Tips For Parents Of High School Juniors

Dear Parent, 

When I talk to parents of college-bound children, I hear many of the same questions. Whether their child is heading for an Ivy-League college or the nearest public university, parents seem to have many similar concerns and questions about college funding. 

With that it mind, I’d like to present the most common questions I hear, and give you the answers that you can’t get from the guidance and financial aid officers. As the parent of a high school Junior, this is a very important time in the process.

Tip #1: Make The Most Of This, Your “Base Financial Year.”

When the college funding officers decides on your child’s financial aid package for next year, they look at your family’s financial data for this year. This is known as your Base Financial Year.  As the parent of a high school junior who will start college in the fall (after graduating from high school), this year is your Base Financial Year.  Any financial moves you make this year, such as accepting a pay raise, refinancing your home, buying stocks, liquidating assets or getting a divorce, will affect your eligibility for college funding next year.  These and any other moves can have either a positive or negative effect on the data you provide on the financial aid application next year.  So, please heed this advice:  Plan and strategize carefully this year, so you can get the biggest possible piece of the financial aid pie next year. It’s important to take whatever legitimate steps you can to put your income, asset and tax situations into the most favorable light for financial aid.  And, yes, there are many perfectly legal and ethical ways to do this. I can help you analyze your particular situation and guide you in making the most of your Base Financial Year.  Finishing the planning in the Junior year is the best of all situations! 

Tip #2: Encourage Your Child To Start Looking At Potential Colleges. 

It’s certainly not too early to start this process!  Have your child send away for catalogs and admissions applications, and begin thinking about what he or she wants in a college.  You and your child may also want to visit some schools of interest.  For our Platinum Service clients, Dale will be a valuable resource for college searches. 

I always encourage parents to have their child apply to six to eight schools.  This will significantly increase the chances that your child will get accepted somewhere.  Then, you’ll have more options and negotiating power when it comes time to sort through the schools’ financial aid offers.  You may even be able to get two or more schools to compete for your child’s attendance by offering you a more attractive financial aid deal.  It doesn’t happen all the time, but you never know!

Tip #3: Get A Ballpark Idea Of Your Estimated Family Contribution.

Your Expected Family Contribution (EFC) is the minimum amount of money you will be expected to pay out of your own pocket no matter where your child goes to college. The EFC is calculated using one of two methods: the Federal Methodology or the Institutional Methodology.

The Federal Methodology is used at all state schools and some private schools.  The Institutional Methodology is used by many private schools to determine eligibility for their own funds.  It includes assets, such as your home, which are not included in the Federal formula.  As a result, an EFC calculated with the Institutional Methodology can be higher than an EFC that is calculated with the Federal Methodology, although this is not always the case. 

Tip #4: Consider Last-Minute Strategies For Reducing Your EFC. 

If your Expected Family Contribution (EFC) seems to be a bit of stretch (or bigger than Mount Everest), don’t panic.  You may still have some options.

If your eyes are glazing over, don’t worry: We can help you sort through all this and help you get an idea of your EFC for next year.  Then, we explore some income, asset and tax planning strategies that could save you a lot of money next year. In fact, we’re here to help you with all your college funding questions and concerns, regardless of your child’s age or circumstance.  Just give us a call at (602) 840-5665 to set up an appointment or to discuss all of our services.  You can also visit our website campusadvisers.com for a schedule of our upcoming FREE College Funding Workshops in your area if you’d like to refer a friend. 

Until next month…Best Wishes!

Randy Stoltz, President

“5 Mistakes You Absolutely, Positively

Must Avoid If You Want To Win At The

College Funding Game!”

Dear Parent, 

It’s the time of your “College Funding Year” where you simply can’t be behind schedule. Being behind, or not knowing where you need to be at this time of the year, can severely put you behind the 8 Ball! So, let’s go over some of the biggest mistakes families make, and how you can avoid them.

Mistake #1: Going into next year with Assets In Your Student’s Name (in the wrong places).

Since next year will be your first “Base Year”, you want to reposition your student’s assets before December 31 of this year! This is especially true if there is significant gain/growth to be realized by “sheltering” into proper financial products. By liquidating their assets now, you will go into your first “Base Year” with no assets showing. By not doing this, you will have to contribute 35% of the asset value, and 50% of any capital gains, dividends, or interest If there are any capital gains when the money is repositioned, you do not want it to occur next year if it can be avoided.

The rules for the repositioning of student’s assets are very specific in tax law, so doing it correctly is imperative. We’re certainly open to working with you on this very important planning concept, but it’s best to act before December 31^st of this year. 

Remember, please: Your student isn’t expected to have assets in their names, and if they do, the colleges consider it theirs for the taking! 

Mistake #2: Going Into The College Search Process Without Having A Good Idea Of Their Field Of Study.

While interviewing 1000 college students who either changed majors, or transferred schools, a major national magazine noted that over 76% of those students had no idea of a field of study when they enrolled in college! Over half of those interviewed had to change colleges to pursue their new major. What an expensive mistake. Most high school seniors spend more time planning their Senior Prom, than choosing a career or major. How sad!

We have an extraordinary career assessment program to use in helping students “discover” the best matches for them in a career. It is a very valuable tool. Give us a call if you’re not familiar with this program.

Mistake #3: Not Getting Involved in Volunteer Work. 

Your student may say that he or she really has no time, or interest, in doing community service during his/her Junior year. This is a huge mistake! With colleges looking for the “complete package” in prospective students, verifiable volunteer work is absolutely essential to the acceptance process especially when applying to a private school! You not only have to do it, but you need a letter or certificate to prove it!

Mistake #4: Not Being Involved In Extracurricular Activities. 

Not being involved in extracurricular activities is another bigger mistake. Many students have a work schedule that prohibits them from being involved in their “school body”. The result, they make too much money for financial aid purposes, and spend all or most of it on their own personal agenda.  All are detrimental to them being accepted to a “quality” school, and receiving a good financial aid package.  If you’re serious about having a chance to get into the best schools, you must show an interest in being involved in the student body. 

Mistake #5: Not Taking The ACT or SAT in Spring of their Junior Year

Not taking both tests often is a big mistake. The tests are different, and often a student will test better on one as opposed to the other. All schools will accept the SAT, while schools in the Midwest will accept the ACT. Schools on the East and West Coasts may not accept the ACT. Our recommendation is to prepare for both. Do not list any schools to receive the scores until you know the results!  Use October and December test dates as your back­up if the April test score is below your need and expectations. 

Bottom line: Give your student every available option to look their best!

These are just a few of the mistakes people make when they start the college search process. We welcome the opportunity to help you avoid these and the many others. I invite you to call us with any questions. 

Where should you be in the process right now?

1.   Your student should have registered for scholarships on www.fastweb.com if they have the time and you know that you’re NOT getting any need-based aid.

2.   Your student should have taken the PSAT .

3.   Your student should have started on building their “college file” starting with the College Fair in the fall. Your goal is to research 15-20 schools initially, and have them narrowed down to 4-8 by the Spring College Fairs.

4.   Have your student make the commitment to get the best grades possible this year. Often the Junior year will carry the most weight!

Until next month…Best Wishes!

Collecting Information About Colleges

Dear Parent, 

How can the Internet help you to find the perfect college?  First, search a variety of on-line databases to find colleges that fit your interests and visit their home pages to get more detailed information.  Next, look through some college newspapers, and take some college tours to gather more objective information.  Last, select your final choices by gathering more impartial information and conducting some interviews of your own.

The Internet isn’t perfect, but one of its major strengths is the ease with which you can search through its vast network of information.  Finding a college that meets your criteria is suddenly much easier than pouring over a 400-page printed directory.  Just enter what you want, for example, a small college on the East Coast with an art major, or a public university with a great athletic complex, or a university with study-abroad programs.  Just click and watch the Internet roll out a list of colleges that match.  The resulting list will tell you more about admission requirements, tuition costs, student life, degrees offered and much more.

The web is a great place to find out about a college’s atmosphere, such as whether it is a good place for athletes, serious students, or those intent on finding an active social life.  Some entries include “instant reply” buttons, which let you request financial aid and admission materials, and “download application” buttons, which give you access to electronic applications.

Another good place to search is the College Board’s website:  www.collegeboard.org.  You can search their database by typing in a college’s name or specific degree.  You can also search by completing mini-questionnaires about the type of school and campus setting you want.  For example, if you search by “type of school,” you will get a page asking whether you seek a private or public college, a single-sex or Co-ed College, a large or small college, a historically black college, and/or a college that offers distance learning.  The resulting list will give you more information about admission requirements, tuition costs, student life, degrees offered and much more.

Searching the internet for college information gives you the opportunity to weigh the importance of many of your preferences.  It is a way to narrow down your students list, and get information at your fingertips!  Be sure to get online and take advantage of it!

Until next month…Best Wishes!

Summer’s Almost Here!  Here Are Some Hot Tips To Maximize Your Child’s College Funding

Over The Summer… 

Dear Parent, 

Summer is a relaxing, laid-back time for many families, but that doesn’t mean you should be laid-back about planning for your college-bound student’s higher education, and how to pay for it!  In fact, being the parent of a student who is completing their junior year of high school, and will be a senior this fall, summer is the perfect season to implement several hot tips to help you handle the high cost of college.  If you’ve already completed some of these strategies, good for you!  However, remember that the process of getting your share of the college funding pie is a complicated process that should not slow down just because it’s the “good-old summertime”! 

We have 8 Hot Tips to share with you.  This month we’ll address the first 4 and next month we’ll continue with the final 4.  So, here we go with some hot tips that are perfect for summer.  

Hot Tip #1: Encourage Your Child To Upgrade His or Her Grades

It’s true!  Students with high grades have a much better chance of getting good college funding packages, compared with students whose grades are not quite so great.  And, many more scholarships and grants are available to students who have some extra brainpower.  Colleges and universities are hungry for students with good grades, so anything your student can do to get those higher marks will help.  Best of all, your student doesn’t have to be a straight-A genius; even solid B students can qualify for many of these programs.

Of course, most teenagers would rather spend the whole summer having fun.  But, if your child is highly motivated, he or she may be willing to spend at least a few hours a week in some type of learning situation.  For example, you and your child might consider tutoring, a class to prepare for the ACT or SAT, or a summer-school class to sharpen skills in a weak subject area. 

Hot Tip #2: Get The Information You Need To Make Wise Decisions

If your soon-to-be-high-school-senior hasn’t done so already, he or she needs to be requesting college catalogs, researching colleges and universities on the Internet or in the library and getting down to some serious thinking about what schools to apply to in the fall.  If your child is further along on the decision course, summer may give you the time you need to visit some schools of interest.  By using www.collegeboard.org to find out which schools offer majors that your son/daughter is interested in pursuing, and using www.petersons.com to get the “inside information” on each school, the process becomes much easier. 

Hot Tip #3: Find Out What Private Colleges Have To Offer

As your child narrows down choices of college and universities, your family needs to be visiting the private schools that look like they’ll make your short list.  While summer is not the best time to visit, due to the classes not being in session, it is your last chance to finalize your “short list” of colleges to apply to in late August!  This would be a tremendous missed opportunity by your family, if you are considering a Private College! 

Hot Tip #4: Schedule Important Dates In Your Family Calendar

Be sure to check with the Counseling/Guidance Department of your student’s high school for any important dates you need to be aware of and put them on your calendar now!  They should be able to let you know now, what they have planned and if there are any college fairs scheduled.  While the college fairs are most advantageous for high school juniors, it’s your student’s last chance to get questions answered during the college application process in the fall!

Well, I hope these first 4 hot tips will help you keep the college funding momentum going strong as you begin your summer.  Remember that we are here to help you with your total college funding planning process, as well as your traditional financial planning needs, all year around! Don’t forget to watch for next months issue with the final 4 hot tips!

Best Wishes,

Randy Stoltz, President

Please check out our website www.campusadvisers.com for our upcoming “Free” College Funding Workshops in your area.  Make your friends, neighbors, relatives, and co-workers aware of these opportunities to assist them in their college planning dilemma.  These workshops are “targeted” for parents who will have high school juniors or seniors this coming fall.

Tips For An Overnight Campus Visit

Dear Parent, 

As your student narrows down their prospective list of colleges, keep in mind that overnight campus visits are nice. They allow students to get an idea of what campus life is like besides just taking a group tour with a guide who will take them through well-worn, PR laden tracks. 

There are a few things your child should keep in mind before going on the overnight campus visit. The students who host prospective students are usually hand picked by the admissions office. That's not necessarily a bad thing. There's nothing wrong with young people spending time with someone else who has done a lot of good things in his or her time at college. However, your child should realize that not every student is going to be like this and that they still are prompted to say what the university wants them to. 

That's not to say however, that everyone who hosts overnight students is going to be a perfect angel. Believe it or not, some take pride in bringing the high school kid out for a night. It's important that your child know that he or she can say no, and if they feel pressured in any way, they should report it to their admissions counselor. 

Encourage your child to really look around and ask questions. Their final decision will be their “home” for four years or more.  They’ll want to be sure it is truly a good fit for them. Here are a few things we recommend that your child look for and ask. 

What's the area like? This is very important if the school is away from home. Will your AZ desert kid enjoy the Midwest?  Will the transition be enough to out-weigh the positives about the school? What type of town/city surrounds the school? 

What's open at night? Some colleges have 24-hour dining options while others only offer vending machine fare.  If your student is more of a “night owl”, this is something they will want to check into. 

Be aware of the drinking/drug scene.  Don't be afraid to ask questions. Even if your host is tight-lipped, an overnight stay will give you a good idea of how many students are going out and coming in late. 

Check out the area at night. While the campus might look pleasant during the day, what does the surrounding area look like at night? Schools are required to give out crime statistics to those who ask, but an overnight visit will give your child a chance to look past what's on the paper.  Many campuses have security procedures in place. Have your student ask about it.  It will be important to both you and your student that they feel safe while on campus. 

Be sure to evaluate daytime campus life. The overnight stay is as much about the nightlife as getting a closer look at how the campus functions during the day. Your child should visit the student center, department where he or she wants to major, the recreation facilities, different dorms, and even talk to presidents of clubs they're interested in joining.  Try to cover as much as possible during the visit! 

And, probably the most important thing of all…eat in the cafeteria. While there are no colleges that serve five star meals in their cafeteria, your child might as well know what he or she is getting into! It's also a great place to survey the student body. 

I hope your student will find these few tips valuable in evaluating each campus they visit!!

Until next month…Best Wishes! 

Randy Stoltz, President

Summer Is Here!  Here Are 4 More Hot Tips To Maximize

 Your Child’s College Funding

Over The Summer

Dear Parent, 

Hopefully you are enjoying your summer so far!  In last month’s issue, we discussed Hot Tips #1-4 To Maximize Your Child’s College Funding.  This month, we will continue with 4 more hot tips.  Remember, don’t slow down the college funding process just because it’s the “good-old summertime.

 So, here we go with hot tips #5-8!

 Hot Tip #5:  Make Sure Your Student Does Community Service Activities

Colleges and Universities are looking for the ‘well-rounded” student in their potential applicants.  Having a track record of community service is a must on their application!  They are also looking for a pattern in the community service.  They are looking for students that do community service in areas of their “passion”, not just a variety of activities to look “good” on an application.

 Hot Tip #6: Get Applications For Private Scholarships

Although private scholarships only account for approximately 1% of all the available aid out there, that doesn’t mean you shouldn’t try to get some of this free money for your child’s higher education.  In addition to scholarships and grants available from colleges and universities, literally thousands of private organizations offer scholarships based on need, merit or both.

 You’ll be amazed to discover how many scholarships are just waiting for the right recipients, and the diversity of scholarships available.  Your child doesn’t even have to be a jock or a genius to get a slice of the scholarship pie.  Is your daughter planning to study entomology (the science of bugs)?  Is your son bound for a major in enology (the science of grapes and wine)? Is your child of Armenian or Polish descent?  Is he or she involved in community volunteerism?  Scholarships are available for these and many other students with specific interests, needs and backgrounds.  (That includes, of course, the multitude of scholarships for students planning careers in healthcare, teaching and similar high-need professions.)

 In addition, you’ll want to check out the many contests that award scholarships as all or part of the prize.  Your child may not win the National Spelling Bee, but if he or she can write a decent essay, report on a research project, deliver an inspirational speech, or sing opera, that kind of talent could win your family some “free” money for college. 

The money is out there.  All you and your child need is the willingness to gather the information and sort through the most promising scholarships.  Summer is an excellent time for this task.  Your student should register with the number one website for scholarships at www.fastweb.com. But, as I mentioned, don’t put all your eggs in the scholarship basket since this basket only makes up approximately 1% of all the available aid.  You would be better served to focus your time on the other 99% of aid that comes from the federal government, the states, and the colleges and universities themselves.

 Hot Tip #7: Make The Most of Your “Base Financial Year”

As the parent of a student who will be entering college in the fall of 2010, this year 2009, is your all-important “base financial year”.  Simply put, this is the year that your income, assets and taxes will determine your child’s eligibility for college funding and the types of “funding” that he or she will be able to receive.  What you do financially this year could make a big difference in the affordability of your student’s college education.

 Most families can take perfectly legal and ethical actions…right now…to put themselves in a better financial position for receiving good funding packages next year.  Of course, many factors are involved, such as the value of your home, what’s in your stock portfolio, how much of your money is in income-bearing accounts, how many students you’ll have in college at the same time, whether both parents work, whether the student works, upcoming medical expenses, etc., etc.

 These and numerous other factors determine your Expected Family Contribution, or EFC, for short.  This is an extremely important number, because financial aid officers at the colleges use it to determine how much “need-based” financial aid to award a particular student. The EFC is…you guessed it…the minimum amount of money the student’s family is expected to contribute toward college before you qualify for any “need-based” financial aid.  The total cost of one year at the school minus the EFC is called “financial need”.  Many forms of college “funding” are based on need.  So, the “needier” your family is (financially speaking!), the more “need-based” financial aid he or she is likely to receive. 

Strategies are available to reduce your EFC so your child’s need increases.  There are many legal strategies that do not abuse the financial aid system, compromise your ethics or get you something you don’t deserve. 

As your college-funding advisors, we can help you determine which strategies will work best for you.  We can also help you estimate your EFC based on your current financial situation.  Although your EFC cannot be determined until next year, estimating it now takes some of the guess work out of the financial aid process.  You’ll have a better idea of where you stand now…and what you need to do to improve your child’s chances for a lucrative funding package next year.  You can also work on tax-favored strategies for paying your “EFC” without ruining your cash flow and allowing you to continue funding your retirement.

Remember, paying for college is only one “short-term” problem you face.  You also have to continue paying your other bills, and hopefully continue funding your retirement plan so you don’t have to work until you’re 90!  This is especially important if you make too much money to quality for need-based aid. 

Hot Tip #8: Start Working On Your Applications And Essays Over The Next 60 Days

 If your student is planning on applying to a private college this fall, chances are they will be required to write from one to three essays for each private college they apply to!  Quite frankly, writing essays in the fall when you are applying to the colleges is “ugly”, with all the functions scheduled by your high school at this time of year!  Summer is the time to be “drafting” them. 

The secret to working on them over the summer is to find out what subjects the essays are to be written about at each school.  You do this by going to the school’s website, and downloading the application, which is where the essay information is found.  You then have the next ten weeks to write and “polish” your essay!  You can then have your English teacher review them in September, and can make any final changes before sending them in with your application. 

Well, I hope these Hot Tips will help you keep the college funding momentum going strong through the summer months.  Remember that we’re here to help you with your total college funding planning process, as well as your traditional financial planning needs, all year around. 

Best Wishes, 

Randy Stoltz, President

Please check out our website www.campusadvisers.com for our upcoming “Free” College Funding Workshops in your area.  Make your friends, neighbors, relatives, and co-workers aware of these opportunities to assist them in their college planning dilemma.  These workshops are “targeted” for parents who will have high school juniors or seniors this coming fall.