Price Calculator Requirement
Cheers, George
George A. Letchworth, Ph.D.
Tips From The Team 