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Hello Sunshine!

June is Upon Us…Finally we have the warm weather!

It has been a crazy Spring, by now many of you have cleaned out your closets, organized the pantry (twice) and are hoping to get back to get back to some sembelance of normal. We are feeling the same.  Our goal has always been to help families succeed. Like most of you, we are adjusting our daily routines, attempting a work-life balance and pushing through. Life does continue, preparing for college still has to happen. Summer is a time of relaxation and also of preparation for success!

Here are some well thought-out tips on how to proceed with your summer:

Upcoming Freshmen in College: 

Make sure you are communicating with your chosen college – both with the school itself and the students that are coming into the freshman class with you.  The school typically has an orientation that you can sign up for prior to stepping onto campus, and wow are they fun and student-centered!  Make sure you check out the opportunities at your new school now.  Also, jump on chats with other students to talk about your excitement of attending the school.  Plus, it’s always a great idea to reach out to your new roommate and start to divvy up what each of you will bring to your new home.

Parents, make sure you are connecting with your soon-to-be leaving student. Take them out for a one-on-one walk and offer guidance to them and also just listen.  This is a new era in your relationship with your child, make sure you approach it with everything you’ve got and then let them take the reins and run.

Keep track of when tuition, room and board and meal plan payments are due.

Find out when payments are due for the above-mentioned college expenses.  Talk to your College Funding Advisor about developing a plan to pay for all of these costs in the most efficient way possible.

Upcoming Seniors: 

You’ve made it to Senior Year!  Don’t let senioritis set in.  Begin to hone those skills you’ve developed towards identifying what will be a great major and career.

Schedule any SAT or ACT tests early.  That way you can still get them to schools before the Early Admission deadline if you choose to.  Also make sure your high schools know what schools you are applying to.  Check all deadlines on the college’s websites and any scholarship opportunities they may list as well.

Use your summer to gain skills for your activity list.  Take on a summer job or possibly shadow a career interest you may have.  You can list this on your applications in the fall.

Upcoming Juniors:

Take advantage of virutal college tours.  You may not be able to casually visit campuses but use this time to learn about the schools that interest you.  Look at the clubs, sports and even course catalogs.  You can always schedule a formal tour later if you find you really like the school.

Summer is a good time to study for the SAT and ACT tests. Begin taking practice tests and going over missed answers to really get a good idea on how to approach the material.

Get your financial game plan in place.  Make sure you are not at risk of having unnecessary calculations count against you in the financial aid process.  Talk with our funding advisor for ideas on how to develop a financial plan.

Upcoming Sophomores and Freshmen:

Plan to take challenging high school courses

With summer approaching, you’ll want to look forward to the next year in terms of class schedule.  When helping your student to determine his/her class schedule, make sure s/he enrolls in courses that are challenging but not beyond their ability to excel.

Think about reasons for attending college

High school is an opportunity for learning and growth in addition to preparing for college.  It is during this time that your student may discover interests or will continue to develop talents and skills s/he already may possess.

Enjoy the summer!  We hope you find these tips useful.

Until next month…

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How do you stack up for an admissions officer?

Do you wonder how you stack up for college admission success?

Well rounded and grounded students are what they want, how do you stack up?  A survey conducted by Money.com found the following attributes/traits to be critical for college admissions success.

  1. A rigorous high school curriculum that challenges the student and may include AP or IB classes.
  2. Grades that represent a strong effort and an upward trend. However, slightly lower grades in a rigorous program are preferred to all A’s in less challenging coursework.
  3. Solid scores on standardized tests (ACT, SAT). These should be consistent with high school performance.
  4. A well-written essay that provides insight into the student’s unique personality, values, and goals. The application essay should be thoughtful and highly personal. It should demonstrate careful and well-constructed writing.
  5. Passionate involvement in a few in- or out-of-school activities. Commitment and depth are valued over minimal involvement in a large number of activities.
  6. Demonstrated leadership and initiative in extracurricular activities. Students who arrive on campus prepared to lead clubs and activities are highly desirable.
  7. Personal characteristics that will contribute to a diverse and interesting student body. Many colleges seek to develop a freshman class that is diverse: geographically, culturally, ethnically, economically, and politically.
  8. Letters of recommendation from teachers and guidance counselors that give evidence of integrity, special skills, positive character traits, and an interest in learning.
  9. Special talents that will contribute to the college’s student life program. Colleges like to know what you intend to bring to campus, as well as what you’ll take from your college experience.

It’s not too late to embrace a few changes to ensure college admissions success.

College Planning 101: the ‘B’ word(Budget)

     

“Cost-Saving Strategies For College

That You Can Begin To Implement NOW”

We do not rest, however, and if you have followed our blogs in the past for even just a short time, you probably are aware that we believe there is no wrong time for us to introduce and discuss some of the most important cost-saving elements for tomorrow’s college students.

Some of these things involve proper financial planning and a good understanding of the college funding process – but others are skills that can – and should – be mastered by parents and students as early as possible, to make the costs of college more manageable no matter where a child ends up going to school.

Getting through the undergraduate degree is a big undertaking, there is no question about it, and it is also a significant financial challenge with the current cost of higher education.  However, we have become experts in recognizing ways that these costs can be best managed and even minimized in many cases, and we are eager to share these tips with families of future college students.

Strategy 1: Tallying Pooled Resources

If your child will be receiving funds from grandparents, aunts and uncles, employment, or other sources while in college, it is important to create a budget including all of these amounts.  When this is done then everyone is made aware and everyone is on the same page. Include all sources of income from grandma’s birthday money to income from a summer job. These sources should all be included in the budget to get a clearer picture of what there is to work with. Here’s a comprehensive to further assist with what should be included as part of the budget:

  • All income received: This income should include the money that your child will have once at school, any relief given from the financial aid package and any money that comes in regularly to your child.
  • Monthly income: If there are funds that are coming in from a part-time job or other sources on a monthly basis, include these funds.

Strategy 2: Creating a Budget

Yes, we are not afraid to mention the dreaded “B-word” in our newsletters.  Managing college finances can ONLY be effectively done when a budget is created and followed – trust us, we have seen this simple fact played out both ways (for better and for worse) many, many times.  When creating the budget, it’s important to include the following items:

  • Overall Income: All income listed above which includes all income received and any monthly or income that comes in on a regular basis.
  • Discretionary Income: This is ‘fun’ money. It’s important to have fun while in college. The point is often that too many college students have TOO much fun and blow the money they receive while in college, and end up in bad financial circumstances. Students should learn to set some aside just for having fun, manage it well, and be sure to not go beyond it.
  • Necessities: Items that are absolutes while in college. These include books, computer, etc.
  • Wants: There are always nice things that can make college life a bit easier. These items can go in the ‘wants’ category.
  • Fixed Expenses: Include all expenses that occur on a monthly basis.
  • Variable Expenses: Include all expenses that occur but vary from month to month.
  • Savings: Even in college, there should be money set aside that is an emergency fund or simply savings for a rainy day. Include this amount that is done in the beginning or on a regular basis.
 

Strategy 3: Saving Money in Unexpected Ways

There are numerous ways to cut costs while in college. Here are some ways to painlessly cut costs without sacrificing fun or depriving oneself.

  • Purchase used textbooks or, better yet, rent them if possible. This option is available at many universities and can save considerably on costs. College textbook prices have simply gone through the roof in most cases!
  • Set a designated amount aside for fast food or restaurant meals per week, if needed, and cook the rest at home. Alternatively, utilize a dining plan which can also save time and money.
  • Set money aside for needed purchases and/or fun purchases.
  • Avoid late fees on credit cards or other bills by always paying on time.
  • Don’t purchase cable television. Instead watch shows on a computer.
  • Use eBay, craigslist, or other online resources to sell unwanted or unused items.
  • Look for campus activities to socialize, etc. There are often movie nights, campus museums, etc. that can be utilized instead of spending a lot of money going out.
  • Skip Starbucks and make coffee/tea/hot chocolate at home. There will be significant savings!
  • If a loan is necessary, make sure that it’s only related to college expenses.
  • Bike around campus! At most colleges and universities, there is really no need for a car.

 

Strategy 4: Re-think The “Four Year Experience”

I hope there’s no misunderstanding from this heading. This is not to mean AT ALL that one should miss out on college, or not complete a bachelor’s degree. Quite the opposite, in fact. We fully support and base our efforts around students completing a four-year degree in the most successful and expedited manner possible.

 

While the average time spent in college is creeping ever higher (to our chagrin), there are still some motivated and organized students who complete a 4-year degree in as little as three years – and looking at the annual costs of college, that saves families and students a significant amount of money!  It also allows graduates to enter into the workforce earlier, or move on to graduate or professional training earlier, which means that the overall financial benefit from early graduation is magnified even further.

If cutting costs are a priority for your college student then one very effective way to do this is to complete advanced placement credit in high school, complete junior college credits during high school (if that option is offered where you live), take summer classes between academic years, or in some cases even head first to another less expensive institution, and then apply to transfer to the desired four-year university afterwards.

There will always be general classes that are a requirement for most universities. These classes can be taken at a community or junior college for significantly less money, as long as the acceptability of the credits is cleared in advance, of course! It can sometimes be a wise choice, financially, to use community college – or even an associate’s degree, in some cases – as part of the foundation for undergraduate education.  After all, the bachelor’s degree only has the name of one school on it!

Paying for college starts by understanding your budget and planning for the future.  

Let’s talk College Admissions & Funding Myths

 

“Understanding and Overcoming These MYTHS About College Funding And Admissions”

Dear Parent,

Here’s wishing you a happy holiday season with memorable times with your family and friends.  At this time of the year we find that it is a fine time for reflection on the wonderful experiences and accomplishments both this year and in years past.  For many families this includes wonderful college and university experiences that have added richness, enjoyment, and success to their family lives.  Higher education is certainly a sacrifice and a lot of effort, but there is no question that the value of it echoes over time.

With that in mind, this month’s newsletter emphasizes some of the elements of “commonly held wisdom” about college that turn out not to be true at all!  These myths about college funding and admissions seem to persist for a variety of reasons.  Some of them might have been true (or partially true) many years ago, but times have changed.  Others might have affected one person (or a very few people), but unfounded rumors about their prevalence seem to persist.  Still others have no real basis in fact whatsoever, but get passed around by people who do not know the details themselves.  However they get started however, we view it as our responsibility to make sure the truth is available!  After all, college admissions and funding issues affect EVERY college bound student to some degree or other…

We hope that as these myths and rumors are put to rest, you will feel free to pass good information on to other parents… and should other questions or suspicious bits of information arise in the future, please feel free to use us (your College Funding Professional) as a sounding board for the most up to date information – as well as how this information might directly affect your student and your family.

Without further ado, then, allow us to tackle a few of the most common myths and rumors that seem to persist from year to year to year – obviously, if we find ourselves running into them each and every college cycle, then we are pretty sure that many of you parents (and students) will see them, as well.  With this information, and any other questions we might be able to answer for you in an individual setting, you will be well on your way to managing the college admissions and funding process with a healthy set of facts and knowledge…

And knowledge, in this case as well as many others, is definitely powerful! 

MYTH 1. “Everyone Graduates With Student Debt”

Absolutely NOT!  The simple truth is that not everyone graduates with student debt. It is quite common, to be sure, especially in the current financial circumstances… but there are plenty of possibilities for a student to leave college without the burden of student debt. There are always some fortunate (intelligent, well-organized) students and parents who manage to finish the college years without it. It is not necessarily easy, but with the proper advice and planning it is absolutely possible.

If your child is an excellent student, there will always be additional options available. Your child can apply for scholarships for part of the cost. High GPAs and standardized test scores may also make your child eligible for some scholarships and grants directly from the school to which s/he is applying. Applying to the right schools and having strong academic scores will certainly help to make your child a very attractive applicant. Schools will then often be willing to do what they can to attract your child and that can translate, in some cases, to a full-ride – although these scholarships are rare.

In some cases, your child may go to a school that is not his or her first choice in favor of a package that provides more aid. If leaving school without a mountain of debt is a high priority for you and your child then this may be a suitable choice.  However, your College Funding Advisor can often help to mitigate these types of circumstances if families start the process early enough!

MYTH 2. “Going To College Is Just About Gaining Book-Smarts”

This may have been true at one time, when education was for education’s sake (for better and for worse) but the reality is these days that higher education is also a business. Colleges want to ensure their investment in any student is a solid one. They also want to make sure they are solvent. This can mean higher and higher tuition costs and fees. While this can seem disheartening at first glance, it can also be empowering for prospective students.

Just like any business, consumers have leverage over businesses. If they do not like something, they can always take their business elsewhere. This is a tack that can be used when applying to colleges. If your child is an excellent student and/or an intriguing applicant, it is completely acceptable to pit one school against the other in order to amass the most amount of aid. It is good business for colleges to find the brightest students, so they will do what is necessary to make it worth your child’s while to attend their college.  Your College Funding Advisor is well versed in the best strategies for making this work to your student’s advantage.

MYTH 3. “College Is Always Really Expensive”

Well, we will be the first to admit that higher education CAN be really expensive… but it doesn’t have to be, and it does not have to lead to debt, as indicated above. If one is willing to get creative and ‘think outside the box’ then getting a college education without breaking the bank is not only possible, it’s probable.

For example, if your child is taking AP classes in high school more often than not, these classes will count as college classes and your child can actually earn some college credit while in high school. Each college and university is different so it would be worth your while to do the research as to what classes will be accepted as credit and so forth.  We will be pleased to assist in that if necessary.

For students, applying to a diverse group of schools is a smart choice. It will broaden the options for your child and the types of award packages they will receive. This means more choices and more freedom for your child to choose the one that is the best fit.  The better the offer from the financial aid office at each school, the smaller the bill becomes!

MYTH 4. “Private Schools Are Expensive – My Child Can’t Attend One”

Private schools usually ARE expensive – at least, the sticker shock is high – but, as we’ve previously elaborated, it doesn’t have to be. The list price for private schools can be shocking to most, but it is rarely what students end up actually having to pay. Private schools often cost more off the top, sure, but private schools also almost always have more money to give to their incoming students. In fact, depending on your child’s academic and extracurricular credentials, s/he could pay less at a fancy private institution than an in-state school.

Aid packages from private schools often tend to be heftier than those from public schools. Making it known to the admissions officers that your child is seriously comparing other colleges may prompt them to increase an aid package. It’s not a guarantee, but as we indicated above, it is a tactic that you can use. An aid package received is not written in stone. You can always respectfully have the financial aid office review a package in light of new information, or when comparing it to another aid package that is similar but slightly more competitive. It never hurts to ask, and you never know what will happen. Your child may just get into a great private school at a super price!

MYTH 5. “If You Make Enough Money, Don’t File Financial Aid Forms”

Regardless of your financial circumstances, it is always a good idea to fill out financial aid forms. There are several reasons for this. For example, if you do not apply, you will not receive any aid. Now that seems quite simplistic, however, if circumstances change while your child is in school and a need were to suddenly arise, s/he would not be eligible for any aid because there would be no forms on file.  It is better to be safe than sorry!

Also, even if your child is able to attend school without any need-based aid, is s/he has qualified for scholarships, those funds will not be released unless there are financial aid forms on file. So, while it may seem unnecessary if you are in the fortunate circumstance of being able to send your child to school without the need of extra aid, you never know what can happen in the future. It is better to take the time to file those financial aid forms, and we are happy to assist.

 

Parents and college-bound students will run into more incorrect details than just these, of course, but it is for precisely that reason that we are pleased to make ourselves available for consultations and individual questions.  Feel free to ask us about any details surrounding your child’s college application process, as well as how parents can best tackle the financial questions surrounding this enormous step.

Parents often find that their jobs in the overall higher education process are every bit as challenging as the students applying for and attending their dream schools!  We make it our business to apply our knowledge and educational skills to help simplify both the parental tasks and the student efforts.

One of our most successful teaching options for the delivery of this vital information to parents is through our excellent College Funding Workshops.  These are live workshops delivered by certified College Funding Professionals specifically for the parents of today’s college-bound students.  According to feedback from our attendees, these presentations really deliver the informational goods when it comes to providing an introduction to the college funding information parents need.

We always schedule our workshops at locations and times (including evening and weekend options) that will mesh with parents and their busy schedules. While we refuse to charge any admission costs for workshop attendance, an advance reservation is required for safety and planning purposes.  If you have questions or would like more information, or to reserve a seat for one of upcoming dates, please just call our office.

While the workshops are a great option, we also know that some parents are more likely to want to digest the basics for college funding preparation on their own.  Because of this fact, and because there are always some parents who simply cannot attend a workshop, we publish a written report which also introduces this information.  The publication covers the financial education needs of today’s parents of college bound kids, and it really does introduce the college funding process in an excellent and easily understandable way.

The report is called “Nine New Ways To Beat The High Cost of College,” and each year parents report that it is an outstanding resource for learning the basics for funding a future college or university education.  To receive a free copy of the “Nine New Ways To Beat The High Cost of College” report, which is also free of charge or obligation, give our team a ring at 614.934.1515. We will be very pleased to put a copy of it into the mail for you immediately.

Happy Holidays!

Until next month,

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Strategies for a better deal

“Real-World Negotiating Strategies To Help You Negotiate A Better College Deal For you Child”

Dear Parent,

Here’s hoping that the adjustment into the school year and the Fall season have been smooth and happy for both your high school student and your family.  It is truly a significant transition virtually each and every year during high school, and there is no question that this transition grows exponentially bigger and more challenging when students make the jump from their high school years to their college or university years!

 We often find that when it comes to college application and college funding issues, many parents and families feel extremely uncomfortable and out of their depth in dealing with the colleges and universities to which their high school student applies.  This is natural, certainly, but it does not have to be that way.  In fact, it is because of this tendency that it is even more important for parents to gain a measure of confidence and comfort in dealing with institutions of higher learning.

The more parents know about the processes related to college admissions and financial aid issues, the better prepared they will be to manage the experience to the benefit of their student and their financial bottom line.  That is, frankly speaking, one of the reasons that we do what we do. As professional college funding advisors, we are uniquely qualified to help parents learn what they need to make wise decisions and maximize the educational options for their high school student, and to make positive financial decisions as well.

A good college funding advisor can help parents with their communication and interactions with the colleges and universities, and we also know the important clues and strategies for negotiating with institutions to maximize the options and the benefits for your child. 

With that in mind, we are pleased to provide a quick overview of some of the most helpful elements to negotiating and communicating with decision makers at the schools to which your child will eventually apply.  For more information, of course, or for any clarifications on the topics we introduce below, please do not hesitate to give us a quick call or schedule an appointment.  We are always pleased to be of assistance in this important time in the lives of rising college students and their families.

As you are no doubt aware, a tough economy not only affects families, but it can affect colleges and their endowments, as well. While tuition costs seem to skyrocket, one of the reasons for the swollen prices may include a shrinking endowment leaving less money available for incoming college freshman classes.

With that said, it does not mean that your family is doomed to automatically pay the “sticker price” for tuition when looking at different colleges and universities. The quoted prices – especially for private or out-of-state schools – can be a shock… but what many parents don’t know is that there are several things that can be done to minimize that shock and engage in negotiations and strategic communications that will almost invariably result in a lower overall price of attendance for your student.

Pitting Schools Against Each Other

Many parents may not think about playing schools against one another, but it can be very effective. It can be difficult to take that mindset when there are schools that your student especially wants to attend.  However, an offer from a second or third choice school (or even lower!) can be taken directly to a first choice school in order to garner more aid.

This tactic is also especially useful for merit-based scholarships. If your child is applying to colleges and universities that are well-funded and your child has strong academic achievements then there is no reason not to try to earn more for their hard-earned accomplishments! There are some parents who have managed to obtain over $200,000 in merit-based aid for their children. It can definitely be done, and your college funding advisor can provide more details on how to make this a reality for your child.

It is good to remember that while the sticker price for private colleges can cause some initial dismay, they will often have a lot more free money to hand out since they are receiving money from alumni, endowments, and private sources unrelated to government coffers. Remember that some colleges and universities have been known to cut the tuition by as much as 45% under the right situation.

Reveal Changed Circumstances

Your child does not necessarily need to be a budding Rhodes Scholar in order to receive additional aid from a college. There are other ways to receive additional aid – and it can happen when situations change within a family for a variety of reasons. Life happens, and many college administrators understand this. When circumstances have changed within a family situation such as a job loss, divorce, or illness, make sure to document this and send it to the college for additional consideration. More often than not, administrators will increase aid offers in light of changed circumstances.

College administrators often have a lot of flexibility when it comes to how they distribute loans and grants. If your child is a star pianist or was the school newspaper editor, you can use those experiences as leverage to try and obtain additional grants or aid.

Simply Ask

When your child receives his/her award letter it is an exciting time, but if you find that the offer is not exactly what you were hoping for, it is time to organize your information and write a polite letter back to the Financial Aid office asking them to reconsider the aid package and see if they will increase the aid.

You should first understand how each school works. Not every school will have an official form letter to request, but some schools have an appeals process already in place. Go through the proper channels and state your position and why you would like additional aid. It will not bode well for you if there is any embellishment. It’s best to simply state your family situation and why additional aid would be necessary.

Again, your college funding advisor is well-versed in how to manage these requests and can help you to know the right tack to take with each different school.

Be Clear

It might seem like common sense, but it vital to remember that college administrators are not omniscient.  They may be unaware of circumstances for each student, so it is important to simply lay out the facts to financial aid workers. Going on and on about how excited you are that your child was accepted to the school, and so forth, is something they hear often and does not necessarily help your case. Simply state what your current circumstances are and why you feel you are in need of, and/or deserving of, an aid package reconsideration.

Request Information About Work-Study, Grants and Scholarships

In addition to asking for a reduced tuition amount, you could also request information about scholarships, grants and work-study opportunities. When requesting consideration for scholarships, this might be the appropriate opportunity to toot your child’s horn. Include the reasons why your child would be an asset to the school, why he or she will make an excellent alum for the school, and why he or she deserves consideration for specific scholarships. Schools will certainly go the extra mile to attract the right candidates to their institution. Presenting your child as one of those candidates will often help you get you what you’re asking for.

Try To Play It Cool!

Just like any negotiation, there is a bit of a dance involved in the process of dealing with schools. It is important to be strategic in communication with the schools. For example, if your child receives an offer from a second choice school, parents should usually not immediately run to the first choice school to talk up the offer – this can seem anxious and could work against your student in the long run.

Parents might choose to wait a little while before contacting the first choice school for a better aid offer. If they have an idea that they are the first choice school they will sometimes be less likely to increase an aid package. Talk with your college funding advisor about how to play it cool and see what happens!

Overall, it is important for your student to end up at one of the best options available for his or her future academic experience.  The process is a challenging one, in some regards, especially for families that enter the negotiation process without key information to make them successful (or even worse, refuse to even begin any negotiations, and just accept whatever is offered).  

Regardless, parents will invariably find that professional advice from a college funding advisor can be of enormous help when it comes to negotiating a college future successfully and in a timely manner.  As professionals in this area, we are delighted to be able to offer our expertise, since it is truly worthwhile for the families we serve. The fact that our clients see more success in their negotiations, as well as finding the process significantly smoother to manage, makes us even happier.

One of the most exciting ways that we offer this information is through our College Funding Workshops.  These presentations are live workshops for the parents of college-bound high school students, and are offered by insightful college funding professionals.  They provide the most current and up-to-date details with regard to the higher education challenges facing tomorrow’s college students. We would be happy to see you at an upcoming workshop in your neighborhood.

If you have questions or want some additional information or details about these workshops, or if would like to reserve a seat for an upcoming date, just call our office.  We do require reservations in advance, due to space and practical limitations, but there is never any admission fee for our workshops.  Our workshop crew will be pleased to assist you further if you call our toll-free number at 614-934-1515.

We also have published a written report introducing an overview of this very important information.  Our work covers the essential financial education needs of high school parents with children who want to attend college, and it reviews the college funding experience in one current and easy-to-follow FREE report.   We have given this valuable report the title “Nine New Ways To Beat The High Cost of College,” and it is a terrific reference for parents when it comes to understanding the foundations of paying for a college or university degree in the near future.  For a free copy of the “Nine New Ways To Beat The High Cost of College” report, send an email to [email protected]  We will send out a free copy to you without delay.

Until next month,

~Marc

College: 10 Reasons it is so Expensive

Let’s talk college and why it is so expensive. After 10+ years in the business I want to share my perspective on why there is such a staggering amount of student loan debt. In no particular order, here is my list:

  1. Parents are not saving money (new houses, cars, etc)
  2. Kids are not saving money (think about Starbucks)
  3. Choice between creating a legacy or living a lifestyle
  4. Skipping the talk about finances before applying to a college
  5. Forgetting that attending school is a privilege not an entitlement
  6. Parents not saying ‘no’ or making excuses
  7. Loss of opportunity by kids–take the standardized tests, meet with college reps, market yourself, study, etc
  8. Yes, your child is wonderful but…..where’s the right school
  9. Labels do not pay the bills, focus on outcome
  10. Say no if the school does not make sense socially, academically or financially. It’s okay.

It comes down to having the tough conversations as a family. Often times, it’s simply a matter of everyone sitting down and talking. Review your budget, see how much you have saved for college and then look for ways to save more. We joke in our seminars that SAVE is the new 4 letter word, but it is a foreign concept to most families.

It would be easy to begin a rant, but that isn’t going to solve anything. Attend one of our free workshops, sign up for that free consultation and by all means, start saving.

All the best,

~Marc

 

Early Strategies for College Funding

 

“Playing the ‘Long Game’ –  Early Strategies That Pay Off In College Funding”

Dear Parents,

One of the things that we hear from a number of parents over and over again – especially as the time comes for their child to graduate from high school and head off to college – is the refrain “I get the feeling that we REALLY should have started this whole thing sooner.”  Unfortunately, in many cases, we tend to have to agree with them.  If experience teaches us anything through working on college funding year after year, it is that the earlier a family gets started on things, the more favorably things seem to end up as the college years begin!

That is not to say that we cannot assist families who have procrastinated a bit (or a lot), but there is no question that things can sometimes get a lot more complicated and challenging in those cases.  We endeavor to help all families who seek our assistance, but it can be a big relief on all sides if families have decided to start early and “play the long game” when it comes to preparing for the money side of their child’s college experience.

It should be pretty clear that college costs are definitely not on the decline in the United States, so with that reality in mind, it is becoming increasingly important for folks to start their college funding process as early as possible.  Undergraduate student loans will be at 5.05% and Parent Plus loans will be at 7.6% as of July 1, 2018.

Over time, we have learned a number of aspects of the college preparation equation that can be started early on – and also have seen how families can benefit from making the decision to stay ahead of the game by starting early.  The “long game” can include elements that extend throughout the high school years, or even before, and other elements that need to be started as early as possible, but within a specific window of time.

In an ongoing quest to help with this effort, this month’s newsletter covers a number of different things that families can consider as part of their planning for a college future for their kids.  Some of them may be things that you can consider now, others will apply directly to the year in which a child applies for college and financial aid, but all of them are important.

One thing you will note is that we make frequent reference to consulting with a College Funding Advisor – and this is because these things require a firm grasp of the process.  There are families who can manage without our help, and some certainly do.  However, we have a track record of dealing successfully with these financial elements and optimizing them for families in a way that most people cannot.  Should you have any specific questions about the tips below, please do not hesitate to call us.  We will be happy to help in any way that we can.

Tip 1: File The FAFSA Early

The old saying that “the early bird gets the worm” bears particular weight when it comes to financial aid. There have been new and positive changes regarding the FAFSA in the past year. For one thing, parents are now able to file on October 1st rather than waiting until January 1st. This new rule will make it infinitely easier for parents applying for next year to get a start on their financial aid process and stay ahead of the game.

It is also important to note that there are schools that distribute aid money on a first-come, first-served basis. They will continue to distribute until those funds are totally exhausted. Additionally, there are currently seven states that currently have a first-come, first-served financial aid policy for state aid. These states are Alaska, Illinois, Kentucky, North Carolina, South Carolina, Vermont, and Washington.

If you are submitting early, this can mean that you need to use some estimates on your application.  Because of this, you simply need to go into the website later to update the estimated information with the more accurate numbers as soon as you have them. The IRS Data Retrieval Tool, however, is also available to insert current data without the need for you to enter and update the information manually.

There are also some schools that will want to use the additional “CSS Profile” form to assess financial aid eligibility. This application requires more information than is necessary for completing the FAFSA. The CSS Profile will also sometimes have a deadline that is different than the FAFSA, depending on the school. Because of this, it is important to check all the details for each school very carefully.

Tip 2: Make Wise Money Decisions

When the FAFSA formulas are applied to your child’s assets, the government can and will assume that a significant portion of your child’s funds are eligible for use for college. The rate at which the assets held by the parents is assessed is maxed out at a much lower rate. Because of this, family funds should be managed in a beneficial way so that they are not placed in the formula and unduly assessed at a much higher rate.

This is something that your college funding advisor can discuss with you, and his or her advice can make a huge difference!  He or she will be able to explain which options are the most beneficial for you and your child, and which will affect your bottom line most favorably.  Learning where funds can be placed and protected will frequently allow a college student to maintain some assets intact while at the same time making him or her eligible for a more substantial financial aid offer.

If your child is very young then you can save in parental savings accounts instead of accounts set up in your child’s name. This will further protect your child’s funds when it comes time for those funds to be assessed in the financial aid formulas.  Discuss these details with your College Funding Advisor for best results.

Tip 3: Explain Yourself – If You Need To

Unexpected things can happen in life – an accident, a death in the family, a divorce, an illness. These are all things that can occur and can cause a disturbance in one’s life and may result in the need to explain extenuating financial or personal circumstances. If you are the main breadwinner in the family and were unexpectedly injured and it required a long recovery period away from work then this is something that could be explained on your FAFSA application. There are many questions on the application on the form but there isn’t a section that is labeled “Extenuating Circumstances.”

For example, if you or your spouse were laid off from work then you could explain this to them in a detailed letter. It is important to provide as much documentation as possible to bolster your claims for consideration. For example, a notice from your company detailing recent layoffs would be the right type of backup information that would be useful to be included.

Tip 4: Spend Some Money – But Not Too Much

Having a lot of money in your savings account is always a good thing!  Well, OK, except for when you are applying for financial aid with the FAFSA. Since the assets will be assessed at the time of filing, sometimes it’s a good idea to whittle some of those assets down so that you have a lower asset base to be assessed when you file. If you have credit card debt, this would a good time to pay it off. Or, you could pay more towards your mortgage. There are a number of options available, and it is good to discuss them with a College Funding Advisor to see which best suits your situation.

Remember that there is a considerable amount that can be sheltered in the formula before it is assessed (approximately $50,000) so this tip is most worthwhile for those who spend a lot and save a lot.

Tip 5: Pay Attention To Your Assets

There are many things that must be reported on your FAFSA. But, not EVERYTHING needs to be reported. For example, bank and brokerage accounts, CDs, mutual funds, college savings plans, stocks and bonds, real estate and other types of investments are included in the reportable assets category.

There are, however, quite a number of non-reportable assets that may provide some much needed flexibility. These non-reportable assets are the equity in your home, annuities, IRAs, 401k plans and other accounts like that and a small business that is owned and operated by your family.

If you have some concerns, you could consider moving some assets over to the non-reportable category. This, of course, can be discussed in detail with your College Planning Advisor who will be able to show you the best ways those assets can be strategically placed in order to maximize your ability to receive aid.

Tip 6: Be Honest!

There are many ways to strategize and plan the best ways to maximize your child’s financial aid benefits. However, being dishonest in any way on the FAFSA form is definitely not the way to do it. Misreporting, misleading or lying about assets or income is a type of fraud and can result in a fine of up to $20,000.

In addition to the fine, any financial aid rewards are forfeited and there is even a possibility of prison time. Needless to say, it is just not worth the risk and it is definitely not the right thing to do. Working with a trusted advisor will result in the best results and will give you peace of mind at the same time.

We have other ways of helping the parents of college-bound students to learn important details regarding the fiscal preparations for college or university studies.  One way we manage this is via our in-person College Funding Workshops.  These workshops, featuring information directly from the finest college funding professionals around, offer a wonderful service to those who are seeking pertinent details regarding the costs of higher education.  These presentations are kept both timely and focused, with current information that is abreast of any recent changes that can affect rising college students and their families.

Our workshops do not require any entrance fee, but to keep groups to a manageable size we do insist on reservations in advance.  If you would like to know more about upcoming College Funding Workshops near you, please contact our workshop crew at 614-934-1515.  These helpful folks can provide all the necessary information about content, workshop locations, scheduling, or any other workshop questions.  They can also assist with reservations, should you wish to make one.

Aside from the workshops, we also provide a written report for parents who prefer to receive their college financial information in written form.  We have titled this report “Nine New Ways To Beat The High Cost of College.” Just like the workshops, it is available to all parents free of any cost or obligation.  To receive a copy of “Nine New Ways To Beat The High Cost of College,” you can call a member of our team at 614-934-1515 and we will send one to you right away.

Until next month,

 

 

 

Startling College Facts for Friday the 13th

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For the past 10 years Sallie Mae and a global research firm (Ipsos) have looked at how America pays for college.  In the 2017 report it was found that students and parents are likely to be sharing the cost of education.  84% of students expect to repaying their student loans and furthermore 21% feel responsible for repaying the loans their parent has taken out.

Another startling fact is that 9 out of 10 families want their child to have a college education but only 4 out of 10 have a plan to pay for it.

Now let’s talk numbers:

  • $1.45 trillion in total U.S. student loan debt
  • 44.2 million Americans with student loan debt
  • Student loan delinquency rate of 11.2% (90+ days delinquent or in default)
  • Average monthly student loan payment (for borrower aged 20 to 30 years): $351
  • Median monthly student loan payment (for borrower aged 20 to 30 years): $203

((Data via federalreserve.gov, WSJ, newyorkfed.org and and clevelandfed.org)

One of the reasons we offer the free workshops and speak at events  is to get the conversations started.  We have found a sort of disbelief when we talk prices of schools and standards to even be considered for acceptance to a preferred school.   Marc will give you an estimate of what your EFC (expected family contribution) that way you have a starting point.  Y’all will discuss the various kinds of aid plus go over the college process. He’ll go over our services, perhaps there will be a fit or if not, you leave will a better idea of the college process.

Please call 614.934.1515 to schedule your free consultation

From the Sallie Mae and Ipsos 2017 Study

For more information:

How_America_Pays_for_College_2017_Infographic

Staying True to your Financial Plan

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By now many of our clients have figured out how to pay for college and in some cases have created a financial plan so that by the time the student graduates, 75% or more of the expenses have been paid.  How about you? Are you sticking with your plan?  Follow thru and accountability are essential for success.  Part of our service is to be that voice of reason to keep you on track.

When was the last time we reviewed your budget?  Time has a way of getting away and it is easy to procrastinate.  We are here to help. We will go over your numbers, check in on your retirement plans and in general catch up. Our goal is to develop a long-term relationship because as you know, clients are like family.  We want to see you succeed.

To schedule a budget review, policy update or in general catch up, email Lisa to schedule an appointment.

 

A Must Read for College-bound Athletes

I ran across this article and feel it is not only relevant but enlightening.

Dear Prospective Student-Athlete,

I received your introductory two-line email and read through it. I must say your first sentence was painfully familiar as you introduced yourself by first name only. I assumed if you were trying to make an impression that you would have paid more attention to punctuation, but my assumption appears incorrect. While your opening email failed to identify your last name, what year in school you are, where you are from, or what position you play, you managed to include your most pressing question as to whether our team is “giving out scholarships”.

A week later, I received a second email with full color resume attachment including your action photos, and a variety of links to related newspaper articles. Each of these items were compiled in an orderly fashion and sent out directly from both your parents’ emails.

While it took a bit to thumb through the long list of your impressive extracurricular activities, please thank your parents for putting this packet together and understand that it would have been far more beneficial for our staff to speak to you personally by way of an old school phone call. As my staff sent correspondence to your personal email, we have received only a return from your parents apologizing and explaining that you are simply “too busy to answer”.

As a word of advice, while many college coaches support parental enthusiasm, initiative taken by the athlete is crucial if you are serious about connecting with a quality program. Our staff explained to your parents that we would prefer to connect with you directly, but they continue to respond on your behalf. This will be a red flag for any coach, so please be aware of this feedback being a possibility from any of your other options.

When you visited the campus with your parents, the first thing I noticed is that they did most of the talking for you. However, when you did speak, you were openly correcting and verbally scolding them when you deemed their information sharing inaccurate. As a coach, an athlete who displays disrespect, especially to their parents, is a red flag in the recruiting game of analysis and observation.

As we toured the campus I took copious mental notes including a short ponder on how you were too busy for a returned phone call or email to our staff yet, your email-ready smartphone was all but attached to your hand the entire unofficial visit.

Upon your departure, our staff reviewed your stats, strength numbers and transcripts. All are impressive, but of course we had to see you compete. Unfortunately, the highlight film you left us with that was edited to perfection to omit mistakes, was unhelpful.

Despite my reservations, I made the trip to watch your game live so I could determine if your resume matched your talent. After observing only a few minutes of the team warm-up, I noted that you were clearly the most gifted on your squad. However, your talent was unfortunately overshadowed by the lack of energy and effort you displayed.

At halftime, the team huddled up and as always when observing recruits, I honed in carefully on your demeanor and body language. I watched you walk in the opposite direction of your teammates and take a seat on the bench away from the group. You did not return to the team circle until prompted by your assistant coach. As the head coach spoke, I observed you break off into a private conversation with another teammate, rather than offering the coach your attention.

In the second half, when you scored I noticed you waited for the other players to huddle around you and celebrate. In contrast, when a teammate scored, you retreated to your position without acknowledging or congratulating them.

You added much depth in the scoring category with some impressive runs but when you made mistakes you became vocal and eager to point out where your teammates needed to improve. You had moments of greatness but they were followed by sporadic lulls of half-hearted effort.

As you are the team captain, I found it disappointing that you did not contribute to the post game team discussion. I watched as your mother brought over snacks and saw that you made no effort to assist her in bringing those large containers of cupcakes from the bleachers out to your 40 other teammates. Last, as the rest of the team broke the field down and put equipment away, you found a quiet spot on the empty bench to text on your phone.

Perhaps as a high school-age athlete, these are behaviors you are simply unaware of. In a world where you are being taught the X’s and O’s of mastering a sport, so much practice and dialogue in character building is diminishing. I realize that you have been told repeatedly by many of your previous coaches that you are amazing in your sport. However, players like you, with similar demeanor are a dime a dozen.

Since you have been a star in your sport for quite a while with coaches and parents who have clearly allowed these details to slip through the cracks also, you are not entirely to blame. However, please bear in mind, none of this makes you a bad person only potentially, a bad teammate. The attributes I am judging you on happen to be far more important than any of your trophies, all-star selections or travel team accolades.

There is no doubt you are talented. However, from my experience, here are the 10 things I know about athletes like you.

1. Your incredible talent is the same talent that in your sophomore year of college will suddenly suffer an ego blow when a new freshman arrives with equal or greater talent. Battling your feeling of ownership over your position and feeling threatened is inevitable.

2. Rather than working hard to better your game, you are more likely to be the athlete that is constantly comparing your success to others rather than focusing on growth for yourself. This will become a tedious and exhausting process for your coaches and team to constantly have to reassure you of your self worth and value.

3. As those around you put in the work, rather than be grateful to be surrounded by a committed group of individuals who share common goals, you are more likely to resent them and seek out allies to split the team support in half and create locker room chatter.

4. In the event you see time on the bench you may not be emotionally prepared, willing to engage or support the teammate who is starting over you. Also, it is likely you will find it challenging to support the success your team obtains when they win without you on the field.

5. When you become unhappy with your own performance you are more likely to blame your coach, teammates or anyone other than yourself.

6. Since your previous coaches and adult guidance have fallen short in emphasizing the importance of accountability, you will likely be that much more of a challenge for our staff and program to work with.

7. Aside from your time in college, the end goal of being a student-athlete is to get a degree while playing a sport you love. If your goal as an athlete-student is to get a starting position while earning a degree you tolerate, your goals will be out of alignment with the program from the start.

8. Athletes who truly work for their program become stronger people who work well with others and are able to admit their weaknesses in order to improve. If I am forced to spend your first two years of college trying to catch you up on late lessons of being accountable and respectful, it is probable you will spend your second two years resenting me which ultimately leads to an ambush of bad senior exit interview feedback.

9. Athletes are treasured in the workforce and therefore, you are likely to land a job after you graduate. However, if you fail to get along with those in our program you are prone to carrying this over into your professional life. If you are unhappy with your boss or coworker you will be more likely to find yourself unequipped to work through your problem without soliciting complaining or quitting.

10. By choosing not to recruit you, I am saving my team culture. On the bright side, perhaps if you are rejected this will be your first opportunity to face adversity and grow from it.

I recognize that it is possible you could change with guidance by coming to our program. However, the investment on my end presents high risk to the health of team morale, my livelihood and sanity. In my younger coaching years I believed far too often that many like you were capable of transformation. Over time, without consistent support from the powers that be, I have lost my fair share of those battles and have watched colleagues lose their jobs when athletes like you are unsatisfied. I am a great coach who takes so much of my success and failure home with me at night and am actively making the choice to choose ethics and attitude over talent.

Today I crossed you off my list as a potential recruit despite your obvious talent. Over the thousands of hours I have spent away from my family recruiting, answering emails, calls, official visits, watching game film and logging contacts and evaluations, I have learned from my mistakes. As a result, although the athlete playing right next to you has half the stats and three quarters of your speed, they are supportive, determined and selfless. This kind of athlete, will be our next signee.

Please take these words and advice into consideration and I wish you all the best.

Coach

Source: Fearless Coaching, An Open Letter May 16, 2016.