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.