| You'd Be Surprised at How Many Families Make This | | | | possibly understand these rules of the game. An easy |
| Mistake When it Comes to Financial Aid! | | | | analogy is tax preparation - sure, you can do your |
| "We were told we make too much money to qualify | | | | own taxes, but how likely are you to take advantage |
| for financial aid. Should we bother applying?" | | | | of every benefit due to you compared to if you |
| Here's the answer, once and for all: | | | | retained an experienced CPA? Of course, if you're the |
| YES!! | | | | do-it-yourself type: you like to fix your own car, |
| Got it? | | | | sprinklers, etc. you might not like this idea, but you have |
| Many families assume they make too much money to | | | | to admit that you cannot possibly be as competent as |
| qualify for financial aid, but there are many factors that | | | | an expert. |
| determine eligibility - not just income. In fact, according | | | | OK, I'm off my high horse. I just broke some bad news; |
| to a recent study, 53% of all eligible families never | | | | now, here's some WORSE news! Unfortunately, the |
| apply for aid! | | | | FAFSA is not the only financial aid form required. |
| The main reason preventing them from applying is this | | | | Many private colleges require you to submit an |
| misconceived notion that they make too much money. | | | | additional form, the CSS/PROFILE. Also, many private |
| I've had single moms two steps above the poverty line | | | | schools require their own institutional aid forms. These |
| approach me at the end of a workshop, concerned | | | | forms are even more hateful, more onerous than the |
| that their income was too high! Here's the big idea in | | | | FAFSA. My partner, "College Pete," likens filling out the |
| this article: even families making healthy, six figure | | | | Profile to a root canal without Novacaine. How's that |
| incomes will qualify for aid at most schools. | | | | for a graphic image? |
| EVERY family with a high school senior bound for | | | | He's got good reasons for saying this. Here's what |
| college should complete the Free Application for | | | | he's talking about: |
| Federal Student Aid (FAFSA). The data you enter into | | | | You must be even more careful completing the profile, |
| FAFSA dictates how much money you are expected | | | | particularly the sections earmarked for the student to |
| to contribute to school. This number is calculated | | | | complete. Some common questions for the student to |
| pursuant to the Department of Education regulations. | | | | answer: "How much money do your parents have to |
| Filling out a FAFSA is painful. You must be extremely | | | | pay for your college education?" |
| careful - the opportunity for mistakes and pitfalls | | | | Whoa, Nelly! How many high-schoolers can answer |
| abound! According to an industry study, approximately | | | | this question? Do your children know your bank |
| 78% plus of all FAFSA's contain mistakes. One of the | | | | balance? |
| more common gaffes that severely limits or eliminates | | | | If the student gives one answer on his form, and you |
| deserved aid: listing assets that do not need to be | | | | give another figure on your form, there's trouble in |
| included. | | | | River City. |
| In February, the Miami Herald printed a letter from a | | | | If the private forms and FAFSA are even slightly |
| Miami Beach woman whose son was admitted to an | | | | inconsistent, your financial aid application could be |
| elite, private school. The family's income was | | | | delayed or flat out rejected! And you can't say |
| approximately $50,000. However, after she completed | | | | something like, "my kid was on drugs when he filled out |
| her forms, she learned that she was expected to | | | | the form - please let me change the answer!" |
| contribute more than $30,000 per year. | | | | Admissions departments are kind of funny about stuff |
| By way of contrast, we recently devised a plan for a | | | | like that. |
| client with striking similarities. Had he done the forms | | | | Here's the bottom line. You must approach the college |
| the same way as the Miami Beach woman, his | | | | financial aid forms very carefully. Be careful whom you |
| expected contribution for college would have been | | | | speak with - high school guidance counselors are |
| more than $147,000. After we "fixed" his problem, his | | | | typically too busy to develop any expertise in this area |
| magic number was $3,400 per year. | | | | (the average guidance counselor handles something |
| Did we hide assets in a strange offshore account? | | | | like 471 students in Florida). You CPA, money manager |
| Nope. Are we magicians or weird psychics? C'mon. | | | | or other trusted advisor may give you advice that |
| Did we manipulate things in an illegal, unethical or | | | | might make sense for their purposes, but may actually |
| immoral manner? Of course not! | | | | reduce the amount of aid that you'll qualify for! |
| All we did was follow the guidelines promulgated by | | | | Do not wait until the last minute to plan how you will |
| the Department of Education. These guidelines read | | | | pay for college. Sophomore Year (yes, Sophomore |
| like a phone book. There are between 67-78 different | | | | Year!) is the ideal time to get serious about the |
| factors that bear on how much aid your family will | | | | planning process. Speak to a knowledgeable college |
| receive. | | | | financial aid expert sooner, rather than later. |
| Unless you are a specialist in this area, you couldn't | | | | |