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First steps in the College Admissions Decision

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“The Most Important Criteria for
Selecting a College or University”

There are a number of factors to take into consideration when making a college admission decision, and we will discuss them in more detail in this month’s newsletter. We are convinced that it is important to dedicate this blog to this topic because it is one of the most important decisions that a young person can make – and also one of the most personalized decisions. Choosing a school because one’s friends want to go there, or because the college (or its football team) are considered “cool” this year, or because of a famous name or general academic reputation, is simply not good enough to allow for a proper match.

This month, please have a look at these criteria for making a well thought out college decision. Our experience has shown that these are truly important topics for discussion as your student prepares for college, no matter how far along the process they might be at this point!

There are many questions to be answered in order to come to the right conclusion regarding this question. Here are several questions to get started:

1) Is A Private Or Public College Better?

Private colleges sometimes get a bad rap because everyone thinks that they are too expensive to attend. That is not always the case, however. Funding for private colleges can often exceed what you might get at a public institution. Private colleges also have the reputation of being extremely selective about the incoming students. That is also not the case. Some private colleges are extremely particular, but not all. Public colleges are often (on paper) less expensive than private colleges. They tend to be cheaper to attend than private institutions and that is often the case. It is worth the effort to apply to both private and public colleges, and find the ones that are the best fit, either way.

2) Where Is The School Located?

Much like in real estate, location-location-location is extremely important. It sets the scene for the environment for the following four years (at least). Some students find it’s very important to be close to home. If this is important to your child, then trying to find something within the area in which you currently live is vital.

The downside to this option is that your child might not have access to the best colleges because they are simply out of range of where they’d prefer to be. This is extremely personal, however. Some students want to stay close to home because the impression is that out-of-state schools will be far too expensive. In some cases, out-of-state schools can be extremely affordable.

3) How Is The Learning Environment?

Everyone has a particular style or way of expressing themselves. Colleges are no different. Although it is hard to convince people otherwise, applicants really shouldn’t concern themselves too much about rankings (based on a variety of perhaps irrelevant statistics) or a college’s overall selectivity. The college environment will have a lot to do with how well your child will be able to learn. Is a school that is known for being extremely academically rigorous the right choice for your child? If your child learns best under those circumstances then, absolutely, yes. If your child thrives when s/he feels comfortable academically and able to push him or herself at a pace that is more self-managed then a school with more academic flexibility could be the ideal place for him or her.

4) What’s The Student-to-Faculty Ratio?

Not all students thrive in an environment where they are one of 400 students in a large lecture with little access to the teacher for questions or follow-up. If your child learns better in smaller class settings, then that is something that’s important to consider. Larger schools will often – but not always – mean larger classes. Check each school to find out what the student to faculty ratio is. This will be especially important if your child has already decided on a major. Core classes tend to be larger but classes within a particular major may not be so large.

5) Is This College Affordable?

Affordability is something that is important to nearly every parent of a child ready to enter college. It is a concern for many parents as college tuitions seem to rise at an exponential rate. What happens and often scares off many parents is the ‘sticker price’ of any college. To be fair, these prices are often quite shocking. The good thing to remember, however, is that nearly no one pays the published price.

Many parents are concerned about whether they might be qualified for aid. It is important that every incoming student apply for aid, regardless of financial circumstances. One really never knows how much one is eligible for aid unless s/he applies. Colleges vary widely on their aid packages so it is essential to apply to a variety of schools, both public and private, and then make a decision after receiving the financial aid package.

Students can also be eligible for scholarships. This is highly coveted aid because this is money that does not need to be paid back. This varies depending on the talents and capabilities of the students. It’s a good idea to do research for every school to determine what types of scholarship opportunities are available for incoming students. Regardless, it is an extremely good idea to speak with a college financial advisor with regard to financial aid and financial preparation for college in general.

6) What Are The Job Prospects After Graduation?

Getting into and through college can be difficult enough. Entering the job market after college can seem even more daunting. It doesn’t have to be that way, however. There are some colleges that have excellent career services programs and even internships and job placement programs within excellent industries. Others will have special programs for professional schools like law, medicine, business, or dentistry.

These types of departments can help students make the transition from student to employee (or graduate/professional student) to help ease the burden. It’s a good idea to research which schools offer these types of programs to assist your child in entering the workforce as smoothly as possible.

As you and your student work through these criteria to seek the schools that make the most sense for a bright and rewarding future, we know that it can sometimes be challenging to come up with the right colleges and universities for a personalized fit.For this reason we stand ready to serve with insights and suggestions, if you feel that a bit of expert analysis could be of assistance in this effort. After all, it is what we do best!

Until next month,

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To FAFSA or not to FAFSA?

The FAFSA opened up this morning and we’d like to take this time to go over a few basics of financial aid. First we will talk background, next process and finally some general guidelines.

The FAFSA started back in 1965 as part of the higher education act. It is a standardized approach for institutions to structure need-based aid. From the FAFSA federal loans and grants are offered. The loans are broken down by parent and student. Student loans are further divided in to subsidized and unsubsidized. If you consider taking the loan, note there is a process to apply as well as have the funds sent to the school.

The FAFSA process starts with the FSA IDs. A parent and the student need to create FSA IDs. This involves entering basic information, setting up security questions and verification. Take your time, if you don’t completely create a FSA ID, you won’t be able to begin the FAFSA. One of the most frequent questions is why does parent need an FSA ID for each child? The parent creates one FSA ID which can be used for different children who also have their own unique FSA ID.

The FAFSA is available via an app or on the web. Before you begin gather the necessary information:

  • Parent Federal Tax Forms & Supporting Documents
  • Student Federal Tax Forms & Supporting Documents
  • Account balances for liquid assets (checking/saving accounts) , investments and basic property information.

Here are things we have found useful. Always create a save key, that way you don’t have to finish it all at once. Read each question carefully. Be sure to your mobile phone number as a way to access your FSA ID so when you forget that password next year, it will be easier. And most importantly, fill out the FAFSA even if you don’t qualify for need-based aid because there are some schools who may require it for merit aid.

Financial Decisions that can sink your college funding plans

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“Well-Intentioned (Or Uninformed)
Financial Decisions That Can Sink
Your College Funding Plans”

Optimally preparing for the requirements related to future academic endeavors is no easy task… as college funding professionals who have access to the best and most accurate information regarding the admissions process, we have garnered the experience and understanding for these challenges!

However, we also know that parents can make some very damaging decisions if they make their financial decisions on their own, or if they decide to take some poor advice that would make sense under other circumstances… but NOT when considering the college financial situation. We are certain that it is important to make the best decisions with all factors being considered, and there are a number of excellent reasons for making sure that this is so.

Preparing for college funding does not always follow the traditional common sense regarding savings and planning, because simply put, the rules are different (and they tend to change a lot, making an already confusing situation even more puzzling for most people). For this reason, it makes all the sense in the world to make certain that the correct rules are being followed, and that the efforts are not going to actually turn into more of a problem later on. There are a number of things that can interfere with a family’s best efforts.

For this month’s newsletter, we are presenting some common errors made by well-meaning parents and families when managing these details. Should any questions about these college preparation subjects pop up, or other similar issues arise, please be sure to give us a call. We have all of the pertinent details in these areas and provide the beat and most current information when it comes to managing college preparation efforts.

Please make sure that you do not fall victim to these well-intentioned problems!

1. Not Understanding Exactly What The Financial Aid Offer Says

This seems like it would not be a problem, but, sadly, for many families it is. Many families will receive an aid package from a college and not fully understand the nature of the aid stated in the package. Colleges are not always very clear about making the distinctions between loans and grants and that lack of clarity can get incoming students and their parents into trouble.

Many of the packages do not fully disclose interest rates or reveal the average monthly payments, etc. This can make it very difficult for parents to understand exactly what is being offered to their child. Moreover, many parents will look at the loan offer and make the assumption that it will reduce the cost of the tuition. This is, obviously, not the case. Only grants will reduce the cost of tuition and other college fees.

This lack of clarity may or may not be intentional on the part of colleges. In many cases, mathematicians are the only ones who can fully decipher a financial aid offer and calculate the ultimate cost over time. One of the ways to solve this problems is to ask questions.

Parents should ask whether or not loans will be ‘front-loaded’ meaning that the bulk will be offered during the first year but taper off over the following years. Finding out where the loan money is originated is also important to know.

Ultimately, if it is not explicitly shown… then be sure to ask and verify the answers. It is the only safe course of action.

2. Reporting Assets Incorrectly

Many families end up ‘over-reporting.’ This means that parents will include assets on the FAFSA (Free Application for Federal Student Aid) that are not actually required on the application. Many parents will state their retirement assets and their home equity on the FAFSA when that is actually not a requirement on the form.

Look very carefully on the form to determine exactly what is and is not required. Or, better yet, ask for your help from your college funding counselor who can guide you in the right direction and help you optimize your situation.

3. Co-Signing for a Student Loan Without Full Understanding

Parents will often gladly co-sign on a loan for their son or daughter thinking that it will release them from any obligation to that loan. That could not be further from the truth. Any person on a loan is equally responsible for the repayment of that loan. If a son or daughter fails to make payments on the loan, then the repayment obligation automatically falls to the co-signer. For parents, that means that they are on the hook as a co-signer.

Many parents think that because they are not the primary person on the loan that it absolves them from making any payments on that loan. It just simply isn’t so.

It is important to understand exactly what is being signed – especially when it comes to student loans. Those obligations can almost never be discharged in bankruptcy, so students (and sometimes parents) will certainly be responsible for them.

4. Opting For a Private Loan Instead of a Federal Loan

Private lenders can be pretty tricky. Many interest rates that are advertised lately are as low as around 3%. Those low rates can look very attractive to prospective students and their parents. When compared to unsubsidized Stafford loans, which might be around 6 %, it can seem that one is getting a really good deal. That does not tell the full story, however.

The main difference with private loans is that the loans are underwritten. This means that the loan must be scrutinized by an underwriter and will often require a cosigner. The rates are often a ‘come on’ and do not reflect the actual rates that will be received after going through the loan approval process.

Another drawback is that these loans are often variable. That means that after the low introductory rate, the loan will go up in interest even to the double digits. The loans also do not have the same repayment options offered to those who get federally funded loans. The repayment process is often much more strict and that can be a strain on newly graduated students who do not have the income to make the full payments required on the loan.

5. Saving “Too Much”

The old adage, “A penny saved is a penny earned,” takes on an even stronger meaning when it comes to college funding – and the rules for college funding can even turn this saying right on its ear. Let’s say, for example, that your child has worked hard over many vacations and has $10,000 saved in a savings account under his or her name. That is just terrific, right? Well, maybe… but not so fast.

About 20% of those hard earned savings could well be added to the EFC (or Estimated Family Contribution) when the fed begins calculating eligibility for aid… which can often mean that the overall amount of financial aid eligibility is actually adversely affected by the student’s own hard work and savings!

Now, there are other strategies to help work around this sort of situation legally, including continuing to save for your child’s education – but it may be worth looking into doing so under a parent’s name in another bank account. This is definitely a case where a chat with a professional college funding advisor can make a huge difference.

As you can see, making wise and prudent decisions regarding higher education financial planning – as well as college application strategies – can be an extremely challenging endeavor. It only makes sense to approach this effort teamed up with a college funding professional. Doing so allows families to understand and select the optimal strategies that correspond to their own financial and academic situations, meaning that the chances of success (both financially and academically) will climb.
All of the actions discussed in this month’s newsletter are not rare – they happen each and every year to unsuspecting college-bound kids and their parents – and we view it as part of our professional responsibility to assist families in avoiding these problems, as well and many others like them. We have a number of tools to assist in this effort.
One of our most dynamic and effective options for the education of parents with high school kids who will attend college is through in-person attendance at one of our College Funding Workshops. These presentations are moderated and instructed by some of the finest college funding professionals available. We see these workshops as a dedicated, in-person option for parents who wish to inform themselves with the best informational set about all manner of financial “dos and don’ts,” as well as governmental regulations related to their family and their higher education planning.

Our workshops have no admission cost, and are being held in larger venues to allow for social distancing. If you don’t want to venture out quite yet, we have a short virtual talk which runs daily. Despite having no admission fee for attendance, we must make certain that each event has a group size that manages both space limits and our experiences with creating a successful learning environment. Because of this, we insist on advance reservations for the best possible planning and delivery of a quality event. Thank you for understanding.

Until next month

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,

marc signature

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,

 

 

 

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.