As of the date of this writing, we're in the throes of college application season for high school seniors. No doubt your little student is busy like a beaver with college apps, SAT/ACT prep., drafting essays and regular schoolwork!
But you've got to roll up your sleeves and get to work, too! Because if you have not yet finalized your plan to pay for college, it's almost too late.
The FAFSA will be available after January 1, 2010. It's not too far in advance to start thinking about how you're going to look on paper to the financial aid officers who will review your application.
Here are some common mistakes to avoid:
* Not knowing the "priority" deadlines for filing. Most schools want the forms in by March 1 or March 15. You should get yours in end of January, early February at the latest.
* Disclosing your retirement account values.
Don't do this when the form asks you for your investment information. Although it says very clearly in the directions that retirement account values need not be included, many bleary-eyed parents still do so.
* Speaking of investment information, you should know that, in general, child assets count against you "more" than parent assets! Yup. As unfair as that may seem, them's the rules.
* Some assets don't count against you at all.
Not just retirement accounts. Read the rules carefully.
And here's the biggest mistake:
* Not applying because you think you
won"t qualify because you earn too much.
Don't fall for that one - six-figure earning families regularly receive five-figure financial aid awards these days. Colleges are starting to wake up to the plight of the "forgotten middle class."
I hope you print these tips and refer back to them when you fill out the FAFSA in a couple of months.
But these tips are just scratching the surface of what you really need to know about how to pay for college.
I strongly urge you to attend on of our upcoming free workshops on college funding strategies:
There"s one this Saturday morning in Pembroke Pines and one next week in Pinecrest. We're about 55% full in Pembroke Pines, so don't dilly dally!
Your College Planning Pal,
-Andy
P.S. Would it help if I told you where to sign up?
www.LearnCollegeFunding.com
Thursday, October 15, 2009
Tuesday, August 18, 2009
Tuesday, August 11, 2009
What the Hell is College Pete Doing In There With That Student?
What on God's green earth is College Pete doing in there with those students? A sneaky behind the scenes look at what you should be doing with your college - bound children!
Wednesday, August 5, 2009
College Pete on Financial Aid's "Secret" Timing
Here's a sneak preview of the first post for the FinanciaAidBuzz - a blog site that we're building out. This video features college funding expert "College Pete" Ratzan walking you through the "secret" timeline of financial aid...what and when college financial aid officers will be looking at to determine how much money you'll receive in financial aid! Caution - you may be shocked by what Pete has to say! More info at our main website, CollegePlanningAdvice.com!
Tuesday, August 4, 2009
Friday, July 31, 2009
Thursday, July 30, 2009
Tuesday, June 16, 2009
Three questions you must ask!
Here's a short, 3 minute (and change) video about the three questions you must ask every college years before you apply for financial aid. Check it out so you're not blindsided when it's too late!
Visit our website for more info on other questions you must ask re: financial aid, the FAFSA and other college planning topics! (If the link does not work, cut and paste this into your browser:
www.CollegePlanningAdvice.com)
- "College Pete" n Andy
College Planning Specialists of Florida
1825 Main Street
Weston, Florida 33326
www.CollegePlanningAdvice.com
*For more information on our free, community workshops, please visit:
www.CollegePlanningAdvice.com/events
www.CollegePlanningAdvice.com)
- "College Pete" n Andy
College Planning Specialists of Florida
1825 Main Street
Weston, Florida 33326
www.CollegePlanningAdvice.com
*For more information on our free, community workshops, please visit:
www.CollegePlanningAdvice.com/events
Friday, June 12, 2009
Free Advice Turns $9,500 into $37,500
Did you know that one little piece of free
advice turned $9,500 into $37,500?
A short while ago, a successful, well-
known Miami entrepreneur attended one
of "College Pete's" free community workshops on
college funding.
This woman, I'll call her Amy, listened
attentively and took notes. She learned
information such as:
* The three questions you must ask each
college years before you apply;
* The "double-secret" formula used by
the financial aid offices to determine how
much aid you'll receive; and
* What to do if you feel like you got stiffed
by the financial aid office.
Amy walked away from that workshop a
determined woman. Her daughter had received
a paltry $9,500 award from a prestigious
university in the Northeast, but felt she
deserved more - a whole lot more.
Amy took one simple strategy that Pete
shared at the workshop and tried to implement
it with the financial aid office at this university.
She recently emailed Pete the result:
A financial aid package worth $37,500!
I bet you're wondering what the "golden
nugget" from Pete's lips was, right?
He'll tell you at the next workshop. He's
holding two this month - one in Weston,
one in Miami.
If you're stressed about how the heck you'll
afford to pay for college, especially given
the latest news about tuition hikes, you should
register now before it's too late. Seats
tend to fill up quickly.
www.CollegePlanningAdvice.com/events
Amy felt that this tip literally changed her
daughter's life. Don't miss this opportunity to do
this for your son or daughter. Claim your seat
today.
For more information, visit our website,
www.CollegePlanningAdvice.com.
advice turned $9,500 into $37,500?
A short while ago, a successful, well-
known Miami entrepreneur attended one
of "College Pete's" free community workshops on
college funding.
This woman, I'll call her Amy, listened
attentively and took notes. She learned
information such as:
* The three questions you must ask each
college years before you apply;
* The "double-secret" formula used by
the financial aid offices to determine how
much aid you'll receive; and
* What to do if you feel like you got stiffed
by the financial aid office.
Amy walked away from that workshop a
determined woman. Her daughter had received
a paltry $9,500 award from a prestigious
university in the Northeast, but felt she
deserved more - a whole lot more.
Amy took one simple strategy that Pete
shared at the workshop and tried to implement
it with the financial aid office at this university.
She recently emailed Pete the result:
A financial aid package worth $37,500!
I bet you're wondering what the "golden
nugget" from Pete's lips was, right?
He'll tell you at the next workshop. He's
holding two this month - one in Weston,
one in Miami.
If you're stressed about how the heck you'll
afford to pay for college, especially given
the latest news about tuition hikes, you should
register now before it's too late. Seats
tend to fill up quickly.
www.CollegePlanningAdvice.com/events
Amy felt that this tip literally changed her
daughter's life. Don't miss this opportunity to do
this for your son or daughter. Claim your seat
today.
For more information, visit our website,
www.CollegePlanningAdvice.com.
Thursday, June 11, 2009
It's gonna cost me HOW MUCH????
"College Pete" and I hear that question virtually
every time we give our community workshops
on college funding. Thanks to the latest news
from FAU and other colleges who have decided
to jack their tuition by 15% this year, practically
every parent of a college-bound child is
buzzing about college costs now. This is a good
thing.
See, most parents don't really focus on the
cost of college until their children's senior
year. This is a mistake.
Why?
You wouldn't shop for any other major
purchase without having some idea of the price
before-hand, would you? A car? A house? A
Jack LaLanne Power Juice-o-matic?
Do you think that college tuition is the only
cost you'll pay for your little Einstein?
You're dead wrong.
Tuition is only a fraction of the picture. A
small fraction at that, in some cases.
Kid's gotta eat, right? And live somewhere?
What about books, health insurance, auto
insurance, gas, even spending money for
"personal" expenses (some would call this
"beer money.")
And then there are the fees. Oy, those fees!
So you'd better get a handle on ALL of these
costs looooooong before your child even
thinks about applying.
Most colleges publish their "total cost of attendance"
for one year of college, per child, on their websites.
Typically, they also describe their financial aid
policies.
Do your research.
We hold free community workshops around
South Florida - Weston and Miami this
month; other locations include Pembroke
Pines, Davie, Coral Springs, Parkland, Boca
Raton and elsewhere. Sometimes we
even hold webinars.
Please click here to view our upcoming
schedule - we typically book up a few days
before each workshop so you should
pre-register before it's too late:
www.CollegePlanningAdvice.com/events.
Hope to see you there!
every time we give our community workshops
on college funding. Thanks to the latest news
from FAU and other colleges who have decided
to jack their tuition by 15% this year, practically
every parent of a college-bound child is
buzzing about college costs now. This is a good
thing.
See, most parents don't really focus on the
cost of college until their children's senior
year. This is a mistake.
Why?
You wouldn't shop for any other major
purchase without having some idea of the price
before-hand, would you? A car? A house? A
Jack LaLanne Power Juice-o-matic?
Do you think that college tuition is the only
cost you'll pay for your little Einstein?
You're dead wrong.
Tuition is only a fraction of the picture. A
small fraction at that, in some cases.
Kid's gotta eat, right? And live somewhere?
What about books, health insurance, auto
insurance, gas, even spending money for
"personal" expenses (some would call this
"beer money.")
And then there are the fees. Oy, those fees!
So you'd better get a handle on ALL of these
costs looooooong before your child even
thinks about applying.
Most colleges publish their "total cost of attendance"
for one year of college, per child, on their websites.
Typically, they also describe their financial aid
policies.
Do your research.
We hold free community workshops around
South Florida - Weston and Miami this
month; other locations include Pembroke
Pines, Davie, Coral Springs, Parkland, Boca
Raton and elsewhere. Sometimes we
even hold webinars.
Please click here to view our upcoming
schedule - we typically book up a few days
before each workshop so you should
pre-register before it's too late:
www.CollegePlanningAdvice.com/events.
Hope to see you there!
Tuesday, June 9, 2009
SAT myths
Pete and I just recorded a free video, "8 SAT Myths." It will be available on our website, www.CollegePlanningAdvice.com in the next day or so. Please visit our site if you're interested in this, or other college planning (like financial aid!) topics!
- Andy
- Andy
Friday, June 5, 2009
Florida's official tuition hike...and what do do about it
It's gonna cost how much?
From the "Insult to Injury Department," Florida's state universities are going to cost more. A lot more.
Governor Charlie Crist signed into law a 15% tuition increase for all state universities, to compensate for a budget shortfall faced by the state university system. The same shortfall that forced classes and faculty, administrative layoffs, larger student-faculty ratios, lower professor salaries and frozen enrollment.
The annual 15% increase will continue until Florida’s tuition, currently the lowest in the nation, is on par with the national average. This will take years to achieve, if it ever is, so we can expect a 15% yearly increase for the foreseeable future.
Great. what about Bright Futures?
To make matters worse, the Bright Futures scholarship program will not cover the increase. Parents with high achieving kids will now have to fork over the difference created by the tuition hike.
At the same time, Stanley Tate, acknowledged as the "father" of Florida Pre-Paid College program (it's named after him), warned that the tuition increase will kill the pre-paid program, making college unaffordable for Florida’s families. He's spent a reported $500K in full page newspaper ads urging consituents to oppose the tuition hikes, but to no avail.
So what's the best way to deal with these official college cost increases? Through the financial aid system.
Strangely, more than 53% of eligible families never even apply for financial aid! Yes, you read that right - more than half of families that deserve financial aid never even bother to apply!
Why? Here's a clue, directly from the lips of Secretary of Education Arne Duncan (Harvard grad and Obama pickup hoops buddy): "You basically need a Ph.D to figure that thing out."
What's "Jump Shot Arne" talking about? The FAFSA - the federal form used to apply for aid. A lot of parents are intimidated by that form. It's long and complicated and full of landmines, so we understand.
But "College Pete" and I think there's one more, big reason why most eligible families don't bother to apply. It's because they think they won't qualify, because they're middle class families. That's just flat out wrong, but this letter is long enough already so we won't get into it.
Here's the bottom line - your "College Bailout" has been right under your nose the whole time - the Financial Aid system. Everyone should apply for financial aid. Period.
Best,
"College Pete" and Andy
P.S. We host free community workshops for parents of college-bound teens. If you’re stressed about how you’re going to cope with rising college costs, you owe it yourself to come. We'll go over the "secret formula" used by the FAFSA to determine how much aid you'll receive, and whether you can improve your odds. Register at:
www.collegeplanningadvice.com/events
P.P.S. Bring a friend if you like! Just forward this blog onto them.
From the "Insult to Injury Department," Florida's state universities are going to cost more. A lot more.
Governor Charlie Crist signed into law a 15% tuition increase for all state universities, to compensate for a budget shortfall faced by the state university system. The same shortfall that forced classes and faculty, administrative layoffs, larger student-faculty ratios, lower professor salaries and frozen enrollment.
The annual 15% increase will continue until Florida’s tuition, currently the lowest in the nation, is on par with the national average. This will take years to achieve, if it ever is, so we can expect a 15% yearly increase for the foreseeable future.
Great. what about Bright Futures?
To make matters worse, the Bright Futures scholarship program will not cover the increase. Parents with high achieving kids will now have to fork over the difference created by the tuition hike.
At the same time, Stanley Tate, acknowledged as the "father" of Florida Pre-Paid College program (it's named after him), warned that the tuition increase will kill the pre-paid program, making college unaffordable for Florida’s families. He's spent a reported $500K in full page newspaper ads urging consituents to oppose the tuition hikes, but to no avail.
So what's the best way to deal with these official college cost increases? Through the financial aid system.
Strangely, more than 53% of eligible families never even apply for financial aid! Yes, you read that right - more than half of families that deserve financial aid never even bother to apply!
Why? Here's a clue, directly from the lips of Secretary of Education Arne Duncan (Harvard grad and Obama pickup hoops buddy): "You basically need a Ph.D to figure that thing out."
What's "Jump Shot Arne" talking about? The FAFSA - the federal form used to apply for aid. A lot of parents are intimidated by that form. It's long and complicated and full of landmines, so we understand.
But "College Pete" and I think there's one more, big reason why most eligible families don't bother to apply. It's because they think they won't qualify, because they're middle class families. That's just flat out wrong, but this letter is long enough already so we won't get into it.
Here's the bottom line - your "College Bailout" has been right under your nose the whole time - the Financial Aid system. Everyone should apply for financial aid. Period.
Best,
"College Pete" and Andy
P.S. We host free community workshops for parents of college-bound teens. If you’re stressed about how you’re going to cope with rising college costs, you owe it yourself to come. We'll go over the "secret formula" used by the FAFSA to determine how much aid you'll receive, and whether you can improve your odds. Register at:
www.collegeplanningadvice.com/events
P.P.S. Bring a friend if you like! Just forward this blog onto them.
Monday, June 1, 2009
7.5 Tips for Your Summer College Visits!
"College Pete" here:
Many families like to use the summer months to visit colleges. While we recommend that students visit colleges during the school year when regular classes are in session, this is not always viable, and the free time offered by summer vacation is a strong temptation. Below are some tips to consider when visiting schools, whether you are planning to visit colleges this summer, or you’re scheduling a trip in the fall.
1. Do your homework before you go. Use tools like DISCOVER (something I use in my practice when I work with students) to research the school, and visit the school’s website. Make sure the school offers the major of study that interests you, as well as any other programs that you desire in a college. These may include music, athletics, drama, political organizations, etc.
2. Make an appointment to take the tour. On certain days of the week the tour may not be offered, especially during the summer. The tour may take you to parts of the school that you may otherwise overlook, so you won’t want to miss it. You’ll also learn about the school’s history.
3. Be your own tour guide. Once the tour is over take some time to walk around yourself, perhaps without your parents (you’ll meet them later). If you can, drop into a class or two, especially in an area of academic interest.
4. Get a soda or coffee in one of the student lounges. Ask students questions about the school, what they like and dislike. Students love to talk about their school, and there is no better source of information than current students.
5. Check out the library, computer lab, gym, and laundry. Even though this isn’t directly related to what you’ll be studying and your major, you’ll be spending plenty of time at all of these areas, so be sure to take a look at them as well.
6. Visit the career counseling center. The tour probably will not take you here. You’ll want to know what resources are available to current students, as well as graduates, upon graduation. What kinds of employers recruit on campus? What sorts of internship opportunities are available to students?
7. Schedule appointments with “highly relevant” individuals. You’ll need to do this in advance. These individuals include the orchestra director if you play music, an engineering department chair if you are interested in engineering, a drama department chair if you are an aspiring thespian or an athletic coach if you are an athlete. These folks may assist you in the admissions process by influencing the committee on your behalf. Be sure to get their contact info and send a follow up letter thanking them for their time.
7.5 Enjoy your trip! Have fun -don't stress - chill!
P.S. Want more info on college-related stuff, like financial aid? Visit our site, www.CollegePlanningAdvice.com!
Many families like to use the summer months to visit colleges. While we recommend that students visit colleges during the school year when regular classes are in session, this is not always viable, and the free time offered by summer vacation is a strong temptation. Below are some tips to consider when visiting schools, whether you are planning to visit colleges this summer, or you’re scheduling a trip in the fall.
1. Do your homework before you go. Use tools like DISCOVER (something I use in my practice when I work with students) to research the school, and visit the school’s website. Make sure the school offers the major of study that interests you, as well as any other programs that you desire in a college. These may include music, athletics, drama, political organizations, etc.
2. Make an appointment to take the tour. On certain days of the week the tour may not be offered, especially during the summer. The tour may take you to parts of the school that you may otherwise overlook, so you won’t want to miss it. You’ll also learn about the school’s history.
3. Be your own tour guide. Once the tour is over take some time to walk around yourself, perhaps without your parents (you’ll meet them later). If you can, drop into a class or two, especially in an area of academic interest.
4. Get a soda or coffee in one of the student lounges. Ask students questions about the school, what they like and dislike. Students love to talk about their school, and there is no better source of information than current students.
5. Check out the library, computer lab, gym, and laundry. Even though this isn’t directly related to what you’ll be studying and your major, you’ll be spending plenty of time at all of these areas, so be sure to take a look at them as well.
6. Visit the career counseling center. The tour probably will not take you here. You’ll want to know what resources are available to current students, as well as graduates, upon graduation. What kinds of employers recruit on campus? What sorts of internship opportunities are available to students?
7. Schedule appointments with “highly relevant” individuals. You’ll need to do this in advance. These individuals include the orchestra director if you play music, an engineering department chair if you are interested in engineering, a drama department chair if you are an aspiring thespian or an athletic coach if you are an athlete. These folks may assist you in the admissions process by influencing the committee on your behalf. Be sure to get their contact info and send a follow up letter thanking them for their time.
7.5 Enjoy your trip! Have fun -don't stress - chill!
P.S. Want more info on college-related stuff, like financial aid? Visit our site, www.CollegePlanningAdvice.com!
Tuesday, May 12, 2009
Requiem for the "forgotten" middle class
Have you been paying attention to the debate over
the future of Bright Futures? (Bright Futures is the
Florida's state-funded, merit-based scholarship
program.)
State analysts have been warning us year after year
about how unaffordable the program has become;
now, with the economy in shambles, the debate has
reached a shrill crescendo.
How will it change? Probably by making the standards
higher to earn (a recent study shows that (95% of
all incoming UF freshman qualified). And almost
certainly by exempting some tuition costs - in other
words, some of the rising cost of attending college
here in Florida will not be covered by Bright Futures.
But check this out quote from former chancellor
Charlie Reed, "one of the dumbest policies I know,
to give rich people financial aid to go to the state
schools..."
What prompted this outburst? A survey showing
that the median annual income of students'
families was $100,000 and that almost 25% of
UF earned more than $150,000 per year.
I don't know about you, but most people I know
earning income in that range do not consider
themselves "rich." In fact, a lot of parents that
College Pete and I consult, whose earnings are in this
neighborhood, feel downright poor when
contemplating sending one or more children to
college with costs between $17,000-$55,000 per
year, per child!
Talk about the "forgotten" middle class!
Also, ex-chancellor Reed seems to be ignoring the
legislative intent, or purpose of Bright Futures- to
encourage the best students to stay in Florida and
thus contribute to our economy. Reed's looking
at Bright Futures as a social engineering tool, not
a merit-based one.
If you're a middle class, or even upper middle class
parent struggling with how you'll ever be able to
afford college education for your children, my
advice is to consider schools outside of the state
of Florida in addition to our state universities.
Why? Because many "high sticker price", private,
out of state schools offer extremely generous
financial aid packages to parents earning six-figure
incomes.
My other piece of advice is to do your research
early; i.e. second half of your student's sophomore
year or junior year at the latest. You don't want
to be blind-sided by learning how much college
really costs when it's too late to do anything about
it.
Knowledge is your best defense. One way to
arm yourself is to attend on of our upcoming
free community workshops,
"Financial Aid's Dirty Little Secrets Revealed!"
We cover:
* How even Millionaires can save $30,000 on
college costs;
* The single biggest mistake made by "Forgotten
Middle Class Parents" when applying for financial
aid;
* "Closely-guarded" college funding loopholes; and
* A heck of a lot more.
www.CollegePlanningAdvice.com/events
Register now while this is still fresh on your mind -
don't put it off any longer.
the future of Bright Futures? (Bright Futures is the
Florida's state-funded, merit-based scholarship
program.)
State analysts have been warning us year after year
about how unaffordable the program has become;
now, with the economy in shambles, the debate has
reached a shrill crescendo.
How will it change? Probably by making the standards
higher to earn (a recent study shows that (95% of
all incoming UF freshman qualified). And almost
certainly by exempting some tuition costs - in other
words, some of the rising cost of attending college
here in Florida will not be covered by Bright Futures.
But check this out quote from former chancellor
Charlie Reed, "one of the dumbest policies I know,
to give rich people financial aid to go to the state
schools..."
What prompted this outburst? A survey showing
that the median annual income of students'
families was $100,000 and that almost 25% of
UF earned more than $150,000 per year.
I don't know about you, but most people I know
earning income in that range do not consider
themselves "rich." In fact, a lot of parents that
College Pete and I consult, whose earnings are in this
neighborhood, feel downright poor when
contemplating sending one or more children to
college with costs between $17,000-$55,000 per
year, per child!
Talk about the "forgotten" middle class!
Also, ex-chancellor Reed seems to be ignoring the
legislative intent, or purpose of Bright Futures- to
encourage the best students to stay in Florida and
thus contribute to our economy. Reed's looking
at Bright Futures as a social engineering tool, not
a merit-based one.
If you're a middle class, or even upper middle class
parent struggling with how you'll ever be able to
afford college education for your children, my
advice is to consider schools outside of the state
of Florida in addition to our state universities.
Why? Because many "high sticker price", private,
out of state schools offer extremely generous
financial aid packages to parents earning six-figure
incomes.
My other piece of advice is to do your research
early; i.e. second half of your student's sophomore
year or junior year at the latest. You don't want
to be blind-sided by learning how much college
really costs when it's too late to do anything about
it.
Knowledge is your best defense. One way to
arm yourself is to attend on of our upcoming
free community workshops,
"Financial Aid's Dirty Little Secrets Revealed!"
We cover:
* How even Millionaires can save $30,000 on
college costs;
* The single biggest mistake made by "Forgotten
Middle Class Parents" when applying for financial
aid;
* "Closely-guarded" college funding loopholes; and
* A heck of a lot more.
www.CollegePlanningAdvice.com/events
Register now while this is still fresh on your mind -
don't put it off any longer.
Monday, April 27, 2009
The Kids Aren't Alright
According to a recent Sun-Sentinel article, college students are racking up credit card debt to pay for their education. 30% charge their tuition compared to 24% in 2004. 92% of undergrads charged textbooks, school supplies and other educational expenses compared to 85% in 2004.
Marie O'Malley, director of consumer research for Sallie Mae, thinks families are underestimating college costs and opting for more expensive credit card debt in lieu of applying for cheaper financial aid.
"Too many students are at risk of overpaying for college by pulling out credit cards...instead of using less-expensive financial aid..." said O'Malley.
Duh! Sound familiar?
"College Pete" and I have been warning about this, broken record-style, for years. Why don't parents apply for financial aid? Put another way, why do 53% of all eligible families not bother to apply?
One reason is intimidation. You "need a PhD" to figure out the FAFSA, according to Secretary of Education Arne Duncan. The forms are annoying and a pain the in the rump, with multiple land-mines to stumble on and blow up all chances of aid.
Another reason is that parents put off their college planning until it's too late. The best time to start the college planning process is the second half of sophomore year, junior year at the latest.
What are the consequences to your children if you don't take this seriously?
One FAU graduate who maxed out his credit cards to pay for college fretted, "I wonder if I'll ever be able to get a home...with the debt I have now and the marks against my credit."
On a personal level, I’m extremely sympathetic to this student as I racked up $100,000 in debts between undergraduate and law school. My wife and I have four children and have sworn a blood oath to never put them through what I had to endure. That’s why I’m in the college planning business.
So learn about the financial aid process while there is still time to do something about it!
Andrew Lockwood, J.D., and Peter “College Pete” Ratzan, M.B.A., co-authors of the book, Never Pay Retail for College, conduct free college funding workshops throughout South Florida. Topics include: How even millionaires can save 20% off the cost of college; Think you make too much money to qualify for financial aid? You're probably wrong, dead wrong! And, Can you legally "position" yourself to receive more financial aid? More information is available at: www.CollegePlanningAdvice.com/events.
Marie O'Malley, director of consumer research for Sallie Mae, thinks families are underestimating college costs and opting for more expensive credit card debt in lieu of applying for cheaper financial aid.
"Too many students are at risk of overpaying for college by pulling out credit cards...instead of using less-expensive financial aid..." said O'Malley.
Duh! Sound familiar?
"College Pete" and I have been warning about this, broken record-style, for years. Why don't parents apply for financial aid? Put another way, why do 53% of all eligible families not bother to apply?
One reason is intimidation. You "need a PhD" to figure out the FAFSA, according to Secretary of Education Arne Duncan. The forms are annoying and a pain the in the rump, with multiple land-mines to stumble on and blow up all chances of aid.
Another reason is that parents put off their college planning until it's too late. The best time to start the college planning process is the second half of sophomore year, junior year at the latest.
What are the consequences to your children if you don't take this seriously?
One FAU graduate who maxed out his credit cards to pay for college fretted, "I wonder if I'll ever be able to get a home...with the debt I have now and the marks against my credit."
On a personal level, I’m extremely sympathetic to this student as I racked up $100,000 in debts between undergraduate and law school. My wife and I have four children and have sworn a blood oath to never put them through what I had to endure. That’s why I’m in the college planning business.
So learn about the financial aid process while there is still time to do something about it!
Andrew Lockwood, J.D., and Peter “College Pete” Ratzan, M.B.A., co-authors of the book, Never Pay Retail for College, conduct free college funding workshops throughout South Florida. Topics include: How even millionaires can save 20% off the cost of college; Think you make too much money to qualify for financial aid? You're probably wrong, dead wrong! And, Can you legally "position" yourself to receive more financial aid? More information is available at: www.CollegePlanningAdvice.com/events.
Monday, April 13, 2009
Parents of College-Bound Children - Are you holding up your end of the bargain?
If you have a high school senior, this can be a stressful time of year. By now, most seniors have heard from most of the colleges they've applied to about whether or not they got 'in.'
But now, more than ever, another letter is being eagerly anticipated - the award letter from the financial aid office.
If you didn't plan, these award letters can be crushing, when a student learns that she can't go to her top choice college – after working her tail off for years, loading up her schedule with AP's, club memberships and extra-curriculars.
She held up her end of the bargain, but mom and dad didn't - they didn't look into what college really costs and how they'd afford it.
Those that planned are being rewarded this year. Yes, the economy has caused some colleges to be a little stingy with aid, but overall, this has been a very strong year for financial aid packages.
If you've got a college-bound sophomore or junior, the time is NOW to get serious about how to pay for college.
You wouldn't buy a car without knowing the sticker price, why go "shopping" for college without understanding the costs and looking into how to cut those expenses.
Record numbers have applied for aid this year; next year it might be even worse – more families chasing fewer financial aid dollars.
Here are some questions to ask each college you are considering:
· What percentage of "Need" do you meet?
Most financial aid is based on "Need," calculated by the Federal Financial Aid formulas. The greater your Need, the more aid you should receive. However, the percentage of Need met by each university varies greatly. The schools with the biggest endowments typically are the most generous.
· How is Need met?
Financial Aid packages include free money – grants and scholarships - that does not have to be repaid, and loans, which require repayment.
Typically, the colleges with the largest endowments award a greater percentage of free money than loans. You’ll want this information before you apply.
· What are your deadlines?
Some colleges have early deadlines. You want to be among the first application, since money can be doled out first-come, first-served. Last month, we had a student who was offered a $1,000 "Early FAFSA" scholarship simply because we got his forms a few weeks early!
Of course, there are many other factors that go into your college plan - this is just the tip of the iceberg.
If you are the parent of a high school sophomore or junior, it’s time to make college planning a top priority. Before you know it, it will be April of your student’s senior year and you’ll be hoping for good news to arrive in your mailbox!
Andrew Lockwood and Peter "College Pete" Ratzan co-authored the book, Never Pay Retail for College. His firm sponsors free community workshops on college funding. Visit www.CollegePlanningAdvice.com for more information.
But now, more than ever, another letter is being eagerly anticipated - the award letter from the financial aid office.
If you didn't plan, these award letters can be crushing, when a student learns that she can't go to her top choice college – after working her tail off for years, loading up her schedule with AP's, club memberships and extra-curriculars.
She held up her end of the bargain, but mom and dad didn't - they didn't look into what college really costs and how they'd afford it.
Those that planned are being rewarded this year. Yes, the economy has caused some colleges to be a little stingy with aid, but overall, this has been a very strong year for financial aid packages.
If you've got a college-bound sophomore or junior, the time is NOW to get serious about how to pay for college.
You wouldn't buy a car without knowing the sticker price, why go "shopping" for college without understanding the costs and looking into how to cut those expenses.
Record numbers have applied for aid this year; next year it might be even worse – more families chasing fewer financial aid dollars.
Here are some questions to ask each college you are considering:
· What percentage of "Need" do you meet?
Most financial aid is based on "Need," calculated by the Federal Financial Aid formulas. The greater your Need, the more aid you should receive. However, the percentage of Need met by each university varies greatly. The schools with the biggest endowments typically are the most generous.
· How is Need met?
Financial Aid packages include free money – grants and scholarships - that does not have to be repaid, and loans, which require repayment.
Typically, the colleges with the largest endowments award a greater percentage of free money than loans. You’ll want this information before you apply.
· What are your deadlines?
Some colleges have early deadlines. You want to be among the first application, since money can be doled out first-come, first-served. Last month, we had a student who was offered a $1,000 "Early FAFSA" scholarship simply because we got his forms a few weeks early!
Of course, there are many other factors that go into your college plan - this is just the tip of the iceberg.
If you are the parent of a high school sophomore or junior, it’s time to make college planning a top priority. Before you know it, it will be April of your student’s senior year and you’ll be hoping for good news to arrive in your mailbox!
Andrew Lockwood and Peter "College Pete" Ratzan co-authored the book, Never Pay Retail for College. His firm sponsors free community workshops on college funding. Visit www.CollegePlanningAdvice.com for more information.
Friday, March 27, 2009
The Death of Bright Futures
Big article on the front page of the Sun-Sentinel
yesterday - "Bright Futures May Grow Dimmer."
This is another in a spate of recent coverage
about proposed tuition hikes that are before
the State Legislature right now.
Scott Travis, the reporter, suggests that Bright Futures
scholarships, which cover 100% and 75%
of tuition and fees (depending on the grades
and test scores of the student), might cover
far less in the future if the bill passes.
For example, a student who qualifies for
the Academic Scholar, or 100% award, might
have to fork over $4,269, or 44%, of the anti-
pated fees in 2016, according to one expert's
analysis.
So what was once a 100% full ride could turn
into only 56%!
So what is a parent of a college-bound child
to do? Apply for financial aid!
But for some parents, that's easier said than
done. A recent College Board study estimated
that 53% of eligible families don't bother to
apply for aid.
Why?
Probably because they think they make too
much money to qualify. That's silly -
everyone should apply for aid - even families
making "nice," six-figure incomes.
Or maybe the forms themselves are too
intimidating for parents - Secretary of Education
Arne Duncan was quoted recently as saying
that "You basically need a PhD" figure out the
FAFSA.
More people are chasing financial aid dollars
this year - USA Today reported that 81% of
parents said financial aid would be "extremely"
or "very" necessary.
You need to arm yourself with the latest
tested and proven tactics to make sure you are
getting the maximum amount of financial aid
that you're entitled to.
An easy first step and overview - attend one of our
upcoming, free community workshops on college
funding.
www.CollegePlanningAdvice.com/events
Topics include:
* What your Florida Pre-paid and Bright Futures will
"really" pay for;
* How families who earn "nice," six-figure incomes
and even millionaires can save $30,000 off the
cost of college;
* What can you do qualify for more aid;
* Why the advice of your CPA, money manager or
other "advisor" may actually COST you thousands
of dollars in lost financial aid; and
* The "Double-Secret" formula used by college
financial aid offices to determine how much
aid you'll receive, to the dollar!
www.CollegePlanningAdvice.com/events
Best
- Andy
Andrew Lockwood, J.D.
College Planning Specialists of Florida, Inc.
1825 Main Street
Weston, Florida 33326
www.CollegePlanningAdvice.com
yesterday - "Bright Futures May Grow Dimmer."
This is another in a spate of recent coverage
about proposed tuition hikes that are before
the State Legislature right now.
Scott Travis, the reporter, suggests that Bright Futures
scholarships, which cover 100% and 75%
of tuition and fees (depending on the grades
and test scores of the student), might cover
far less in the future if the bill passes.
For example, a student who qualifies for
the Academic Scholar, or 100% award, might
have to fork over $4,269, or 44%, of the anti-
pated fees in 2016, according to one expert's
analysis.
So what was once a 100% full ride could turn
into only 56%!
So what is a parent of a college-bound child
to do? Apply for financial aid!
But for some parents, that's easier said than
done. A recent College Board study estimated
that 53% of eligible families don't bother to
apply for aid.
Why?
Probably because they think they make too
much money to qualify. That's silly -
everyone should apply for aid - even families
making "nice," six-figure incomes.
Or maybe the forms themselves are too
intimidating for parents - Secretary of Education
Arne Duncan was quoted recently as saying
that "You basically need a PhD" figure out the
FAFSA.
More people are chasing financial aid dollars
this year - USA Today reported that 81% of
parents said financial aid would be "extremely"
or "very" necessary.
You need to arm yourself with the latest
tested and proven tactics to make sure you are
getting the maximum amount of financial aid
that you're entitled to.
An easy first step and overview - attend one of our
upcoming, free community workshops on college
funding.
www.CollegePlanningAdvice.com/events
Topics include:
* What your Florida Pre-paid and Bright Futures will
"really" pay for;
* How families who earn "nice," six-figure incomes
and even millionaires can save $30,000 off the
cost of college;
* What can you do qualify for more aid;
* Why the advice of your CPA, money manager or
other "advisor" may actually COST you thousands
of dollars in lost financial aid; and
* The "Double-Secret" formula used by college
financial aid offices to determine how much
aid you'll receive, to the dollar!
www.CollegePlanningAdvice.com/events
Best
- Andy
Andrew Lockwood, J.D.
College Planning Specialists of Florida, Inc.
1825 Main Street
Weston, Florida 33326
www.CollegePlanningAdvice.com
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