A Beginner’s Guide to Financial Aid Part I

As most parents and students are aware, if you need money to go to college then you deal with the financial aid department. These are the people that are in charge of awarding grants, scholarships, student loans, and work-study packages. Figuring out how the college determines who gets money and who doesn’t can often times seem tricky, so let’s try to look at this process in as simple a format as possible.

Now, the concept is that financial aid goes to those families who need it the most. To determine this, colleges use two factors: Cost of Attendance (COA) and Estimated Family Contribution (EFC). Then, the financial aid department uses a simple formula: COA – EFC = NEED.

Your COA is pretty straightforward. It is the cost of tuition, room & board, books, fees, transportation, and an allowance for miscellaneous fees. The COA at a college can change every year, so financial aid is recalculated every year. Remember to include all of the items I just mentioned in your budget, since that is exactly what the college is doing when figuring out your financial aid. If you forget to factor in the cost of textbooks, you may not have enough money when you head off to college in the fall.

Your EFC is a bit more complicated because the college is trying to determine how much money they think your family can afford to spend on college. Unfortunately, your EFC is never going to be as low as you would prefer (unless of course it’s $0), but it is important to know what factors impact your EFC. There are many different things that go into the calculation of your EFC, but four of the biggest influences are Parent Income, Parent Assets, Student Income, and Student Assets. We will cover all of these in more detail in future blogs, so stay tuned as we continue the posts. Other factors that can influence your EFC include the number of family members in your household, the number of students in college at the same time, the ages of each family member, and even what state you live in. If this seems complicated, plenty of other families are thinking the same thing. Much like how a CPA can help you with your taxes, a good college advisor should be able to help you understand your EFC.

The last step in the process is to determine your NEED. This is high much financial aid you may be eligible for. Let’s say for example that your college has a COA of $50,000 and your EFC is $20,000. This means your NEED is $30,000 ($50K-$20K=$30K). Now, does this mean that you’re going to get a $30,000 scholarship? Not usually. Most colleges will award you some combination of grants/scholarships (free money) and work-study/student loans (self help). Keep in mind that money you receive based on this formula is called “Need-Based Aid”. Scholarships that you get for having a really high GPA or good SAT scores are called “Merit-Based” and are awarded based on separate criteria. Even if your EFC is higher than a college’s COA, you could still receive “Merit-Based” aid (so study hard!)

Next time we’ll talk about your EFC in more detail and explore the fact that there are 2 possible EFC formulas a college could use, each with a different set of questions.

About the author: Justin Munio is a Business Development Manager and Financial Aid Consultant with College Planning Strategies, LLC. With a degree in mathematics from SUNY Geneseo and over 3 years working in the CPS Financial Aid Department, Justin is at the forefront of the financial aid process for the families of CPS and the Toolkit.

About Smart Track™ Toolkit: The toolkit is a web based service that assists families with everything from admissions and test prep, to student athletics and financial aid. Our intuitive software and on-demand workshops are key components to making sure students find their top choice colleges, and families can afford to send them there.

Surviving the Transition from High School to College: Strategies for Success

At College Planning Strategies, LLC we understand how different high school and college really are, but many students don’t realize this until a few weeks into their freshman year.  The following are a few Strategies for Success that we share with our seniors.

1.      Make your courses count: In college there will be a lot of pre-requisite courses and many requirements to fill. If you can take one class that will count for multiple requirements, that’s the way to go. For example, an African American Literature class may count for both an English requirement and a Global Education requirement. 

2.      Declare your major by junior year:  As an underclassman, you will spend most of your time on general ed. requirements.  This is a good way for you to experience other classes and hone in on a particular major. If you are still undecided, visit the career services department.  They will help you explore career paths and your options.

3.      Contact professors to be admitted:  If you’re registering for a course and suddenly realize it’s full, you may need to contact the professor. Usually professors have the authority to add you into a class even if it’s full. You can do this by sending an e-mail or visiting the professor during office hours.

4.      Start studying early:  If you know a particular class or professor is going to be difficult, start studying early! This way, you’ll avoid some stress down the road as well as some potential all-nighters.

5.      Mix easy and hard courses:  Try to be cognizant about scheduling a balance of easy and hard courses each semester.  It might be tempting to fill your schedule with four or five really easy courses, but next semester is likely to be an absolute nightmare.

6.      Think about academic strengths and weaknesses:  By now I would hope that you know a little bit about yourself and how you learn. You should know what you’re good at and what your weaknesses are, so try to choose courses based on these strengths and weaknesses.  If you are not strong in writing, don’t take a course where you are only evaluated based only on 3 papers you write during the semester.

7.      Stay on top of the registration process:  The registration process at some schools can be a nightmare, so plan for this in advance. You need to make sure that you stay on top of all deadlines and have back-up classes in case the ones you are trying to get into are full.  Make sure that there are no time conflicts, and make sure to see which courses are only offered in the fall or only in the spring.

8.      Check in with your advisor each semester:  I can’t stress this enough.  Your advisor is there to help you stay on track, graduate on time, and answer your questions. They are a very valuable resource for you, so make sure that you check in at least once a semester.

9.      Find a study-buddy: You’ll want to find at least one classmate who you can trade contact info with.  This way if case you miss a class, you will have someone you can contact to find out what happened. Doing homework with someone else can also be a great motivator for getting your work completed, especially if the homework is particularly difficult.

I hope that these tips will help you recent high school graduates in making a plan to stay on track in college.  For current college students or college grads, what worked well for you?  If you have any additional tips for incoming freshman, share them in the comments!

About Smart Track™ Toolkit: The toolkit is a web based service that assists families with everything from admissions and test prep, to student athletics and financial aid. Our intuitive software and on-demand workshops are key components to making sure students find their top choice colleges, and families can afford to send them there.

About the author: Laura Guarino is the Student Services Coordinator with College Planning Strategies, LLC. Laura has a degree in Human Development from Boston College and is currently pursuing a Master’s degree in School Guidance Counseling.  She is also enrolled in a certificate program in College Admissions Counseling.  Laura is at the forefront of the college admissions process for the families of CPS and The Smart Track™ Toolkit.

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5 Things I Wish I’d Known About PICKING COURSES When I Started College

At Grockit, we’re all about education and getting you ready to move on to the next stage in your life.  But we’re not just teachers; we’re all former and/or current students, too, and we’ve got more than just test preparation tips to share with you!

By the end of my freshman year in college, I had already changed my major twice, and as a result, I picked up a lot of random knowledge about different kinds of classes across several disciplines.  Read on to learn the easy way from a few lessons I got the hard way!

1. Two words: PASS/FAIL.  Don’t overuse this option—it looks lazy on your transcript if you’ve taken tons of pass/fail courses—but if it’s available to you, take advantage of it when its appropriate.  Talk to your advisor if you’re not sure how it works.  There’s no better way for a liberal arts scholar to explore astrophysics, or for an engineering student to learn about Chaucer, than by doing it pass/fail.  Once the grade pressure is off, the learning pleasure can really kick in, and you might discover a new academic passion!
2. Start with your foundation courses, then move on to the specialized ones later.  You might change your mind a few times about what you want to major in, and if you’ve taken a bunch of English courses before deciding that you REALLY want to be a math major, you might not be able to use all of those credits.  Try to get your general ed requirements out of the way at the beginning; those credits will usually be good no matter what major you end up pursuing.
3. Often, credits will transfer from another institution but the grade won’t—make the most of this!  If you’re worried about what getting a C in that dreaded foundation course will do to your GPA, try taking it during the summer at a community college and transferring the credit to your university later.  Of course, see an advisor to make sure that the credit will transfer and will fulfill your requirement, but with a little planning you can save some yourself both money and stress this way; this is a particularly popular option for math-haters who have to take a basic course in the subject to graduate.
4. The rule of thumb is that each credit hour of class will translate to about 3 hours of homework.  You should be prepared to spend 9 hours each week prepping for a 3 credit class, so don’t overload yourself by taking more credits than you can handle the out-of-class responsibilities for.
5. Learn a little about the professor before signing up for the class, if you can.  Do some research online or ask upperclassmen.  A great professor can make a boring subject captivating; this also goes the other way.  Don’t pick a course just for the topic—try to learn from professors who interest you, too.

What kinds of things have you learned about picking courses, and what do you wish you knew?  Share it in the comments!

About Grockit: Grockit is a fun and engaging learning community that encourages students to learn from group study, game play, expert tutorials and solo study. Students that prepare with Grockit have proven to achieve higher scores on college admissions tests. 

About the author: Andrea Alexander is a current graduate student in the School of Information at the University of Michigan. She's been teaching test prep for about eight years and have picked up lots of helpful knowledge along the way. She specializes in the verbal aspects of test prep, since her education and career experience as an attorney, freelance writer, and editor have given her the background for that. 

“Tales from the Financial Aid Department”

Working in the Financial Aid Department of a private college advisory firm for the past 3 years, I have had the task of helping families complete all manner of financial aid applications. FAFSA, CSS/Profile, and Institutional Forms; you name it and I’ve done it.

When families think of the many different financial aid applications needed, there are usually two schools of thought. Either “these forms are very difficult to understand and require the help of a professional” (this is where I come in) or “these forms are incredibly simple; only a fool could mess them up”. Well, when I hear the latter opinion I get nervous. Unless you’ve worked in a college financial aid office, private college planning firm, or the guidance office of a high school, assuming that these forms are simple might be a costly mistake.

I recently spoke with one such family who was concerned when they had not yet heard from their daughter’s first choice college about financial aid. They had done their own applications and were worried because May 1^st was just around the bend and they had to make a decision. I suggested they call the financial aid office to find out what the hold up was. The answer they got back was not one I expected.

Apparently in the course of doing their own applications, their daughter had somehow been marked as “homeless or emancipated” (of which she was neither). The college, in an effort to verify this designation, mailed home forms for the family to fill out and send back. In addition, the college was withholding all financial aid until the daughter was either proven or disproven to be homeless.

Knowing their daughter was in fact not homeless, the family ignored these forms. By the time this phone call occurred, the deadline for financial aid had come and gone. The college’s financial aid for that year had been allocated elsewhere, leaving nothing for this family. The end result was an expensive bill for the first year of college.

The message here is simple. Be careful! You should read the fine print and review each application carefully before submission. Above is just one of many mistakes that can be easily made. If you’re not confident that you can complete all manner of financial aid applications, then ask for help. It’s really no different than seeking help from a CPA with your taxes, and can save you money on your college bills if done correctly.

About Smart Track™ Toolkit: The toolkit is a web based service that assists families with everything from admissions and test prep, to student athletics and financial aid. Our intuitive software and on-demand workshops are key components to making sure students find their top choice colleges, and families can afford to send them there.

About the author: Justin Munio is a Business Development Manager and Financial Aid Consultant with College Planning Strategies, LLC. With a degree in mathematics from SUNY Geneseo and over 3 years working in the CPS Financial Aid Department, Justin is at the forefront of the financial aid process for the families of CPS and The Smart Track Toolkit.

Connect with us

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"How Did a College Education Help Shape Your Future?" Answer and WIN!!!

Contest Details: 
Parents! Win a Smart Track Toolkit™ Personal College Funding Tool or consultation with a College Planning Specialist by answering the question "How did a college education help shape your future?"                                                                                                                  

Prize Details:
Win a free personal college planning funding tool valued at over $400 or private planning session with a College Planning Specialist.

Prize Option 1: Smart Track Toolkit™ Personal College Funding Tool!

• Access to our intuitive financial aid software platform
• Ability to submit state and private college financial aid forms
• Financial Aid Award and Appeals Online Workshop
• Federal Financial Aid and Tax Programs Online Workshop

Prize Option 2: One on One College Planning Session!

• 1/2 Hour private session via phone with a College Planning Specialist

 How to Win!   

1. "LIKE" this blog (above contest details at beginning of blog)

2. "RECOMMEND" our page (click like below near Smart Track Toolkit™)

3. "COMMENT" on "How did a college education shape your future?"
(below at Post a Comment section)


***NOTE***  If you are commenting and DO NOT have a Blogger account, Gmail account, etc, you can simply choose the Anonymous drop down and simply leave your name in the comment.  We'll then find you on Facebook to contact you if you are the winner!

Timeline: Contest starts Tuesday March 30th and ends April 13th.
Winners will be contacted directly.


Good Luck!
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College Benefits Available to Associations

One of the most expensive undertakings your members or employees will probably ever face is funding their student's education. College Planning Strategies, LLC can help them prepare their student(s) for college while minimizing stress and out-of-pocket college expenses.

College Planning Workshops

This option is for groups that are geographically located so that members can attend a workshop at a central location. Our president, Murray J. Miller, is a published author and popular speaker with insider's secrets on how to beat the high cost of college. Our professional college planning advisors have been featured speakers for numerous Fortune 500 companies, national organizations and local high schools and non-profits. You can request a college planning workshop especially for YOUR association.

Demystifying Financial Aid and Maximizing College Funding topics include:

• Preparing for financial aid applications in advance to maximize aid and minimize expenses.
• How going to a "more expensive" private university may actually end up costing less!
• How to position students for more gift aid (Free Money) rather that loans.
• Expensive mistakes families make and how to avoid them.
• How to get ahead by developing a customized college plan for all college costs.
• How to save more money on your taxes.

I am impressed with the full range of knowledge that you and your staff bring to bear on the college admission and funding process. I find the combination of financial advice, application process insight, and negotiation strategies to be exceptionally valuable, going well beyond what I expected at the beginning. Arthur L.

CPS provides each family that attends a free e-book,Winning the College Funding Game, packed with useful tips and resources regarding the entire college planning process. Depending upon your group, a personal college planning consultation may also be available to workshop attendees for low or even no cost. Contact our office for details or to request references from organizations that have already hosted our workshop.

College Prep Audio Program and Member Discounts

This option works for groups regardless of their geographical location. We will provide you with information to distribute to your members. Upon a member's request, we will send them a free audio program and our e-book, Winning the College Funding Game. They may also receive a discount toward an SAT/ACT test preparation program or any of our other college planning services.

College Planning Strategies
www.OurCollegePlan.Com
www.SmartTrackToolKit.com
www.facebook.com/collegeplanningstrategies

Your Roadmap to College Success

College Planning Strategies, LLC recognizes that the needs of each family—and for that matter, the needs of each student—are different. Therefore, we developed the flexible Smart Track Series of personalized in-depth services. Our highly trained team of advisors and support staff are up-to-date on the pressing issues related to preparing your student for college and a successful graduation. We can help guide you step-by-stepthrough the obstacles that may hinder your student’s college dreams: potential job loss, college funding issues, choosing the right school, admissions challenges, financial aid and scholarships, changes in educational loans, and a variety of other serious issues that today’s families must face.

Student Support Services

For many students, applying to college is a stressful process. There are so many things to do, so many deadlines to meet and new information to learn. We will guide you and your student step-by-step through the college search and application process and be there to answer all of your questions.

Our workshops help with everything from career exploration, to college search and visits, to acing the college admissions interviews. We help your student clarify his or her goals, overcome insecurities, and make the best impression possible. This will help them gain admission to their top choice colleges, receive merit scholarships, and obtain jobs and other opportunities. We’ll also give the whole family important college planning tips that will help eliminate family conflict, save you time and money, and keep you on track so you can sleep well, knowing nothing has been forgotten.

Does your student need help with admissions essays? Our professional essay editors will make suggestions on how to show off their best qualities without losing their own voice. Our editors will not only catch grammatical and spelling errors, but help them communicate in a compelling way.

Customized College Planning

One of our professional college planners will work with you to analyze your family’s unique situation, goals and current strategy for handling college expenses—even if that means “one semester at a time.” After analyzing your current situation, we will help you develop a plan for moving forward. We will help you uncover ways ofreducing your out-of-pocket college costs.  This encompasses maximizing financial aid possibilities, choosing schools that are more likely to award your student grants and scholarships, utilizing tax-favored dollars, and several additional strategies.

If your family will need to borrow money to help pay for college expenses, we will assess for you variousborrowing strategies and recommend the best loan types and repayment options for your situation.

After a few sessions you will have a customized plan of action charting your course through each year you will have at least one student in college. In addition to the written plan, our entire team of professionals will be here to guide you each step of the way through regular consultations, phone conversations, and email support. We will make sure your college plan adjusts with each curve that life brings, whether positive or negative.

Financial Aid Assistance

There are literally billions of dollars available in both merit and need-based assistance. In order to receive most of it, however, the proper paperwork must be submitted correctly and punctually. This can include, but is not limited to the FAFSA, CSS/Profile, Institutional forms, and Business/Farm Supplement. In order to maximize your awards there is a lot you would need to learn, especially if you have your own business or special circumstances. Many of these forms are considered longer and more complicated than the federal tax forms. Similar to taxes, it often pays to have advice on how tolower your expenses, not to mention reduce the hassle and stress of this process for you!

Our Financial Aid Specialists will tackle all of your financial aid paperwork including the FAFSA, CCS/Profile, Institutional forms, and Business/Farm Supplement. We’ll ensure all paperwork is done accurately and on-time so you don’t miss outon any aid you deserve.

Our Financial Aid Specialists will tackle all of your financial aid paperwork including the FAFSA, CCS/Profile, Institutional forms, and Business/Farm Supplement. We’ll ensure all paperwork is done accurately and on-time so you don’t miss outon any aid you deserve

You’ll want to know if your award is a fair one or if your case is strong enough to risk appealing for more aid. Our experts will evaluate your case, and if your situation warrants an appeal, we will walk you step by step through this delicate process. We have found the appeals process is more of an art than a science. However, our statistics are astounding: 8 out of 10 appeals we guide are awarded more money!

If your family will need additional loans to cover college expenses, we also help you select the most advantageous loan(s) for your family’s situation

Test Preparation

CPS has partnered with leading test preparation companies to provide programs that can fit into almost any schedule or budget. They are not only educational and effective, but fun! This is a unique study program that offers the benefits of private tutoring at only a fraction of the cost of most test preparation courses, and is available for the standard SAT and ACT as well as for SAT Subject Tests in Math Level I and Level II.

Since the SAT and ACT do not administer their tests online, it is critical the student practice in the same pencil-paper environment they will experience on test day. We provide you with online access to printable practice tests for home practice. The student completes a practice section offline under timed conditions; the student logs in and submits answers for electronic grading; and, finally, the student launches into a self-guided video review of the practice test problems they had difficulty with or have questions about. There is even a vocabulary builder available. Studies show that this interactive video delivery platform makes learning 200% more effective than text-based learning, and results are guaranteed.

College Planning Strategies
www.OurCollegePlan.Com
www.SmartTrackToolKit.com
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Are You On the Smart Track?

In the United States the average four-year college education costs between $90,513 and $181,025. However, did you know that statistically a higher percentage of students require over 5 years to complete their undergraduate studies? Are you and your student(s) ready for the challenge?

Top 5 College Planning Questions

1. Have you learned the proven techniques of how to pay for college without jeopardizing your own retirement?

2. Are you confident your student is on target with selecting and being admitted to the best fit college for him or her?

3. Did you research which colleges are most likely to award your student a higher percentage of Gift Aid (scholarships or grants)? If so, do you know how to ensure the award is renewable throughout their college tenure?

4. Have you discovered how to provide yourself with a "tax scholarship" from Uncle Sam, above and beyond the Hope Scholarship and Lifetime Learning Credit? When it is best to use funds earmarked for college and when it is not? How relatives including grandparents can help with college expenses without negatively impacting your students' award?

5. Does your current college plan cover ALL of the years that you will have at least one student enrolled and ensure you won't have an unmanageable cash flow crunch?


College Planning Saves Money

Taking college funding "one year at a time" will likely be an expensive mistake. Planning for college in this fashion will usually cost a family thousands more than if you had developed a plan for all students and all years before your first student has even chosen their college or enrolled. Even worse than wasted money, many families who plan this way find themselves in a cash flow crisis midway through their student's college career. According to a recent report approximately 50% of the students that drop out of college do so for financial reasons.

On the opposite end of the spectrum, many families that started saving when or even before their first child was born may believe they have a fail-proof plan for affording a college education and do not investigate their options further. What many of these families do not realize is that they could save themselves thousands of dollars, perhaps tens of thousands of dollars per student if they understood the various proven college planning strategies that may apply to them.

Student Positioning for College Is Key

Some students are self-motivated and know exactly what their goals are and the best way to achieve them. Most students need some guidance and encouragement in choosing a college, applying for admission, and choosing a major. Sometimes parents, teachers, and the guidance office can provide all of the support they need to be successful. However, students frequently find it helpful to have outside support to keep them on track—especially if time is limited or communication is strained between certain parties.

Helping Families Stay On the Smart Track for College

Since the turn of the century College Planning Strategies, LLC has specialized in giving individualized help to families like yours so they can effectively transition from high school to college and beyond. CPS also educates families on how to defeat the high cost of college through workshops, radio talk shows, corporate benefits programs and a national on-line series of workshops. Our president, Murray J. Miller, is a published author with over 20 years of experience as a financial advisor and educator. He was ranked Number One College Advisor in the Nation in 2006 and 2008.
Our highly trained team of advisors and support staff has earned an A+ Rating from the Better Business Bureau. We can help guide you step-by-step through the obstacles that may hinder your student’s college dreams: potential job loss, college funding issues, choosing the right school, admissions challenges, financial aid and scholarships, changes in educational loans, and a variety of other serious issues that today’s families must face.

Let CPS help you support your student’s educational goals without delaying or giving up your goals for your own retirement!

College Planning Strategies
www.OurCollegePlan.Com
www.SmartTrackToolKit.com
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