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Impact of financial decisions on college funding

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“Top Financial Decisions That Should NOT Be Made Without Reviewing Effects On College Funding”

It is hard to believe that another year is coming to an end, and the first segment of the school year is simultaneously winding down as well. As one calendar year ends and a new one begins, it is natural to spend some time both thinking back on the past twelve months, and looking forward to what can be expected. We do this as well, both personally and in our professional capacity as college funding professionals, and it is especially important for us because there are usually some changes in store that we will need to keep in mind in order to advise the parents of future college students optimally.

These alterations to the college funding world can involve elements of appropriate decisions regarding financial planning – based on new laws or rules about financial aid, for example – as well as maintaining a proper understanding of the dynamic college funding process. We find that many of these skills are important for parents and students to understand as quickly as possible, so that we can help them to best manage the application process to college and make the financial side of things more manageable – and this is the case regardless of where a high school graduate ends up studying at the next level.

One of the biggest challenges to making that undergraduate degree a reality actually starts long before a young person ever sets foot on campus for his or her freshman year at college or university… yes, gaining admission to a dream school is a huge challenge, without any question, but the hurdle that precedes even starting college studies is the inherent financial challenges of meeting the growing costs of higher education. The foundation for this task is laid in the years leading up to college, not right beforehand. For this reason, it is vital that parents make wise, informed, and strategic financial decisions during the high school years. All of these decisions will come to bear when it is time for the college years to begin, and the better a family plans these things the better they will find their overall financial circumstances on that happy day of university matriculation.

Because college funding advisors operate professionally with these kinds of facts on our minds almost constantly, it can be something that we almost take for granted. The fact is, however, that most families do not know precisely what financial choices will affect their future college student, or how they can make decisions that will have a positive effect on things later down the road.

As college funding experts with valuable experience observing college students and their families preparing for the college years, we have decided to focus this month’s newsletter on some of the most important financial decisions that can affect your child’s college experience. Bear in mind that each family has an individual circumstance that is unique to their situation, so the best course of action in planning and managing family financial decision during the high school years is to simply ask questions of the experts.

PART-TIME EMPLOYMENT

Many students are excited to be able to start working part-time during their high school years, or even during the summers to make extra money (often saving money for college, but of course also for other recreational reasons). This is a two-edged sword when it comes to financial ramifications. While it will, indeed, increase the income and savings of the student and allow more freedom and flexibility in many cases – not to mention demonstrating a strong work ethic to admissions boards – the simple fact is that making too much money on his or her own can adversely affect the availability of college funding for a student later on.

Now, don’t get us wrong… there is nothing wrong with working part-time as a student, assuming that it is possible for him or her to manage the academic schedule properly and still keep up with class work and activity responsibilities. However, it behooves any high school student to make doubly certain that he or she is not undermining his or her future college funding opportunities by doing so.

One of the best ways to make sure that work and earnings will not be a problem later is simply to ask a qualified college funding advisor in advance. These are not the types of decisions that should be made lightly, and there is no question that they can lead to financial ramifications later!

REAL ESTATE TRANSACTIONS

While sometimes a move and change of homes is unavoidable for work or family reasons, it is important to realize that purchasing a new house during the latter portion of high school could potentially wreak havoc on a student’s future college funding options. Real estate is, of course, one of the largest financial transactions that most families will ever make, and these purchases are frequently made without much thought about whether or not getting a new home could have an effect on something like the kids’ college!

Well, it absolutely can have an effect – and we are not talking only about monthly budgeting and a mortgage payment. In fact, it is of extreme importance that any real estate purchases (whether for the family residence, for investment purposes, or for a vacation home, etc.) be made strategically when it comes to their timing and a child’s start of college or university. This can actually be one of the most important decisions that a family makes with regard to their financial preparation for the college years.

A college funding advisor can assist in providing an overview of the best possible timeline for real estate activity, as well as what sorts of purchases can have an affect college funding. The details change from time to time, and the circumstances are different for each family, but there is no question that this is an important element that must not be ignored when it comes to optimizing college financial flexibility!

FAMILY CIRCUMSTANCES

It is a delicate subject, to be sure, but families with pending separations or divorce proceedings must also be aware that there are financial implications for these types of changes, as well. Students entering college will often be considered as having access to financial support from both parents, regardless of whether or not this is actually the case.

Because of this reality, it can be of utmost importance that colleges and universities understand precisely where things stand for a student applicant on the financial front – especially when it comes time for them to make a financial aid offer.

Note that this is NOT always a straightforward nor an easy process – we have seen some that have been almost ridiculously complicated on the side of the institution not grasping vital information. Therefore, the assistance of a college funding advisor can be most helpful in dealing with college financial aid offices, admissions offices, and other institutional representatives. Having someone who knows the ins and outs of the process AND understands the general realities of a familial situation can be one of the most valuable supports available for a student and his or her family.

LUXURY PURCHASES

Not every family lives in such favorable financial circumstances that big purchases are “the norm,” but we have seen that a fair number of families may find themselves able to afford something nice as the kids get a little older. This is an exciting development and it is often the result of many, many years of hard work and sacrifice. As the children get ready for graduation from high school and the beginning of college, though, we hasten to urge insight and caution before doing so!

The years right before college are generally considered the wrong time to make large purchases, such as new cars or luxury items like boats (and many other similar things). Your college funding advisor can assist you in determining when the best time could be for making these kinds of larger purchases to enjoy… it would be a shame to procure a dream item and then find that the purchase adversely affected a student’s college funding, and this is all too frequently a problem that families discover after the fact.

It is far better to discuss these moves with a college funding advisor in advance, so as to avoid any potential problems later!

This final newsletter this year has offered some important information to consider regarding each family’s financial background and future plans. Should any questions arise in these years of preparation for college, please remember that we are ready to with all elements of the college application, admission, and financial preparation processes. As expert educators ourselves in these specific areas, we tackle these jobs – especially the college funding parts – in a couple of different ways.to your busy schedule.

 

Happy Holidays,

 

 

 

 

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.

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

Cost-Saving Strategies for College

That You Can Begin to Implement NOW

At Midwest College Planning, we never stop thinking about how to save families money on college. If you’ve followed us for any amount of time, you already know that we believe there’s no wrong time to start planning—and no single path to success.

Saving on college costs is about more than just smart financial planning (though that’s a big part of it). It also means helping students and parents develop habits and strategies that ease the financial burden—before, during, and even after college.

Paying for college can feel overwhelming. But there are practical ways to reduce costs—and we’re here to walk you through them.


Strategy 1: Pool Your Resources Early

If your child is receiving financial help from grandparents, relatives, a part-time job, or even birthday checks from Aunt Susan, it all adds up. Make a habit of tracking every dollar from every source—because when everyone knows what’s available, everyone can work from the same game plan.

Here’s what to include in your budget:

  • One-time contributions: Gifts, savings, and other non-recurring funds

  • Monthly income: Earnings from a job or allowance

  • Financial aid relief: Grants, scholarships, and other school-related support

When you create a clear picture of what you have, it’s easier to see what you need—and to avoid surprises later.


Strategy 2: Don’t Fear the Budget

Yes, we said it: budget. Creating and sticking to one is the only reliable way to manage college costs. We’ve seen it make or break a family’s financial peace of mind.

When building a college budget, make sure to cover the following categories:

  • Income: Total all one-time and monthly sources

  • Fixed expenses: Rent, tuition, utilities—same every month

  • Variable expenses: Groceries, books, supplies—change monthly

  • Necessities: Non-negotiables like textbooks, laptop, school fees

  • Wants: Nice-to-have items that make campus life more comfortable

  • Discretionary funds: A set amount for fun—without going overboard

  • Savings: Yes, even in college! Emergencies happen, and saving is key

A realistic budget helps students build healthy money habits that last long after graduation.


Strategy 3: Cut Costs in Everyday Life

You don’t have to sacrifice fun to save money. With a little creativity and planning, students can trim costs in ways that add up fast.

Here are some of our favorite, student-tested ways to save:

  • Rent or buy used textbooks (don’t pay full price!)

  • Set a weekly limit for eating out, and use a meal plan or cook at home

  • Pay bills on time—avoiding late fees is free money

  • Skip cable; stream shows on a laptop

  • Sell items on eBay or Facebook Marketplace for extra cash

  • Take advantage of free campus events—movie nights, club activities, and more

  • Brew your own coffee instead of daily café runs

  • Only borrow what you need in student loans

  • Bike or walk on campus instead of keeping a car

These small decisions can make a big difference—especially over four years.


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

Don’t worry—we’re not suggesting skipping college. In fact, we’re here to help students finish strong. But more and more families are realizing that a degree doesn’t have to take four years—or cost a fortune.

Some students are able to graduate in three years, saving thousands in tuition and living expenses. How?

  • Take Advanced Placement (AP) or dual-enrollment classes in high school

  • Enroll in community college for general education credits

  • Consider summer courses to stay on track or get ahead

  • Start at a lower-cost college and transfer to a four-year school

As long as you confirm that credits will transfer, this strategy can lead to big savings—without sacrificing your child’s educational goals. After all, the diploma only has one school’s name on it!


Paying for college doesn’t have to mean going broke.
With the right planning, the right mindset, and the right guidance, your family can make smart choices that lead to a brighter (and more affordable) future.

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.