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College Watch

College Finance and Topics in the News

Prepping for the FAFSA or How to have fun spending your child's money

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December has just begun, and that means everyone's favorite time of the year is just around the corner.  Of course I'm talking about filling out the FAFSA form.  YAY!

 

What?  You mean you are not planning your FAFSA parties?  Well what about all of those shows on TV celebrating the FAFSA season?  You can't tell me than you have never wished anyone a "Merry FAFSA."  Wow... I think I'm more out of touch than I thought.

 

For those of you who are not in tune with all the joys of the FAFSA (Free Application for Federal Student Aid), let me clue you in.  FAFSA is the most important form for determining what your student will pay for college.  It is the critical element in determining how much money the schools and the government will give a student heading to college.  It's kind of a big deal.  The earliest you can file a FAFSA form is January 1st before the college year in question.  So all those new aspiring college freshmen will be first time filers in just a few short weeks.

 

Now there's all kinds of great information on our site about what you should do in preparation for the FAFSA, but one of the most important aspects is what I want to cover here.  That important aspect is get all the money you can out of your student's name.  You see, parents have what is called an asset protection allowance (APA).  The APA in conjunction with the lower percentage assessment of parental assets means that parents' assets do not increase students' expected financial contribution (EFC) as much as student assets do.  So it's a smart idea to lower student assets as much as possible.  Thankfully, this time of year offers us an excellent means to accomplish that.  Take your student's money and go buy their Christmas presents with it.

 

I think we just lost 90% of our student readers.

 

Don't panic.  If you want to replace the student's money down the road after you have completed the FAFSA, then feel free to do so.  But for now, your student needs to get rid of their cash, or they will be paying more for college than they have to.

 

So here is the soon to be college students' Christmas shopping list.

 

 

The Gizmo’s and Gadget’s

 

The Computer (let’s start with the really fun one): if your student does not yet have a computer of their own, or the one they do have is outdated; you should certainly consider this as the “A” #1 top of the list. Consider a multimedia computer with a TV tuner card.  Shoot, because most networks are putting their shows online, the TV tuner may be a moot point. You can kill a lot of birds with one stone here. Not only will a multimedia machine act as their computer, but it will also be their TV, their DVD player, their TV recorder, and their stereo. It is truly the Jack of all appliances. And it makes for a great entertainment system for the very few hours they will not spend studying.

 

A laptop is preferred. There isn’t much room in a dorm room, so you don’t want to take up precious space with a big desktop unit. Besides, they’ll want to be able to take the computer to the library, or class, or home.

 

An Ethernet cable for the computer.  There will still be some places where wireless access may not be available to hook in to a network.

 

The Printer/Copier/Scanner: although many schools and professors are now allowing students to submit papers in electronic format, this is far from being the norm.  So, your student is going to need some way to print off that earth-shattering report on Machiavelli. Printers are dirt cheap today compared to what you got yesterday. You can often pick up a good printer/scanner/copier for less than $150 or even $100

 

Surge protector: protect the investment you just made.  Two of them are better than one, and three of them are not overkill.

 

Extension cords: two or three of these as well.

 

iPod or other MP3 player.  Make sure you have headphones as well.  Your roommate will thank you for them.  Actually, you may want to take along a second pair of headphones… just in case your roommate forgot to bring theirs.  Then you will be thankful for them.

 

Phone: I grew up in a telephone family — literally. My family has been in the telephone business since before there was copper wire; so what I am about to say would have been heresy at my family’s Thanksgiving dinner a few years ago. Go get your student a prepaid wireless phone. Don’t bother with the hard wired phones anymore. Phones can double as MP3 players as well.

 

A digital voice recorder for class lectures: skip the old tape recorder — your student will likely download the recording to their computer anyway. If you bought a good phone, the phone may double for a voice recorder as well.  Better yet, check out the new Livescribe pens.  I have one and they are fantastic for taking notes, recording the lecture, and transcribing to your computer, all in one very convenient package.

 

Digital camera: they’ll want to preserve the rest of their high school year and college. www.cnet.com has excellent reviews of digital cameras. You can get one heck of a good camera for little money these days.  I have both a still camera and a Flip Video camera that only cost $150.  With the popularity of uploading video, a video camera is becoming more popular than digital still cameras.

 

iPad or Android Tablet:  The benefits are numerous, and they will take the place of the camera I just mentioned.

 

Other appliances:


If you didn’t go the multimedia computer route, then your student is going to want these as well —

 

  • TV – small LCD TV’s are very reasonable now
  • DVD player
  • Portable Stereo or iPod dock
  • Coffee Maker – they can’t be a Starbucks all the time
  • Microwave – if you check out www.sears.com, you’ll find quite a few small microwaves for under $100
  • Refrigerator – you can get several dorm-sized refrigerators for under $100 as well

 

For around the dorm room

 

  • Kitchen type tools: bowl, cup, glasses, can/bottle opener, etc.
  • Chip clips
  • A small safe or anti-theft drawer (there may be a few things you don't want your roommate or others to get at)
  • Desk Lamp
  • Alarm clock (one with a really loud and annoying alarm — they’ll need it)
  • Bulletin board and dry-erase calendar board
  • A small toolkit (I do not suggest the Craftsman, rolling tool chest; a small bag will do)
  • Duct Tape (the all purpose fix-it isn't just for Red Green anymore)
  • Bed linens & Bedding
  • Bedside lamp
  • Waste paper basket
  • Milk crates or other storage cubes
  • Stacking baskets
  • Under-bed storage (check to see if you can access under the bed)
  • Hangars
  • A fan (even if the dorm is air conditioned)
  • Drying rack
  • Adhesive hooks, tacky strips, and mounting tape
  • Towels and wash cloths
  • Pillows
  • Mattress Pad
  • Blankets
  • Laundry bag or basket
  • Laundry marking pen
  • Laundry detergent and stain remover
  • Lint brush
  • Small sewing kit (better teach your kid to sew on a button)

 

Personal Care

 

  • Ear Plugs (The RA's will probably keep a lid on things, but better safe than sorry)
  • Pepto-Bismol
  • Imodium
  • Aspirin
  • Vitamins
  • Any prescriptions
  • Neosporin
  • Band-aids
  • Small first aid kit
  • Cough drops
  • Shower tote
  • Shampoo & Conditioner
  • Hair care stuff
  • Bath & face soap
  • Soap travel container
  • Toothbrush & Toothpaste
  • Dental Floss
  • Tweezers
  • Nail Clippers
  • Hair dryer
  • Razor & shaving supplies
  • Lotion
  • Q-tips

 

School Supplies

  • Memory Sticks
  • Stapler & Staples
  • Printer Paper
  • Pens & Pencils
  • Notebooks
  • Post-it Notes
  • Paper clips
  • Rubber bands
  • Scissors
  • Highlighter pens
  • Ruler
  • Dictionary & Thesaurus (or just use the Internet or an app)
Posted by Scott Anderson at 11/28/2011 1:21 PM Comments (0)

Happy Thanksgiving!

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For thousands of years, people all over the world would have a celebration in the fall for what the earth or God had given them during the previous growing season.  The Jews call it the Feast of Tabernacles.  In Germany, it is called Oktoberfest.  Here in the United States, we call it Thanksgiving.  It seems every culture has some celebration of being thankful.  

 

But if you watch the news, there doesn't seem to be a lot of thankfulness this year.  And there is only one remedy for that lack of thankfulness... get thankful.

 

I am thankful that I live in one of the most free countries on the planet.  I am thankful that I can worship my God as I see fit.  I am thankful that I can call a politician a lazy butt, lying sack of horse feathers and not go to jail for it.  I am thankful that I can pursue one of my favorite pastimes of punching holes in paper with high-speed pieces of lead, and the government doesn't really care about that.

 

I am thankful for my wife who is beautiful, full of wisdom, full of passion, wonderfully insightful, and spiritually minded.

 

I am thankful that in this country, students can pursue their passions at any age and not be pigeon-holed into one career path when they are only 13 years old.

 

I am thankful that there are other people I get to meet who share similar passions to mine.

 

I am thankful for all my business partners... even the one who is diametrically opposed to my political views.  I am sure we will once again cancel out each other's votes for President next November.

 

I am thankful for Orville and Wilbur Wright who figured out that we can temporarily overcome Newton's law of gravity at least as long as the big fan in front keeps spinning.  And I am thankful for Clyde Cessna, Walter Beech, and all those other aviation pioneers for building such great means to take advantage of the Wright Brothers' discoveries.

 

I am thankful that I live in Iowa where every four years we get to live the Superbowl of politics.  I don't think there is anywhere else in the country where you can get so much face-time with the future leader of the country.

 

I guess I could go on and on, but I will finish with this.  I am thankful to my God, the most creative genius I know, who lets me in on just a little bit of that genius.  He taught me that if I hope to be successful, I need to be thankful for the success in the lives of others.

Posted by Scott Anderson at 11/23/2011 1:44 PM Comments (0)

Counselors Corner by Caroline Kelly

(Counselors Corner) Permanent link

What We're Gobbling About This Week

by Caroline Kelly

 

Thanksgiving is quickly approaching (hello, calendar? where did October go?) and while most are thinking about  what side dish to make, what football games to watch or what family members to (try to) avoid, college counselors like myself are thinking were all the ED applications sent?  Do the students have enough schools on their app list? Are the schools on their list places they can make their home and graduate from in four years?  Thanksgiving break for us is two days to catch our breath before regular decision paperwork needs to go out. And then the real fun begins...

 

 

Caroline Kelly

 

 

 

 

Caroline Kelly was born and raised in Hinsdale, Illinois, a suburb of Chicago. After graduating from Fenwick High School, she pursued a Bachelor of Arts in Sociology and Psychology from Fairfield University in Connecticut. Upon graduating, she returned to Chicago and joined an AmeriCorps program called Project YES! Through this program she was placed at Pritzker College Prep in October of 2007. She is now Pritzker's Dean of College Counseling and has successfully placed two graduating classes in some of the most prestigious universities and colleges in America.
Posted by Brad Woodard at 11/17/2011 3:47 PM Comments (0)

After the App - The 4 College Responses

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Congratulations on getting your admissions applications done!  You did get your applications done... right?  Well chop-chop!  Get with it!

 

So when you do get your admission applications done, which I'm sure everyone will do before Thanksgiving, you will most often receive 4 responses from the colleges or universities to which you applied.

 

1.  The Admissions Acceptance Letter.  WOOHOO!  You win!  This is the letter every student is looking for.  You now have a place reserved for you in next year's incoming freshman class.  Now you have to pay extra special attention to everything else this college sends to you because there will be additional, very important forms to fill out.  You do not have to nor want to confirm to the college that you will be attending at this time.  That comes later after you receive your financial award offers from all the schools that admit you.  If you confirmed your attendance now, you would essentially be buying the product with no idea what the price is.  That's a bad idea.

 

2.  The Denial Letter.  This is the "Dear John" letter.  The one that goes something like, "I really like you, but I just don't think it will work out."  Get past it quickly.  You won't be admitted to every school you apply to, and that is to be expected.  The one thing you do not want to do is pursue the admissions department and try to haggle, or worse yet, beg your way into the school.  That rarely ever works, and if you did get into the school, you will not get any money from  them because you're going to be the lowest person on the totem pole.

 

3.  The Wait-Listed Letter.  This is the zombie letter.  You're not really alive, but you're not really dead either.  If you really want to turn that wait-list letter into an acceptance, then there is a whole strategy you can pursue to accomplish this.  In a nutshell, make sure the admissions representative knows you're interested, but don't be a pest.  But keep in mind, just like the denial letter, you are the low person on the totem pole and financial help will be scarce if you do get in.  For more information on what to do if you are wait-listed, click here.

 

4.  The Financial Award Letter.  Actually, this is the preliminary financial award letter.  This letter soon follows the acceptance letter, and it's purpose is to sweeten the pot.  Typically it will say something like, "Congratulations, we have awarded you a $48,000 scholarship".  Actually it is $12,000 a year for four years, but $48,000 sounds better.  These awards are typically based upon the student's performance indicators such as ACT/SAT scores or GPA.  These are good letters to receive, but they do not represent everything you can expect.  These will be a piece of the complete financial offer which you will receive after all the financial paperwork is filed in January.

Posted by Scott Anderson at 11/16/2011 9:14 AM Comments (0)

How to get more money from colleges, just by where you live.

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You know the old saying about real estate.  The 3 most important aspects of real estate are location, location, location.  Believe it or not, that saying has a lot of bearing on college finances as well.  And a new tool from the Chronicle of Higher Education is going to help you maximize this strategy.



Colleges and universities like diversity in their student bodies.  They want students studying along side other students from different backgrounds.  One of those diversifying qualities that schools pay attention to is where the student lives before they arrive at the school.  If a school in Texas doesn't have many students from Maine, then they will often look for Maine students to add to the student body.  Likewise, if a school in Virginia doesn't have many students from Washington, then they will be on the lookout for Washington students.

And what is the tool colleges often use to get those students to their campus?  Money.

Colleges will often come up with more generous financial offers for students from states or parts of the country where their student body is lacking.  So how do you know what states the colleges are looking for?  This is where the Chronicle's new tool comes into play.  They have built an interactive map which displays the geographic make up of schools' freshman classes.


Here's an example:  Pull up the University of Miami in Florida.  The first thing you notice is the largest circle is over the state of Florida indicating that most of the freshmen at Miami are from Florida.  That's not surprising.  The next largest circle is over the state of New York.  Odds are that Miami is not giving out money to New Yorkers based upon their residency.  But look west.  Miami doesn't have much representation at all from North Dakota, Montana, and Wyoming.  Students from those 3 states would likely get money from Miami because the school just really doesn't have anyone from there.  Voila... money for diversification.



Posted by Scott Anderson at 11/10/2011 4:30 PM Comments (0)

Best and Worst 529 Plans

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There are those few people who actually start saving early for their kids college educations, and we probably don't give them enough credit here.  So kudos to those of you who get ahead of the game.  Here is some information for you to help you make better decisions on the best vehicles for college savings.

 

Morningstar, the mutual fund research company, has released its list of the good, the bad, and the ugly of college 529 savings plans.  Here are their top 6 picks of 529's and the bottom 7.

 

Best Performers

 

 

  • T. Rowe Price College Savings Plan (Nevada)
  • Maryland College Investment Plan
  • CollegeAdvantage 529 Savings Plan (Ohio)
  • The Vanguard 529 College Savings Plan (Alaska)
  • Utah Educational Savings Plan
  • CollegeAmerica (Virginia)

 

 

Worst Performers

 

 

  • Tomorrow's Scholar College Savings Plan (Wisconsin)
  • The Upromise College Fund 529 Plan (Nevada)
  • CollegeBound Fund (Rhode Island)
  • NextGen College Investing Plan (Maine)
  • TD Ameritrade 529 College Savings Plan (Nebraska)
  • Schwab 529 College Savings Plan (Kansas)
  • Minnesota College Savings Plan

 

 

Keep in mind that you do not have to invest in a 529 plan from your home state.  You can invest in a 529 from any state, so research them and find which one will best fit your needs.

 

To read the entire article from Morningstar, click here.

Posted by Scott Anderson at 11/3/2011 10:47 AM Comments (0)