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June 29, 2017

Federal Student Loan Limits 2107 & What You Need To Know

In this interview with Student Loan Hero our founder Ronald Ramsdell discusses Federal student loan limits 2017 and what you need to know. In the article with Elyssa Kirkham, Ronald covers the three most important points parents and students need to know are, families need to plan ahead regarding paying for college resulting in less college debt and more importantly loan debt. Second, the Federal parent PLUS Loan should be the very last option. And third, parents should defiantly shop around at local community banks, major banks and credit unions.

Over the last couple of years we have learned from some of our clients that they have secured private education loans at better terms compared to Federal student loans. If you would like more information regarding loans, FAFSA, CSS Profile or an expert help to better afford a college education, please contact us for a complementary consultation.

Read the article Federal Student Loan Limits on Student Loan Hero now.

Filed Under: Press Tagged With: , ,
April 5, 2017

What You Need To Know About 529 Plans 2017

529 Plans 2017

Here is what you need to know about 529 plans 2017 update.  A 529 savings account allows you to build an education fund within an individual investment account. Money you contribute is invested in one or more specific investment portfolios.

I recommend families create the account in the parents name since the three formulas colleges utilize to determine how much financial aid a student may receive will assess students assets much higher than the parent’s assets.

As 529 plans, both college savings plans and prepaid tuition plans offer significant federal tax advantages. Funds in each type of plan grow tax deferred, and withdrawals from either plan used for the beneficiary’s qualified education expenses are completely income tax free at the federal level. As a general rule, I don’t recommend parents utilize multiple plans. However there are occasions that call for multiple 529 plans:

  1. If your children are more than a couple of years apart in age, you will most likely have different investment objectives for their college savings. You may decide that one particular 529 plan has better equity-weighted investments (suitable for a young child) while a different 529 plan is more attractive for its conservative options (suitable for an older child).
  2. If you have a sense of which particular schools, or types of school, your children are likely to attend, the choice of institution may influence your selection of a 529 plan. This is especially true if your state offers a prepaid tuition plan, or if you are considering the private-college Independent 529 Plan. A few of the 529 savings plans also offer extra benefits for students attending certain schools.
  3. If you’re simply not sure about your choice of 529 plan, you can hedge your bets by spreading your contributions among two or more 529 plans. You might also achieve some more diversification in your investments by doing so, at least in regard to the fund managers handling your college savings.
  4. If you will need to fund a child’s education with money out of your pocket, it’s almost impossible to find a scenario a 529 plan does not makes sense.

When shopping for a 529 plan, you should always consider your own state’s 529 plan, even if you ultimately decide to go with an out-of-state 529 plan. Special tax or other benefits may be available for using your in-state plan.

In some states, you may be able to take full advantage of a state tax deduction by enrolling just one of your children in the state’s 529 plan, giving you more freedom to search outside your state for a 529 plan for your other child. In other states, however, the full state tax benefit is obtained only when both of your children are enrolled in the in-state 529 plan.

If you would like professional advice and assistance completing the financial aid forms correctly and working the system all while saving you time and stress please contact our office for a complimentary consultation.

Filed Under: High School Planning Tagged With: , , ,
October 18, 2016

When Students & Parents Don’t Agree On College

In our years of helping thousands of students and parents we see it’s very common they don’t always agree on college should attend. Some reasons include the cost, location, the student has a friend(s) attending a specific college, academic reasons, the student wants to attend a prestigious school that may not be appropriate or benefit them etc.

One of my suggestions is that the parent(s) and the student take a “time out” and agree to discuss the topic again in the near future. But before doing so, I recommend both the parent(s) and the student take a piece of paper and draw a line down the middle and at the top on one side write Pros and on the other side Cons and list all that come to mind. In their next discussion it becomes more clear to both sides on how to make the best common sense decision.

If the disagreement is over the cost of a certain college, it is the parent’s responsibility to educate the student on the amount of debt he or she will graduate with. Also, the student should be responsible for some of the cost. I have found that the more the student is involved in paying for their education, the more serious they are to achieve the best in their education.

Filed Under: High School Planning Tagged With: , , ,
September 13, 2016

Should A Family Hire A College Admissions Consultant?

college admissions consultant
I highly recommend that most families retain a college admissions consultant when their child is looking to get into a top private college or ivy league institution. The college admissions consultant can be of benefit in many ways including test preparation and college selection, to essay and interview coaching and providing a strong application package. The cost can range from $1,000 to $10,000 depending on the level of services offered, needs of the student and the types of colleges they are pursuing. Ideally like good financial aid planning families should start the process in the Sophomore or Junior year in high school.

In addition most students will benefit from college admissions assistance even though they may not be a top student.

It’s important to differentiate that a college admissions consultant and financial aid consultants have different areas of expertise.  If you would like us to recommend a top college admission consultant for your son or daughter, please contact one of our staff.

Filed Under: High School Planning Tagged With: , , ,
July 23, 2016

Amazon Prime Student Loans. What You Need To Know.

Amazon is stepping into the student-loan marketplace with Wells Fargo to offer discounts to customers of the online retailer as Amazon Prime Student Loans.  A student-loan discount will be offered to Amazon Prime Student members. The online retailer has entered into a partnership with San Francisco lender Wells Fargo& Co. in which the bank’s student-lending arm will offer interest-rate discounts to select Amazon shoppers.

Before considering private loans for college, families should always utilize all  Subsidize Federal Loans (Stafford and Perkins) offered. With that said, if a family still needs additional educational loan assistance, they should shop around at various lending institutions large and small  for the best terms.  Over 70% of families borrow less when their financial aid forms are filled out correctly. Unfortunately the majority of families who do not retain professional guidance will make mistakes. Please contact our office to lower your out of pocket cost for your child’s education.

Amazon Tiptoes Into Banking Business Through Student Loans
News Source: Wall Street Journal

Filed Under: News Tagged With: , , , ,
June 9, 2016

FAFSA Changes 2017-18

Starting with the high school graduating class of June 2017, the timetable and tax year associated with the FAFSA changes 2017-18. The high school class of 2017 will be eligible to file the FAFSA starting on October 1st, 2016, three months earlier than in previous years. They will use 2015 Federal income tax returns (known as Prior-Prior Year (PPY)).

Take special note there is some uncertainty for the high school class of 2017. For example, the deadlines for institutional aid may change at some colleges. Also, students may initially receive estimated financial aid packages because college costs for the coming year may not be finalized and/or because state grant data may not be available. If this is the case, the families will subsequently receive confirmed financial aid packages. In addition, financial aid is based in part on the family’s income, and if that changes during that two-year period, the family could either lose money or have to file an appeal and go through a lengthy process to retain it. Instead of streamlining it, for a small portion of people, it adds an extra step if their circumstances change. Many things can happen in a year.

One thing that parents need to know is that they have the option to utilize their 2016 tax information to file FAFSA and the CSS Profile and they should if there is less income reported compared to 2015.

If you would like more information on FAFSA Changes 2017-18 and information on how to increase your financial aid options, please contact our office.

Filed Under: College Life Tagged With: , , , ,
May 4, 2016

What Is A College Gap Year?

mind the college gap year

Recently the term college gap year has been getting a lot of attention since President Obama’s Daughter’s Malia decided to utilize one with Harvard University. Many colleges are encouraging the delayed entry to give students the opportunity to build upon life and work experiences with a volunteer work program, part-time work, or travel and internships in foreign countries. Students have found that they entered college more mature and focused.

I personally agree have been a proponent for students taking off a year or two before entering college for many reasons. However, student’s need to know the do’s and the don’ts when pursuing a college gap year(s). For more information, please contact our office.

Filed Under: College Life Tagged With: , , , ,
April 18, 2016

How To Avoid Financial Aid Awards That Shrink Every Year

Financial Aid Awards

Many parents approach me after their son or daughter has started their private or public school education and ask how to avoid financial aid awards that shrink every year. Assuming the decrease in aid was not do to financial reasons, here are some suggestions for parents and students to avoid the trap:

  • After receiving your financial aid offer for the first year and before you commit to the college, ask them what you can expect from them in the following years
  • Keep your grades up. If the student retains a high GPA, it will be less likely the school will play money games with your financial aid awards
  • Like the GPA, get involved with school activities and be an asset to the college
  • If the college is still playing the game, the student may want to consider one of the college’s rival schools. Many colleges don’t want to lose students to their competitors due to only issues to financial aid awards
  • The family may want to consider retaining a trained and proven financial aid expert. This person will be able to negotiate with the college to better their award

If you are like most parents you are well-intentioned in attempting to maximize the financial aid for your family without help. College Aid Consulting Services has over 26 years of experience working with federal institutions, colleges, universities and others that decide how much money you will receive. If you are reading this we hope you take advantage of our complimentary consultation and contact us today.

Filed Under: College Life Tagged With: , , , ,
April 1, 2016

When Financial Aid Offers Doesn’t Meet Expectations

College Financial Aid Offers

Since early March our students started to receive their initial financial aid offers from various colleges. Like previous years, many of the financial aid offers are not meeting the appropriate need for the student based on one of the three formulas that colleges utilize. We review all of our student’s awards and if we feel the college can do better, we will then initiate a proven approach of communication with the college(s) to increase the amount of gift-aid originally offered. Over the last two weeks our students have been receiving their amended awards that contain more financial aid.

Families who do not utilize professional guidance are more likely not receive a magnanimous award(s). If you would like our staff to review your award letters, please contact our office. The bottom line here is, the more families know about the true aspects of the financial aid process , the less money out of their pockets for a college education.

Contact Us For A Complimentary Consultation

Filed Under: News Tagged With: , , , ,
February 8, 2016

Be Wary of Scholarship Services

Be Wary of Scholarship Services

We can’t stress enough… be wary of scholarship services promising money. This is the time, many high school seniors have finished their college applications and are waiting for results. Parents and prospective students are starting to look into options and plan how the family or individual (father/mother) are going to pay for it.

Every year I hear from students and or parents who has paid a service to find scholarships, only to discover they are getting nothing but empty promises.
Some financial aid is based on need, while other scholarships may be based on merit, a special skill or even an essay on a particular topic.

Companies may offer to assist in finding aid, but I advise students to be wary of websites, seminars or other schemes that promise to find scholarships, grants or financial aid packages for a fee. The companies may promise a money-back guarantee, but they set so many conditions that it’s almost impossible to get a refund. Others tell students they have been selected as finalists but that they have to pay a fee to be eligible for the award. Advance fees often are a sign that the award is not legitimate.

Legitimate companies can help students find aid, but they will never guarantee results. However, parents and students usually can find the same awards and others on their own by searching online or going to the library. However, this will mean that one will have to invest a lot of time in the process due to the many worthless sources out there. We at College Aid Consulting Services have tracked legitimate scholarships sources over the last 25 years that are worthy of one’s time. We have testimonials from happy parents to prove it.  If you would like more information regarding outside scholarship sources, please contact our office.

Filed Under: News Tagged With: , , , , ,
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