The Facts About College Financial AidWritten by Reecy Aresty
The cost of a 4-year college education is soaring! Every year tuition, room & board and other related expenses increase 9% to as much as 15% at some schools, and have already climbed to $160,000 and more! Despite this, American families are sending their children to college in record numbers. So how are they paying for it?The Facts About College Financial Aid Most American families are offsetting high cost of college by applying for some degree of financial aid by submitting their FAFSA (Free Application For Federal Student Aid) on or after January 2nd. Unfortunately, this is not a simple solution as college funding process is not user-friendly. There are an endless number of pitfalls in application process, and it is far too easy for families to lose some or all of aid they are eligible for. Many families fail to even attempt application because they don't know how to, or they incorrectly assume they are not qualified, or simply because they are intimidated by complicated and confusing process and all of its paperwork. With far more qualified applicants than desks in all of America's colleges and universities, it is reasonable to expect a system intentionally designed to eliminate all but most knowledgeable and persistent applicants. According to a disturbing statistic from US Dept. of Education, over 90% of all financial aid applications are rejected for errors and inconsistencies! As financial aid is awarded on a first-come, first-served basis, loss of time in resubmission process results in thousands of dollars of lost financial aid to eligible families who braved college funding process blindly and alone. This being case, what's a family to do with one or more college-bound students facing as much as $160 to $300 thousand dollars to send each of their kids to a 4-year college? Many make mistake of relying solely on advice of guidance counselors, college financial aid officers (FAO's), and even their accountants. Sadly, these families are not getting all of financial information they need and are in for a rude awakening! Nationally, guidance departments are facing their worst crunch ever, and are overloaded with as many as 800 students or more for each counselor! Budget cuts have added to problem, causing schools to increase responsibilities of guidance counselors in areas other than guidance, leaving them with even less time for their students - and there is no relief in sight! Despite these obstacles and to their credit, guidance counselors still manage to effectively advise students in career planning and college selection. However, when it comes to college funding they come up short in providing necessary financial information that could save families thousands of dollars! Counselors do not have time or financial expertise to show parents how to reduce their Expected Family Contribution (EFC), minimum federal government determines that each family will pay for any college. Additionally, knowledge of specific financial aid strategies and their legal application would help families avoid an array of assessments that could cost them thousands of dollars for each year each of their students are in college! For example, parents, and most guidance counselors, are unaware that students have no asset protection allowance. Consequently, students with assets in their own name are assessed by federal government at 35% for each year they are in college! Thus, a student with $1,000 will be assessed $350 for each year $1,000 remains in their name. After 4 years, student will have lost $1,400 in financial aid for only $1,000 worth of assets! This is tragic as it can be legally avoided - if you know how.
| | Parenting SuccessWritten by Alvah Parker
Parenting Success By Alvah Parker At a Women’s Bar Association lunch one of attorneys ordered a diet soda and then explained to rest of us that her children were doing a “healthy living” program so she stopped buying diet soda to drink at home. She said having this diet soda was a real treat for her. She then confided in us that real difficulty her kids were having with their “healthy living” was eating 5 fruits and vegetables a day. The topic for day was marketing and it seemed to me that she had just displayed a couple of marketing principles even though topic hadn’t come up yet! First of all woman was trying very hard to model to her children behavior she was encouraging. As a child I always pointed out to my mother when her actions did not reflect her directives – she told me not to smoke for example. Her response was “Do as I say not as I do.” Sorry Mom it doesn’t work. It just made me all more curious about smoking. I did try it but fortunately for me I didn’t like it. No matter what your profession or business if you don’t use your product or service you are not a model of what you offer. A lawyer who doesn’t have a will, doesn’t pay taxes, or “signs’ a business agreement with a handshake doesn’t advertise her own service very well. Second attorney and her children were measuring their success in eating healthy. The only place she wasn’t complying was with requirement of 5 vegetables a day. Tracking results is an important part of a marketing campaign. How can you tell if you are successful if you don’t track your results?
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