CFE Blog

College Costs Are Soaring!!

2011-08-29T14:28:00.001-05:00

Colleges, year by year, are becoming more financially dependent on parents paying for out-of-pocket expenses than ever before! Endowments have taken a big hit, which has left even elite schools, including Harvard and Yale, facing steep cost-cutting. State universities are also facing steep slashes in government funding. All of which means it will be even harder for colleges to meet demands for financial assistance next time around.

The bottom line...parents and/or student are going to need to find money to pay for college some how!

The current aid crisis only underscores the never-ending problem of soaring tuition costs. As MONEY magazine and many other publications have frequently pointed ou t, colleges are jacking up tuition costs at twice the rate of inflation; education expenses have far outpaced inflation for more than two decades.

Meanwhile, most families are less prepared than ever to meet those bills. Numerous surveys have shown that few have the cash stashed away to pay the five-figure tuition amounts required by many schools. So expect aid applications to soar again!

If there is ever a time to seek the help of college funding professionals, it is now!

How To Attend College "TUITION FREE!"

2011-07-30T10:19:00.001-05:00

Did you know that there are OVER 100 colleges that will allow your student to attend TUITION-FREE? Harvard is a good example! If you make less than $60,000 per year but make excellent grades and score high on the ACT/SAT...you may qualify to attend TUITION-FREE! It's called the "Harvard Initiative." Another good example is College of the Ozarks! As a "faith-based" school, it is also called "hard-work U." Students work on campus instead of paying tuition. This saves the student gas money and tax dollars, not to mention thousands of dollars in tuition costs!

For more information, call me at 816-739-9894 today!

How To Survive "The College Funding Maze!"

2009-08-05T09:37:00.003-05:00

DID YOU KNOW...   COLLEGE COSTS HAVE BECOME THE "2nd LARGEST DEBT" IN AMERICAN SOCIETY TODAY?

Congress has correctly referred to it as "A CRISIS OF MAJOR PROPORTIONS."  As the cost of college continues to skyrocket and the financial aid dollars continue to dwindle, it has become more and more difficult for parents to get some kind of financial assistance. While there is more than $143 billion dollars available, only those parents who can understand the college funding process and use that knowledge to their advantage are going to receive the maximum amount of money possible. It is not uncommon for low income families who have assets in the wrong place to lose out on financial aid. And, it's not uncommon for families who make over $100,000 per year in income to receive some form of financial assistance. The real difference is their understanding of the process and what they need to do to position themselves to double, or even triple, their eligibility for aid.

You see, as more and more students enter college, the financial aid offices of these colleges are being forced to use their limited financial resources to attract the strongest applicants or to save their government-funded resources for the most needy. The strongest applicants and the most needy typically end up winning at the college funding process. However, like I said before, you can have a low income ($25,000 per year) and still NOT receive any assistance. It depends on a lot of things...things most parents aren't aware of.

FOR EXAMPLE: I had a widowed mother of 3 children who asked for my help recently. She earned $28,937 for the year, and amount low enough to receive government financial assistance. However, she had one MAJOR PROBLEM! She had over $300,000 in assets from a life insurance settlement that was paid out when her husband passed away 7 years ago. According to the FAFSA, those assets would have completely eliminated her from receiving free government assistance. By simply repositioning those assets about a year before we filled out the FAFSA, she was able to qualify for more than $10,000 worth of FREE MONEY PER YEAR - money her child didn't have to pay back. That's more than $40,000 over a four year period of time. Then, triple that! Because she had 2 other children going to college right after the first child!

TODAY, PARENTS ARE FORCED INTO BEING "STRATEGIC"! Government assistance is NOT welfare money, it's YOUR MONEY! For every dollar you give to Uncle Sam in taxes, you give a portion of that money to the educational system. And, over time you've put a lot of money into the system. The question is, would you rather give that money to someone else, or do you want to use it for your children?

I had one person at a seminar tell me they had rather give that money to a poor family. That's fine, but when their Social Security wages start to pay out are they going to ask the government to give that monthly paycheck to someone else who needs it more than they do? I think not!! People want something for their money. If you don't qualify, it does go to another family who does qualify. But, if you qualify for some money (or even a lot of money) wouldn't you like to be the recipient of what you legally, morally, and ethically qualify for?

Whether or not a family has enough savings or income to pay for college, if at all possible, most families would like to avoid paying the full price. Many families are unaware that proactive college funding planning may dramatically lower their overall college expenses by tens of thousands of dollars. There are dozens of simple strategies, academic strategies, and financial and tax strategies that can be utilized to accomplish this result. Simply put...understanding the college funding process is the beginning stages to understanding the many ways you can save money and lower the overall cost of a four-year college education.

1) GET YOUR "PIN" NUMBER FROM WWW.PIN.ED.GOV.   Whether you're a junior or senior in high school, go to www.pin.ed.gov and fill out the application to receive your federal PIN number. This number identifies you and acts as a security measure when you electronically sign the FAFSA form. You will be given the option to choose your four-digit pin number or let the computer randomly choose one for you. The student and one parent each must have a PIN number. This will allow both of you to apply your electronic signature to your FAFSA form. If you're an "independent student" (age 24 and over, married, have a child, a veteran, or declared a ward of the state) you don't need your parent's to sign up for one. Once you receive or choose your pin number, file it away in a safe place. You'll need to use that same PIN number all the way through college. If you do lose it, you can get another one by simply filling out the application again.

2)GIVE PRIORITY TO ACT/SAT SCORES OVER SCHOOL GRADE POINT AVERAGES! Admissions, scholarships, and grants are primarily based on the scores your student receives from these tests. They may have a 4.0 GPA in high school, but if they have a low score on the ACT or SAT, their chances of getting scholarships or grants is slim to nothing. Colleges place a high priority on the results stemming from these nationally-standardized tests. Many students think that a good GPA is all they need...not true! However, many schools will combine your ACT/SAT scores with your GPA and then get an average. And, others will combine your ACT/SAT scores with your GPA and class rank to get an average. From those averages, they will determine if you are eligible to receive their scholarships and grants, AND whether or not you are eligible for admission into the school. Many 4.0 students are locked out of great schools and ineligible for scholarships because of lower-than-expected ACT/SAT scores.

- It is recommended that you take the test 3 times. This will maximize your opportunities to receive a higher score. My son's scores jumped by 4 points on his second test which gave him a much better scholarship position. I've seen scores jump 10 points between tests. The colleges will only look at the highest score. They can care less if you scored lousy on one test and then great on the next. Give yourself an opportunity to earn more FREE money for college by studying for these tests, taking practice tests, being rested and clear-headed when you take these tests, and taking them more than once!

3) Find Yourself! The next all-important thing to do is to figure out the following:

- What kind of career are you interested in?
- What kind of school do you want to attend? In-state or out-of state? Rural or city? Large or small? With sports or without? Etc.
- Will your career be available in the future? How much will it earn you? Can you get a job right away?
- Will you work while at college? Where? Doing what? How many hours?

I would recommend that you do a personality test that offers career matches based on your personality. More than 80% of college students change their majors during college which adds more debt that you'll have to eventually pay back!

4) Visit Campuses During School! Every college student will tell you that the best way to get a feel for the college is to visit while classes are going on. Don't visit during the summer, the campus is dead! And, don't wait until spring of your senior year to visit either! It presents too much pressure on you when you do that. Plan to visit during the week and stay a couple of days if you can. Plan to visit during the spring of your junior year or the fall of your senior year. Take notes while your there! Go to our website and print out the form for this, it will help you! It's amazing what you'll forget after you leave the campus. The form allows you to organize your thoughts and maximize your visit so that you know for sure if that college is right for you.

5) Apply For College Admittance and Scholarships EARLY! Many colleges have moved their application and scholarship deadlines to the fall of your student's senior year in high school. They want you to make your decision early! Many students miss critical deadlines and lose out on scholarships they could have had by simply being too lazy to conform to the deadlines. Know the school's application deadline and their scholarship deadlines.

6) Do Pre-FAFSA Planning! The FAFSA (Free Application For Federal Student Aid) is a form made available from the U.S. Department of Education which allows you to apply for federal funding. What you put on the FAFSA determines what you get or don't get. By doing some pre-planning, you may be able to improve your EFC (Expected Family Income - what the college will expect you to pay before they will offer any financial assistance) and thus improve your opportunity for federal, state, and/or institutional funding.

7)Complete The FAFSA! The FAFSA (Free Application For Federal Student Aid) is an application made available from the U.S. Department of Education to college-bound students. It is an application that is made available (online and in hard copy form) after January 1 for the purposes of determining financial aid for the upcoming college year. For example, a FAFSA made available on January 1, 2009 is for the school year running from August 2009 to July 2010.

- It is required to be filled out by ALL students for all government-recognized colleges and universities. If anyone tells you that you make too much money to fill out the FAFSA, ignore them! They aren't college funding experts! Even if you don't qualify for FREE money, you still may qualify for low-interest government loans. I can't tell you how many wealthy parents wished they would have filled out the FAFSA and allowed their children to share some of the costs associated with college, especially after they drop out, or selfishly choose an expensive school, or even use their college years to play around and have fun.

- It can appear as a complicated and time-consuming process since it requires your personal information, financial statements, and tax information. Under the Obama administration, they are attempting to simplify the form due to the many complaints it has received over the years. Even, one congresswoman working with the U.S. Department of Education argued that it takes a Ph.D. to figure it out.

CAUTION: Before you fill out the FAFSA, you'll definitely want to do some financial and tax planning. The reason for this is because once you've filled out the FAFSA form, the school will calculate your award letter based on the personal and financial information you put on the FAFSA! Listen....if you will simply take the initiative to learn what the FAFSA requires and how your EFC (Expected Family Contribution) is calculated based on the information you provide, you will stand a better chance in understanding how your assets and income relate to the amount of financial assistance or scholarships you will receive. We'll talk more about this later.

8)Complete The CSS Profile! This form is required by approximately 600 schools, and you must register for this form and fill out the application in the FALL of your senior year in high school. Each school will have it's own deadline - which is usually around November 1. The CSS Profile is at least 25 pages thick and requires a lot of information. If you do this form online, prepare to spend some time on the computer.

CAUTION: The information you put on the CSS Profile in the fall needs to match the information you're going to put on the FAFSA after January 1st. This means you're going to have to pre-tax planning and figure out what your taxes and financial arrangements are going to look like BEFORE the end of the year! This takes some time and effort, but it can save you a lot of money down the road!

To register, you must contact College Board at 800-778-6888 or online. An advantage to the online process is that you can complete the registration form and application form at the same time - no waiting. The online application automatically includes all questions required by your designated schools

Unlike the FAFSA, the CSS Profile is NOT free! It costs about $16 per school where you want the information sent. First-time college applicants from families with very low income can apply for a fee waiver.

9) Receive and Review Your Student Aid Report! Once you've completed your FAFSA and submitted it to the U.S. Department of Education, you receive a Student Aid Report within a few days. The Student Aid Report calculates your EFC (Expected Family Contribution - what your family will be required to pay before the college will kick in any financial help). In fact, once you submit your FAFSA, the confirmation page of the FAFSA will show you your EFC, however the Student Aid Report is a report each college you selected will receive. This shows each of them how financially strong or weak you are. From this information, the colleges will then formulate a plan on how much they are willing and able to give you.

10) Fill Out Verification Forms! If you qualify for federal grants (such as the Pell grant), you may be required to fill out the school's verification forms. These are additional forms you must fill out and they must match your FAFSA form.

11) Institutional Forms! If you have a business or farm or have been divorced or separated, you may be required to fill out some additional forms form the school. Make sure this information matches the FAFSA information as well.

12) Followup, Followup, Followup! Don't ever assume anything in college funding. I can't tell you how many times my clients have complained because a school never received their Student Aid Report or Verification Form or a copy of their taxes. Colleges are notorious for losing things! If you submit anything by fax, mail, email, etc. to a college...followup and make SURE they received it, get the person's name you talked to and write it down.

13) Award Letters! Each college you applied for will offer you an award letter. The award letter tells you what they're willing to offer you based on the information you gave them. I recommend that you always accept the award but attempt to negotiate with the school if you can. Make sure they have based the award letter on your highest ACT/SAT score and the latest and most correct information you have.

14) Make Sure College Bills Are Accurate! As a board member of a local college, this was one of the our frustrations - making sure that the billing was accurate! A dear friend of mine sent 3 kids to 3 different colleges in which not one bill was correct. Don't just pay the bill, make sure it's correct, ask questions, see if you can get an adjustment.

15 Most Lucrative College Degrees Today!

2009-07-27T13:22:00.001-05:00

According to a recent 2009 survey from the National Association of Colleges and Employers (which tracks college graduates and their job offers), the following are 15 of the highest paid areas for new college graduates:

1) Petroleum Engineering - $83,121
2) Chemical Engineering - $64,902
3) Mining Engineering - $64,404
4) Computer Engineering - $61,738
5) Computer Science - $61,407
6) Electrical Engineering - $60,125
7) Mechanical Engineering - $58,766
8) Industrial Engineering - $58,358
9) Systems Engineering - $57,438
10) Engineering Technology - $56,447
11) Actuarial Science - $56,320
12) Aeronautical Engineering - $56,311
13) Agricultural Engineering - $54,352
14) Biomedical Engineering - $54,158
15) Construction Management - $53,199

Of course, not every student earning an engineering degree is going to receive a large paycheck. However, graduates with a technology degree do have an advantage over many other fields.

8 Critical Tips To Securing A Scholarship!

2009-07-20T17:31:00.000-05:00

1) Apply only to those scholarships that best fit your profile! Find as many as you can, then weed them out until you can find the 10 best-fit applications.

2) Pay attention to deadlines!

3) Send the application in with a "thank you" cover letter!

4) Provide answers and items to the committee in the order they are listed on the application!

5) Add extra items to your application (if not prohibited). These "extra" items could include any letters of recommendations, a short essay on your career goals, an acceptance letter from a college, and school transcripts.

6) Sell yourself!!! Find every little thing you can to brag about yourself. Get your parents to help you with this.

7) Proof-read all the materials before sending the application in and make sure everything is in a neat order.

8) Submit your application land and other information in a clear plastic folder with a slide-locking binder. Make sure the "thank you" cover letter is on top, followed by the application, followed by the extra informatioin.

Cover Letter For Scholarships

2009-07-20T17:22:00.000-05:00

August 17, 2008

John Doe, President
XYZ Scholarship Committee
1234 Expressway Park Rd.
Kansas City, MO 11111

Dear Mr. Doe,

This letter is to introduce myself, (your name) , and my desire to participate in the XYZ scholarship program. I have been accepted to (name of college) for the fall of 2009.

I would like to thank you and the XYZ Scholarship Committee for your interest in helping college bound students with an opportunity for financial assistance through your program. I am enclosing my application form, ACT results, school transcripts, letters of recommendation, and other information you requested.

If you should have any further interest in additional material, I would be more than happy to submit that to you as well. Once again, thank you for all you do on behalf of myself and the students of our great state.

Most Respectfully,

(Your Name)

The 15 Steps Students Must Take!

2009-07-20T16:44:00.001-05:00

Here is a list of the 15 steps students must take to make sure they increase their opportunities for more funding and a better transition to college.

1) Try to increase your ACT/SAT score.
2) Take as many AP courses you can.
3) GPA and class rank are important. Work on them.
4) Participate in extra-curricular activities
5) Take a Career Assessment test.
6) Determine the Right School For You.
7) Research Schools
8) Apply to Schools Before Deadline.
9) Apply for Scholarships before deadline.
10) Visit Campus with a Checklist
11) Meet Financial Aid Counselor
12) Meet Major Department Head
13) Make sure all paperwork is submitted.
14) Take advantage of all orientation opportunities.
15) Get dorm choice early.

3 Reasons Why An Online Education Is Good!

2009-07-20T16:26:00.000-05:00

Due to the enormous rise in costs associated with college, online classes are becoming more and more of a "normal" method of receiving a college degree than attending traditional classes. In fact, there are several interesting and important reasons why an online education may be good for a motivated, self-disciplined student. Here are at least 3 good reasons why...

1) Online classes be more successful than traditional classes. Recent studies show that an engaging online class (for many students) can be more successful than traditional courses because of the capacity of the technology to customize the learning opportunity.

2) You can receive a degree in many areas. Nearly every kind of class is available online now. Many of them even offer courses that allow you to earn as high as a Ph.D. from an accredited school.

3) It saves substantial dollars. The costs associated with online courses are fractional compared to attending a state school and living on campus.

7 Deadly Myths Believed By Most Parents & Counselors!

2009-07-20T11:54:00.000-05:00

Here are the most common college myths that are believed to be true by most parents and high school guidance counselors, and sadly... they are DEAD WRONG!!!

1) College financial aid is only for the top students. WRONG! It's for everybody! Everyone, including the affluent can receive government financial assistance for college.

2) Only low-income families receive financial aid. WRONG! Many families earning $100,000 or more can still earn financial assistance, if they know how the financial aid process works and what they need to do to increase their eligibility for aid.

3) Low-income families cannot afford private colleges. WRONG! Many Ivy league schools (such as Harvard and Yale) offer free tuition to students who are bright but have a family income of $60,000 or less! There are also "tuition free" schools for these types of families.

4) Scholarships and college admission is based on a student's GPA. WRONG! It is primarily based on the student's ACT and/or SAT score! While the student's GPA may be factored in (as well as class rank), the college primarily use these standardized tests to determine admission and scholarships.

5) Shifting income or assets into the child's name is a good idea. WRONG! This will absolutely destroy any chance of earning financial assistance. It might be a good tax strategy, but it is one of the worst college funding strategies known to man!

6) Affluent families have no chance of saving money on college. WRONG! There are many strategies, both financial and tax wise, that can help the affluent save substantial dollars on the cost of college.

7) Most families have saved enough money to pay for college. WRONG! 99% of the families I've worked with over the past 10 years have little to no money saved for their children's college education. Even the most affluent haven't saved enough.

15 Key Steps For Parents Of Seniors!

2009-07-17T14:10:00.000-05:00

Families entering the college planning process for the first time during their student's senior year of high school are often filled with a great deal of anxiety. Many families find themselves wishing they had started earlier. The sooner a family starts, the more options are available to increase their eligibility for financial assistance.

However, all is not lost. If you've just begun and your student is a high school senior, there are several things you'll want to urgently consider:

1) Your student needs to get the highest score possible on the ACT or SAT. This will determine eligibility for a college and for scholarships or grants. I would recommend that your student apply for and take the test at least 3 times.

2) Your student needs to clarify the right kind of college they want to attend. At this point, they don't necessarily need to know what field of major to enter, they simply need to feel comfortable with the college they attend.

3) Students need to apply early to the colleges. You need to know the admission deadlines and scholarship deadlines. Also, some college scholarship deadlines come early during the fall of the student's senior year.

4) Students need to increase their student positioning. Class rank, GPA, and ACT and/or SAT test scores combine to either help or hurt the student's chances for scholarships and grants, and even admission.

5) Parents need to do some financial and tax planning before they fill out the CSS Profile, FAFSA, and all other financial aid applications. These are point-in-time contracts, therefore you have a small amount of time (if you have the knowledge) to make some last minute changes to double, or even triple, your student's eligibility for financial assistance.

6) Parents and students need to determine what forms are required to be filled out and to meet every deadline. You need to determine if your student is required to fill out a CSS Profile form. If required, the CSS must be submitted in the fall of your student's senior year and it must accurately reflect the tax information that will be submitted on the FAFSA after January 1st. Therefore, tax planning must be done early.

7) Financial aid forms need to be filled out and submitted regardless of income and assets. Don't let anyone tell you that you make too much money to fill out a FAFSA. This will eliminate any chances you have of utilizing or leveraging low interest government loans.

8) Determine what merit-based and need-based scholarships are available.

9) Determine which schools offer the most "free" money.

10) Assets are very important to the entire college funding process. There are "includable" assets and "non-includable" assets. It's important to know which are which. Use the guidance of a college funding advisor when attempting this. CPA's are good at accounting and financial planners are good and financial planning, but neither of them may know anything or much about the college funding process. A good tax strategy from a CPA who doesn't understand the college funding asset rules could cost you thousands of dollars in lost funding.

11) Develop cash flow strategies that maximize tax deductions, exemptions, tax credits, and lower your overall out-of-pocket expenses.

12) Consider powerful tax strategies for reducing college costs that are over and above the Hope Scholarship Tax Credit, The Lifetime Learning Credit, Tuition and Fees deduction, and the student loan interest deduction.

13) Compare college award letters and attempt to negotiate a better award package.

14) Consider a "special circumstance" appeal if you've lost your job, going through bankruptcy, or have high medical bills.

15) Carefully analyze your college bills. Unfortunately, this is a problem with many schools. It seems that the financial aid office and the billing department often disagree with each other.

10 Colleges That Let You Attend Tuition-Free!

2009-07-17T13:09:00.000-05:00

Did you know that there are colleges that will allow you to attend "tuition-free?" Here is a list of those colleges:

1) Berea College

2) Cooper Union Architecture

3) College of the Ozarks

4) Alice Lloyd College

5) City University of New York's Teacher Academy - They seek students talented in math and science for free tution and internships.

6) Curtis Institute of Music - This is for gifted musicians. Students must audition.

7) Deep Springs College - This is a small men's 2-year college.

8) Franklin W. Olin College of Engineering - Requires a strong calculus and physics background.

9) Moody Bible Institute - For future pastors, missionaries, and Christian ministry personnel.

10) Webb Institute - Naval engineering college on Long Island.

Additional Ways To Attend College Free:

Military Academies: U.S. Military Academy, U.S. Air Force Academy, U.S. Naval Academy, U.S. Coast Guard Academy and the U.S. Merchant Marine Academy offer free tuition for students going into military careers.

15 Dangerous Mistakes When Filling Out The FAFSA!

2009-07-17T12:39:00.000-05:00

The best way to complete a FAFSA is early - and online! January 1st is the soonest you can apply. And, you must fill one out EVERY year your student plans on attending college. If you apply online, your application will be processed faster and will likely be more accurate.

WARNING: Making mistakes on your FAFSA is dangerous territory! It will either delay or even eliminate funding altogether. Here are the 12 most common mistakes parents and/or students make on the FAFSA.

1) Not getting your PIN number first. You need one for both the student and the parent.

2) Leaving fields blank. Enter a '0' or 'not applicable' instead of leaving a blank. Too many blanks may cause miscalculations and an application rejection

3) Using commas or decimals in numeric fields. Always round up.

4) Listing an incorrect Social Security Number, address, or Driver's license number. Remember to check these entries and have someone else check them too. Triple check to be sure.

5) Entering the wrong tax information as based on your tax returns. Make sure you follow the guideline numbers on the FAFSA. This is probably the biggest mistake most people make.

6) Listing your adjusted gross income as equal to total income. These are NOT the same!

7) Realizing the FAFSA is a "point-in-time" contract. You fill out the FAFSA based on "real time" information. That's why your financial and tax strategies need to be worked out in advance!

8) Forgetting to list all colleges correctly. You must use the Federal School Code.

9) Forgetting to sign and date the FAFSA correctly, especially electronically.

10) Entering inaccurate information on your parents. Don't guess!

11) Sending in your tax return. Don't send it in until the college requests a copy of it.

12) Not filling out Worksheets A, B, and C correctly. Many people simply don't understand these questions and how to fill them out properly.

13) Misunderstanding which parent's information to report when your parents are divorced, single, or even remarried. This is one of the most difficult ones to determine.

14) Not doing financial and tax planning before you fill out the FAFSA. This is huge! Once your FAFSA is submitted, you're potentially stuck.

15) Giving them information about the value of your business when your self-employed. Most self-employed people make a HUGE mistake here costing them thousands of dollars in lost aid. Read the directions carefully.

Additional Tips

Much of the financial information you need to provide is on your tax forms. Completing your taxes early can make the application process easier because you'll have the financial information you need in one place. You can estimate your financial information using previous tax years and correct the amounts on the form later by going to the corrections page on the FAFSA website. If you are not required to file taxes you still have to fill out a FAFSA to get financial aid.

14 Ways To Get The Most Money Possible!

2009-07-17T12:16:00.000-05:00

College funding is no game! You can lose thousands of dollars in funding by one little mistake! Plus, ti's important to remember that for every $10,000 of financial aid you receive, that's $10,000 saved! However, what most parents don't realize is that you pay for college with dollars that have already been taxed. In other words, $10,000 of aid is equivalent to approximately $17,000 in earnings! Over the college years, that amount adds up to substantial savings of your hard-earned money.

Therefore, make sure your personal advisor has a lot of experience working with the financial aid system, and is willing to help you with the financial aspects of all 14 steps listed below.

1) Start planning for college costs early - junior year of high school!
2) Gain an understanding of how the college funding system works!
3) Do a pre-determination of how what your EFC (Expected Family Contribution) will be!
4) Isolate and address any unnecessary financial exposures in your financial profile.
5) Implement the strategies found in Randy Shepard's Ebook and/or seminar!
6) Do an analysis of the colleges your attending and KNOW their percentage of need met!
7) Correctly fill out all necessary forms and submit them ON-TIME!
8) Estimate your current tax situation BEFORE you fill out the CSS and FAFSA forms!
9) Do a preliminary FAFSA before your taxes are completed.
10) Complete your taxes early and finish the FAFSA!
11) Compare and evaluate financial aid offers from various colleges.
12) Attempt negotiating for a better award package!
13) Make sure all forms and tax information is submitted. They lose things often!
14) Make sure your bill is correct. They mess up often!

25 Ways To Survive Your Freshman Year!

2009-07-17T12:10:00.000-05:00

Here's some advice from Dr. Randall S. Hansen, founder of Quintessential Careers, that really strikes home as super advice for a freshman student!

The first few weeks on campus are extremely critical for all new students. It is during this time that you make critical decisions that will have an effect on the rest of your life. Some of these 25 tips are critical during your first weeks, while the others are meant for longer-term guidance and survival. Whatever you do, be sure to be yourself and try to enjoy your college experience as much as possible. Expect to feel some stress and homesickness, but don't let these issues wear you down.

Go to all orientations. Do you really need to go on yet another campus tour? Yes. The faster you learn your way around campus -- and around all the red tape -- the more at ease you'll feel and the better prepared you'll be when issues arise.

Get to know your roommate and others in your residence hall. The people you live with, most of whom are going through similar experiences and emotions, are your main safety net -- not only this year, but for all your years. You may change roommates after the first semester or you may stay roommates for all four years -- just take the time to get to know your fellow first-year students.

Get Organized. In high school, the teachers tended to lead you through all the homework and due dates. In college, the professors post the assignments -- often for the entire semester -- and expect you to be prepared. Buy an organizer, a PDA, a big wall calendar -- whatever it takes for you to know when assignments are due.

Find the ideal place for you to study. It may be your dorm room or a cozy corner of the library, but find a place that works best for you to get your work done -- while avoiding as many distractions as possible.

Go to class. Obvious, right? Maybe, but sleeping in and skipping that 8 am class will be tempting at times. Avoid the temptation. Besides learning the material by attending classes, you'll also receive vital information from the professors about what to expect on tests, changes in due dates, etc.

Become an expert on course requirements and due dates. Professors spend hours and hours preparing course syllabi and calendars so that you will know exactly what is expected of you -- and when. One of the lamest excuses a student can give a professor: "I didn't know it was due today."

Meet with your professors. Speaking as a professor, I can assure you there are only upsides to getting to know your professors, especially if later in the semester you run into some snags. Professors schedule office hours for the sole purpose of meeting with students -- take advantage of that time.

Get to know your academic adviser. This is the person who will help you with course conflicts, adding or dropping courses, scheduling of classes for future semesters, deciding on majors and minors. This person is a key resource for you -- and should be the person you turn to with any academic issues or conflicts. And don't be afraid of requesting another adviser if you don't click with the one first assigned to you.

Seek a balance. College life is a mixture of social and academic happenings. Don't tip the balance too far in either direction. One of my favorite former students always used to say her motto was to "study hard so she could play hard."

Get involved on campus. A big problem for a lot of new students is a combination of homesickness and a feeling of not quite belonging. A solution? Consider joining a select group -- and be careful not to go overboard -- of student organizations, clubs, sororities or fraternities, or sports teams. You'll make new friends, learn new skills, and feel more connected to your school.

Strive for good grades. Another obvious one here, right? Remember the words of the opening paragraph; while good grades could have come naturally to you in high school, you will have to earn them in college -- and that means setting some goals for yourself and then making sure you work as hard as you can to achieve them.

Take advantage of the study resources on campus. Just about all colleges have learning labs and tutors available. If you're having some troubles, these resources are another tool available to you. Another idea: form study groups.

Make time for you. Be sure you set aside some time and activities that help you relax and take the stress out of your day or week. Whether it's enlisting yoga techniques, watching your favorite television shows, or writing in a journal, be good to yourself.

Don't feel pressured to make a hasty decision about a career or a major. It doesn't matter if it seems as though everyone else seems to know what they're doing with their lives -- believe me, they don't -- college is the time for you to really discover who you are, what you enjoy doing, what you're good at, and what you want to be. It's not a race; take your time and enjoy exploring your options.

Take responsibility for yourself and your actions. Don't look to place the blame on others for your mistakes; own up to them and move on. Being an adult means taking responsibility for everything that happens to you.

Make connections with students in your classes. One of my best students said his technique in the first week of classes was to meet at least one new person in each of his classes. It expanded his network of friends -- and was a crucial resource at times when he had to miss a class.

Find the Career Services Office. Regardless of whether you are entering college as undeclared or have your entire future mapped out, seek out the wonderful professionals in your college's career services office and get started on planning, preparing, and acting on your future.

Don't procrastinate; prioritize your life. It may have been easy in high school to wait until the last minute to complete an assignment and still get a good grade, but that kind of stuff will not work for you in college. Give yourself deadlines -- and stick to them.

Stay healthy/Eat Right. A lot of problems first-year students face can be traced back to an illness that kept them away from classes for an extended period of time that led to a downward spiraling effect. Get enough sleep, take your vitamins, and eat right. If you haven't heard the jokes about college food, you soon will. And without mom or dad there to serve you a balanced meal, you may be tempted to go for those extra fries or cookies. Stay healthy and avoid the dreaded extra "Freshman 15" pounds by sticking to a balanced diet.

Learn to cope with homesickness. It's only natural that there will be times when you miss your family, even if you were one of those kids who couldn't wait to get away. Find a way to deal with those feelings, such as making a phone call or sending some email home.

Stay on campus as much as possible. Whether it's homesickness, a job, or a boyfriend or girlfriend from home, try not to leave campus too soon or too often. The more time you spend on getting to know the campus and your new friends, the more you'll feel at home at school. And why not take advantage of all the cultural and social events that happen on campus?

Seek professional help when you need it. Most colleges have health and counseling centers. If you're sick or feeling isolated or depressed, please take advantage of the many services these offices provide students. You don't have to face these issues by yourself.

Keep track of your money. If you've never had to create a budget, now is the time to do so. Find ways to stretch your money - and as best you can, avoid all those credit card solicitations you'll soon be receiving. The average credit card debt of college grads is staggering.

Don't cut corners. College is all about learning. If you procrastinate and cram, you may still do well on tests, but you'll learn very little. Even worse, don't cheat on term papers or tests.

Be prepared to feel overwhelmed. There's a lot going in your life right now. Expect to have moments where it seems a bit too much. As one student says, be prepared to feel completely unprepared. The trick is knowing that you're not the only one feeling that way.

10 Reasons Why Students Drop Out!

2009-07-17T12:01:00.000-05:00

According to a variety of college sources, here are the top 10 reasons why students drop out of college.

1) They don't discipline their study time effectively. Too much fun at the expense of classes and grades!
2) In the beginning, homesickness or a sense of isolation can creep up.
3) Academically unprepared or simply burned out on the whole education thing.
4) Financial constraints, fear of too much debt.
5) Personal family issues.
6) Choice of wrong college.
7) Choice of wrong major.
8) Lack of personal guidance and help.
9) Demands from part-time or full-time employment.
10) Your family moves to a different geographic location in the country.

4 Critical Things To Do On A Campus Visit!

2009-07-17T11:46:00.000-05:00

It may be tempting to just yell "roadtrip!" and head out to a college campus, but you'll get more out of your visits if you plan ahead. Here are at least 6 things you'll want to do before you make that roadtrip!

1) Consider what college is right for you! Do an inventory of what kind of college you're interested in! Are you interested in a small college, medium college, or large university? Do you want to be in-state or out-of-state? Do you want your college to be private or public, rural or city, north, south, east or west? Do you want to attend a college that has a football team or where you can participate in some form of extracurricular sports activities? Have you considered a technical school?

Make a list of what college characteristics are most important to you, so you know what to evaluate. Do you feel overwhelmed in a large lecture hall? Check out the class size. Do you have your heart set on joining a sorority or fraternity? See what the Greek system is like on campus. Is there a particular major that you want to pursue? Talk to current students or professors in that department.

Develop a list of your preferences. Take this list to the schools that you plan to visit, and compare them when you get back home.

2) Research the college! It's important to know something about the college before you arrive on its campus, especially if you have an interview scheduled.

- Review their website, course catalogs, and any other materials the college sends to prospective students.

- Talk to currently enrolled students or alumni about their college. Some college websites let you contact them online, or you can get their contact information from the admissions office.

3) Attend when classes are in session! That way, you can sit in on a lecture, stay in the dorm overnight, and get a true feel for the campus. Schedule your time on campus, too, to make sure you'll have time for everything you want to do:

- Find out how often college tours run, and if you have to sign up in advance.

- Be sure to get a map of the school. You don't want to spend half your day trying to park or find the admissions office.

- If an interview is suggested, make an appointment. Also, consider meeting with the financial aid officer.

- If you're curious about a club, program, or a sport, arrange to attend a practice, rehearsal, or meeting.

4) Take pictures and personal notes while you're there! Was it X College or Y University that had that excellent exercise equipment in the gym? Where did I talk to that cool psychology professor? You think you'll remember everything, but you'll be surprised how colleges start to merge after you've seen a few.

5 Reasons Why Private Colleges May Be Cheaper!

2009-07-17T11:11:00.000-05:00

Many parents automatically rule out private colleges as "too expensive." This is an all too common mistake among parents, especially those from lower-income households, who are even more prone to college sticker shock.

Here are 5 good reasons why a private college education may be cheaper for your child than you realize!

1) There's MORE MONEY at private colleges! The fact is, despite an average sticker price of $30,300 a year for a four-year private college and a significantly lower $12,800 for public, a family's actual expenses at either type of institutions are often comparable. Why? Because the privates are simply handing out more money than their public counterparts. There has been a tremendous increase in merit awards and need-based scholarships at private colleges.

Colleges recognize that tuition costs have gone up much faster than incomes over the past few decades, and increased financial aid helps them offset that cost.

2) Private colleges compete for good students! What's surprising to many parents is that their kid doesn't have to be a genius to receive merit-based aid. Rather, the key is finding the right school. If you can find a good institution where you're among the better students, your chances for better financial aid are going to improve dramatically!

Colleges compete for the best students they can get through "preferential packaging." The students that a school wants the most will receive financial aid comprised largely of scholarships, while less desirable candidates are offered more loans and little to no "free" money.

So...who wins? Students who are in the tope 25% of their incoming class based on their GPA and ACT or SAT test scores (in addition to high school class ranking) will be the ones who will earn the most "free" money!

3) Private Colleges meet a bigger percentage of need! In general, a private school will give you more financial aid, scholarships and grant aid while, at a public school, financial aid comes mostly in the form of loans. Private colleges typically cover between 80% and 100% of financial need. About 60% to 70% of that will be in the form of grants. Meanwhile, 75 of the nation's top private schools have a policy of meeting 100% of student need. At public colleges, between 60% and 80% of need is met, with 85% of aid offered in the form of loans.

4) They're more willing to consider special circumstances! Public colleges determine financial need by using the FAFSA form, while private colleges are more inquisitive about your personal family finances. The forms used at private colleges allows for more supplemental information about your personal situation. The interaction within the private college sector is more intimate in evaluating these special circumstances, with the possibility of some money behind the scenes if they accept your reasons. That can be helpful if you have special circumstances, such as a recent job loss or extensive medical bills. At public institutions, the process is automatic, there's really no personal review of the situation. The appeals process is much more limited in scope!

5) Your child may graduate sooner! It's an often unknown fact among parents that may add several thousand dollars to your child's public education: Students take longer to graduate from public college — an average of five years or more — than private schools, where most students graduate in four years. In 2005, 57% of private college students earned a degree within five years, compared with 42% for public, according to ACT, which administers the ACT tests.

6 Important Tax Breaks For College!

2009-07-15T12:47:00.000-05:00

IF YOU'VE GOT COLLEGE BOUND KIDS, we don't need to tell you that the cost of college these days is staggering. Fortunately, the governement has delivered some valuable tax breaks over the past few years to parents trying to foot those bills. Here's a rundown of what's available.

Hope Scholarship and Lifetime Learning Tax Credits

The 2009 American Recovery and Reinvestment Act expanded the Hope tax credit for tax years 2009 and 2010. Here's a summary of the changes:

- The credit is now called the American Opportunity Tax Credit

- The amount of the credit is larger: It matches 100 percent of the first $2,000 spent on qualified education expenses and 25 percent of the next $2,000. The maximum credit per student per year is $2,500

- It applies to expenses incurred during the first four undergraduate years of college, as opposed to just the freshman and sophomore years.

- It is available to people with higher incomes: $90,000 for single filers and $180,000 for joint filers.

- Course materials, including textbooks, will be added to the list of qualified expenses

The lifetime learning credit is less restrictive. It's mainly intended to help defray college costs after the first two years, when the Hope credit is no longer allowed. The Lifetime credit is available for an unlimited number of years and without any requirement to carry a certain course load. The credit equals 20% of tuition and fees up to $10,000, for a maximum annual credit of $2,000. This includes graduates courses as well.

Qualifying expenses for both the Hope and Lifetime credits include post-secondary tuition and fees for you, your spouse, and any other person claimed as a dependent on your tax return.

For 2009, both credits are phased out between adjusted gross income of $100,000 and $120,000 for joint filers; $50,000-$60,000 for unmarried taxpayers. You're completely ineligible if you're married and file separately from your spouse.

The $4,000 (or $2,000) Tuition and Fees Deduction

For 2009 you can deduct up to $4,000 of college tuition and fees paid for you, your spouse or any other person claimed as a dependent on your return. This is an "above-the-line" deduction, which means you don't have to itemize in order to take advantage of the break. However, the $4,000 figure is the annual maximum, regardless of how many students may be in your family. The other ground rules are as follows:

· You don't get the full deduction if you are unmarried with modified adjusted gross income above $65,000, or a joint filer with modified AGI above $130,000. However, if your modified AGI is between $65,001 and $80,000 for singles or between $130,001 and $160,000 for joint filers, you are entitled to a reduced deduction of up to $2,000.

· You're completely ineligible if you're married and file separately from your spouse.

· No deduction is allowed on the tax return of any person who can be claimed as a dependent on another's return. So your dependent college-age child can't claim the deduction when your own AGI is too high to qualify.

· No deduction can be claimed for expenses paid with earnings from a Section 529 plan or withdrawals from a Coverdell Education Savings Account. Also, you can't claim the deduction in the same year you claim the Hope Scholarship or Lifetime Learning tax credit for the same student.

Student Loan Interest Deduction.

Thanks to more relaxed rules regarding the deduction of student loan interest, many folks who weren't previously able to take advantage of this tax break can now do so. If you qualify, you can write off up to $2,500 of annual college loan interest charges. The catch, however, is that this break is phased out if your modified AGI is too high.

Specifically, the 2009 phaseout range for unmarried taxpayers is between modified AGI of $60,000 and $75,000. For joint filers, the range is between modified AGI of $120,000 and $150,000.

Tax-Free Employer Education Reimbursements or Section 127 Plans.

Should your employer agree to reimburse you for a class you take, up to $5,250 of that income is tax free. Even graduate-level courses qualify for employer reimbursements.

This break is available only for costs incurred by you, the employee. There's no AGI-based phase-out rule for this benefit.

Coverdell Education Savings Accounts (CESAs)

You can contribute up to $2,000 per year, which makes CESAs a nice little savings vehicle. This is especially true if you have several children (or grandchildren), since you can contribute a cool two grand annually to separate CESAs set up for each child (or grandchild). Annual contributions are allowed up until the account beneficiary (the college-bound child) turns 18.

If you are unmarried, your ability to make CESA contributions is phased out between adjusted gross income of $95,000 and $110,000. For joint filers, the phase-out range is between $190,000 and $220,000.

CESA earnings build up tax-free. Then the money can be withdrawn (also tax-free) to pay the account beneficiary's college expenses. Like contributions to Roth IRAs, CESA contributions are nondeductible, but the tax-free withdrawal privilege makes up for that. If the beneficiary doesn't attend college or doesn't incur enough expenses to exhaust his or her account, the balance can be rolled over tax-free into another family member's CESA.

You can also take tax-free CESA payouts to cover the account beneficiary's elementary and secondary school (K-12) costs. Eligible expenses include tuition and fees to attend private and religious schools, room, board, uniforms and transportation. You can also withdraw CESA money tax-free to pay costs to attend public K-12 schools. Eligible expenses include books and supplies; academic tutoring; computers, peripheral equipment and software; and even Internet access charges.

You have until April 15 (adjusted for weekends) of the following year to make your CESA contribution for the tax year in question. For example, you can make your 2009 CESA contribution as late as April 15, 2010.

State-Sponsored College Savings Plans ("Section 529 Plans")

State-sponsored college savings plans, often called "Section 529 Plans," can be a good deal since withdrawals to pay the account beneficiary's qualified college costs are tax-free. If you can afford to make substantial account contributions while your kids are still young, the tax advantages should sharply reduce the amount needed to fund their future college educations. One word of caution however: they have traditionally not had good rates of returns.

Most college savings plans now permit lump-sum contributions of well over $250,000. For gift-tax purposes, you can spread a large lump-sum contribution over five years. As you probably know, gifts made under the so-called $13,000 tax free gift rule won't trigger any federal gift taxes, nor will they reduce your federal gift- or estate-tax exemptions. But when contributing to a 529 plan, you can claim five years' worth of $13,000 exclusions upfront. This means a married couple can make a lump-sum payment of up to $130,000 (5 x $13,000 x 2 = $130,000) without any adverse gift tax consequences.

College savings plans typically offer several investment options, including equity mutual funds. Many plans also welcome out-of-state investors. They allow payouts for costs to attend any accredited college or university in the country. You should shop around to find the Section 529 college savings plan you like best. But keep in mind your in-state program may offer state tax advantages that tip the scale in its favor.

The tax benefits are available regardless of how high your income may be. In contrast, most of the other breaks covered in this article are phased out for high earners.

Warning: Don't confuse Section 529 college savings plans with Section 529 prepaid college tuition plans. They are both termed "Section 529 Plans" because both are permitted by the same Tax Code section. Here's the difference. Prepaid tuition plans allow you to lock in the cost to attend certain in-state colleges, but you gain nothing if your account turns out to earn more than the rate of inflation for costs to attend those colleges. In contrast, savings plans allow you to benefit when your account earns more than the rate of inflation for college costs. Of course, if it earns less, you pay the price.

8 Smart Things Every Student Should Know!

2009-07-14T20:09:00.000-05:00

If I could speak to a group of high school seniors, I would tell them that there are 4 important and simple ways to save money on college that they're probably not thinking about.

1. Take the ACT more than once! ACT and SAT scores provide important information to the colleges. It can make the difference between getting money for college and NOT getting a dime. I've seen student's scores jump from 3 to 10 points from the first to the second test they take. I've seen students who've scored an extra point or two on the third or fourth attempt earning them Presidential Scholarships. The higher the test scores, the more FREE money you can earn!

2) Look for Local Scholarships! Internet scholarships are hard to get. You can get them, but they're tough because you're competing nationally. Your high school's guidance counselor is a good place to start with this.

3) Don't discount a community college! You'll use the same textbooks and get the same quality education at many community colleges. Plus, they cost a fraction of what many state schools cost. The only thing you need to be careful about is making sure that the classes you take are able to transfer to the school you plan to graduate from.

4) A 2-year Associates Degree can be a smart choice! With an associates degree, a student can double the income earning opportunity over a high school graduate. Some college is better than no college at all.

5) Take AP (Advanced Placement) or CLEP (College Level Examination Program) Tests. Less time on campus means fewer tuition dollars! Consider the path taken by one of my clients. Because she scored well on the six AP subject exams she took in high school, she was able to enroll this past fall as a sophomore for her first year at the University of Massachusetts in Boston. By spending three years on campus instead of four, she expects to save between $32,000 and $34,000.

6) Apply to several colleges. Some colleges will compete with other colleges and thus provide you with a scholarship or two if they know you might be swayed over to the other college. This gives you negotiating power, especially if you're a bright student.

7) Try Harvard or Yale! Many smart students whose parents make under $60,000 per year can go "tuition free" under the Harvard Initiative Program. Many private schools offer GREAT scholarships opportunities and can often be CHEAPER than state schools!

8) Get Your B.S. At A Cheaper School, And Then Get Your M.S. At A Reputable School! The last thing an employer wants to know is your final degree and what school did you attend. If you get your B.S. at Missouri State and save money, but finish with your Masters Degree at Princeton, it's a more impressive resume, PLUS IT'S CHEAPER!!!

4 Ways You Can Save Money On College Textbooks!

2009-07-14T19:50:00.000-05:00

College textbooks can be enormously expensive! Trust me, the college bookstore is not the only place to find these high-priced necessities. Fortunately, there are several ways to save money on college textbooks.

First, let me say this - always, always buy used books! There is no point in buying a new book if there is a used version available. The price difference is usually quite significant, while the quality of the book is not affected.

Here are some ways to do that:

1. Go Online! Go to Google.com or Bing.com and type in "college textbooks". You might get a variety of choices. In addition, you can go to CampusBooks.com, Textbooks.com, Amazon.com, Ebay.com, Craigslist.com, or Half.com. When you find the textbook...make sure it is the correct version and author! Compare prices with the school's bookstore, as well as other websites. Is it new or used? Before you buy, make sure the seller has clear instructions on how much the shipping and handling charges will be - it could come out to be more expensive than at the school's bookstore if you're not careful. Plus, check out their "Return Policy."

2. Book stores near the school. Many schools have local competitors who have set up shop to resell used books. They compete with the school's bookstore and can often be significantly cheaper. Again, make sure you have the right version and author!

3. Local malls. They may have a book reseller, plus they will offer back-to-school supplies at lower prices than the school's bookstore. You can usually buy sweatshirts and school colors there as well.

4) The school's bulletin board. Many students will post ‘used book for sale’ on the college bulletin board. These textbooks do go quickly so as soon as you get the list of college textbooks you need check the bulletin board. Remember this option when you are ready to sell your textbooks, also.

The 10 Costliest Mistakes Parents Make!

2009-07-14T19:42:00.001-05:00

When it comes to the college funding process, there are many mistakes parents make costing them thousands of dollars in lost aid or unnecessary expenses! After 10 years as a tax and college funding consultant, here is a brief list of the 10 major mistakes most parents make:

Mistake #1: Making Dangerous Assumptions!

The first assumption is that your child's high school counselor will help provide you with a myriad of ways to save money on college. The truth is, their time is limited, they don't know all of the practical, financial, and tax strategies that you can employ to save money, and quite frankly it's NOT their job to save you the most amount of money possible!

The second assumption is your student's college financial aid counselor will show you all the ways you can save money on college. You are badly mistaken! Their job is to simply process the paperwork you give them and determine what you're eligible for. That's it! They are NOT going to provide you with hours of counseling and strategies.

The third assumption is that you make "too much money" to qualify for financial aid! How do you know? I've helped families earning a six-figure income receive financial aid. While there's more money available for low to middle income families, there are a variety of ways higher income families can earn financial assistance. Don't just throw up your hands and say, "We make too much money to qualify!" That may NOT be true at all! For a free analysis, you can call my office see what your options are.

Mistake #2: Starting Your College Planning Too Late!

The best year to start is in your student's junior year! There are very two important reasons for this:

The first reason is that students need time to really think about college. They need to process some important questions, like:

- "What college is best for me? In-state or out-of-state, urban or rural, private or public?"

- "How big of college do I want to attend? College sports? Christian? Etc."

- "What careers interest me the most? Which college offers the best classes for that career?

The second reason is because financial aid is based on your prior year's income tax return. In other words, if your student is attending in the Fall of 2009, then you'll need to fill out a FAFSA based on your 2008 tax return. What you earned in 2008 determines your student's 2009 to 2010 financial award package. If you want to save money on the cost of college, by starting in your student's junior year, you may want to consider some financial and tax strategies that can double or even triple your eligibility for financial assistance!

Mistake #3: Looking In The Wrong Place For The Money!

Most parents mistakenly urge their children to spend time and energy looking for private scholarships on the internet. That's fine, if they're willing to spend ALOT of time and energy. However, most students (while in their senior year of high school) either don't have the time OR they don't want to take the time. 90% of the students I've worked with over the past ten years have submitted applications for those internet scholarships only to never hear from the company in terms of a response to the student or simply be turned down! While one of my students did earn about $33,000 in private scholarships, it took him working about 15 hours per week for several months to get it done! He sacrificed his after-school job to accomplish this incredible task. Even if your student is willing to do that....there's no guarantee!

So, where's the money? 99% of the money is found in both the Federal and State government plans. Private scholarship only make up 1% of the total funds for college, in spite of the fact that we hear there are millions of dollars out there. The Federal and state monies are mathematically based. If you meet certain guidlines, you can count on it. That's why I encourage you to find someone, like myself, who can offer you some insight as to whether there are strategies that can work for you!

Mistake #4: Not Filing A FAFSA Early Enough!

College funding is awarded on a first-come, first-served basis! It's important that you know that! The colleges receive information from the filing of your FAFSA and then allocate or budget monies you may qualify for. If you're late, chances are the money will be gone! If it's gone - even though you may qualify more than most applicants - you will NOT get anything. You have up until June 30 of the year your student will enter into college to get it done, but I recommend you submit it shortly after it becomes available to the public each year - which is January 1.

Plus, you need to fill this form out EVERY year your child goes to college! If you need help with this, our office would be happy to file this form for you every year so that you don't have to worry one second about it. It's up to you!

Mistake #5: Not Filing The FAFSA...Because You Make Too Much Money!

This idea is simply crazy, and is usually the advice given by someone who's NOT a college funding expert. Even if you make a large, six-figure income YOU QUALIFY FOR FINANCIAL AID! You're not going to get "need-based" assistance, but you will be offered a Stafford Loan. This is a low interest federally-based loan that goes into your child's name and can be deferred until 6 months after they leave college!

FACT: In order to dispell the myth that my kids were going to go to college and party it up, I told each of them that they were going to pay for college....ALL of it! However, I told them, "if they did well, they could earn my financial assistance." In fact, if they did real well, I promised them that I would pay for most of it. The BIG KEY was - they had to earn my help! Wow! It changed their whole attitude completely! You see, I felt that they needed to have "blood in the game." I knew (after working with so many college bound students) that they needed to put some of their own ownership into their college education. Nobody ever appreciates something given to them for free.

So, even if you do make a high-income level, still file the FAFSA each year! I've had many high-income earning parents thank me for this one idea!!!

Mistake #6: Choosing A College's Based On The Sticker Price!

Most parents force their students to shop colleges based on their price tag. It sounds reasonable, but colleges are a weird animal! They have factors in them like:

- Percentage of Need

- Percentage of Need Met

- ACT qualification standards for scholarships

- Endowment funds

- And several other factors.

All of these things are part of the overall equation that can make an EXPENSIVE college cheap! I recently sent a student to Washington University (Cost of attendance is $30,000 per year) for less than $5,000 per year. Another student went to Drury University ($26,000 per year) for less than $3,000 per year! That's why you've been able to read in magizines such as Newsweek and Time how it's possible to go to a "private" college for less than a "state" school.

There are internet sites that can help you with this!

Mistake #7: Putting Financial Assets In The Wrong Place!

Until 3 years ago, a 529 plan was the worst place to put money away for college. In spite of the fact that it gave you a tax deduction and usually lost money within the portfolio, it was counted in as part of the Student's Assets! This increased a students EFC (Expected Family Contribution) dramatically and destroyed thousands of students ability to receive financial aid! It wasn't until so many people complained that they changed the law.

An Education IRA is a horrible solution! It disqualifies you from receiving the coveted Hope Scholarship Tax Credit or the Lifetime Learning Credit! Which, in turn, could be far more financially devastating! For example, if you're earning $250 per year in interest on your Education IRA, but you are disqualified from receiving the $1500 Hope Tax Credit or the $2000 Lifetime Learning Credit, you've lost a substantial amount of money!

And, NEVER, NEVER, NEVER put money into the child's name! This is suicide! Money in the child's name is a large factor in INCREASING your child's EFC and lowering their eligibility for financial assistance!

Mistake #8: Not Competing Or Negotiating With A College!

Many students only have one or two colleges they're interested in attending. And, that's reasonable. However, schools will often compete with each other, especially if your student is a good academic student. Choose several different colleges. When you get their award letters, see who offers you the best award. Then negotiate!

Mistake #9: Letting A Financial or Tax Person File Your FAFSA

As a tax preparer, I've seen the mistakes these NON-COLLEGE FUNDING PEOPLE make. They may offer some great financial and tax strategies, but they may be horrible college funding strategies. Since college costs are no laughing matter, you might want to have a college funding expert in your area (or you can call my office) to help you with some guidance.

In fact, our office can FILE THE FAFSA for you! By doing so, we can make some suggestions that can potentially save you thousands of dollars over a 4 year college education.

Mistake #10: Just "Winging" The College Funding Maze!

Most parents just approach the college cost issue with the attitude, "Well, I'll deal with it when it comes!" That was the same attitude you heard on the news from some folks who lost their lives when Katrina hit New Orleans. Be smart! Be proactive! Get help! Don't "wing" the college funding issue. There's too much money at stake.

While there's a lot of information at your bookstore or library, the books you'll find are so massive or there's just too much information, that it would take quite some time to fully get a grip on things. However, if you've got the time, go for it! Otherwise, give us a call.

For more information, please feel free to contact me at (816) 739-9894.