College Selection Strategy

What does this mean? Information is not solutions. For example, there are numerous sources of information on the subject of income taxes. Why then are there so many accountants?

A simple answer, it takes time to implement the information into actionable solutions.

One might ask is it worth the discovery process, the time spent away from other things that need to get done, and the value of their time relative to "Did I Get It Right?".

How much did I leave on the table because I said "I can do it, I don't need any help".

If your car breaks, do you fix it? If so, good for you.

Your kid's teeth are coming in crooked, do you do the work or go to a trained professional?

Controversy, conflict, imagination, they all come into play when speaking Financial Aid.

There is so much out in the "internet space", fee-based scholarship matching services, financial aid seminar companies...this is your imagination fooling you into a "energy drink" for college. Bad experience can and often times do happen. Not to say that you might find a great solution for your situation.

Many people believe there are two types of financial aid.

• Needs Based where family income / assets are below a certain level. You can find information and determine early estimate of eligibility here: FAFSA4caster
• Merit Aid where the student positions themselves "above the crowd" in three primary areas; good grades in challenging courses, good SAT/ACT test scores, and a solid resume of achievement.

   But there is a third type financial aid, a qualified Certified College Planning Specialists  ("CCPS") who can assimilate various college strategies into a comprehensive workable plan of action. In working together, the planner and the family can determine which sources of money would be the best fit.  

And most important, a CCPS who has not only be trained in college strategy but also skilled in identifying wealth transfers so your cash flow can increase. Improved cash flow through the elimination of wealth transfers can be applied to help pay for college and also towards retirement accumulation.

There are two formulas which colleges utilize that measures the amount of money you are expected to pay.

Federal Methodology Formula ("FM") is the federal formula used by every accredited undergraduate school in the United States.

Institutional Methodology Formula ("IM") is an alternative formula used by some private schools. The difference is that the IM method assesses some assets such as the family home,  family farm, siblings' assets, and some other items that the FM method does not.

You should do an Expected Family Contribution ("EFC") "dry run" using both methods no later than your child's sophomore year in high school so you can design a financial plan of action. And if this time has already passed get it done as soon as possible. By doing the EFC's early you can prevent unpleasant surprises.

In order to pay for your family's "college tax liability" you might find the money in these areas,

• Savings / College Savings Plans
• Current Income
• Loans / College Scholarships
• College Grants / Merit Aid
• Professional Help that can structure customized strategies to pay for college

Unlock Financial Techniques to Help Pay for College

• Academic
• Asset
• Household
• Income
• Tax Scholarships

1. Increase the student's SAT/ACT test scores through test prep courses
   
2. Take as many honors or advanced courses as possible
3. Achieve good grades that can result in grants and scholarships

1. Pay down personal debt with an assessable asset such as savings
2. Shift income generating assets to growth assets during college years
3. Inquire whether target colleges assess annuities and cash value life insurance

1. Establish a small business for a non-working spouse for the possibility of establishing a Tuition Reimbursement Plan once the student reaches Age 21, or if a grandparent is self-employed there is no minimum age...several other strategies for self-employed
2. Structure a divorce agreement to give the custodial parent more assets and less income
3. Do EFC calculations and determine possible asset / liability restructuring

1. Shift income to the child using a "tax capacity" concept
2. Hire the child (remember household strategy # 1) and write off a portion or all of their auto expense, child must claim income but no tax will be due if properly structured and employing parent receives tax deduction
3. Gift appreciable assets to the child or grandchild

1. Examine the American Opportunity Tax credit if family income qualifies, if not there is an alternative strategy to use the credit
2. Consider re-financing your home to increase your interest deduction and possibly use the equity to pay for college rather than income producing assets since the equity in a home has a zero rate return
3. Time the repayment of student loan interest to maximize deductions when possible

Professional Expertise Can Guarantee Incredible Results Saving On College

• How to Pay for College When You Do Not Qualify for Financial Aid?
• How to Use Personality Testing that Qualifies the Colleges Your Family Should Consider?
• How to Achieve the Necessary Cash Flow to Help Pay For College with Lesser Debt, if any?
• How to Unravel Tax Scholarships?
• How to Reduce Your Out-of-Pocket Expenses and Use Other Peoples' Money?

• Select the right College that you can pay for without robbing your retirement
• Utilize College Admission Strategies That Make Paying for College More Affordable,
• Lower Your Income Taxes.

College Choice is Yours, How You Pay for College is Yours, Your College Strategy is Yours

Process Information into Solutions with a CCPS