In my financial practice I have seen too many parents fund their child’s college tuition at the expense of their retirement. This is a costly mistake. College planning is a sequential process and some of the most effective strategies for maximum college funding must be done at least 18 months before college starts.
Our clients routinely pay up to 60% less than the initial cost of college.
Colleges are in the business of providing higher education to our nation.
The key word here is “business”.
Institutions have a very definite business approach when it comes to offering admission and funding to a prospective student.
For example, a college or university will typically offer admission to three (3) times as many students as they need. Why? They know that only one-third of those offered admission will attend and the remaining two-thirds won’t. Colleges want their seats full, and will typically over-book the flight to make sure they are. It’s not good or bad – it’s simply business.
The good news is that you can turn the process in your favor by making yourself as attractive as possible to the schools and keeping your options open.
Although private-sector scholarships make up only 3% of the funding awarded annually, students still spend countless hours searching and applying for these awards. Why? Because they help offset the ever-rising cost of a higher education – or do they? It takes hard work and dedication to receive private-sector scholarship money. You must locate the sources, gather the recommendation letters, write the essays, and meet the application deadlines. Next, you wait for the results. Finally, if things are in your favor, you win an award, or maybe even two or three. All of your hard work has finally paid off – or has it? Did you know that most colleges deduct your private-sector awards from the institutional gift money you have already been offered?
Simply put, your private-sector scholarship money most often goes back into the school’s coffer, and is eventually given to another student. Who really benefited from all your hard work? Exactly, the college! Your funding package still contains the same proportion of gift aid (free money) and self-help aid (money that is worked for or borrowed). The college’s “contribution” is simply less.
Can this be avoided? How can you make your efforts pay dividends for you? I can show you a very effective way to get the best education for the least money out of your pocket. Call me today at (619) 787-4222!