Stratagee.com Blog

Stratagee is pleased to announce the release of Smart Search^TM
the first of its two web-based software products.

Smart Search^TM is the first web-based software that allows educational consultants to identify and compare colleges based on a student’s likelihood of admission and eligibility for financial aid. It is the fastest, most accurate way to determine where a student might Get In and Get Aid^TM.

See sample report at Stratagee.com.

In a few easy steps you can enter the required data (only 19 questions):

1. The student’s academic scores (GPA, SAT or ACT score)
2. Some basic financial information about the family
3. Your search criteria

There are two initial search criteria:

1. The admissibility indicator* (select your own AI or utilize Smart Search’s proprietary algorithm)
2. The five states in which you want to conduct the search

Smart Search’s proprietary algorithms then quickly determine:

1. The student’s admissibility indicator at all of the colleges in the chosen states
2. The student’s Federal and Institutional EFC (Expected Family Contribution) at each college
3. The student’s need for financial aid at each college
4. An estimated financial aid award based on each college’s published percentage of need met

Smart Search generates a list of colleges:

1. Lists the top ten colleges within the selected search states
2. Ranked by lowest net cost after estimated aid
3. Using the admissibility indicator that you chose

Then you select the final list of colleges that you want to include in your Smart Search Report:

1. Choose from the list generated among the five states
2. Add individual colleges from a nationwide list of 740 of the most popular public and private institutions
3. Get your Smart Search Report

Each Smart Search Report includes:

• Name and hyperlink of the college or university
• Student’s likelihood of admission (admissibility indicator)
• EFC methodology (Federal and/or Institutional)
• College’s estimated 2010-2011 cost of attendance
• Student’s EFC
• Student’s financial need
• College’s percentage of need met
• Student’s estimated aid award
• College’s net cost
• Three page Guide to Your Report, including useful tips and links

Your Smart Search Report can be:

• Saved
• Modified
• Printed
• And converted to a PDF file with a single click, then sent as an email attachment

*You Choose
With Smart Search you have the choice of selecting the Admissibility Indicator (Far reach, Reach, Possible, Likely or Very likely) yourself for each of your students at each college.

If you want to select the AI yourself then you need to check the box on the order form for Smart Search (My AI).

Or you can let Smart Search’s proprietary algorithm choose the Admissibility Indicator for you.

The Admissibility Indicator

The Smart Search Admissibility Indicator (AI) utilizes a proprietary algorithm that compares a student’s test scores and GPA to the 440 colleges in Smart Search’s database. The algorithm returns an indicator of (Far Reach, Reach, Possible, Likely or Very likely) at each college. In addition, each college in the database has been carefully reviewed by our admissions team, and “weighted” according to their admissions profile.

The Admissibility Indicator is based only on grades and test scores. As such, it is a starting point from which to begin your discussion of the student’s overall admissions story. It is not intended to override your professional judgment regarding your student’s admissibility or to be considered a comprehensive indicator of admissibility. No single admissibility factor, ours included, tells the applicant’s whole story and simultaneously accounts for the admissions nuances of each college.

With this understanding, the only logical way to give a student a sense of his/her likelihood of admissibility at a given college is to start with the lowest common denominators, GPA and test scores. 90% of the time these are the two biggest “concrete” factors in a student’s admissibility at colleges throughout the country. Acceptance rates only tell us how selective a college is. They don’t tell us anything relative to the student academically, or his/her likelihood of admission.

If a kid doesn’t have the grades and test scores to reasonably match up with a college’s applicant pool, he likely doesn’t have a great chance of being accepted. This is where you shine. No, Johnny you don’t have the grades and scores but x y and z about you can help move you up the list, here’s why and here’s how to go about doing it.

You can start your admissibility discussion with our Admissibility Indicator and fine tune the applicant’s story based on your knowledge of the applicant and all of those subjective factors that “can” move a kid with a 3.2 and modest test scores up the list at even the most selective colleges.

If you want Smart Search to select the Admissibility Indicator for you using Stratagee’s proprietary algorithm, then you need to check the box on the order form for Smart Search (Stratagee AI)

Buy Smart Search Today

(One-year license, unlimited use, includes updates)

$349 per consultant

Ordering steps

1. Register online at Stratagee.com.
2. Complete the order form.
3. Send the order form along with your check for $349 to:

Stratagee
207 State Street
Russell, Pa 16345
(814) 757-5033

Once your order form and check have been received, your Smart Search license will be activated in your account for one year from that date and a confirmation email, sent to you.

Today, US Secretary of Education, Arne Duncan, called for Congress to no longer include student and parent assets in the analysis of a student’s eligibility for federal student aid. This move has been researched and discussed for several years, but today was the first time the change was officially called for by the Department of Education.

Should Congress react favorably to the proposal the outcome for many middle and upper income families could mean a substantially lower expected family contribution toward the cost of college, and in some cases, depending on the cost of the college a student attends, an increase in federal student aid eligibility.

I was one of many college funding profesionals and education leaders in recent years who have made the trip to Washington to meet with Department of Education officials about this sort of change. The EFC Quick Reference Table that I have been creating for twelve years, and was published in this blog last year, was updated last week for the 2010-2011 academic year. This table was presented to Department of Education officials some years ago as an example of how simple the federal student aid analysis could be if assets were removed from the equation, and EFC based just on household income and demographics.

As such, it is a good preview of what a student’s EFC would be for the 2010-2011 academic year if the change occurs, as well as an estimate of an income-only EFC under current rules.

Our new Smart Search software utilizes a proprietary formula that dramatically reduces the amount of information needed to calculate a family’s EFC, and was designed to be capable of performing EFC calculations under the proposed rule change announced today. So if the proposed change becomes law it will simplify our software further.

We constantly strive to stay ahead of the curve, and that requires a constant watch on political, economic and legislative happenings around the country.

The EFC Quick Reference Table works like this. First, you need to know the parent’s adjusted gross income (AGI) which is typically the last line on the first page of your tax return. To keep things simple, if you don’t know your AGI simply use the amount that you earn from working each year.

Step 1 – Locate your income in the AGI column.

Step 2 – Find the column at the top of the table that corresponds to the number of dependent children that you have and follow that column down to the row that corresponds with your income (AGI). The number in the intersecting box is your estimated EFC based on parental income only.

For example, if your income is $70,000 and you have two dependent children, then your EFC is $8,511 and falls into the green area. If your income is $350,000 and you have one dependent child, then your EFC is $99,394 and is in the red area.

Eligibility for Need-Based Financial Aid

Eligibility for need-based financial aid is based on two things: 1) the cost of attendance (COA) of the college, tech school or university that a child wants to attend and 2) the expected family contribution toward that cost.

Cost of Attendance

Since you need to know the cost of attendance of a college in order to calculate need-based financial aid eligibility, I used a 2010-2011 projected national average cost of: a 2 year public college, a 4 year public college and a 4 year private college.

Expected Family Contribution

Expected Family Contribution (EFC) is the minimum amount that a family is expected to contribute toward the cost of attendance (COA). Calculating expected family contribution is necessary in determining a student’s need for financial aid. Essentially, a student’s EFC is subtracted from the cost of attendance of a college and if the EFC is less than the COA, then the student qualifies for need-based aid because he has a demonstrated need for it. When a student’s EFC is greater than the COA of a school, he won’t qualify for need-based financial aid. All of the EFCs are color coded to give you an idea of whether the student will qualify for need-based financial aid at one of three types of colleges. Use the color codes below to estimate need-based aid eligibility.

Let’s Put All of This Into Perspective

You Qualify

Using the example from above, if your income is $70,000 and you have two dependent children, your EFC is $8,511 and is green, which means that based on this estimated EFC using your income alone (your actual EFC may be higher), your child should qualify for need-based financial aid at all three types of colleges. As a result, your child is eligible to receive grants, scholarships, work-study and student loans as part of the child’s financial aid package. Eligibility does not mean certainty however. You will have to wait to see what form of aid the child gets and how much it is worth.

You Don’t Qualify

On the other hand, if your income is $350,000 and you have one dependent child, then your EFC is $99,394 and is red, which means that your child won’t likely qualify for need-based aid at any of the three types of schools used. But, that doesn’t mean that you have to pay $99,394 because the “sticker prices” at the three types of schools is less than that. You will never pay more than the cost of attendance.

Keep in mind too that I used national average costs for these three types of schools and that the cost of attendance of a specific college will be different than the national average. Several Ivy League colleges are more than $50,000 annually, but the projecte 2010-2011 national average cost for 4 year private colleges is $40,000. So the national average costs give you a broad sense of aid eligibility, and if your child doesn’t qualify for need-based aid, he might still receive some merit-based aid.

Financial aid (grants, scholarships, loans and work-study) is awarded on the basis of need and/or merit. Need-based aid is based on a family’s demonstrated need for aid through the needs analysis formula: COA – EFC = Need. Merit-based aid is awarded regardless of the student’s ability to pay and is based on the student’s talent (academically, athletically, etc). I need simple ways to keep all of this straight, so I just remember that need-based aid is based on your ability to PAY and merit-based aid is based on your ability to PLAY.

The EFC Formulae

The formula for determining EFC is not simple and is quite involved. The EFC Quick Reference Table is a way to quickly estimate need-based aid eligibility. Parents income is by far the biggest determinant of a student’s expected contribution, although currently parent’s assets and the student’s income and assets are also used in the official calculation.

The EFC formula is updated for inflation each year and is administered by the Department of Education based on the guidelines of the Higher Education Act. This table has already been updated for 2010-2011 based on the June 2009 update published by the Department of Education. The Higher Education Act is reauthorized on a regular basis by Congress. Thus the formula is often called the Congressional or Federal Methodology and is required to be used if a school wants to participate in Title IV financial aid (Pell grants, Stafford loans, etc.).

To apply for federal financial aid and get your EFC, students and parents must complete the Free Application for Federal Student Aid (FAFSA) www.fafsa.ed.gov. There is a copy of the 2009-2010 FAFSA in Stratagee’s College section. In addition, Stratagee’s College Section also contains several other useful resources published by the Department of Education that simplify and clarify the process of applying for financial aid

About 300 private colleges often use an additional formula called the Institutional Methodology to calculate a family’s EFC when considering the student for the school’s own aid money. In addition to the FAFSA, these colleges usually require a separate form called the Profile. Information on the Profile is available through the College Board at www.collegeboard.com. In general, the primary differences between the two formulae are: 1) The Institutional Methodology (IM) counts more types of assets from more family members than does the Federal Methodology (FM) which means that families with substantial assets could have a higher EFC under the IM formula and 2) under the IM formula, families that have little or no assets could have a lower EFC than under the FM formula.

It’s the beginning of August and I can hear you thinking that there is little to be done now that summer is in full swing as the work of college admissions seems like a distant pursuit. Sorry, you’re wrong. There is no time like the present to begin to get organized and take some meaningful steps to making the college quest a mistake-free and rewarding exercise. Whether you are a newly-minted junior or facing the first days of your last year in high school, what you set out to accomplish now in the remaining days of summer can have a major impact on the year(s) to come. Let’s take a moment to set the stage and discuss what you can do with about three weeks to go before school begins.

For soon to be juniors, he sure that your curriculum is in order and that the courses you elected are indeed the ones you will be taking come September. A quick trip to the guidance office and a request for an unofficial transcript should provide this information rather painlessly. Verify your schedule, check that your grades and GPA are accurate as well as all of the information this document contains. Plan your test regimen making sure that you take into consideration holidays and family excursions so that you don’t have to change things around at the last minute. Now would be a great time to hop in the car or on the train to visit a few campuses just to get the feel for what they’re all about. Be sure to take the tour, participate in the Q and A and, if it’s possible and you think this institution might be on you’re A-list, have an interview. At the very least, sign whatever form they have that indicates you were there and ask for the name and card of the admissions person responsible for your region (where you live). “Demonstration of interest” is becoming something of an important consideration in application reviews these days, so to be recognized as having taken the time and expense to actually visit a campus can only work in your favor when decisions are being made. Plus, it’s a fun way to see what a college looks like, meet some cool people and start to think seriously about your options with concrete impressions that you formulate directly yourself.

If you’re a senior-in-waiting, do all of the above but also begin to spend some time working on your applications so that all Hell doesn’t break loose when you return to school and time becomes a fleeting luxury. Go to www.commonapp.org, establish an account and begin to gather and enter the requisite information for the Common Application so that you will have a head start on this process once school begins in earnest. Consider the prompts for the Personal Statement and put some thoughts to paper as you flesh out an appropriate essay which you know will be an important component of any application you submit. Do not treat this exercise as trivial because a well-crafted piece which gives the reader a sense of your character or a glimpse into your psyche can easily sway a decision in your favor. Essays should make you come alive in the minds of the committee, putting flesh on the bones of grades and test scores. Think too about which teachers will really do you justice in letters of recommendation. Download specific forms where they exist, address envelopes with stamps and be ready to distribute these to your favorite instructors the first day back so that they have the time to write thoughtful, positive evaluations that will enhance your candidacy. Popular teachers are always in demand and writing a thoughtful student evaluation takes time. I know many (in particular English and Math teachers who routinely get hit up more than others) who wouldn’t mind getting a head start on their recommendations before school is even in session. So a polite phone call request to your teachers of choice now might just get you points and a chance to demonstrate your seriousness which can only be a plus. If you haven’t already done so, create an account with the College Board and/or the ACT and register for the first SATs or ACTs available. Spending a little time familiarizing yourself with the test itself would not be wasted effort. There are many ways to do this both with printed guides and on line. Find which work best for you and get cracking.

So there you have it. A few tasks completed now while life is slower before that craziness of the first days of school will keep you calm, collected and on top of your game. Unlike the grasshopper, you will be ready for what lies ahead.

Lloyd Paradiso
The Voice of Authority

Recently, Congress passed a law increasing the maximum amount of Stafford Loan that a student may borrow in a year. Beginning with the 2008-2009 Academic Year, students will be eligible to for an additional $2000 in Stafford Loan. This will be in the form of an Unsubsidized Stafford Loan. The following charts show the Stafford Loan limits for 2008-2009 by class:

Dependent Students:

Independent Students or Dependents Students whose parent is denied a PLUS Loan:

Subsidized and Unsubsidized Stafford Loans have two major differences. The first is that Subsidized Stafford Loans do not accure interest while the student is in school or during the six month grace period immediately following school, while Unsubsidized Stafford Loans do accrue interest during these time. The other difference is the interest rates. The following chart shows the differences between interest rates for Subsidized Stafford Loans and Unsubsidized Stafford Loans:

Let’s look at a couple of examples to illustrate the possibilities.

Example 1:

First Year dependent student with $10,000 need and their parent will qualify for a PLUS Loan. This student would receive:

Example 2:

Sophomore dependent student with $3000 of need and their parent will not qualify for a PLUS Loan. This student would receive:

Example 3:

Senior dependent student with $4,500 of need and their parent will qualify for a PLUS Loan. This student would receive:

Example 4:

Junior independent student with $15,000 of need. This student would receive:

Hopefully, this will clarify the new Stafford Loan limits for the 2008-2009 Academic Year.