Are you (or someone you know) looking or ways to pay for College for you or your child without going broke? I am!!!
Tameka Williamson, Your Own College Coach, shares 6 Strategies for Paying for College Without Going Broke!
We have watched the news and the
trends of how student loan debt continues to surpass consumer debt, cost of
tuition continues to rise, scholarship funding is more competitive and state
incentive aid such as HOPE scholarships are no longer options that yield
hope. So, what is a parent to do? This information is to help you think
outside of the normal paradigm and look at strategies that can bring about
viable college options. We encourage you to have an open mind about your
options and focus on making smart decisions not costly decisions. It’s
all about the end goal, and that is a competitive college education at the
lowest cost possible.
The goal is to equip you with tools
that will keep you from making the same mistakes many parents make. This is the
only way we can change the landscape for our future generation. So, I hope you
are ready to learn and take action based on what you’ve learned. Our mission is
for you to obtain the maximum amount of money possible for child applies.
Strategy #1: Send Your Child To A
Community College For His/Her First Two Years Of School. If your child works hard and gets good grades, they can
usually transfer to a top private university. This way, they can get a diploma
from a prestigious school for half the cost!
Strategy #2: Pick Colleges focused on Minimizing Student Loan Debt. The
Project on Student Debt is an initiative of the Institute for College Access
& Success, a nonprofit independent research and policy organization
dedicated to making college more available and affordable to people of all
backgrounds. As a result, the colleges on their approved list have
developed financial aid policies that limit or eliminate student loans from
financial aid packages, reducing costs for students and families.
You also have National Association
of System Heads (NASH) Access to Success Initiative project with The Education
Trust. A2S works with 22 public higher education systems that have pledged to
cut the college-going and graduation gaps for low-income and minority students
in half by 2015. Together, these institutions serve more than 3.5 million
students. They Meet 100 percent of their admitted full-time undergraduate
students’ financial need for fall 2010. That means the average gaps between a
school’s total cost of attendance—tuition, fees, room and board, books, travel,
and other expenses—and every student’s EFC – Expected Financial Contribution
was filled with some combination of aid.
Getting accepted into any of the
schools on this list will almost guarantee your child will graduate with little
to no student loan debt. But please know that your child must be
competitive and yet again, produce good grades and high test scores.
Strategy #3: Understand and Maximize
the FAFSA Form. By understanding the formula, you will start
to see how different factors will affect your eligibility for financial aid.
For example, “Should you move the assets out of your child’s name?” or “Should
Mom or Dad take two courses at a local community college to qualify as a
part-time student?” By knowing the formula in advance of applying, you can
legally set up your personal and financial situation to maximize your
eligibility for financial aid. Your bottom line goal is to minimize your EFC –
this is what the government feel you can afford to contribute.
File Your Financial Aid Forms
Accurately And On Time. Remember, financial aid is awarded on a first come,
first served basis. 66% of the forms submitted have an error on it. If you
submit your forms with errors or omissions, it will probably “bump” the
financial aid forms, and you will have to resubmit them at a later time. If
this happens, you will probably lose aid since they award money on a first
come, first served basis. Most schools have different deadlines, and if you
miss their deadline, you will almost definitely get less funding.
Strategy #4: Pick Colleges That Have The Best Histories Of Giving
Good Financial Aid Packages. Many schools publish statistics on how much
“need” they meet and how much FREE money and loans they give out. Know these
numbers before you apply, so you don’t waste time and money applying to schools
you’ll never be able to afford. If they offer loans, determine how many
subsidized vs. unsubsidized loans are awarded. When loans become part of the
equation, do your best to qualify for federally subsidized loans, which are
interest-free and principal free until your child graduates.
If you still need to borrow more
money, try borrowing from your 401k plan or a pension plan. Many plans will
allow you to borrow up to 50% of the value of the plan or up to $50,000
interest-free. You can also think about refinancing your current mortgage (not
a home equity loan) because long-term rates are typically low during these
times, much lower than student loan rates and, under most circumstances, tax
deductible (but consult your tax advisor, of course.)
Strategy #5: Don’t Be Afraid To Negotiate For A Better Financial Aid
Package. Always Apply To, At Least, Two Or Three Schools That Are Rated
Equally. This way, if your child gets accepted to all of them, you may be able
to play one against the other when negotiating to get a better financial aid
package.
A school’s financial aid package is
NOT fixed in stone. Just because they offer you a certain package, doesn’t mean
you have to accept it. If you know how to calculate your “expected family
contribution” and you find out what the school’s history of giving out
financial aid is, you can usually get a pretty accurate idea of what you should
have received. If the school’s offer is way off – write a letter to negotiate.
I have seen many cases where schools gave $2,000… $3,000… even $6,000 more than
they originally offered just because the family asked. The moral is – Don’t Be
Afraid To Negotiate!
Strategy #6: Have Your Child Enroll In Advanced Placement Classes
And College Level Courses While Still In High School. Every college
level course they place out of is money you won’t have to pay when they go to
college. Considering college credits can cost as much as $300 each, having your
child place out of these courses can save you a lot of money. This happens when
AP classes are successfully completed and the subject tests passed when taken
in May. By taking foundational core classes at a local college/university while
in high school, will decrease the amount of classes a student take once
enrolled on a full-time basis, could be covered through a high school –
university collaborative and it proves to admission representatives your child
is college ready.
There are many more strategies for
you to implement. Hopefully, these 6 strategies will motivate you to get
started and take action in looking at how to create a plan of action that will
facilitate your child’s dream and future so they can achieve college success.
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Tameka Williamson is a Six Sigma Blackbelt in Lean and Process Improvement that analyzes and creates systems for change. Being a certified speaker and coach for the John Maxwell Team, Tameka developed her signature programs around the 6 WILLs that help students Get Noticed, Get Admitted, Get Funded and Get Hired so they WIN in life, bringing about positive and sustainable change. Winning Intentionally at Leading Life (WILL) is modeled around Standing out, Reliving your dreams and Removing the limits. Having successfully overcome several life changing events and a successful corporate career of driving change for over 15 years in Fortune 100 Companies, Tameka is maximizing her experiences to equip others with the tools to either avoid the same mistakes or bounce back quicker and stronger on their journey to fulfill their purpose. For more information about Tameka Williamson, Your Own College Coach, go to www.TamekaWilliamson.com.
