Financial Aid Scoop!

"Avoid these FAFSA mistakes!"

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Thu, 15 Oct 2009 17:45:00 +0000

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

New SAT Scam!

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Tue, 18 Aug 2009 18:19:00 +0000

For free test tips and discounts, visit: SmokeTheSAT.com

What the Hell is College Pete Doing In There With That Student?

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Tue, 11 Aug 2009 19:59:00 +0000

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!

College Pete on Financial Aid's "Secret" Timing

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Thu, 06 Aug 2009 01:37:00 +0000

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!

Is Your Guidance Counselor Stupid (About Financial Aid)?

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Tue, 04 Aug 2009 16:01:00 +0000

Frequently, parents of college-bound teens wonder if their high school guidance counselor or college advisor can help them figure out how to pay for college. Sometimes parents will even turn to the financial aid office at their child's college for advice! Andy discusses the pitfalls of choosing these options....

Show me the college money...and goofy, sarcastic captions

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Sat, 01 Aug 2009 03:06:00 +0000

The "Deep, Dark Double Secret" Financial Aid Formula...

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Thu, 30 Jul 2009 11:42:00 +0000

The Department of Education's formula that calculates how much aid you'll receive. More info available at: www.LearnCollegeFunding.com.

How a client who you never would think would qualify for financial aid received $14,000 at the college of her choice!

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Tue, 16 Jun 2009 20:24:00 +0000

Three questions you must ask!

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Tue, 16 Jun 2009 15:52:00 +0000

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

Free Advice Turns $9,500 into $37,500

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Fri, 12 Jun 2009 23:44:00 +0000

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.

It's gonna cost me HOW MUCH????

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Thu, 11 Jun 2009 10:07:00 +0000

"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!

SAT myths

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Tue, 09 Jun 2009 20:09:00 +0000

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

Florida's official tuition hike...and what do do about it

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Fri, 05 Jun 2009 11:20:00 +0000

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.

7.5 Tips for Your Summer College Visits!

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Mon, 01 Jun 2009 17:50:00 +0000

"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!

Requiem for the "forgotten" middle class

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Tue, 12 May 2009 10:22:00 +0000

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 Kids Aren't Alright

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Mon, 27 Apr 2009 17:50:00 +0000

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.

Parents of College-Bound Children - Are you holding up your end of the bargain?

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Mon, 13 Apr 2009 16:20:00 +0000

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.

The Death of Bright Futures

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Fri, 27 Mar 2009 11:11:00 +0000

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

Dirty, deceptive and surprising student lending!

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Tue, 09 Dec 2008 17:39:00 +0000

I bet you'll be surprised about how studentloans REALLY work. Here's what I mean.
On Monday, NY Attorney General Andrew Cuomo announced a settlement with the College Board over its former loan practices.

That's right, that's the same College Board that tortures high schoolers with the SAT, the CSS/Profile financial aid form and other familiar items. Apparently the Board was making money from sources otherthan test registration fees, like lending to students.

Attorney General Cuomo had a problem with the way in which the College Board was conducting this business.

Mario's Number One Son found that the College Board gave discounts to certain colleges, breaks related to prices paid by the financialaid offices for software and other services.

How did these colleges earn this special pricing from the College Board? By placing College Board loansin their list of recommended, or "preferred" lenders.

In other words, the College Board was alleged to have"bribed" (my word, not Cuomo's) these colleges into advertising the student loans offered by the College Board.

"Loans are hard enough to come by these days; thelast thing we need are deceitful arrangements likethis one that stand squarely in the way of students and parents getting the facts," said Cuomo.

And I bet you thought the company that issues the SAT was a non-profit or educational institution, right?

Nope, they're in business like everyone else involved in higher education. They're out to make a buck.

Not that there is anything wrong with that, of course. College Pete and I make a nice living advising parents of college-bound kids how to slash their college expenses. Everyone is entitled to make a few dollars (no matter who is President)!

The real issue is the deceptive manner in which the College Board, and the colleges themselves, allegedly made their money (they admitted no wrongdoing, not surprisingly).

When you go to apply to college, understand the main point made by this blog - that college is a BUSINESS.

This knowledge should effect almost everything you do regarding your student's college education, including where you apply for admission, how you apply for financial aid, how you apply for other scholarships and how you negotiate a financial aid award letter, among others.

If you don't understand this, you're setting yourself up to over-pay needlessly for your student's college education. You could be forcing your son or daughterto attend a "cheaper," less-desireable college than if you paid attention to the business of college.

This is exactly what we talk about in our free community workshops, "How to Pay for College Without GoingBroke or Raiding (what's left of) Your Retirement Savings."

Tonight's is sold out but we have a few more in Miami,Weston, Boca Raton and Parkland in the next 7 days.After that, it's too late - we shut down for the year.

The workshop is for parents of college-bound students. If you have a college-bound Senior, you're on life support if you haven't done anything to prepare for college costs. If you have a Junior, know that this is the most critical year for college funding purposes. If you have a Sophomore, everything he or she does now leads up to Junior year, the most important year of high school.

If you have a friend who's struggling with howto pay for college, send them a link to this post and tell them about our workshops in Miami, Boca,Weston or Parkland, too! They'll like this email better than a lump of coal in their stocking, promise!

Registration info is at:
http://www.CollegePlanningAdvice.com/events

The Surprising Reason High Income Earners Receive Thousands in College Financial Aid!

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Wed, 15 Oct 2008 13:36:00 +0000

You will not believe this email, but bear with me.
"College Pete" and I constantly talk about howeven millionaires should apply for college financial aid, even if they think they won't qualify.

Before I get to the story I read today, let me give you a little background on college admissions. Background that you'll never hear anywhere else.

Are you familiar with US News and World Report? This magazine is at the top of the heap when it comes to ranking colleges and universities.

Many admissions heads obsess over their rankings, particularly the colleges in the fourth, third andeven second tiers, trying to figure out how to move up in rankings. Better rankings equals more applicants, more enrolled and the ability tocharge higher tuition and fees.

Like it or not, that's the way it is.

Many ambitious, upwardly-mobile colleges will do all sorts of things to improve their standing with US News. Some offer "bribes" to good students by way of merit scholarships to pry them away from Ivy League or other highly competive schools. This funding is doled out withoutregard to the family's financial picture. And it's heaped upon students with grades and scores that are not"Ivy-caliber", too!

Now check out what Baylor University did. Apparently,the SAT's of last year's incoming freshman classwas worse than that of the previous year. This would look bad in US News.
So Baylor did something creative to counter their impending drop in the rankings. They bribed their accepted, incomingfreshmen to re-take the SAT!

Yes, you read that right! Baylor offered a $300 book credit to any freshman who sat for the SAT again. And, if the student increased his or her score by 50 points, therewas another grand in it for them. About 177 qualified for even more scholarship funding.

Of course, Baylor denies that they created their SAT contest because of the US News rankings.

My point is the college financial aid game works in ways that non-insiders can't possibly understand. Even parents who make "deep" six figure, or higher, incomes can save thousands off college costs, if they know the rules ofthe game.

So take away two points from this post - do your research about what schools over this kind of aid (and what their standards are) and do NOT blow off applying for financial aid if you think you earn too much money, because you never know!

Best,

- Andy

P.S. Want more info on "How to Pay for College WithoutGoing Broke or Raiding What's Left of Your RetirementPortfolio?" We've got three more college funding workshops this month and they're than 77% booked up.

I ran last night's at Nova Southeastern and I counted only three available seats. Thank god we had 6 no-show families!"College Pete" is running one at the Posnack JCC in Davie, 6:15 and there are still 8 available slots. Then I'm doing workshops on Thursday night, 8:00 pm at the Weston Y and Saturday, 10:15 am at The Sagemont School, Upper Campus.

P.P.S. You can check availability and locations at:
http://www.CollegePlanningAdvice.com/events
or call 954.659.1234 ext. 201.

Andrew Lockwood, J.D.
College Planning Specialists of Florida, Inc.1825 Main SteetWeston, FL 33326
http://www.collegeplanningadvice.com/
954.659.1234
Co-author, "Never Pay Retail for College,"
Co-host, "The College Planning Power Hour"WFTL Sports, 1400 AM, ESPN Radio

10 College Funding Mistakes to Avoid

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Thu, 09 Oct 2008 14:27:00 +0000

Top 10 College Funding Mistakes Made By Parents of College-Bound Teens

By Andrew Lockwood, J.D., CollegePlanningAdvice.com

If you have a child applying to college, this is an exciting and stressful time for both of you. One of the most worrisome issues facing parents today is how to pay for a four year college or university. Fortunately, there is more than $137 Billion available from the Federal Government, the states, colleges and universities, private foundations and other organizations. Your challenge is to figure out how to access these funds.

Many families fail to take advantage of the numerous financial aid and other college cost cutting opportunities available. For the uninformed, ill-prepared family, the unfortunate results can range from being forced to take out high fee, high rate college loans, tapping equity built up in their homes or dipping into retirement savings. But with diligent research, you can significantly minimize or flat-out eliminate these undesirable outcomes.

To help navigate the overly complicated regulations of the Department of Education, I offer
“College Pete and Andy’s 10 College Funding Mistakes to Avoid.”

Mistake #1: Most middle and upper-middle class parents assume they won't be eligible for financial aid because they own a home and make more than $100,000, $150,000 or more per year.

Mistake #2: Focusing time and energy on a private scholarship search instead of spending time trying to qualify for “need-based” financial aid.

Mistake #3 - Assuming only minority students, athletes, and academically gifted students receive financial aid.

Mistake #4 – Applying to a college without regard to how their child’s high school record compares to the statistics of the existing student body of that college.

Mistake #5 – Blindly assuming that all colleges and universities have similar amounts of resources and will award the same scholarships, grants and other aid across the board.

Mistake #6 - Not understanding the difference between "included assets" and "exempt assets" for purposes of filling out financial aid forms.

Mistake #7 - Believing that it doesn't matter where they keep their money; it's all counted in the same way.

Mistake #8 – Believing their CPA or tax preparer is qualified to fill out financial aid forms.

Mistake #9 - Waiting until January, or worse, after January, of their child's senior year of high school to start working on your college financial aid planning.

Mistake #10 – Relying on their child’s college advisor, guidance counselor or BRACE Advisor for help with the financial aid process instead of consulting a specialist.

Andrew Lockwood is the co-founder of Weston-based College Planning Specialists of Florida. He and his partner, Peter “College Pete” Ratzan, co-authored the recently-released college funding book, Never Pay Retail for College. Lockwood and Ratzan conduct free college funding workshops, ”How to Pay for College Without Going Broke or Raiding Your Retirement Portfolio” throughout South Florida. For dates, times, locations and seating availability, visit www.CollegePlanningAdvice.com or call 954.659.1234 ext. 299.

What to do after you've submitted your financial aid application

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Mon, 22 Sep 2008 18:17:00 +0000

"College Pete" here -

I had a student call me the other day, wondering how we might be able to assist her in finding a student loan to pay for her current tuition bill. This student attends a local private university, and fortunately for her she’s in her last year in college. Her EFC is under $2,000, and her FAFSA was filed way back in March.

The school had asked for Verification of her financial aid application. All this means is that the Financial Aid Office wants to actually see your tax returns for the Base Income Year (the year prior to high school graduation), as well as confirm your family information. She delayed in providing this info to the school by at least several weeks, and now, with her first tuition payment due within 30 days, the school’s financial aid office is saying that they are still processing her application and will notify her “soon” of her final award. Meanwhile, if she doesn’t pay her bill on time she will face a late penalty.

A few lessons from this situation:

1. If your EFC is below $4,000 you should fully expect that the school will ask for Verification. According to Sallie Mae, 30% of all FAFSA applications are randomly verified, but the rate for submissions with EFCs below $4,000 is dramatically higher. If you wish to receive any federal financial aid (i.e. grants, free money and even federal loans), verification must first be completed. Ignore the financial aid office’s requests at your own peril. This student should be eligible for a Pell Grant of as much as $4,000 per year or more. That’s money left on the table because she delayed in providing the verification forms to the school. And Pell Grant money is First In, First Out, so any delay endangers her likelihood for an award.

2. Financial aid goes to the student/family who continues to follow up on the application. Once the application is submitted, the family must contact the financial aid office to make sure they have everything they need. Financial Aid Officers deal with a ton of paperwork; you don’t want your file buried at the bottom of the pile.

3. Private student lenders continue to ditch the market, making it harder to find a student loan from a bank. Loans are still available from companies like Chase and Wells Fargo, but even these banks require more stringent credit ratings to get the best rates (5%), along with a co-sign.

By ignoring the Verification request from the financial aid office, this student has taken the process down to the wire, and as a result she may forfeit her Pell Grant. Her eventual financial aid package will likely include a loan, but it may not be processed in time to avoid the late penalty.

So make sure you submit your financial aid application early (FAFSA for 2009-10 opens on January 2) to qualify for maximum aid, be prepared for Verification because it might happen, and be sure to Bird-Dog your application once it has been submitted.

- Peter "College Pete" Ratzan

www.CollegePlanningAdvice.com

When the so-called "experts" like Kiplingers steer you wrong

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Tue, 03 Jun 2008 00:35:00 +0000

I'm extremely irritated so I'll be quick with this post.

I see why so many parents never even bother
to apply for financial aid! 53% of all eligible families never even
bother to apply, according to the College Board.

Why? They're being told
that they make too much money by the so-called
experts - this is why I call 'em "schmexperts"!

Check out this clip. Some well-intentioned "friend"
of mine sent me a video from Kiplingers about
college financial aid.

This woman, Janet Bodnar, does a decent job
explaining why you may want to save in your
name, not your child's, but then she lets loose a
colossal, "gi-normous" 100% false statement:

If you make a lot of money, like more than a
hundred grand, you probably won't qualify for
aid!

Sweet mother of all things holy! How ridiculous is
she?

This video appeared in an article on MSN.com.
The article talks about how Harvard and Yale
are giving away money for parents making up
to 180K and 200K, respectively!!!

Hello?

This is what College Pete and I are talking about
when we tell you, don't listen to the
"schmexperts," listen to US. Our advice is
frequently 180 degrees opposite to your
typical trusted advisors, CPAs, guidance
counselors, BRACE Advisors, and now,
Kiplingers!

Our advice: EVERYONE should apply for
financial aid! Case in point - you can go to
Harvard (a $50,000 per year school,) for
$18,000!

OK, I'm done with my rant.

Later.

- Andy

P.S. If you want to watch this video, here's
the link to Weston's article:

http://articles.moneycentral.msn.com/CollegeAndFamily/CutCollegeCosts/GraduateFromHarvardDebtFree.aspx

(You may have to cut/paste all of the code intoyour browser - sometimes these links don't work.)

P.P.S. I don't want you to think that I have anything against Liz Pulliam Weston. I happen to think she's a solid journalist and find her columns to be on point, without exception.

College Pete on AP exam tips

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Mon, 14 Apr 2008 14:41:00 +0000

May is approaching, and that can mean only one thing.

Horse racing? NBA Playoffs? Mother’s Day? The answer is "yes" to each of those, but this piece will discuss something equally, if not more thrilling - AP Exams!

I’m not much of a horse guy although I do try and catch the Derby and Preakness each year. As for the NBA, the Heat’s playoff hopes departed long ago, around the same time Santa did, and besides the games begin way too late in the evening. As for Mother’s Day, it’s one of the most important calendar events, especially for Hallmark. Seriously, treat your Mom well (and your wife!), especially on Mother’s Day.

Why do I bring up all these distractions when our focus is on AP exams? Because it’s symbolic of the mentality that many students apply to the AP season and AP courses in general. An AP course is an opportunity for a student to not only boost his or her weighted GPA with a strong grade, but it’s also a way to earn college credit if (big IF) by scoring a 3, 4 or 5 on the AP exam in May.

Some students work hard all year long in an AP course and make all kinds of excuses to avoid taking the AP exam. Bad move! Admissions committees don’t like to see that. Other students don’t properly prepare for the exam because they’re distracted by other events like those mentioned above, not to mention Prom, end of school, spring football, cheerleader tryouts, senioritis, etc. If you’re a solid performer day-to-day in your AP class, you should be expected to earn a good grade on the exam. But this does not happen automatically. Instead it requires preparation.

Many AP teachers offer prep classes on weekends about one month prior to the exam date. Don’t miss these classes! If your teacher doesn’t do this, ask him to reconsider.

Andy and I always harp on families of college-bound kids to research how generous they are with their financial aid. You can save money through AP credits, too!

When selecting colleges and universities, be sure to research how they treat AP credits. Many schools will award actual credits toward graduation depending on your score, whereas others will allow the student to place out of entry-level courses. If it’s the former, then you can lower your total cost of attendance with a strong AP score. Some schools will only accept scores of 4 or 5, whereas others will accept a 3. This information is readily available on each school’s website.

Students should take advantage of the AP Program and its benefits. It pains me to see a student with excellent grades but no AP courses on his transcript. College admissions offices will view this student as an underachiever, one who does not rise to the challenge. On the flip side, some students overburden themselves with too many AP courses than they can handle, resulting in poor performance. Sometimes the school guidance offices encourage students to load up on APs, since AP enrollment looks good for the school. Earning a ‘C’ in an AP course is NOT like earning an ‘B’ in a regular course, even if the impact on your GPA is the same. If you cannot earn a ‘B’ or ‘A’ in an AP course, then you should not enroll in that class.

Final word: for those students taking AP exams in May, good luck! And just remember, no matter how well you do, your mother will still love you, so treat her well come Mother’s Day.

-Pete

P.S. We've got three workshops on "The Dirty Little Secrets About College Financial Aid" this week - Wednesday the 16th, Thursday the 17th and Saturday the 19th. The workshops are 100% free and teach you how to lower your out of pocket cost of college by thousands, if not tens of thousands of dollars per year! They are free but limited by room size, so register today online: http://www.CollegePlanningAdvice.com!

- Peter "College Pete" Ratzan

It's money time for incoming college frosh

noreply@blogger.com ("College Pete" 'n Andy - Bloggers) — Fri, 11 Apr 2008 10:38:00 +0000

In financial aid, spring is "show me the money" season. College financial aid offices mail their award letters this time every year. If you're the parent of a college-bound student, try to fast forward two or three years to think about when you'll be in these shoes.

For incoming freshmen, the award letters can be the deciding factor in terms of where they end up in college. then, deposits are due by May 1. (For returning upperclassmen, this is the time to see how this year's award stacks up against last years, but I'm going to focus on incoming freshmen in this blog. )

So now is the time to analyze the offers. Be careful, particularly when it comes to "renewability." In other words, if you're awarded a grant or scholarship for your first year of college, understand what it takes (the minimum GPA) to receive that scholarship your sophomore, junior and senior years.

If you're offered loans, pay careful attention to the terms of each loan. Although reading these disclosures are not exactly riveting, it's important to understand exactly how the loan works - the rate, when can it adjust, how much it can adjust, is there any forgiveness or deferral option, etc.

Avoid unpleasant surprises by preparing years ahead of time. The best time to start your college planning is sophomore year of high school! Yes, sophomore year. This way, you'll be happy when you open your letters come spring of your senior year!

We offer free workshops that teach you "How to Pay for College Without Going Broke." Check out our dates/times/locations on our website:

www.CollegePlanningAdvice.com