“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!