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  • collegepete 7:43 pm on January 10, 2012 Permalink | Reply
    Tags: college funding, College Planning, , ,   

    Essential Info For the 2012 FAFSA 

    Many people spend the first couple of weeks of the New Year slowly easing back into to their routine.  Not so me.  Once the ball drops, I get buried in FAFSAs.  I’ve prepared quite a few already and I’ve got good news and bad news.  First the good news:  it’s exactly the same form as last year’s.  Now the bad news:  it’s exactly the same form as last year’s.

    For those who are new to the college process, January 1 is the first day that the new Free Application for Federal Student Aid (the ‘FAFSA’) becomes available.   The FAFSA  contains roughly 100 questions about your family’s income, assets, real estate holdings, household members, student’s assets, etc.  Your answers will be used by the government, and in turn the school financial aid offices, to determine how much they believe you can afford to pay for college for one child for one year.  The form is available at http://www.fafsa.gov.  It does not cost anything to complete and submit the FAFSA. (Note: Do not go to http://www.fafsa.com, as this is a fee-based website). 

    The form itself is not difficult per se – understanding the rules, regulations and loopholes that go into the government’s formula is another matter.  Overstate the equity in your investment property or mis-identify a parent asset as a student asset, for example, and you can wind up losing out on thousands of dollars of aid you would have otherwise been eligible to receive.    The College Board estimates that about 90% of forms have mistakes on them, while the Department of Education states that 40% of families leave money on the table.

    Every student planning to go to college must fill out a FAFSA in order to be considered for Federal and Institutional Financial Aid (note that in Florida, students who wish to qualify for the state’s Bright Futures merit scholarship must also file this form, regardless of whether they plan to apply for additional scholarship aid).  If you are considering strategies to reduce your EFC, the time to act is now.  If you  are not sure what an EFC is, the time to act is definitely now – well before (as in years before) you hit ‘submit’ on any of these forms.

    And for 12th grade parents in particular, this is an emergency.  The priority financial aid deadline for most schools for first-time applicants is usually on or before February 15th, and we urge all families to meet that deadline.  Financial aid is often awarded on a first-come, first-served basis, and we are expecting a record number of applicants to be vying for money from a shrinking award pool.

    The FAFSA (and it’s evil twin the CSS Profile) request income information for 2011.   Since most families have not completed their taxes yet and may not even be sure of their year-end numbers at this time, it is appropriate and EXPECTED that you will use estimates on the FAFSA.  Once your taxes are completed and submitted, you can make adjustments to your form.  Note that you will not receive a final offer until you have filed your taxes so this is not a year to procrastinate with the IRS.

    And since I mentioned procrastinate…parents with 11th graders should take heed, as your financial aid base year has just begun.  (The government will use your 2012 inome to determine your family’s eligibility for scholarships).  The time to make adjustments to your holdings to ensure that you qualify for the maximum amount of aid is now — certainly before your form is filed and ideally before your base year so that your plan is in place before the ‘look back’ period.

    Financial aid is not what it used to be.  Families with six-figure incomes often and yes, routinely, qualify for five-figure awards.  I know this to be true not just because the Wall Street Journal has said so (which they have),  but because I’ve seen it happen every year.  The financial aid process is like a game.  Know the rules and you win.  Stay in the dark and you risk losing out on thousands of dollars for your child’s education.  I’ll be discussing these rules and the entire college admissions and funding process (including the financial aid formula) at my workshop in Pinecrest next week.  Click here for more details and to register.  There is absolutely no cost to attend, but missing out on this info could cost you a fortune.

    If you are the parent of a college-bound teen, I urge you to join me for this class. 

    Best,
    Peter

     

  • collegepete 10:45 pm on October 20, 2011 Permalink | Reply
    Tags: , college funding, , ,   

    Why is Bright Futures’ Future Not Making Headlines? 

    I think Florida Bright Futures is toast.  At least in its current form as a state-funded merit scholarship program.

    This is just my opinion.  After reading my comments below, you may reach a very different conclusion about the goals, strategy and future of Bright Futures.  That’s ok..  I’m just glad we’re having the conversation.

    Much earlier today I read two stories about our state university system in the Herald.   Neither mentioned the Bright Futures Sholarship program.   Both should have, and it’s been annoying me all day.

    First the article:  Gov. Scott wants to know why our public universities keep raising tuition prices, but turning out students who do not have the skills to fill what our workplace actually needs.  Where did all the scientists and engineers go?  In a rebuttal column, Fred Grimm editorializes in favor of the softer studies and details some of the potential consequences of eliminating academic programs solely on the basis of  employer demand.  Though Grimm had his tongue at least partly in cheek, there is a real and growing gap between what America’s employers need and what our college students are learning.  Consider this: We’re setting new records in the number of students earning college degrees and in unemployment, BUT  there’s mounting evidence that some types of jobs stay open forever.   Bet you can guess which ones…

    The irony is that Florida was ahead of this problem.  When the state legislature passed the Bright Futures Scholarship Program in 1997, the hope was that more of Florida’s best high school graduates would stay in state and that the number of students graduating with highly sought science, technology, engineering and math (STEM disciplines) degrees would increase.  We were half right.   More than 150,000 students have received Bright Futures awards and our state university enrollment has indeed soared.   But enrollment in STEM fields?  That’s actually gone down in percentage terms!  One plausible explanation — our students are taking easier classes to make sure that they maintain the GPA requirements to re-qualify for the award.

    And not for nothing, the legislature just made those requirements a lot tougher.

    So even if they didn’t write about it today, the writing is on the wall.  It’s a widely held (and statistically measurable) belief that a properly educated, high-tech workforce can jumpstart a lagging economy.  A steady pipeline of skilled technical employees keep and attract businesses.  Our students need to become them.  Our schools need to grow them.    So long as Bright Futures remains a merit-based scholarship with GPA and test scores as the sole criterion, students will be discouraged from pursuing this type of difficult STEM study.  This is economically unsustainable.   Since the downturn, Bright Futures future has been tenuous at best.  It is ripe for an immediate overhaul as a subsidy to students pursuing STEM disciplines.  I suspect that it won’t be long before our cash-strapped government reinvents the Bright Futures as the competitive employment tool it was intended as.

    What does this mean for you? Well, it’s just a theory today, but if you’re the parent of a future college bound child, I personally think it unwise to count on this program when considering your funding options.  Bright Futures’ future is anything but assured.  And since your child’s college education is likely to be one of the largest investments you’ll make, and one that will affect not just four years of his/her life, but potentially his next 40,  I’d rather err on the side of caution and consider alternate and more reliable strategies.   Unsure of what those are, you may want to check out one of my workshops.

     

  • collegepete 9:16 am on October 14, 2011 Permalink | Reply
    Tags: , , college funding   

    October is College Fair Month 

    Chances are, your high school is holding a college fair this month.  Admissions officers from schools across the country are out and about, traveling to their local regions and visiting high school students at college fairs.

    If your child is in 10 -12th grade, they should go.  More than likely, the person representing the college is the actual person who will some day be reading his/her essay. I also recommend stopping by your local NACAC college fair.  In South Florida, check out the NACAC College Fair at the Greater Ft. Lauderdale Convention Center next Wednesday, October 19.  There are many great colleges, large and small, public and private, who will be in attendance, including some great “A” schools for “B” students, and of course, nearly every Florida school.

    With another record year for applications expected, making a personal connection can be the difference between a thick envelope (the one that is filled with orientation information and financial aid offers) and a rejection letter in April.

    Best,
    Peter

    P.S. There are more than 3,700 colleges out there — one that is right for every student at every budget.  BUT, the longer you put off the process, the fewer options you will have.  If you or someone you know is among the 97% of families feeling the aching pressure of college planning, why not ease that pressure by finding out what you can do to maximize the college funds at your disposal.  Join me this Thursday, October 13th for an in-depth look at  How to Pay for College in THIS Economy.   Click here to register.

     

  • collegepete 8:14 pm on September 14, 2011 Permalink | Reply
    Tags: college funding, College Rankings, ,   

    The 2012 College Rankings – US News 

    Yesterday the US News & World Report, the most famous and influential of the national college ranking services, released their 2012 rankings.  This magazine doesn’t even have a print edition anymore, but they make a fortune each year selling their rankings issue, which sits on bookstore shelves year around.

    While lucrative for US News and for the top schools on the list (whose bond ratings can be affected by their rank), I wouldn’t become too dazzled by this or any other subjective ranking system.   Don’t get me wrong, there is some valuable information about the schools contained in the report, and it does provide insight into some important metrics (like graduation rates and financial aid awarded) to consider when evaluating colleges.  But ultimately the methodology that determines why one school is ranked higher than another, and is therefore perceived as “better”, is only minimally based on educational quality.  Rather, ‘reputation’ — measured by feedback from other administrators — is one of the most significant factors in the rankings.  Guess what?  They often vote for each other’s schools.

    Though the rankings might contribute to a school’s prestige, they have little baring on your child’s success in school and in life.   That’s more about a student’s ambition, talent and hard work once they get to college, and ‘brand name’ graduates do not have a monopoly on those traits.

    Many lesser-known and thus lower-ranked schools have outstanding programs and great reputations among employers and graduate schools.   So, unless your child defines success as getting accepted to a highly ranked college, your best strategy is to apply to colleges that fit your student’s academic and career aspirations, inspire them socially and will be affordable so that they can finish without handcuffing their future with debilitating debt.

    Unfortunately,  the rankings can have great influence over the admissons process, causing needless stress and forcing parents and students into sometimes irrational decisions.   My best prescription for rankings-induced agita is to take a look at the report if you wish, and use the information provided to inform but not to direct your selection.

    With the rising sticker price of college, practicality (school generosity, study options, career direction)– not some subjective perception — should reign supreme.  If you’d like to understand how the whole college system – admissions, need, and non-need based financial aid — works; and more importantly, how you can make it work for your family; you should register for one of my free classes.  I’m teaching two at the end of this week.  After that, I think I’m conducting just one more class that’s open to the public this year.  If you are the parent of an 11th or 12th grader, or care about someone who is, I highly recommend you check out my class.

     

  • collegepete 2:50 pm on September 2, 2011 Permalink | Reply
    Tags: college funding, , ,   

    September Wake Up Call For High School Parents 

    If you are the parent of an 11th or 12th grader and have been putting off dealing with this college thing until ‘after the summer is over’ — consider this your official summer’s over wake-up call!

    Parents of 12th graders:  The awards and financial aid offers that your child will receive are based on THIS tax year (2011).  That means you have just four months to position your income, assets and personal finances to get the maximum amount of money  from each school.  Do you know what this year’s asset allowance will be?  Do you currently have money saved in your child’s name?  Are you planning on putting money into (or taking money out of) your retirement plan this year?  Do you know how much your pre-paid plan is worth?  If you’re not sure what the answer should be to any any of these questions, you’ve got to find out!  Now.  Remember, even Bright Futures (the state’s merit scholarship program), as well as many other non-need based merit programs, now require ALL applicants to file a FAFSA (Free Application for Student Aid) regardless of whether you expect any financial aid.

    Parents of 11th graders:  You are literally ‘on the clock’.  Since the offers your child will receive will be based on the 2012 tax year, it is imperative that you start (and ideally, complete) your college funding strategy BEFORE the end of this tax year.  A simple mistake in how you handle your finances in the next year can easily cost you thousands in lost financial aid down the road.    Soon enough, if it hasn’t already started, you’re going to be inundated with college literature.  Before either your child or you fall in love with a school, you need to take control of the process and understand how colleges set and discount prices, how financial aid works and how to compile a realistic list of schools that will meet your child’s academic and social needs, and your family’s budget.

    For 9th and 10th grade parents: Planning for college expenses can be a stressful effort.  College costs continue to rise at a double digit clip.  And while financial aid is widely available, the rules are complicated and most families leave thousands on the table because they don’t understand the nuances of those rules.  By understanding the process and the rules of the game, middle class families can save themselves thousands off a 4 year education.  But this does not happen automatically.  For most families, there are a number of legal and ethical strategies to reduce the amount of money you will be expected to pay for college.  The earlier you start, the more strategies you will have at your disposal.

    A college education is one of the largest investments you’ll make in your child.  To ensure the greatest return on that investment, it’s best that you make decisions while not in ‘panic’ mode with tuition bill in hand.

    No matter where you are in the process, the best way to stack the odds in your favor is to arm yourself with information.  I’m holding two workshops in September on How to Pay for College in This Economy.  The first is on Thursday, September 15 at The Sagemont School, Upper School Campus in Weston.  The second is on Saturday, September 17 at Temple Beth Sholom in Miami Beach.  Both are free and open to the public and will be chock-full of current information about today’s college process.   To register, visit http://www.EmergencyFinancialAid.com.

    During the class, we’ll cover:

    • What to do if your 529 is not enough
    • The biggest mistake parents make with FL Prepaid Plans
    • The critical questions you must ask of every school on your student’s list
    • Why it’s taking longer than 4 years to complete college, and how to buck this trend
    • How a pricey private college can cost less than a cheaper state university (even with FL Prepaid and Bright Futures)
    • More!

    Registration is recommended so that we can confirm your seat and ensure you receive reading materials.  If you are a high school parent, you don’t want to miss out on this information.  It’s free to attend, but ignoring this message can end up costing you thousands of dollars.

    If your student has worked hard to earn a spot at a top college, then do your part to figure out how to pay the bill.  I look forward to seeing you later this month.

     

  • collegepete 6:09 pm on August 22, 2011 Permalink | Reply
    Tags: college funding, ,   

    5 College Planning Mistakes To Avoid Like Lice! 

    Happy First Day Back to School!

    With market instability serving as a backdrop to the return to school, there’s a very good chance that you’re in a ‘code yellow’ state of emergency today, extremely anxious about how the heck you’re going to be able to save and pay for college.   Hopefully this piece, which describes the top five mistakes to avoid when figuring out how to save and pay for college in this economy, will show you that you can still afford a great college education without sacrificing your future, raiding what’s left of your retirement, or taking on crippling debt.

    Mistake # 1: Stashing Money in Your Child’s Name  Many families are advised by CPAs and other trusted tax planning professionals to put some or all of their assets in their child’s name.  While well-intended for tax purposes, assets held in your child’s name, like in an UTMA or UGMA account, will hurt and even potentially destroy outright any chance you have of qualifying for free need-based (and merit) aid through the Federal, State and Institutional systems.  Besides, upon turning 18, students will have full access to any funds in their UTMA or UGMA account – without any oversight from you.

    Mistake # 2: Risking Too Much in a 529 plan We’re not saying to go and cash out what’s left of your 529 plan, but before you continue to reflexively fund it, you should know that it’s not your only college savings option and it certainly may not be your best one in this economy.   529s offer some tax benefits, liquidity (for educational purposes only) and the lure of higher returns (they are heavily invested in equities).  But in a volatile market, the risks and downsides – including financial aid penalties, few guarantees, high fees and a lack of flexibility — can be the exact wrong place to put most of your college savings.

    Mistake # 3: Counting on the Florida Pre-Paid Plan

    I know that in uncertain times, nothing looks better than certainty.  The problem with ‘sure things’ is that they are rarely as advertised.  Take the popular Florida Pre-paid Tuition plan.  Just a few months ago The Miami Herald and Sun-Sentinel ran stories about a proposal in the FL Senate to suspend the program. While this proposal is still far from becoming law, it does indicate the dire financial straits in which the State finds itself. The concern from Sen. Evelyn Lynn (R-Ormond Beach) was that, with state tuition increases of 15% per year, the FL Prepaid Program will not have the earnings to keep up with such tuition hikes given the volatility in the stock market. And frankly that’s only one part of the problem.  The other is that  FL Prepaid actually only covers a small fraction of the total cost  anyway AND it certainly does not guarantee your student will be admitted to a Florida school.

     

    The current FL school costs, on average, $20,000 per year. That includes tuition, room, board, books, fees, travel money, personal expenses, etc. The typical FL Prepaid Plan provides about $3,000 – $4,000 per year. That leaves you with about 15-Large left over to pay for one year at a State U. So, before locking yourself into any pre-paid education plan, you should consider other low-risk investments that offer more liquidity and reward you with consistent growth and protection of your money in all market conditions.

     

    Mistake # 4: Using or Planning to Use Your Retirement Account For College  This one is pretty clear-cut.  Yes, it is true that current rules allow you to make withdrawals from retirement accounts without penalty to pay for unmet college expenses.  However, by doing so, you not only potentially impact your future, you also create a present day income event that is subject to taxes.   An IRA or 401(k) distribution will be counted as an includable ‘parent resource’ that may be subtracted from the amount of grant money you are eligible to receive from the government or the Institution.

    Mistake # 5: Not Checking Your Work  Unfortunately. The first (and last) time most of the families we see have checked in on their college savings plan was when their child was a toddler.  A quarterly, semi-annual, or at a minimum – annual, look at how your college savings plan is performing is a good idea in any economy, but an absolute no-brainer today.  The time to make sure your money for college is being kept in the right places is NOW!  There’s no ‘magic bullet’, but the earlier you plan, the more options you will have.  If you haven’t looked to see whether you’re making progress with your plan, or even worse, haven’t been asked by your advisor about the need to make adjustments in this economy, you may be cheating yourself and your children out of thousands of dollars.  A qualified and experienced college funding consultant can help you arrange assets in a way that makes sense for financial aid and financial planning purposes.  To learn whether you qualify for a Free College Planning Audit, please call Jill at 954-659-1234.  Or, to register for one of our upcoming Free Late-Stage & Emergency Financial Aid Community Workshops (appropriate for parents of college-bound High School Students), please visit http://www.EmergencyFinancialAid.com.

     

  • collegepete 12:26 pm on August 3, 2011 Permalink | Reply
    Tags: , college funding, ,   

    The Budget Compromise and Your College Funding 

    With the agonizing Washington debate on the budget deal behind us (for the most part), it is worth noting that Pell Grants, those precious federal dollars that are awarded to low-income families, will be preserved (for now) at $5,550 for the maximum award.  Also preserved (for now) are student direct loan subsidies, making borrowing more affordable for undergraduate college students.  After 2012, the future of both the Pell Grants and Direct Loan subsidies remains unclear, as Congress may consider reducing or eliminating these programs.

    For the upcoming year, this is great news for low income Americans who are trying to pay for college, and in my view it’s the right policy for America’s future.  We need policies that improve access to higher education, especially for America’s working poor.

    For most of America’s middle class, however, the Pell Grant decision will have little direct impact.  That’s because Pell Grants are rarely awarded to the middle class.  But that doesn’t mean the middle class doesn’t have access to financial aid, including grants.  You see, in addition to federal aid, colleges and universities will award their own need-based aid in the form of grants to middle class students, which includes families earning up to $250,000 in adjusted gross income.  And these amounts may greatly exceed the maximum Pell Grant of $5,550 by 4x or more, depending on the school.

    That’s why all families, regardless of income, should start the college planning process as early as possible, and it’s why all families should apply for financial aid.

    I’m holding two events for parents of high school students this month, as we prepare to send our kids back to school this fall.  The events are designed to help parents financially prepare for college.  We’ll also discuss trends in admissions, and how these may be financially motivated.  Higher education is a big business, with cost of attendance ranging from $20K to $60K per year.  It’s your responsibility, as a consumer, to understand the economics of higher ed and learn how to minimize your out of pocket costs.

    My first event is a LIVE webinar on August 9 at 7 pm.  If you cannot join the webinar then you should come see me in person on August 25 at the Pinecrest Community Center.  You can register for either event by clicking here.  If you are the parent of a 10th, 11th, or 12th grader, you need to hear this information before attacking the college application, admissions, and financial aid process.  Putting this off will only cost you money and increase your frustration.

    Best,

    Peter

    P.S. I’m also offering my “Thick Envelope Magic” College Admissions and Application Boot Camp on Saturday, August 13 to rising 12th grade students.  This is a great kick in the pants for your student to get a jump start on those dreaded college apps.  For more information on the Boot Camp, click here.

     

  • collegepete 6:08 pm on July 28, 2011 Permalink | Reply
    Tags: , , , college funding, , , , , , , , , , ,   

    A School For Everyone: The College Tour Recap 

    After a long and very hot week touring Notheast colleges, I am thrilled that this message is coming to you from my cozy, air-conditioned office in Weston.  Jill and I toured 4 colleges in 4 days (Cornell, Ithaca College, Skidmore, and Vassar), and yes, we were pretty tired at the end of it.  But it was worth it.  There is simply no substitute to being there, and after meeting with Admissions and Business officers,  I have a few very important pieces of information to share with you regarding how you should be planning for college.

    • There is a great college for every student, and if you map out your admissions and funding strategy together and before your child begins applying, you will greatly improve the odds that s/he will pick and get accepted to schools that you will be able to afford.  Discounting is not a random exercise and it is no longer an afterthought.   Colleges strategically and intentionally use both need-based Aid and merit-based (or non-need based) aid   — though certainly not in equal measure — to induce students to attend their institution.  Without a doubt, the largest source of free money is in need-based aid (more than $150 billion worth – yes, I said billion).  It is a legitimate source of college funding for forgotten middle class families, and choosing schools that offer substantial need-based grants should be a critical component of your admissions strategy.
    • More so than ever, networking and the ‘Little Things’  can move the needle on admittance and funding offers.  Despite technology (or pehabs because of it), standing out today often requires showing up. Get out there and visit colleges!  Schools want to see you and want to know that you want to go there.  Nothing demonstrates interest like your visit to their campus.
    • Students with specialized interests such as Art or Drama should consider liberal arts schools that offer majors or minors in the specialized field.  We saw amazing theater and art programs at places like Skidmore, Ithaca, and Vassar.  At these schools and many like them, you’ll find great students, great professors, small classrooms, and a diverse student body with a wide mix of interests.  Oh, and they are MUCH more generous with financial assistance than any specialty school.
    • Just because a school has a need-aware admissions policy does not mean that it isn’t generous.  A school like Skidmore does not hide the fact that they are need-aware, but if you get admitted then they guarantee they will meet 100% of demonstrated need.  So for the students who do get in, they are awarded handsomely.  Many other schools follow the same principle.
    • And though I hate to admit it, there can be an admissions advantage to applying early decision.  This was confirmed by the officers I met with and by the numbers. However, don’t let your student apply Early Decision unless you are sure you can pay the bill.   If you apply early decision, you are ‘locked in’ and bound to attend that college – you’ll have zero leverage when seeking a tuition discount.  The student, the parents, and the high school guidance counselor must sign a contract and confirm that the Early Decision rules are understood.

    I’ll be elaborating on these and other conclusions, as well as sharing money-saving tips to help families pay the college bill, during my upcoming LIVE webinar on August 9.

    Topics we’ll cover include:

    • Why now EVERYONE, regardless of income, should apply for financial aid without exception
    • Accessing the precious and disappearing grant and scholarship dollars
    • Why it takes students 5+ years, on average, to graduate from college and how you can buck this trend
    • Dollars and Sense – how to successfully overlap your child’s admissions strategy with your ability to pay
    • How some assets can penalize you 5x, whereas other assets don’t count at all
    • How to get admissions officers to fall in love with your student

    If you are the parent of a 10th, 11th, or 12th grader, and you are stressed about the entire college process, from admissions to financing, then you should tune in to this LIVE webinar.  If you are too busy for the webinar, you can catch me in person on August 25 down in Pinecrest.  Click here to register for either event.

    Best,

    Peter

     

  • collegepete 7:04 pm on July 20, 2011 Permalink | Reply
    Tags: , , , college funding, , , , ,   

    Skidmore College: Location. Location. Location. 

    Check out this short video with a summary of my trip to  Skidmore College.   Skidmore is ’at the center of it all’, one of 16 schools in the region,situated in the foothills of the Adirondacks and on the outskirts of  cute, yet bustling Saratoga Springs, NY - 30 minutes from Albany and Stratton Mountain,  – and just a three-hour drive from three major cities (NY, Boston and Montreal).   It’s easily accessible from South Florida, with nonstop flights from Ft. Lauderdale daily.

    Skidmore is a small, competitive liberal arts college with an all-undergrad population of about 2,500 students, a 9:1 student-faculty ratio AND a wide variety of pre-professional curricular options, including busines, exercise science and education (among other offerings).   A generous, but need-sensitive school (see video for an explanation), Skidmore should be on the short-list of every aspiring art student, as well as those desiring a small, competitive, liberal arts college.

     

  • collegepete 3:04 pm on July 13, 2011 Permalink | Reply
    Tags: , , , college funding, , , , , , ,   

    The End of Subsidized Loans and Grants? 

    How’s this for irony?  Apparently, the same lawmakers engaged in negotiations to reduce our national debt are seriously considering raising that (the debt load) of our most financially vulnerable population –  students (college debt already exceeds consumer debt and will likely reach $1 trillion this year).  Even more ironic, this comes at a time when more than 50% of new jobs created (or saved) will require at least a college degreee –  and at a time when our economy needs more college graduates than ever to stay competitive.

    While there’s no certainty that these proposals will be part of the final debt ceiling compromise, in a report yesterday by popular website The Daily Beast, Congress and the White House both put forward new plans that would slash student aid programs, including the elimination of student loan subsidies and additional cuts to the Pell Grant.  The proposals, which would make students responsible for paying the interest their loans accrue while they’re still enrolled in college, will save the government about $40 billion over the next 10 years (a relative fraction of the total multi-trillion dollar burden), but can cost our kids as much as $14,000 more than they’re currently paying (that’s a lot more to a middle class college grad).

    My take:  We’re essentially legislating the legal transfer of the federal government’s debt to our middle class kids — which in and of itself seems abhorent, but what’s more concerning to me, is that these changes are being considered for the next federal budget (for 2012), which leaves forgotten middle class parents with high school students or kids already in college precious little time to prepare!

    But  I’m a glass half full guy!

    So, while 2011 was officially the most difficult year for college applicants ever, with nearly every school seeing an uptick in the sheer number of applicants, it was also one of the most generous on record.   The discount rate — the difference between the college sticker prices and what students actually pay,  after accounting for financial aid and other non-need inducements — reached an all-time high of 42.4%!   In fact, 88% of first-year, full-time students received some sort of tuition discount from the institution they were attending.

    Higher education is a business – a big business.   There are more than $150 billion worth of potential inducements available to offset the cost of college.  Now more than ever, you need to re-stock the odds in your favor by arming yourself with the facts, and learning the rules of today’s college business.  If you do so, and act accordingly, you will be in a position to send your child to the college s/he wants at a minimized cost that ensures that no one is burdened with the debilitating downward cycle of student debt.

    On August 9th, I’m holding my first ever live Webinar where I’ll be taking your questions  and discussing exactly how these legislative and business changes will affect your college admissions and funding plans.  During the program, I’ll be going beyond the typical one-size-fits-all, cookie-cutter advice you may have received, and I’ll teach you what’s really happening with college admissions and funding today.

    Keep in mind that once again colleges will see a record number of applicants this fall, all of whom will be vying for the same slots, precious merit scholarships and disappearing post-recession grants.  Where your child goes to school and equally important, what price they will pay for it —  will not just affect four years of their life, but potentially their next 40 years (or more).

    Want to tip the scales in your favor by understanding exactly how to find, get accepted to and get a discount for college, then you should register for this event.   I have a limited number of lines reserved, so advance registration is a must.

    Best,

    Peter

    p.s. The 5th Annual ‘College Pete College Tour’ officially kicks off on Monday, July 18th.  I’ll be meeting with Admissions Directors and Financial Aid officers at colleges around the country… and blogging about what secrets they share.  Check out my Facebook page for my on-site video blogs.  First stop:  Ithaca, NY.

     

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