Posted by Karen Plescia, M.S. on Tue, Oct 06, 2009
A couple weeks back, the fall air intoxicated me, and I whimsically advised juniors (and late-blooming seniors) of the top 10 things NOT to do when applying to colleges. Now I'm feeling a bit more sober as I've been smacked back to reality by stressed seniors and their parents. If there is one message to parents that I would love to shout from the top of our office building, it is this:
As tempting as it may be to micro-manage the process or step in and "save" your child, DON'T do it!
Rather than just yell more about what students and their parents shouldn't do, I'd instead like to offer some balanced suggestions. These are intended for parents who are just beginning the process of researching college options with their children as well as for those who are knee-deep in it with their high school senior children.
DO outline your expectations and limitations (especially financial) clearly, but DON'T impose your expectations for the "look and feel" of the institution on your child. Let your child explore!
DO make a plan for when and how often you will communicate about the status of your child's college process, but DON'T expect to get a positive responsive if you bombard your child with questions as she's on the way out the door or when she first wakes up on the weekend. PLAN for successful communication!
Similarly, DO listen to your child's expectations, hopes and dreams for her college experience. By doing this, you will indicate that the process belongs to her - as does the responsibility for what gets done and what doesn't. Therefore, DON'T use the pronouns "we" or "our" in your discussions with her or anyone else ...as in "We would love to get into Harvard" or "We haven't written our essay yet."
Gaining admission to college is not a status competition; DON'T turn it into one for your child. DO encourage him to find the college that is the best fit for his learning style, career goals, social interests, and personality.
DON'T think you are saving your child time or "helping him" by making phone calls to Admissions Offices to set up interviews or ask questions about his applications. Admissions offices would much rather hear directly from the applicant than a parent.
However, DO make contact with the Financial Aid offices early in the process to find out what documents you need to file and when. Your child will likely not be in a position to know all of the financial information needed to complete the necessary forms.
Finally there are a few cardinal rules that are simply NON-NEGOTIABLE:
- DO NOT under any circumstances complete applications or write/over-edit essays for your child.
- DO be supportive, interested, and engaged.
- DO keep perspective in the process and the process in perspective. Love your child enough to help her do the same.
Any parent anecdotes? Confessions? Let us hear them...
Posted by Karen Plescia, M.S. on Wed, Sep 16, 2009
It's fall. Even though the leaves haven't yet begun to turn colors, it feels like fall. The air in New England has taken a turn toward crisp, fall sports teams have played their first competitive matches, football is on TV, the apples are ripe, and students are settled back into their academic year routines.
For high school seniors, that means that they are well into the fall college application rhythm (or they should be by now). Ideally, at least one round of campus visits are behind them, they've narrowed their lists to a realistic number of colleges to which they will apply, essays are being polished, and their teachers are contemplating what to write in recommendations.
For juniors, the beginning of the school year means the anticipation. As they watch their senior friends stress about "getting it all done" and "getting in," they wait on pins and needles for their spring guidance counselor meetings to officially kick off their own descent into the frenzied process that has come to define applying to college. My job as an educational consultant is to help students - and their families - keep in check at least some of the anxiety, stress and craziness.
And so to that end, I offer juniors - and late-blooming seniors - my top 10 list of things NOT to do when applying to college.
10. Avoid talking to your parents about how you and they will fund your college education
9. Skip campus visits all together or "wait to see where you get in" before visiting colleges
8. Get senioritis and take an easy course load
7. Wait until the last minute to ask teachers to write recommendations for you
6. Post pictures of you drunk or other embarrassing content on social networking web sites
5. Let your parents do the research and create the list of colleges to which you will apply
4. Apply to colleges based on where your friends, boyfriend, girlfriend, etc. are applying
3. Don't explain a discrepancy in your academic record when a good explanation exists (for example, an illness or a death in the family)
2. Try to "hide" something (for example, suspension or other disciplinary actions)
1. Have someone else write your essay(s)
Stay tuned for my follow-up, in which I will feature a top 10 list for parents of those applying to college...
Posted by Nina Flood, M.B.A. on Mon, May 18, 2009
The Answer Is: $60/hour. What is the question?
What is the hourly rate of classroom instruction based on the $52k price tag of attendance at Massachusetts Institute of Technology?
Though not likely to be heard on the real TV show "Jeopardy", it is the kind of unforgettable lesson that Daniel Barkowitz, MIT's Director of Financial Aid, (and professor of a seminar on personal finance) teaches. Daniel has always had a unique ability to take complex financial aid and financing concepts and make them into something more widely accessible. Because of the economic downturn and resulting higher stress put on college students and their families, I recently met with Daniel to get his perspective on what is needed now.
He offered up with two "Stress Less" solutions (not stressless, but stress reducing) that we are considering here at The Goldberg Center:
1. One of the problems needing a solution is the lack of timely, accurate information available to families. Because most financial aid offices are completely swamped with calls and emails from January through May, (for first years) and May through August, (for the continuing students), many families turn to each other. In person or online, they often inadvertently receive or share misinformation. We are contemplating an online forum that would enable a family to pose a question, get the real regulatory language answer, and then allow its discussion. Most importantly, this forum would be monitored by professionals within the industry to assure that only accurate information remained posted.
2. Another problem is the lack of holistic planning that goes into a family's game plan. There seems to be two schools of thought: either you make financing as painful as possible by paying more than you can afford in an effort to minimize financing costs or remain in denial by deferring payments with expensive financing vehicles. The neglect of a middle ground, however, leads to both shattered dreams and finances. There is a need for a tool that enables a family to see the long and short term benefits of, say, putting half of the balance in a payment plan and assuming a loan for the remainder. The tool we envision would also provide the total and immediate costs of the options for a minimum of four years of the employed strategy.
Which of these two solutions do you feel would be more valuable and merit higher priority for us? Let us know in your comments to this post - thanks in advance!
Posted by Adam R. Goldberg, M.Ed. on Thu, Apr 30, 2009
Today is the day... May 1 marks the beginning of a new chapter for
those accepted to college. They've researched, visited, applied, received notifications, and finally made a decision.
But, reality sets in. Now they actually have to come up with the money!? Or do they?
The bottom line is that the vast majority of those 'consumers' don't know how to buy. They are so swept up by the dream that the financial aid award letter catches them off-guard. They are disappointed, perhaps devastated to learn that there will be a sizable gap between what they hoped to pay and what they will have to pay.
So what do most do? They make rash decisions and either jump into inappropriate, incompatible financial products or they actually consider changing the college plan itself. Others just accept the fate bestowed upon them and end up struggling more than they need to... for many years out. Ouch!!
Now what should you do? Our self-declared "financial aid geek," and Goldberg Center Education Financing Director, Nina Flood, described a myriad of strategies in a corporate presentation just the other day. College aid for students comes in many forms and she urges clients to carefully and objectively examine and evaluate loan programs. The problem is that colleges themselves are highly discouraged from steering families to particular lenders due to the student loan scandal and then there are the sharks out there who claim to advise objectively, yet hawk their own wares to make commissions.
If you want completely unbiased, unattached advice, hop on over to our May Day! Paying for College Promotion and sign up to chat with Nina. She's seen it all and will be virtually giving away her life lessons from over 25 years as a financial aid officer (Brandeis & BU) and education lending expert. And tell a friend or two if you think they could benefit as well.
Posted by Nina Flood, M.B.A. on Sun, Mar 29, 2009
It is almost April and you are likely feeling this mixture of intense emotions. Your child has earned admission to college but wait, it costs WHAT? After the initial celebratory dance, you are confronted with the grim reality of the net cost of this achievement. Despite your responsible actions, (you saved, you applied for financial aid), this year is not going to be easy for any college payer. Before full panic sets in and you do anything, take a deep breath. There are things you
can do, even at this stage, to enable the realization of academic dreams without losing your integrity, your temper, or your even your mind.
Don't lose your integrity! Are you wondering what I meant by not losing your integrity? Well this one reality really sticks in my craw, (and that is not my first choice of a euphemism). While there are financial aid planners out there that operate by the highest code of ethics, (like me), there are far more that make the whole lot of us seem suspect. This contrasting group of financial advisory professionals recommend things like hiding income and shifting assets to non interest bearing accounts, (which by no coincidence, pay a nice commission). These energy and time-consuming paper acrobatics rarely result in increased grant eligibility and by the way, lying on the FAFSA is a federal offense.
Don't lose your temper! If you did apply for financial aid, don't pick up the phone to rant about how impossible this situation is for your family and how the school will be the loser if your child can't afford to attend, (which of course is true). Financial aid offices are working under the deposit deadline with federal rules about money. The financial aid office cannot consider anything other than financial drivers like changes in asset values, losses of assets, loss of job, increases in non discretionary expenses like dependent or elder care, or dramatic changes in family status, (divorce or death). Consumer debt resulting from poor budgeting is not a basis for professional judgment to increase eligibility.
Don't lose your mind! Speaking of that word, budgeting, this is the time to do it, regardless of whether or not you applied for financial aid. How much of your monthly income are you utilizing for living expenses? The remainder, and there needs to be a remainder!, is what can be utilized for current college costs or repayment on supplemental loans for education. Keep in mind that any loan debt service is going to be increasing each year of college, for each of your children, and that interest only payments are not a long term strategy. If that made you feel like you might lose your mind, email nina@edconsult.org!
Posted by Adam R. Goldberg, M.Ed. on Fri, Mar 20, 2009
Nina Flood is a self-proclaimed "financial aid geek." I guess you'd assume that would hold true for someone who has lived a life dedicated to championing education financing for over 25 years.
I can honestly report that I've caught the bug myself. It's tough not to when you spend enough time with Nina. We often kick back and find ourselves marveling over financial aid follies... the fact that seven of ten people still refer to the FAFSA as FASFA... the idea that so many families who would qualify for aid never apply... and especially the notion that financial aid administrators are restricted as to how they can productively direct families.
"Wait a second," we recently thought... "Why not make it easier for these financial aid administrators?! Let's create a new community where these professionals can gather to share frustrations, keep up with education tax benefit changes, get the latest skinny on who's doing what, and FINALLY, direct families to the most current education loan rates and fees when they can't advise them directly?!"
This thought ultimately led to our creation and now launch of the FAAS Buzz, an informative and, in some ways, cathartic web community comprised only of financial aid administrators (FAAS)... a refreshing extension of their more formal associations within the NASFAA fold.
If you are a financial aid professional and are interested in connecting to the FAAS Buzz, please email nina@edconsult.org.
Posted by Nina Flood, M.B.A. on Thu, Mar 12, 2009
If you have had the challenges of finding, placing, and paying for educating and/or treating one of your children for his/her special needs, you know that this process is not something you wanted or chose. As such, you DO want to tell the financial aid office(s) at the college(s) of any of your other children.
Financial aid calculations strive to equitably allocate federal, state and institutional aid based on income and assets, but you can appeal based on certain non-discretionary expenses. Track and report all associated medical and dental expenses in excess of 4% of your income, (report on schedule A of the 1040); your tax professional can advise as to which expenses may here qualify.
Additionally, document and provide the costs at residential, day or other education/treatment institutions. The Profile, (the College Board's form for many private institutions) does ask about private secondary tuition, but a college may choose whether or not to take that into consideration. I have not known of a school not taking special needs' costs into consideration to reduce available income for the calculations.
If the Profile is not required by your child's school, write an appeal letter with documentation, (assessment, diagnosis, and costs), and send to your child's financial aid counselor. DO NOT go directly to the Financial Aid Director, as this usually slows the process.
If you have any questions, feel welcome to contact me directly. We have built out a virtual financial aid consulting center, where I have just gone live fielding questions on-line for free.
Posted by Nina Flood, M.B.A. on Wed, Mar 04, 2009
Which student loan option is best for you? As the old expression goes, "I could tell you, but then I'd have to kill you."
Seem a bit overly dramatic? Well that is what financial aid officers are being encouraged to say, (well not verbatim, but that is the gist.)
The only people that know the least expensive ways to finance an education cannot tell you. While for years, financial aid professionals were evaluating and presenting the options for a family financing a student's education, those days are over. The "student loan scandal" ousted a handful of financial aid directors for driving volume to student loan providers in exchange for kickbacks. As a consequence now all are regulated and cannot give any recommendation regarding how you should finance their college's costs.
You might be able to get a list of student loan options out of your financial aid office or do your own research, (being careful to only have the most current information as lending terms and players are changing practically daily), but trying to do your own comparison will likely create more questions than it will answer. Nearly every private education loan now has tiered pricing based on its credit criteria, so you will not know the student loan interest rate or fee structure that applies to you, until you apply.
While all the basic criteria for student loan evaluation still apply, borrowing for college has additional criteria that should be examined. Things like deferment options (of principal payments or all payments) during enrollment, cosigner release, (turning a parent loan into a student loan), loan forgiveness, annual and cumulative borrowing limits, even a student's and school's residence all must be examined and weighed in your decision.
If you need help evaluating your private student loan options, send me an email! I am completely unaffiliated and guarantee I am not getting kickbacks, nor will I have to follow through on that old expression if I offer my educated opinion.
Posted by Nina Flood, M.B.A. on Tue, Feb 24, 2009
This week's Boston Globe Sunday Edition featured an article "Daunting Federal college-aid form flunks with most families", by New York Times reporter, Tamar Lewin. The now 6 page federal student aid application is intended to provide a full financial snapshot by which financial aid professionals allocate (by a regulated formula) limited federal, state and institutional resources. However, the Free Application for Federal Student Aid or FAFSA, (sometimes erroneously called the FASFA) and the numerous other forms and information often required, are commonly, mistakenly thought as assessing a family's need.
No one is looking at the process or the resulting award letter and saying, "That was easy and now I can continue my life without any further financial sacrifices." Instead they are thinking "Why didn't I get a Pell Grant?", "Loans for college are considered financial aid?", "Where are all those scholarships for college everyone says are available?", and /or "There must be a mistake."
The process of asking for money is intimidating for everyone and more complicated by the misinformation in circulation. I thought back to my experiences and consulted my financial aid community to provide you a list of what they wish you knew. Save yourself and the office, with which you will be working, time and angst by recognizing the following realities.
1. Comparisons between your family and another don't make sense when it comes to eligibility. No one knows exactly what someone else makes or how they live.
2. Each institution has its unique endowments and enrollment goals, so institutional aid can and will vary widely. (Institutional aid is the college's money, so they determine how to best spend it.)
3. Despite any rhetoric, there really is no negotiating. While certain circumstances can be taken into consideration through a process called professional judgment, this is nothing like buying a car or even a house.
4. Calls are made from coaches and alumni to the financial aid offices, (FAO), but the FAO cannot bend the rules. Just as Admissions would not consider finances in its decision, financial aid is required by federal regulations, to not be swayed by non financial data.
5. You must have your student read and understand ALL correspondence from the financial aid office in mail and email. The FAO is working to help your student get through their education and welcomes his/her questions and yours.
6. Most financial aid administrators have caseloads in the hundreds, so to get an answer to a question, call, email or make an appointment.
7. The director of Financial Aid is not going to approve or deny all requests; your case is best known and worked by the individual assigned as your counselor. Make sure your student knows this person is his/her and your first resource for all questions and requests.
8. The student owns this process in the eyes of the FAO. Encourage him/her to ask the office and you questions, and do not advise them to "just sign and don't worry." Most institutions have wonderful financial literacy resources and your student will miss a valuable life learning opportunity if you try and do everything for them.
9. Accuracy and documentation are the cornerstones of all appeals. Financial Aid professionals will be requesting lots of documentation and if you are looking to forecast a lost income, be cognizant that your severance and unemployment are resources that go into the calculation.
10. Apply early and honestly. Hidden assets are usually found and while the IRS offers income offsets like retirement contributions or asset depreciation, financial aid professionals add these back
However disheartened you might feel by the above realities, the process strives to be fair and the financial aid office wants to give you all the money they can. By working with these offices, you can save thousands of dollars. Another huge benefit is teaching your child about investing in her/himself and managing money responsibly.