We all know that the cost of education has skyrocketed over the years and to make things worse, many students who graduate with a degree cannot secure an occupation with a decent salary due to a lack of positions available. So the question here is, is college worth the price? Yes and no. If I had to lean towards one answer it would be yes. Unfortunately in our country, most people need a degree to obtain a worthy profession. However, if one pursues a degree, and does so in a proactive and savvy way, the cost of education can defiantly be worth the cost. If you would like some valuable advice and tips on how to pursue a quality education at a lower cost, please contact our office.

Is College Worth the Price? Even Some High School Counselors Have Their Doubts
News Source: TIME.com

The article indicates that filing for financial aid is getting a little simpler. For millions of families this will not be the case. Families who file FAFSA early in the base year and the information does not reflect the actual figures, will be misled in regards to what they really qualify for. My advice to families, do not file FAFSA early. If you would like an early estimate of what you would qualify for without filing FAFSA, please contact our office.

Applying for college financial aid is getting a little simpler
News Source: Las Vegas Review-Journal

First things first. There are legitimate ways to temporarily postpone federal loan payments, such as deferments and forbearance before considering consolidation. If the student does not qualify for either, then they should consider consolidation through the Direct Loan program or shop around for private consolidation loans carefully for a low or fixed interest rate if they can find one, and read all the fine print. The student should never consolidate federal loans into a private student loan, or they will lose all the repayment options and borrower benefits.

FYI, there is no financial benefit to consolidating federal loans, other than having a single monthly payment and access to alternative repayment plans. In addition, consolidation is a bad idea when the student has only a couple more years or a few thousand more dollars to go until they pay of their loans. Switching to a new lender might eliminate any benefits they have earned, like lower interest rates for on-time payments over the years.

Over the years we have seen many clients who utilize 529 plans. These are some of our best tips for 529 plans we think every parent should consider when they invest. The 529 plan should always be in the parents name and never in the students name. Parents assets are assessed to a much lesser degree. Parents should contribute as much as they can to any 529 Plan they start. Multiple sources should also contribute when ever possible.

Whether it’s taxable for other sources is up to the tax professional. All 529 plans utilized for education and/or purposes of education are tax free. Parents should shop competitively 529 plans across others states because they are not specific to the state of residence.

We see 4 main differences in 529 Plans across different states.

1. To the best of our knowledge 34 states including the District of Columbia allow parents to take full or partial deduction for 529 plan contributions. Most states only offer this benefit to residents who use their home state’s plan. Arizona, Kansas, Maine, Missouri, Montana and Pennsylvania offer taxpayers a deduction for contributions to any state’s plan.
2. Flexible low minimum contribution
3. Ability to roll over money from one plan to another without state tax penalties.
4. Various plans will have a maximum contributions to the plan

We advise parents on differences that do impact on how much they can save from one plan to another. Parents should always speak with 529 plan expert to utilize the most current 529 plan offerings specific to their situation.

To learn more how we can help discover additional financial aid for your child’s education contact our office today.

The private scholarship decision is real consideration to many students every year. We know from 25 years of experience the student does not come out ahead. There are things you can do to prevent this from happening. If you are dealing with this situation, contact our office for more information.

Private Scholarships — A Billion-Dollar Rip-Off
News Source: Huffington Post – Private Scholarships — A Billion-Dollar Rip-Off