A financial adviser or insurance professional whose core competency is college planning can help you design a timeline that incorporates a saving schedule, maintaining good grades, preparation of standardized entrance exams and procurement of financial aid. It’s like a roadmap that has milestones along the way to keep you on plan so you can hit your academic and financial goals. Parents should continue to contribute to their retirement. Simultaneous savings plans are not in conflict once you establish your budget and summon the discipline within yourselves to accomplish it. One discipline to incorporate immediately is debt reduction, especially credit card debt. Start paying down your credit card debt and stop spending. This includes spending on your debit card. While spending only available cash, it’s still spending, and much of that spending is discretionary. One last thought in this area: have a garage sale. It will not only generate some cash, but it may be a reminder of unwise spending that can be your motivation to save more money in the future. Once your plan is set up and operational, you need to look at reducing taxes to create more cash flow. In fact, many parents redirect their tax returns to   Read more…

College is big business and should be treated as such. And like big business, it can make decisions that favor revenue rather than their procedures. Negotiations and appeals are part of that process that allows the applicant to circle back and argue a better rational for college entrance and funding. One interesting trick of the trade is comparing in state colleges to private colleges. It is somewhat surprising to learn that although the gross cost of college is cheaper at the state university, it may actually be cheaper at the private university because they may offer more financial aid. The net cost is the financial reference point of affordability and needs to be explored before a final decision is made. You may have inherent value in your talents, skills or hobbies that can be attractive to a college or university. After all, a student’s unique personality and character traits can be a boost to public relations for the school. Extra curricular activities, summer employment and letters of recommendation can be the tipping point in the balance sheet of decision on entrance and extra funding. But you still need good grades and high exam scores on the standardized SAT and ACT   Read more…

The typical family pays for college with six funding resources: 34% grants & scholarships, 29% Parent Income & Savings, 13% Student Borrowing, 12% Student Income & Savings, 7% Parent Borrowing and 5% Relatives & Friends. 1 Historically, there is quite an inventory of savings vehicles: UGMA/UTMA, Grants, Scholarships, Work Study, Education Savings Bonds (Series I or EE), Coverdell IRAs, Post 911 GI Bill & ROTC, Section 529 Plans, Cash Value Life Insurance and Real Estate Equity. Sometimes tax management can come into play and free up money otherwise going to Uncle Sam. Knowing how to position and purchase investments on the basis of taxes can create greater cash flow, freeing up more money for college. Home equity is a resource, but not a free resource unless you’re age 62 or older. Some Baby Boomer parents had their children late in life. Traditional HELOC equity loans demand interest payments, the loan could be called and the equity line of credit has no earning power. But a HECM (Home Equity Conversation Mortgage) loan appreciates annually for any unused portion of the equity line and increases uncorrelated to its market home value. Borrowers pay no out of pocket interest payments and are not   Read more…

Preparation: The academic side of the equation is to do the best in high school to generate the highest possible GPA. Next is to take study courses for the SAT and ACT to prepare for the test. The results could qualify your student to receive grants and scholarships to mitigate the cost of college. There could be athletic scholarships or musical awards that can pay some or all of the costs. But for most attendees borrowing will be the main financial resource to pay for school. The Right School: Some students have an idea of what they want to do in life. So researching the schools that address those ideas and the majors they offer is the first step in the “stalkingâ€� process. For students who are less sure of their career goals, junior college or the first two years in a liberal arts school may offer the requirements that most majors require. Some colleges permit the student to be undeclared up to two years before a major is selected; but eventually schools require a declared major. Every school has standards: some rigorous- others more relaxed. Are classes large or small? Is a private school instead of a public school   Read more…