Should I Start Planning for College?

There are 2 parts to the question – Saving FOR College and Saving ON College. First, you should start saving for college before your child is born, ok maybe not realistic but accurate. With the cost of college going up at an alarming rate, it is difficult to imagine that the average current cost for a public university is almost $100,000 for a four year degree (some students get done in 4 years, but the average is more than 5 years). There are many options for saving for college. The key is to start saving.


The second component is Saving ON College which is deadline based. My first recommendation is not to rely solely on the current system in our high schools. Much of that responsibility is put on the high school counselor, who usually helps over 400 students at any given time. So as much as they would like to help, it is physically impossible to give each student what the parent may expect. All is not lost, there are options. The key is not to wait for the current system to control your student’s destiny. Start having the college discussion with your student when entering high school. This will give them a chance to recognize the importance of high school, as it relates to getting into college. This is not a one-time conversation; their needs to be encouragement throughout High School. Early planning will allow for many opportunities to Save ON College (including the best chance for Financial Aid). The longer the family waits to address the financial aspects, the more likely they will pay full price for the education.

As an Independent College Consultant, I offer an amazing amount of help and support to my enrolled students, but it works best when the Family System is engaged. The Family System starts with educating the parents about the entire college admission process. Then, their role is to encourage and motivate the student. In addition, the parents should help the student to embrace the need for a successful high school experience. This in turn, will result in many options for a positive college experience. Starting at a very early stage in the process, the parents must be engaged and involved. The student must understand why high school academic performance, testing, and extracurricular activities are so important in determining their future collegiate experience.

An Independent College Consultant will play a vital role in getting students into the best college possible at the lowest cost possible. Are you aware that in certain parts of our country families start strategic college planning as early as 1st grade (this may be a bit early), while in other locations the process starts as early as middle school. When do you plan to start? Remember the competition is the students from every high school in the country plus the international students. Approximately 3 million students apply for college each year in this country. How do you plan to prepare?

Contact Ron Rotenberg, Independent College Consultant, if you would like to learn more about the planning process or would like to become a client. Located in Torrance, CA 310-377-0668, www.collegefinancialfunding.com

Four Year Degree or Not?

There are options other than a 4 year college degree, There is a shortage of skilled workers in manufacturing. The bottom line is high school students need to make a decision and there are options, parents should be involved at an early age, I call this the "Family System".


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Application Season

High School Seniors are still scrambling and get very concerned about their College Plans. The concerns range from career planning, college selection, financial aid, application and much, more. Some are concerned whether a college degree is even worth the investment. I believe it is a great investment, with a high rate of return. On average, a person with an Undergraduate degree will earn twice as much as someone with only a high school degree. From an employment perspective many employers are now requiring a minimum of a Bachelor Degree to even be considered for an interview. Then there are the unemployment numbers. The percent of non-degree unemployed is much higher than people with degrees. Before going much further ask your student if they want to go to college and why? What is their plan and what is their goal? If everything seems positive, then you as the parent must be their advocate and help them meet their college enrollment goal.


Remember the cost of college has become the second largest investment most people will make during their lifetime. The cost of a public school bachelor degree is about $100,000 and double that amount for a private school.

The main question that I get from parents is “How do we prepare for this experience and keep our cost from spiraling out of control.” My response depends on each family’s situation and their student. There are many strategies that parents should implement well in advance of the submitted financial aid forms. When parents do not implement these strategies they can risk losing thousands of dollars in Financial Aid.

It is a very competitive environment (the competition is not in your student’s high school anymore, but the 3 million other students applying for college each year). The process is complex and daunting, parents must get involved early. Visit my website at www.collegefinancialfunding.com to learn more about the college planning process or you can call Ron Rotenberg an Independent Certified College Planner with College Funding Solutions at 310-377-0668, he offer’s a free one hour consultation on the college planning process.

Some College Don't Require SAT Scores ..... But!!!!

Although some colleges don't require an SAT score for acceptance don't get too comfortable and think that those scores are not important.  There  appears to be a growing practice by some universities of purchasing lists of students names that have done well on their SAT to focus their marketing activities.  See the link below for some additional insight to the topic.

"Colleges from Bowdoin in Maine to Pitzer in California dropped the SAT entrance exam as a requirement, saying it favors the affluent, penalizes minorities, and doesn't predict academic success. What they don't advertise is that they find future students by buying names of those who do well on the test."

To see this recommendation, click on the link below or cut and paste it into a Web browser:
http://www.boston.com/news/nation/articles/2011/07/20/colleges_drop_sat_but_still_buy_names_of_high_scoring_students/?s_campaign=8315

Cracking the College Wait List

Being Wait Listed is not the end of the world, although it may feel that way it is not!  Many students come off the wait list and go to the college of their choice.  Sometimes a Community College is the answer for a year and re-apply.  There are also ways to improve your chance of getting off the wait list.  Click on this link to see some strategies:     5 Keys to Cracking the College Wait List (TIME.com) 
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Key Essentials Yield Success!
Need-Based Admission - although most colleges won't admit it, institutions may take the family's income and assets into consideration when determining the student's enrollment eligibility. Income and assets most often do not come into consideration at the beginning of the colleges' selection process. If a college's financial aid resources are practically depleted and a questionable student has a financial need, they are often overlooked for a student with lesser financial need and more ability to pay.

Hot Tip ...

To help avoid a need-based admission situation, it is essential to be first in line for both admission as well as funding. 

To better a more informed Parent Call 310-377-0668 to set up an appointment for a Free-Private College Planning Presentation.

Students Who Work During College

A study commissioned by the United States Department of Labor unveiled some startling information.


Part-time campus jobs not only help students make money — they can also help raise grade-point averages. The study, based on hundreds of undergraduates between 1996 and 2004, found that the average GPA of freshmen at four-year universities who worked between one and twenty hours a week was 3.13 versus only 3.04 for kids with no work.

Here are 7 compelling reasons for students to work during college…

Get better grades. The number one thing that the US Department of Labor Study concluded was that college students who work one to twenty hours get better grades. Plus, they have a better chance of graduating.

Help pay for tuition. It is no secret; college costs have skyrocketed over the years. So any additional income students can earn can go right towards tuition, room and board, and any other college expenses that come up.

Gain budgeting skills. Students who work to pay for part of college tuition and fund their entertainment are less likely to overspend on entertainment (versus those who have a parent’s credit card at their disposal.)

Gain time management skills. Part-time jobs force students to budget how they spend their day. Part work, part class time, part study time, and some time for social activities. This is the way the real world works, after all. So, learning to juggle many different activities in one day in college gives your Student a heads up on the rest who don’t gain this experience.

Connect with professors. This could help explain the higher average grades to those students who work part-time… since a lot of on-campus jobs involve working with staff at the university.
Avoid the wrong major or career. Changing careers later in life or even late in college can be a very costly event. By having a part-time job, your student can learn what they do or don’t like… potentially avoiding a costly mistake down the road.

Improve resume. Probably the number one reason to get a college degree is to improve the chances of getting a job after graduation. Working during college is a resume builder — especially if you can get experience in a related field.

But there’s also a dark-side to having your kids work. This same exact study showed that while a little work was good for students, too much work caused a decrease in grades.

Freshmen who worked more than 20 hours a week had GPAs of only 2.95.

Plus, your student’s income is factored heavily into the financial aid formulas. So, an increase in student income could reduce your financial aid package. As with everything in life there must be a balance.


The earlier you start on the College Planning Process the greater the chance of success. Please remember that the environment is very competitive. Many students will be working towards their goal of getting into the best college possible at the lowest possible cost. Our "College Graduate Program" will give you and your family the edge that most students don't have. We have helped over 20,000 students!




Please let me know if you have any questions.


If you have not been through my one hour free consultation and would like to meet, please let me know. If you have been through the free consult and would like to get started, please call or e-mail as well.


Thanks,





Ron Rotenberg
310 - 377-0668 (Office)
(310)377-1831 (FAX)
E-Mail : ron@collegefinancialfunding.com
Website for College Funding Solutions www.collegefinancialfunding.com

25500 Hawthorne Blvd. Suite 2350 Torrance, CA 90505

Recent Changes in Student Loans

When the Health Care Reform bill was passed last year, few people noticed the government changed the way student loans work. Let’s take a look.

Pros
The government has cut out subsidies to private banks making Stafford loans – instead giving out the loans itself. This change saves the government all of that subsidy money, while increasing revenue through receiving interest payments itself. The Obama administration calculated savings at $60 billion over 10 years.

That also means that there should be more money available to give out as grants. The Pell grants are now going to be linked to inflation – so, in a decade’s time, they should be almost 10% larger than they are now.
Loans are also being locked in at lower guaranteed rates – no more than 6.8% going forward. For graduate students, the rate is capped at 7.9% – compared with the 8.5% or even higher at some private banks offered under the previous system.

The government is going to be more flexible when being repaid – no payment plan will exceed 10% of a graduate’s income. In addition, the government is more lenient in accepting applications. The entire system has been simplified. Rather than shop various banks for the best Stafford loan, you simply go to the government, and pay whatever interest rate you qualify for (the needier the student, the lower the interest rate).

Cons

While some banks would aim to get every possible penny, others offered discounts to students. A savvy shopper could sometimes find a great deal. The new program is one-size-fits-all, so there aren’t any deals or discounts available.

The program itself is slightly riskier as well. It used to be that banks and the government would share the risk – true, the government guaranteed 97% of the value of a loan, but the bank still had a share. Now, the government bears full responsibility. That, coupled with more lax standards for loans and lower interest rates for bigger risks, could potentially lead to problems in any sort of financial crisis.

In addition, should a different administration decide to change the rules, there won’t be many alternatives. Again – you can no longer shop banks. You’ve got the one stop – the government.

In all, the majority of students won’t notice a big difference. Hopefully more money will go to students, and less to middle men. At least that’s what they’re saying will happen…