| Most American families are offsetting the high cost | | | | they are in college! Thus, a student with $1,000 will |
| of college by applying for some degree of financial | | | | be assessed $200 for each year the $1,000 remains |
| aid by submitting their FAFSA (Free Application For | | | | in their name. After 4 years, they will have lost $800 |
| Federal Student Aid) on or after January 2nd. | | | | in financial aid for having only $1,000 worth of assets! |
| Unfortunately, this is not a simple process as the | | | | This is tragic as it can be legally avoided - if you |
| college financial aid system is anything but | | | | know how. |
| user-friendly. There are an endless number of pitfalls | | | | Periodically, guidance departments present "in-house" |
| in the application process, and it is far too easy for | | | | Financial Aid Nights which focus on filling out financial |
| families to lose some or all of the aid they are eligible | | | | aid forms and understanding the basics of the |
| for. | | | | process. Nevertheless, year after year, the majority |
| Many families fail to even attempt application because | | | | of families applying for financial aid continue to be |
| they don't know how to, or they incorrectly assume | | | | rejected for filling out their forms incorrectly. Clearly, |
| they are not qualified, or simply because they are | | | | parents are not getting enough guidance on the |
| intimidated by the complicated and confusing process | | | | college funding process. |
| and all its paperwork. With far more qualified | | | | Well-meaning guidance counselors invite FAO's to |
| applicants than desks in all of America's colleges and | | | | speak at their high schools, trusting them to put the |
| universities, it is reasonable to expect a system | | | | best interests of the students above the financial |
| intentionally designed to eliminate all but the most | | | | interests of their college. By evening's end, parents |
| knowledgeable and persistent applicants. | | | | are often left with a false sense of security that the |
| According to a disturbing statistic from the US Dept. | | | | college of their choice will award their student its |
| of Education, the majority of all financial aid | | | | best possible financial aid package. This is hardly ever |
| applications are rejected for errors and | | | | the case! |
| inconsistencies! As financial aid is awarded on a | | | | Much like frugal employers whose goal is to hire the |
| first-come, first-served basis, the loss of time in the | | | | most talented applicants for the least amount of pay, |
| resubmission process results in thousands of dollars | | | | FAO's seek the most promising students for the |
| of lost financial aid to eligible families who braved the | | | | least amount of financial aid. Relying on an FAO to |
| college funding process blindly and alone. | | | | cut your college costs is like expecting an IRS agent |
| This being the case, what's a family to do with one | | | | to help reduce income taxes! FAO's can be helpful, |
| or more college-bound students facing as much as | | | | but their loyalties are with their schools - not their |
| $160 to $300 thousand dollars (and still rising), to send | | | | applicants! |
| their kids to a 4-year college? Many make the | | | | Accountants may offer some assistance, but far too |
| mistake of relying solely on the advice of guidance | | | | few have experience with college funding. Although |
| counselors, college financial aid officers (FAO's), and | | | | they are experts with income tax forms and tax |
| even their accountants. Sadly, these families are not | | | | strategies, college financial aid forms and college |
| getting all of the financial information they need and | | | | funding strategies are a horse of a different color. |
| are in for a rude awakening! | | | | The good-intentioned application of accounting |
| Nationally, guidance departments are facing their | | | | principles to college funding can actually hinder a |
| worst crunch ever, and are overloaded with as many | | | | family's chances of getting all the financial aid they |
| as 800 or more students for each counselor! Budget | | | | are entitled to! |
| cuts have added to the problem causing schools to | | | | There is an endless amount of misinformation on the |
| increase the responsibilities of guidance counselors in | | | | subject of college funding, and a good deal of it is |
| areas other than guidance, leaving them with even | | | | from so-called reliable sources. Oddly, while many |
| less time for their students - and there is no relief in | | | | families seek professional counseling for their income |
| sight! | | | | taxes, few seek the expert advice of college funding |
| Despite these obstacles and to their credit, guidance | | | | professionals despite the fact that the average cost |
| counselors still manage to effectively advise students | | | | of one year in college far exceeds the average tax |
| in career planning and college selection. However, | | | | bill! |
| when it comes to college funding, they come up | | | | College funding professionals, a small group of |
| short in providing the necessary financial information | | | | admissions and financial aid experts, offer parents |
| that could save families thousands of dollars! | | | | assistance through the college funding process and |
| Counselors have little time and lack the expertise to | | | | help families provide their students with the best |
| show parents how to reduce their Expected Family | | | | possible education for the least possible cost. One |
| Contribution (EFC), the minimum the federal | | | | would naturally assume they are in great demand and |
| government determines that each family will pay for | | | | buried with invitations to lecture at America's high |
| any college, based on the information submitted on | | | | schools. Sadly, this is often not the case! |
| the FAFSA. Additionally, knowledge of specific legal | | | | It would surprise and outrage parents to learn that, |
| financial aid strategies and their correct application | | | | on a national scale, many guidance departments still |
| would help families avoid or reduce an array of | | | | refuse the services offered by college funding |
| assessments that could cost them thousands of | | | | experts and authors, often stating that bringing in |
| dollars for each year their students are in college! | | | | "outsiders" is against school policy, even when such |
| For example, parents are unaware that students | | | | services are offered absolutely free! Thus, every |
| have no asset protection allowance. Consequently, | | | | year parents enter the college funding arena without |
| students with assets in their own name are assessed | | | | the necessary ammunition to do battle with the |
| by the federal government at 20% for each year | | | | system - and severely overpay for college! |