Paying for college is difficult for everyone these days. Tuition and fee cosst of a four-year private college education has passed $150,000 mark at many schools. Average cost of a year's tuition, room and board, and fees at a private college in 2012 is predicted to be $40,785, public universities is $18,135 and expected to increase at about 5% per year. Texas tuition in 2011 averaged $8,244 at public universities and $28,500 for private.
The cost of sending a child to college is increasing at 6 to 8% a year and in many cases has reached the point of not being affordable. When it comes to the out of pocket expenses of college the hardest hit is not the poor or the rich, but the middle class. If this is your position you may feel like you have been hit with a financial freight train. While it is true loans being secured by Sallie Mae are down from 2009 levels by 16% and private banks have and are raising rates, with both requiring parents to co-sign on the loans, there are solutions and we can help.
When planning your child's college attendance, you may have heard certain myths about financial aid:
- You can't get it if you own your own home, have savings in the bank or if you earn a high income from work or investments.
- Searching for little known scholarships, grants or awards that go unclaimed each year is the best way to find money.
- Hiring certain organizations to research and find potential scholarships, grants or awards your child might be able to win is worth the cost.
- If you are not a United States Citizen you have no chance.
- Everyone pays the same cost for attendance at a selected college or university.
- The college or university Financial Aid Officer is your friend.
- Families and individuals who need aid the most are more likely to get aid than a student who can afford the cost.
- High school counselors are the best source of help and aid in making the right decisions for your child.
- The higher the cost for attending a particular school the better the education.
All the above are false! You might think families receiving the most financial aid are those most in need. The fact is those receiving the most aid are those who best understand the aid process. And those meeting out of pocket costs more efficiently are those better prepared. As a parent or grandparent have you considered the best way to meet out of pocket costs or prepare to obtain all the aid avalable for your student?
Financial planning for college is not based on fair but, as with income tax, knowlege. All of us have the legal right to pay the least amount of tax allowed by law and all of us have the right to obtain the maximum amount of financial aid allowed by law. The bottom line is what you do not know means you pay more in tax than necessary and receive less in college financial aid than may be available.
Planned Assets porvides financial planning help to families planning for their child's post high school education at college, university or trade school.
The largest fallacy we seee in edcational financial planning is failure to integrate education financial planning with other financial planning processes. Eliminating transfers of wealth out of the estate unnecessarily and unknowingly is the key to successful asset accumulation. Failure to efficiently fund "required" costs of education for your chid is an unnecessary wealth transfer.
For a free consultation and information concerning your situation:
PLANNED ASSETS - POINT...INVEST...WIN!
