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  • collegepete 8:37 pm on April 11, 2012 Permalink | Reply
    Tags: , FAFSA,   

    The Business of College Admissions 

    Sometimes money can buy happiness.  Or at least a spot in a freshman class.

    Today, more so than in the past, parents worry about whether ‘ability to pay’ will influence their child’s  prospects at a particular college.  While I would like to reassure everyone that  with respect to schools, need-blind especially,  a family’s financial need will not be a factor in admissions, my gut (and the results of a new Harvard survey) tell me that it might be… at least a little.  This is not to suggest that money is the main driver in the admissions process – far from it at most of the more selective schools in the country.   But in these economic conditions, I cannot  wholly deny that ‘ability to pay’ is not a factor influencing some admissions decisions at some colleges.   Will a public university facing a funding shortfall look to less qualified, out-of-state, full-freight paying students?  Perhaps.  Will a private university that has already offered a $33,000.00 discount counsel a student who wants more to go elsewhere?  Sometimes.

    If you have ever heard me speak at one of my workshops, you might recall that I frequently emphasize that even ‘nonprofit’ colleges act a lot like ‘for profit’ companies in that they have business offices that must meet certain net revenue targets (aggregate and per student).  Now the results from a recent Harvard survey of 75 of the most competitive colleges seem to support my claim.

    But visit any college fair and the admissions officers at the more competitive colleges (including and especially those surveyed) will be quick to discuss their “holistic” and financially need-blind approach to admissions.  That is to say that these schools claim to consider the entire background of the candidate, not just grades, test scores and ability to pay full freight.  In my experience, this is mostly true of most colleges… most of the time.  The first ‘sort’ is about the quality of the applicant’s highschool, grades and scores — and then they consider ‘softer’ criteria such as  “fit” between the applicant and the institution, class needs, recommendations, essay, specific talent, ethnic background, and yes, even the ability to pay the bill.

    And therein lies the conflict between the admissions office, driven by the institutional values of applicant qualifications, and the business office, driven by greenbacks.  

    So what is a normal, middle class family to do?  

    One of the most important things you can do is to make sure your student’s focus remains on excelling in high school and preparing as best they can for SAT/ACT testing, while seeking schools that are the right academic and social fit based on their intellectual pursuits and avocational, or extra-curricular, interests.  I have hard evidence that if a school wants your child badly enough based on those factors, they’ll make you a financial offer that you can accept.

    You should be working on an integrated admissions strategy with your child, and help build a college list that targets a number of schools where your child is not only very likely to be admitted and be happy, but is also more likely to meet your financial needs (in a variety of ways).  In doing so, you significantly stack the odds (on admissions and affordability) in your family’s favor.  How much so?

    Well, we’re just wrapping up an admissions season that pundits are predicting will have the lowest admit rates in history.  And yet it looks as though my 12th graders are on target to have the best financial award year we’ve ever had with the average financial offer coming in at just shy of $30,000 per student (so far)  from great colleges… including all of the FL schools, as well as Brown, Harvard, Duke, Cornell, BC, Emory, RPI, USC, Brandeis, Ithaca, Northwestern and many others.  Of course, that’s not to say that there weren’t some head-scratching surprises and one or two disappointments, but all of our students got into and received financial offers from one of their choices.  I’ll be publishing our results, anonymously of course — including the annual school disslist of colleges that we feel are not living up to their marketing –  as soon as the process is finished (deposits are due on May 1).

    If it seems that what has always been a complex and competitive selection process has gotten even more so, you’d be right.  And I expect this trend to continue.  The best way to ensure your child’s success is to arm your family with the right tools for today’s college process.  If you have a current 11th grader, schools will begin accepting applications for the upcoming admissions year  on August 1st, which is why I’m offering my 5th annual College Pete’s Thick Envelope Admissions and Application Bootcamp earlier than ever.  If your child is a current junior in high school and you’d like them to get a head start on the college application process, I highly recommend this half-day intensive class.  I hope to see them there.

    Best,
    Peter

    P.S. If you’re wondering how these families are receiving five-figure tuition discounts or  how you’re going to pay for college with list prices approaching $60,000 at private schools, then you should register for one of my upcoming workshops.  It’s free to attend, but missing out on this info could cost you a fortune.

     

  • collegepete 11:20 am on February 22, 2012 Permalink | Reply
    Tags: , , , FAFSA,   

    Students Easy Prey For Scholarship Scams 

    It’s almost March, and that means there are only two months left before parents of 2012 high school seniors will have to plunk down a deposit at Top Choice U.   And with skyrocketing tuition, a sluggish economy, and record-level college debt, many will use this time to hunt down private scholarships.  Unfortunately, they’ll be facing some pretty long odds: in any given year, a scant 6.9%, or about 14.5-to-1 of the undergraduates who apply for private scholarships actually receive anything at all.  In fact, private scholarship money  represents less than  2% of the total that’s available for financial aid (through the government and the colleges themselves). 

    What’s worse — in their desperation, many will fall prey to scholarship scams and unscrupulous financial aid providers.  The Federal Trade Commission estimates that parents lose more than $100 million to scholarship scams every year (that’s $250.00 a day). 

    To avoid becoming a victim , follow these safe search guidelines:

    1. Steer clear of any companies that require an advance fee to do a scholarship search. Instead, start with a FREE, reputable online scholarship search such as Fastweb, or borrow a scholarship book that is less than one year old.

    2. Never provide information about your bank account, social security number etc. in response to an unsolicited  (or any) sholarship offer.  Some swindlers (cleverly disguised as legitimate companies) will send out information to your student indicating that they’ve been selected as a ‘finalist’ for an award and request additional information to ‘confirm eligibility.’  You should NEVER have to provide this type of  information for a private scholarship search.

    3. Watch out for any company that ‘guarantees’ that you will win a scholarship.  Any claim or guarantee I have ever seen or reviewed came with impossible conditions and have turned out to be a scam.

    4. Check with your, your spouse’s and even your parents’ employers.  Many have scholarships that nobody knows about because they’ve never asked and never been aggressively marketed.

    5. Apply wisely.  You don’t have much time so increase your odds by casting a narrow net.  You may have a better shot at applying for less cometitive local scholarships than more widely publicized national programs.

    Although it may be too late for many of my 2012 readers, when it comes to slashing the college bill, you should focus less time on the 2% of private scholarship money referenced above and much more of your effort on the other 98% available through federal and institutional discounts.  From now until the summer (and sometimes beyond then) I will probably get a call at least once a day from parents in desperate need of help to pay the looming college bill.   Often the only available response at this point is:  ‘Oh Crap’ – here’s a family with a great student that just waited too long.  Which stinks because more than likely, if they had started their planning process earlier (i.e., had their child apply to schools with money to give, positioned him or her to be in the top 25% of some of those schools and re-allocated their non-exempt assets) they may have qualified for both merit and federal-based scholarships and grants to help offset these costs.

    I’m often asked “when should you really begin college planning and funding process?”  My response:  Now!  Or, at the latest in 10th or 11th grade, or at the very latest, at the same time that students are beginning their admissions preparation.  So, If you’re the parent of a high school student with questions about where the legitimate college money is, please come to one of my free classes.   I’ll be at Sagemont School, Upper Campus tomorrow (Wednesday, Feb 22), where I’ll be sharing many of the tips and advice that I’ve personally used to help almost 1,000 South Florida families make college affordable again.  It’s free, pitch-free, and almost completely full.  Click here to reserve your seat now. 

    Best,

    Peter Ratzan

    p.s. One final note:  if you believe you are the victim of a scholarship scam, notify the FTC immediately.  They will put you in touch with their education fraud division to assist you.

     

  • collegepete 8:56 am on January 18, 2012 Permalink | Reply
    Tags: , , Education Trust, FAFSA, , , , , Work Study   

    5 FAFSA Mistakes To Avoid! 

    A few years back, a frustrated Arne Duncan (our Secretary of Education) told Congress, “You basically need a Ph.D to figure that thing out!” . Mr. Duncan was referring to the 106 question Free Application for Federal Student Aid, or “FAFSA.” And he’s a Harvard guy!

    A little closer to home: One mom at last week’s packed class told me that it had taken her five attempts just to read through the form that would ultimately determine her daughter’s eligibility for financial aid, and she still wasn’t sure if she and her spouse (or her ex-husband and his spouse) were the appropriate household to use on the application.

    Confounding the matter is the fact that the FAFSA, which is arguably the single most important document in determining how much and what type of financial aid a family will receive, has failed to keep up with the changing composition of our families and our lives. Confusion is widespread and can lead to an inaccurate portrayal of a family’s finances — one that does not fairly reflect its needs.

    At last week’s class in Pinecrest, I took a few minutes to answer some individual concerns. Many of the questions are shared issues for many middle class families so I thought I’d summarize five of the more common ones here. Quick disclaimer: my responses are necessarily general and should be considered as a guideline, not a recommendation — remember, no two families have exactly the same circumstances. Finally, although it may not always be immediately clear what information should be provided, the guidelines are available through the Department of Education.

    First – the student is the applicant. Any reference to ‘You’ or ‘Your’ on the FAFSA and on the CSS Profile refers to the student!

    Next, on the matter of children with separated or divorced parents: Dept. of Ed. guidelines require that the applicant report the household dynamics of the legal parent who provides more support, which is interpreted as the household where the student lives the majority of the time. Two notes: 1) the other parent’s household is largely ignored on the FAFSA, but WILL LIKELY be counted in the CSS Profile formula and 2) children with divorced same-sex parents face additional difficulty when applying for aid and should contact a specialist to review their situation.

    The Small Business Loophole: For most business owners I see in my practice, the proper value of their business is “zero.” Why? The rationale buried in the directions has to do with the number of employees your business has. Those with fewer than 100 employee shoud be exempt, but I’ve seen CPAs make this mistake and lose tens of thousands of potential financial aid.

    Independent Students: I get so many questions from parents who want to ‘emancipate’ their children so that the parents’ assets will not be counted in the formulas. In most cases, this won’t work. The Dept. of Ed. has 6 criteria to determine whether a student can be considered ‘independent.’ And trust me, you don’t want to answer ‘Yes’ to these questions, at least not yet (like, for example, whether your child is married or has dependents of her own).

    Work-Study: This is not a trick question… you probably realize that most colleges do not give out 100% free money. Most schools award a combination of free money and loans/work study. You should check ‘yes’, indicating that you wish to be considered. You can always appeal later or decline the work study offered, but it’s harder to ask for it later. Besides, if your kid works 10-20 hours a week and makes a few extra shekels, that’s a good thing.

    5) Retirement, checking, savings and cash balances: Aside from questions about your income, these are the most important questions. You don’t have to disclosing the value of your retirement accounts – IRAs, 401Ks, and so forth, nor the value of your primary residence. The FAFSA specifically tells you not to include those assets, so don’t! You do need to enter the total amounts of cash holdings you have as of the day you are filing SO make any large payments (like mortgage etc.) BEFORE you file. As for other non-retirement assets, there is an asset protection allowance, and certain annuities and insurance products could also be exempt. Consult a qualified college advisor sooner rather than later if you have more than $50,000 worth of assets.

    Tomorrow (1/18), I will be conducting a workshop for parents at The Sagemont School in Weston. It’s free, full of this type of information and open to the public — and it’s the last class I’m teaching before the priority financial aid deadlines. If you have college-bound children, I hope to see you there. If you don’t, please send this on to someone who does — they’ll thank you for it. Click here to register.

    Best,
    Peter

    p.s. One last tip: As soon as I sent out last week’s note about there being no changes on this year’s FAFSA, naturally I found one. Unlike in years past, the 2012 application gives you the opportunity to view select information about the schools chosen, including graduation rates. That sounds good, right? EXCEPT – the rates provided by FAFSA are the 6-year rates, not 4-year as was the standard time back in the day. This 6-year ‘new normal’ is not only abhorent, it’s expensive. And it blind-sides most families. The Education Trust publishes 4, 5, and 6 year rates on their site and is a must-stop when researching the colleges on your student’s list.

     

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

    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 5:30 pm on October 25, 2011 Permalink | Reply
    Tags: , , , FAFSA, , Higher Education Opportunity Act, Net Cost Calculators, student debt,   

    Higher Ed Opportunity Act Takes Effect on Saturday (10/29) – What You Should Know 

    In the modern college era, many schools strategically use DISCOUNTING as a marketing tool. Therefore, there’s often a big difference between the sticker price of college — tuition, fees, books, room and board — and the net price, or what you actually will be expected to pay through your college savings or excess income (best case) or savings and loans (worst case). In fact, just over 80% of incoming freshman will get some sort of break off the sticker price.

    Those of you who have been long-time readers know that I’ve been saying and proving this for my clients for years. Thankfully, those of you who haven’t, no longer have to take my word for it.

    As of Saturday, courtesy of a federal law passed in 2008, all colleges will now be required to add ‘net cost’ pricing calculators to their websites. The calculators will provide parents with an estimate of their family’s expected net price (total costs minus the average amount in grants or scholarships that their student may receive).

    No question this is a good start as an early planning tool, but it’s definitely not perfect. Here’s why.

    1. Not all calculators are created equal. Some colleges are using the template created by the US Dept of Education. It asks only nine questions, including how many children the family has in college, family income, and whether the student is married or has dependents. Problem: These nine questions are all that the government is requiring colleges to ask, but there are 100 questions on the FAFSA and dozens of other factors that can seriously affect a family’s expected contribution (EFC). Those inputs can be as benign as your highest level education to as complex as how to value your business, personal & student assets. There are at least 575 colleges that engaged Student Aid Services, a private company, to provide them with much more involved versions of the calculator. Given the disparity, it’s difficult to get a reliable result and/or to make a true comparison nationwide.

    2. Net Price is NOT necessarily the Net Cost To You. I agree with Mark Kantrowitz of FinAid.org who cautions that many calculators figure the net to you after including student and parent loans. That’s risky. Not all schools dole out financial aid equally. Some have no or low loan policies and will offer more grants (which you don’t have to pay back), whereas others offer loans. Though at first glance the net cost may look the same, if the school is discounting its price with student loans, the long-term costs can be astronomical. Make sure that you know which schools on your list are loan averse.

    3. The Results Are Not Guaranteed For Four Years. The calculators will give you an ‘estimate’ of what you might pay for the first year ONLY. Your circumstances, the school’s and the federal government’s change year-to-year. Some schools will ‘front load’ grants to induce a prospect to come. You have to re-apply for financial aid every year, and therefore it’s very important to know the financial history of a particular school to anticipate whether your costs could go up in future years.

    3. They Do Not Really Account For Merit Discounts. The calculators work best when determining need-based financial aid awards, but they are less accurate when factoring how merit scholarships (awarded by the Institution) can reduce the cost of college. Although the most selective schools like the Ivies only offer need-based grants, many other good, but less competitive institutions and even great public universities looking for out-of-state applicants to boost their net revenues — will give desirable applicants incentives (in the form of scholarships) to enroll. Why? Aside from the aforementioned bump in net revenue for publics, schools are very concerned about their yield (% of accepted applicants who enroll). Positioning your student to apply to schools that are interested in having them attend should be an important consideration in the Admissions process. Since merit is fairly subjective, the net calculators will do little to inform those decisions.

    Overall, the calculators can be useful as guides to families engaged in early college financial planning and as a starting point for parents to make arrangements to cover the balance. They are not, however, set in stone. Much can be done to help you afford a college of your child’s choice. It’s best to take action early, but even if you have a 12th grader, you still have a very small window opportunity. If this is you, I don’t know what you’re waiting for. Early decision apps are due next week, regular decision at the end of December and financial aid apps open on Jan 1. Your action now can mean you will have the money this Spring to reward your child’s hard work by affording his college dreams.

    Best,
    Peter

    P.S. I’m going to be discussing the college loan crisis and how to avoid this slippery slope with radio host Lisa Wexler on WFTC Newstalk Radio (AM 1400 Conn., NY) tomorrow (Wednesday) at 4:30 pm. Here’s the link to join the conversation: http://streaming.wstcwnlk.com/_players/coxradio/index.php?callsign=WSTCAM

     

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

    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 3:47 pm on August 17, 2011 Permalink | Reply
    Tags: , FAFSA, ,   

    School Is Starting – Everybody Panic! 

    I frequently hear from parents (my own wife included), school administrators (on endless robo-calls), and the media; that the week before school starts is just ‘crazy’, with new schedules to accommodate, school supplies to purchase, more traffic on the road, back-to-school night to schedule, medical forms to complete, homework to do, and so on.

    At the risk of starting an argument in my own household, I say, Baloney!

    Yes, the start of the school year brings sudden change, and a red-bullish jolt of reality as we return to the ‘regular’ rat race after the slower pace of summer.

    But as parents, we all know that these Fall changes are imminent. Happens every year.  And most of us have been doing this start-of-school drill in some form for at least 40 years, so why all the panic?

    My theory:  it’s a reflex.  An involuntary fear/flight anticipatory response to the unknown in the long journey ahead.  The antidote, of course, is to start.  Most of the ‘panic’ is in the anticipation, the build-up, the unknown. Once school – and the real work – actually begins, the worry and the apprehension dissipates. The lesson:  the antidote to ‘feeling’ panicked is to do something, to take action.  To start.

    Though many dramas -like the pre-school panic dance of above – are ones of our own making, parents of college-bound high schoolers, particularly 12th graders, are facing some real serious challenges this particular Fall.   In addition to all the regular back-to-school mishugas, many parents are waking to the reality that their 529s and other college investment accounts are at a fraction of what they had hoped; that Florida’s Bright Futures merit scholarship has been slashed and that their FL Pre-paid will only cover a small fraction of the total cost of college attendance.  Once again, there is a simple antidote.  Take action.  97% of families will find themselves ‘short’ for college — and for most of them, there are real, tested and proven strategies to make college afffordable again!  I have personally helped hundreds of South Florida families pay as little out of pocket as possible for great colleges. But you have to act. The time to get started on your college planning is now, regardless of how old your student is.  The earlier you plan, the more choices you have.  Whether your child is in 12th grade or 5th, or anywhere in between, if your advisor hasn’t asked you about your college plan in this volatile environment, it might be time for a new plan (and a new advisor).

    I’m holding a Back-To-School Emergency College Funding  workshop next Thursday evening, August 25 at the Pinecrest Community Center in Miami.    I’ll cover:

    • The biggest mistake parents make with FL Prepaid and other 529 plans
    • The crucial questions parents should ask of every school on a student’s college list
    • How a ‘pricey’ private college can cost less than a state school, even considering Bright Futures and FL Prepaid
    • Why it’s taking, on average, 5+ years to graduate from college today and how to buck this trend
    • How to compile a list of schools that maximize chances at both admissions and financial aid
    • More!

    This event is completely f.ree of charge.  I do promise, however, that you will leave with valuable nuggets of information that can save the typical middle class family thousands of dollars off the cost of college.  With the school year about to start, it’s time to get a plan together on how you will pay for college for your children.  The best way to start is to attend my workshop.  Click here to register.  I look forward to seeing you there.

     

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

    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 3:04 pm on July 13, 2011 Permalink | Reply
    Tags: , , , , FAFSA, , , , , ,   

    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.

     

  • collegepete 10:16 am on July 1, 2011 Permalink | Reply
    Tags: , , , , , , , , , FAFSA, , , , , , , ,   

    Stanford’s Top 20 

    Summer is a great time to get working on that college essay.  Students often have more difficulty with the essay than any other part of the college application process, including the SAT.  Sure, most student’s hate taking the SAT almost as much as the rest of America hates the Miami Heat, but after 3 hours and 45 minutes the SAT is over, done with, and probably behind you.  The essay, on the other hand, has no time limit.  It’s never really finished, and even when you think it’s finished, there is always another tweak you can make here or there to marginally improve it.  And while the SAT (or its fraternal twin the ACT) is one of the primary components of a student’s application, it’s the Essay that actually provides the ‘texture’ and context that can sway a borderline candidate from a ‘maybe’ to a ‘yes’!

    The most important part of the essay might just be the opening sentence.  Think about it.  Admissions officers quite literally read thousands of essays, so the opening line had better grab, melt resistance and create enough interest to keep them reading.  That’s a very tall order for one sentence!

    Stanford’s admissions office was recently asked about their favorite opening lines.  Here are my Fave 5 from that list:

    When I was in eighth grade I couldn’t read.

    Cancer tried to defeat me, and it failed.

    I have old hands.

    Some fathers might disapprove of their children handling noxious chemicals in the garage.

    On a hot Hollywood evening, I sat on a bike, sweltering in a winter coat and furry boots.
    These lines get your attention without being ‘gimmicky.’  They keep you interested, and they make you guess and wonder what comes next. By themselves they evoke wonder and passion, surprise and suspense, and we can only assume that they introduce a compelling story. And that’s what makes for an interesting essay – telling a good story.

    There are 17 other openers in the Stanford survey (and tons more from my previous students), all of which I’ll share at my 4th Annual ‘Thick Envelope Magic’ Admissions and Application Boot Camp on July 9.  This day-long event is not just about the opening line of the admissions essay, though an entire class certainly could be.  ‘Thick Envelope’ also covers everything a rising 12th grader needs to know, ask for, do and complete to apply and gain admissions to a great college.  Students who attend will be able to complete (and submit) their college applications before school starts.

    This event is open exclusively to rising 12th graders.  Past attendees gave it rave reviews, and the curriculum has been updated to reflect all of the changes to the process (e.g.,, the essay now has a word limit), and  is even better this year.  If your student is a rising 12th grader and is home for the summer, there is no excuse to miss this event.  You’ll want to register them by clicking here.

    Most college applications can be completed as early as August 1, including the University of Florida.  Give your student a head start and an edge on what can be a stressful application process.  My July event has 14 registered students, so I have room for 6 more.  I look forward to seeing your child there.

     

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