To ensure the success of their children in hard competitive world of today, parents are faced with the absolute necessity of paying for a college education. As students approach high school, it is understandable why so many parents feel stress financially prepare for tuition and related costs that they have not only gone through the roof when (Boston Univ., $ 65,000 +), but continue to increase as much as 15% ever year! With no relief in sight, how can college or college-bound family survive?
Contrary to popular belief, much of the anticipated debt can be legally released if appropriate action is taken at the right time and it is too late. Help is on the way in the form of proven financial strategies that make virtually any college affordable.
For example, most families are unaware of the fact that students have no asset protection allowance in the financial aid formulas. During the school year 2015-2016, students will lose 20% of every dollar they have in cash, savings & ugman portray accounts, stocks, bonds, bonds, mutual funds, and the like.
Parent assets are subject to a different formula and school choice is key to ultimately determine the amount of financial assistance. There are two categories of schools:
Class 1 contains some colleges choose state as well as about 205 elite private schools. In addition to the Free Application for Federal Student Aid, (commonly known as the FAFSA), they also need CSS Financial Aid Profile (CSS).
Those who find the FAFSA difficult will undoubtedly look CSS like a nightmare, and pity poor family who is divorced, separated, or a business or farm. Such families are required to complete an additional form, The Business / Farm Supplement (you have your accountant), and / or The Noncustodial Parent Statement (nice to your ex). These colleges take into account all of the above plus home equity, Cover Dell Education Savings Accounts, rebate value Prepaid tuition plans and 529 Savings Plans.
Class 2 schools (all of them) only require the FAFSA and any value of the primary residence or downtown, the family lives on it.
Parent assets are subject to 5.64% annual evaluation of the allowance that increases with age. Protection of property payments to two parents with older parent of 48, is $ 33,000. A 45 year old single mother is allowed only $ 7,100!
While this is certainly a concern, there is no reason to fear. The good news is that with proper asset restructuring, parents and their students can appear out of money in the blink of an eye financial officer legally optimize their money in financial excluded from calculations.
After the game, repositioning made it possible for families with students already in college to re-form to report their aid and qualify for more assistance for each ensuing years
Note :. Even more money can be saved when implementing income planning strategies. As the formula for the income of the parents is much more complicated and not germane to this discussion, I have addressed it in one of my other articles
The following shows exactly how income affects student financial :.
1. The financial aid formulas, students have a $ 6,300 income protection allowance, but for every additional dollar earned they lose 50 cents in financial aid
Example: $ 8,300 earned – $ 6,300 exempt = $ 2000 less than 50% food = $ 1,000 lost in the financial
tax consequences :. The $ 8,300 earned is subject to 7.65% in Social Security and Medicare leads to an additional $ 635 lost
1 !. If a student has a bigger income, it looks like this:
Example: $ 11,300 earned – $ 6,300 = $ 5,000 exempt from the 50% estimate = $ 2,500 lost in the financial
tax consequences :. Of the $ 11.300 won, $ 5,900 is exempt from leaving $ 5,400 subject to 10% federal and $ 11,300 subject to 7.65% Social Security and Medicare = 540 + 865 = $ 1,405 lost.
2. In the above example, let’s assume that the student banked $ 5,000 and listed it on the FAFSA. The student would lose 20% or $ 1,000 additional just to have it! Of the $ 11,300 earned, the total amount of financial aid lost in taxes and assessments would equal $ 4,905 or 43%!
3. Even if a student has no income but will pick one of the elite private and / or state colleges that require the CSS, it will still be automated revenue estimate $ 1,000! However, you can avoid – if you know how
In order to obtain the maximum financial assistance without the slightest hesitation on the part of a financial aid officer, income planning and asset transfers must be completed no later than December .. 31 of 11th grade, or no later than December 31, the 10th grade if the student is applying for FAP school
Other features that have literally saved families millions of dollars over the years are:
· The ambiguous noncustodial parent strategy, which has reduced the cost of college by as much as 90%
· The winter clothing allowance, which has saved the students from the Southern States meet northern schools as much as $ 2,600;
· The “no work” work-study award, which has been worth as much as $ 8,000 in 4 years;
· Strategically negotiate the best possible financial aid package, much like wheeling and dealing for the best price on a new car, has produced amazing results; and
· Professional Judgment, as some families are aware of, comes into play when there has been a significant change in income family, property, marital status or health.
In order to win funding college game (which repeats itself every year), family to have the most up to date information, precise timing, persistence – and / or professional advice from an expert in income planning and asset optimizing to do battle on the ground College Funding process has become …