Category Archives: financial aid

college planning, financial aid, how to

College Savings Plans

 

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college savingsNo matter where you are in the college prep process, saving, and knowing how and what to save can be difficult to understand. Depending on your situation and the amount of time you have to save, here are some excellent resources that will help you understand college savings plans.

SavingforCollege.com

SavingforCollege.com offers a free Family Guide to College Savings available in either Kindle, Nook, or PDF format. The guide advises parents on when to start saving, how to start saving, and college savings alternatives. It also gives a brief explanation of the tax savings you can expect and how to maximize savings. There are also numerous links on the site itself related to 529 savings plans, college expenses, and a tool to use to view the list of state specific plans. There is also a college cost calculator that helps you determine the cost of college based on your child’s age and the amount you wish to contribute along with a monthly savings estimate.

AffordableCollegesOnline.org

AffordableCollegesOnline.org has created a 529 Savings Plan Guidebook which can be easily printed from your browser. In the guidebook you will gain a better understanding of:

By using this guide, you will gain a better understanding of:

  • How 529 savings plans work and how to establish one
  • Who is eligible to establish and contribute to a 529 savings plan
  • The pros and cons of other types of college savings vehicles
  • How much may be contributed to a 529 plan
  • The tax advantages associated with 529 plans
  • The best time to set up a plan
  • How to take the next step in obtaining some – or all – of the funds that are needed to fulfill the dream of a higher education.

U.S. News Education

On U.S. News Education: Saving for College you can read articles like:

  • 4 Steps to Choosing Age-Based 529 Plans
  • 5 Steps for Utilizing 529 College Savings Plan Funds
  • 12 Questions to Ask Before Investing in a Prepaid College Savings Plan
  • 4 Costly Mistakes Parents Make When Saving Money for College

Manilla.com

Manilla.com offers a free downloadable Financial Literacy toolkit that helps parents and students through the process of deciding how to pay for college, deciding who will pay for what, and some good pointers on establishing good financial habits.

Fidelty.com

Fidelity offers information you will need to plan your child’s educational future. On this site you can compare your savings options, find a 529 savings plan that meets your needs, learn about financial aid, and how much you will need to save.

MorningStar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. Morningstar provides data on approximately 433,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on nearly 10 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets.

In a recent article, MorningStar rated the nation’s Best 529 Savings Plans for 2013 and also lists the negative rated 529 plans.

University Parent

University Parent, an online resource for parents of college students and college bound teens, recently published an article:  What is a 529 Savings Plan? How it Helps. The article gives an overview of the plans and what you need to know once you have one and how to use it.

If your college-bound teen is young, you have plenty of time to start saving. If you have a student in high school, you should read the information about aggressive portfolios and how to maximize your investment. The above resources should help you decide how much and where to invest your savings.

 

financial aid, Scholarship Friday

Scholarships Friday: Merit Aid

 

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merit aidFinancial aid is always on the minds of parents and students, especially when they begin to research college costs and their financial aid statistics. The terms can be a bit confusing and today I want to discuss merit aid and answer a few questions about what it is, how do you find it, and how do you apply for it.

What is merit aid?

“Merit Aid” is the general term for grants, scholarships and discounts that a college awards in the financial aid package without considering financial need. Merit aid is based on several factors: academics, athletics, special talents such as music, where the student lives or other demographic characteristics. Merit aid is different from need-based aid which is awarded based on the student’s economic situation.

How do you find merit aid?

There is more than $13 billion of merit aid available to undergraduate students. Most of that, about $11 billion, comes directly from colleges. The other $2 billion is provided by state governments. MeritAid.com lists more than 23,000 individual merit aid scholarship programs offered by more than 1,800 colleges across the country. Meritaid.com is the largest single source of information about merit-based scholarships.

You can also search on the college’s website. Colleges with merit aid may offer anywhere from a few dozen opportunities to hundreds of individual programs. Some merit awards are well known and heavily advertised while others are harder to find.

How do you apply for merit aid?

In many cases, applying to a school is enough to be considered for the many merit aid opportunities available, assuming you get in, of course. However, some colleges or scholarship programs may have special application requirements, so always check with the college if you’re not sure.

When will I know if I receive merit aid?

Once the college offers you admission, they will follow the offer with a financial aid package. The merit aid they award will be listed in the package. This offer typically comes after the acceptance letter arrives.

Almost everyone qualifies for some form of financial aid, but don’t assume you won’t qualify for merit aid. Check out MeritAid.com for a list of 5 myths about merit aid. Visit their website for the best database on merit aid scholarships.

 

financial aid, Uncategorized

Making College Affordable

 

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It’s a confusing process–figuring out how to pay for college. Not only is it stressful, but it’s overwhelming trying to understand all the ins and outs of everything to do with financing a college education. Two women, Jodi Okun and Celest Horton, are doing something about it. In two separate projects, each of them is doing their part in making college affordable while graduating without debt or minimal debt.

A Parent’s Guide to Making College More Affordable

making college affordable

Jodi Okun has partnered with Zinch to create A Parent’s Guide to Making College More Affordable for the busy parent who wants straightforward and simple, yet thorough answers on how to navigate the confusing process of paying for college. Jodi has been working in the college financial aid industry for over six years. She began working at Occidental and Pitzer College in their financial aid offices helping thousands of families as a financial aid consultant. Jodi is also the founder of College Financial Aid Advisors, where she works closely with families to successfully navigate the financial aid process.

A Parent’s Guide to Making College More Affordable consists of the following content:

– Over 30 video lessons covering:

          • The cost of college including creating financial aid timelines & using the net-price calculator
          • All about applications – FAFSA, CSS PROFILE, IDOC, NCP
          • What to do after you’ve applied including comparing packages and how to follow up
          • How to cover the gap through grants, loans, etc.

– 14 hours of live “office hours” with Jodi Okun where you can connect with her directly and privately to ask questions related to your unique family situation.

– Detailed, step-by-step walk-throughs on how to complete important applications: the CSS Profile (released in October) and the FAFSA (released in January) at no additional cost.

– college timeline, budget worksheets and a downloadable dictionary of key terms.

– Q&A postings after each lecture to ask Jodi specific questions.

– Lifetime access to all course content and a 30-day money back guarantee.

Every parent of a college-bound teen should review the specifics of this comprehensive course, especially if you are confused or need help with the financial aid process. Click the link below for a 30% discount (the entire course for $34!)

A Parent’s Guide to Making College More Affordable

How to Pay for College HQ

how to pay for college

Celest Horton is a mother of four kids: three of the four are teenagers now. She is a Chemical Engineer by trade and has spent most of her professional career in technical sales in the Oil Industry.  Yet, she wanted to help serve others too by solving a current fear that she has…paying for college for four kids. Having three of the four in college at the same time is her greatest financial concern.

She wants to help others understand how simple it can be with a little planning and preparation. To do this, Celest is producing and making available How to Pay for College HQ Podcasts.  It’s a weekly podcast that is comprised of interviews with industry experts to educate high school parents and students to help them plan and prepare early with the goal to earn a degree debt free.

The Podcast is available on iTunes and Stitcher Radio, and the best part…it’s FREE. You can subscribe and listen to the most recent podcasts as they become available. Here are the two links:
financial aid, mom approved tips, parenting, Uncategorized

Mom-Approved Tips: Talking to your teens about financing college

 

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financing collegeIf you have a college-bound teen you’re well aware of the cost of college–it’s high. In a recent story in Business Week, one graduate confessed she had given up on her student loan debt of $186,000. She is not alone. With the nation struggling under a $1 trillion student debt crisis, stories like hers are nothing uncommon. For the first time ever, the national student loan default rate exceeds the credit card delinquency rate, and so long as student loans remain one of the few types of debt that can’t be discharged in bankruptcy, chances are the situation won’t improve any time soon. 

As their parent, it’s up to you to make sure they don’t fall prey to debt that they cannot repay after grduation. Before they ever accept an offer of admission, you need to talk to them about financing college. In my Parents Countdown to College Crash Course I call it “the money talk”.

Following are a few tips to help broach that uncomfortable topic with your college-bound teen:

The cold, hard facts

The first thing you need to discuss is finances: what you are willing to pay and what you expect them to contribute toward college expenses even if it’s just acquiring scholarships. Discuss the ramifications of student debt and talk openly about which colleges would fit into the family’s financial picture. Paint the picture clearly and explain to them this is a large investment and needs to be treated as such: you expect them to do their part and you expect them to study and to graduate.

The difference between wants and needs

This discussion is just as important as discussing the cost of the college education. When a student understands the difference between the two they can make financial decisions based of this criteria. Is it something they need or simply something they want? Don’t assume they know the difference. Most teens believe everything they want is a need. If they learn this lesson before going to college and living on their own, it will save them overdraft fees, past due notices and much heartache when they are controlled by their debt.

The college choice

Be realistic. If their dream college is out of reach financially think long and hard before you apply. This may be their first time to make a choice between what they want and what is best financially. It is a tough pill to swallow now, but they will thank you when they graduate with minimal or zero debt. The college they choose not only needs to be a perfect fit for them socially and academically; it also needs to be a perfect fit financially.

The budget

This is the perfect time to talk to your college-bound teen about creating and sticking to a budget. You may have tuition, room and board covered but there are always added expenses. Budgeting for those added expenses means there won’t be any surprises when the bills come due. Need a list of what those extras might be? Check out this article I wrote for Smart College Visit about the extras beyond tuition.

If you can’t sit them down for a time (we know how hard it is to even share a meal together), do it in segments. Just make sure you do it before they start applying to college. If you don’t, it’s going to be an uncomfortable discussion when they get accepted to their dream college and it’s not affordable for you and your student.

 

financial aid, student loans, Uncategorized

5 Things you need to know about student loans

 

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student loans

Most parents would prefer that students enter college on a full scholarship. The harsh reality is that few students do. How do you make up the difference? Students and parents take out loans. Student loans are usually a part of most financial aid packages. Ideally, you should try and graduate with minimal debt. But sometimes loans can supplement scholarships, work study and merit aid.

Here’s the problem, however. When you start sifting through all the words and the small print, it can be a bit overwhelming. You should never borrow any college money without reading the fine print. Parents and students need to understand what they are signing and how the amount will have to be repaid. You can’t just look at the current situation when deciding. You have to look at the future and how that debt will affect the student.

Don’t sign on the dotted line before checking out Zinch’s high school blog on how to sift through the student loan terminology.

financial aid, Uncategorized

Money Saving Tips for College Students

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saving moneyMost college students don’t need a reminder that the school year is almost here. With the great a stressful class load, social life, and well-being it can be easy to lose track of your finances. Don’t let the school year make a dent in your wallet. Use the following money saving tips.

  • Make a Budget

Making a budget is an important first step to start saving money. Start tracking how much money you spend on bills and necessities and how much money you have to spare. Find a reasonable amount of money that you can afford to set aside and start a savings account.

  • Get Organized

Believe it or not, being organized can save you a lot of money because it makes it easier to keep track of items. Create an easy-to-remember organizational system to keep things in their proper place to make them easy to find.

  • Do More Walking

Take advantage of the weather, whenever possible by walking instead of driving. Not only is walking a great form of exercise, but it also is a free means of transportation. Take more relaxing walks this school year!

  • Sell Your Books

Get rid of the textbooks you no longer need by selling them to fellow students who are studying the same subject. Utilize word of mouth, social networks and pin boards around campus to let others know that you are selling your books. Also check with your school bookstore and textbook websites to see if they offer money for old textbooks.

Start preparing for the upcoming semester by looking online to find cheap textbooks and different textbook options such as digital textbooks or rentals.

  • Get a Job

The school year is actually an excellent opportunity to get a job or internship that can help pay for your schooling or jump start your career. Start early and look for opportunities online, through social networks or through your campus career center.

Continue reading Money Saving Tips for College Students →

financial aid, scholarships

Check out this scholarship app

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scholly app

Every parent and student can use some help with the scholarship search process. And what is it they say? There’s a scholarship app for that!

Christopher Gray, known as the “Million-Dollar Scholar” after being awarded $1.3 million in scholarships, has created an app to help students search for scholarships. Over the past three years, Gray has also helped other families manually scour through databases, and figured, “Hey, I need something that can help.  There has to be a faster way.”

scholly appThe app uses eight specific parameters, like state, GPA, or race, to instantly filter through a deep directory of scholarships available for the prospective student.

“It’s extremely simple,” says Gray and that ultimately was the goal. Since students are using their smartphones for just about everything today, he felt the app fit the needs of his audience.

A recent study, conducted by Sallie Mae, shows that 39% of families used scholarship funds to pay for college during the 2012-2013 academic year and Scholly connects users with relevant scholarships in about five minutes.  Scholly’s database is updated monthly to remove scholarships that are no longer available, add scholarships, and refresh deadlines.

Scholly can be purchased for $0.99 in the Apple App Store and Google Play.The app’s costs were intentionally positioned to make it affordable. Pay 99 cents and you may get thousands of dollars for college.

 

 

financial aid, scholarships, Uncategorized

Yes you can (win that scholarship)!

 

yes you canYes you can (win that scholarship)! “Yes you can” are the call words for many motivational speakers, school programs, political campaigns and even song lyricists. The scholarship hunt requires that type of motivation: perseverance, attention to detail, and the desire to succeed. We all know that success requires attention to the goal and focusing on the prize. The scholarship search is no different.

“If at first you don’t succeed, try and try again!” That pretty much sums up the search process. Scholarships are the icing on the cake in the college admissions process–get into the right school and fund it with free money. Winning a scholarship to pay for college is every parent’s dream and the scholarship search process is every student’s nightmare. But with a little effort and some good advice on how and where to search, the effort will be worth their time. There is money out there for every type of student and every area of interest. Yes you can (win that scholarship)!

Read about five cliches that apply to the search for scholarship bucks>>

college planning, financial aid, student loans, Uncategorized

Are private student loans right for you?

 

private student loansWhen considering different ways to fund college expenses, some students and parents focus on federal loans, scholarships and grants. While these types of aid can provide the necessary funds to complete a four-year or graduate program, they are not the only options available.

Several banks and private lenders offer private loans for college, which are essentially personal loans that can be used for tuition and other college related expenses.  Even if a student applies for federal aid, a private loan can pay for expenses not covered by their government loan.

If you or your child has never considered private student loans, here are four reasons to look into this option.

Flexible repayment plans

If a parent applies for a private student loan to pay his child’s tuition, repayment begins as soon as funds are disbursed. Fortunately, this is not the case for students who apply for their own private loan.

For student who apply, repayment does not begin until six months after graduation from school. This is a plus, as many students need time to find employment and adjust to their new expenses. Of course, students do not have to wait until graduation. There is also the option of making in-school payments. In-school payments can reduces how much a student pays in interest and lowers his overall balance.

Fixed and variable interest rates

Some college students shy away from private lenders because many private loans feature a variable rate. However, fixed rate private student loans do exist. To find these loans, students have to shop around and compare rates with different banks. Fixed rate student loans are desirable because the rate remains the same for the duration of the loan, thus eliminating payment increase and decreases.

Option to add a cosigner

Because private funding is a type of personal loan, banks do require a credit check. Good credit is a criteria for private funding. This can be problematic for college students who do not have a credit history, or those with a limited credit history. But there are ways around this hurdle. Students who need additional funding can add a cosigner – such as a parent – to their loan. This increases the odds of approval, however, the cosigner must have good credit.

Use funds for anything

If applying for a private student loan, funds can be used for more than tuition. This type of personal loan is helpful for covering all college-related expenses, such as books, supplies, a computer, rooming and board, and transportation.

College is expensive, and unfortunately, some people put off their dream of acquiring a higher education because they don’t have enough in savings. But with the help of private student loans, college can be a reality.

A word of advice: Be careful about how much you borrow and gage wisely your ability to repay after graduation. With student debt rising to record levels, smart borrowing should ALWAYS be a priority.