Real College Savings

Where does a student's time go?

2009-05-22T08:00:00.000-07:00

Parents are often concerned about the amount of time their new college freshman is going to have to spend on their studies. This concern often comes up when any kind of work-study or other part time job is discussed. Let's take a closer look at this.

Several years ago, the University of Illinois decided to find out just how much time the typical college freshman spends on various activiites. The results are rather surprising.

Out of a 7 day, 168 hour week; the average college freshman spends the following:

Sleep - 35 hours

Class - 15 hours

Studying - 13 hours

Socializing - 12 hours

School activities - 5 hours

Commuting - 4 hours

Dependent care - 2 hours

That is a total of 86 hours. 168 hours in the week, minus 86 hours of activity, equals 82 hours of free time. Time to eat -- time to do the laundry -- time to clean up the dorm room -- time to play HALO -- time for a 10 to 15 hour part time job.

I highly encourage you not to assume your student doesn't have the time for a work-study or part time position. At least encourage them to try it for a semester and see how it goes. This is one of the best methods available to help cut down those out of pocket expenses.

Let's Help More Students!

2009-05-19T17:52:00.001-07:00

For the past nine years, I've worked with some great students. I have to say, that Robin Evans has been one of my favorites. Robin was referred to us by her voice teacher who is a friend of mine. Every year we choose a couple of deserving students to work with, who could not otherwise afford our services. Upon first meeting her and her dad, I immediately recognized that Robin was going to be one of these Pro Bono students. It has been one of the best decisions I've ever made in this business.

If you know of a student that we can help, please recommend them to us. We want to coach at least 10 students this year at no cost to them.

Also, look soon for a new campaign I will be launching. It will be a very powerful program to get money saving information into the hands of students all across this country. Not just money saving information, but I believe this will be a campaign that will launch students into their destiny. More information is coming by next week. This is going to be exciting!

College Financing Options

2009-05-05T12:03:00.000-07:00

It’s May, and it’s decision time. Negotiating with the colleges is over, and it’s time to figure out how to cover those out of pocket costs you are left to deal with. For most families, this will entail some kind of financing. This information will help make your
financial loan decisions a bit simpler.

In this post, you will find tips on:

· Deciding how much to borrow

· Rights and Obligations as a borrower

· Facts on being a Co-Signer

· Some important questions to ask a lender before signing on the dotted line

· Some suggestions of reputable lenders

If you read through this information and have any questions, please feel free to contact our office at 563-359-1104.

Before embarking on the search for an education loan, we strongly recommend that you examine the benefits of home equity financing. After the federal loans (Stafford and Perkins), utilizing home equity is by far the least expensive method of borrowing for college.

Home equity financing in combination with a Money Merge Account has been shown to dramatically decrease the amount paid in interest compared to traditional financing means. If you
would like more information on this strategy, please contact our office at scott@cfstrategies.com or scott@realcollegesavings.com.

Deciding
How Much to Borrow:

One of the first steps to deciding how much to borrow for you child’s education is to know all of the costs associated with that particular school. Typically you will get the best idea of what costs will be left up to you when your son/daughter receives their Financial Aid Award Letter. These typically come in the month of April and are based on the schools COA (Cost of Attendance) and your EFC (Expected Family Contribution).

A school’s COA includes:

· Tuition and Fees

· Housing

· Meals

· Books and Supplies

· Personal Expenses

· Transportation

Once you know what the school is leaving up to you to cover out of pocket, the next thing to do is decide how much you want to actually pay out of pocket and how much you want your student
to take on with student loans.

Here are some tips on how to decide on a specific amount.

· Determine what the student is going to be responsible for and what the parent(s) will be responsible for. Some parents want to cover 100% of the out of pocket costs for college (those expenses left over after the financial award). Some parents expect students to cover 100% of the out of pocket costs. Most families are somewhere in between. You as a family need to determine what your split will be. Then you can determine what is the best way to cover that split.

· Accept only what is necessary to cover your remaining college costs. This means you will need to decide whether your student will be living on campus, off campus, or with parents or other family members. Decide how much you the parents can afford to pay out of pocket and whether the student is willing to work during the school year to help pay for college costs. Then come up with an amount that you believe will cover what is left over.

· Keep repayment of loans in mind when deciding on an amount. As soon as a student graduates or is finished with school, they typically have a 60 day grace period before repayment of loans begins. It is during this time your student will want to consolidate their loans into one monthly payment. Otherwise your student will have multiple payments that can total as much as 10% of their monthly income. You will want to decide on an amount that you believe your student will be able to handle repaying in a timely fashion.

Also remember that interest plays a big factor in the amount your student will pay back to
the lender. The amount you pay back will always be more than the amount you borrow, so try and find loans with as low of an interest rate and interest accumulation as possible.

Federal loans are the best to start with. Federal loans have fixed rates that are established
upon disbursement of the loan. These loans also do not require a cosigner and some do not accrue interest while the student is in school.

Private loans are the next best solution. While they can have variable rates and can require
a cosigner, they are designed with students in mind and often have reasonable interest rates and payment plans.

Normally, CFS does not recommend that a family take out a Parent PLUS loan. Parent PLUS loans typically have high interest rates around 8.5-9 % while many student loans rest
around 6.9%. They also accrue interest from day one and monthly payments are to begin 60 days after loan disbursement. They are solely the parents’ responsibility and in the end you will likely end up paying more in interest with the PLUS loans than with many other financing models.

· Fees are also involved. Many families are not aware of this when they set an amount for their loan, but many private lenders charge fees on the loan and automatically deduct those fees from the loan amount before disbursement. Before signing for a loan, ask the lender about their fee amounts so that you can take them into consideration.

Rights and Obligations of the Borrower

Before you and your student decide to take on a student loan, here are some rights and obligations you will need to know. Decide if these obligations are acceptable before taking out any loans because once you make the decision to borrow this money, your student must be able to keep up their end of the bargain.

Rights as a borrower:

· You may accept all/some of your Federal Student Loans. While the school may offer your freshman $5,500 in Stafford loans, you do not have an obligation to accept the entirety of the loan offered. You can indicate to the school how much you feel your student should take on from that amount.

· You are entitled to a copy of the loan promissory note. Both Federal and Private loans must offer a promissory note for your records.

· You have the right to defer payments for a certain period of time or request forbearance
if you qualify. Deferment of payments can be offered due to

o economic hardship,

o unemployment,

o military deployment,

o enrollment in school,

o internship,

o national service, and

o similar situations.

Forbearance lets you suspend or reduce your student loan payments under certain circumstances and for specified periods of up to one year at a time.

During forbearance, you will receive quarterly interest statements and have the option to pay the accrued interest. If you don’t, any unpaid accrued interest will be capitalized.

Forbearance is a practice reserved for when the loan is in repayment, typically after the student graduates or leaves college.

· You may be able to repay under a graduated or income based payment plan. However, not
all lenders give this option. It is available under the federal government loans.

Borrower Responsibilities:

· You must notify the school if you want to borrow less than the federal loan amount awarded. You must either give the school this notice in writing or by phone as soon as award is accepted by student. Otherwise the school will automatically process the full amount.

· Must repay loan in full even if your education is not complete and if you do not get a job that supplies enough income.

· You must notify the lender immediately of any name, address, phone, or social security changes.

· Must make scheduled monthly payments on time, even if the lender does not send you a bill or monthly statement.

Being a Cosigner

Private Student Loans are based primarily off of the borrower’s credit rating. For many students’ their credit ratings are not sufficient enough or are totally non-existent. In these cases a cosigner is necessary in order for
the student to become a borrower and receive a low interest rate. The better the credit score of the borrower/cosigner, the lower the interest rate on the loan.

However, when deciding to become a cosigner keep in mind that you will be just as accountable for the loan repayment as the student. If the student borrower cannot make their payments for any reason and defaults on their loan, the burden or repayment will fall on you the cosigner.

This is something that we believe parents and students should discuss before jumping into a private loan together. Talk about the burden on the student to repay these loans and make sure that there is mutual trust before cosigning.

Some questions to ask lenders (as suggested by Sallie Mae Student Loans)

How long have you been in student loans?
Are you a financially secure company?
Who services your loans?
Who guarantees your loans?
Who performs customer service for you? What kind of training or qualifications do they have?
Do you certify your compliance with applicable regulations? Where? May I get a copy?
Do you charge an origination fee?
Do you charge a default aversion fee?
If you rebate the loan fees, when and based on what principal amount?
How do I earn any interest rate or fee reductions?
When do I earn any interest rate or fee reductions? Is your rate reduction immediate? Is your fee reduction immediate?
Do I have to do anything to keep my benefits?
Do I lose any benefits if I make one late payment? Do I lose those benefits forever?
What happens to my eligibility for benefits if I consolidate my loans?
Do I have to repay earned benefits if I consolidate my loans with another lender?
Where do you disclose the terms and conditions for your loan discounts and benefits? Will you provide/confirm the terms and conditions in writing?

Comparison by Sallie Mae of Federal Loans Vs. Sallie Mae Private Loans.

SallieMae is typically CFS’s first choice for private education loans.

Federal student loans			Private student loans
Stafford Loan Subsidized	Stafford Loan Unsubsidized	Perkins Loan	Signature Student Loan	Tuition Answer Loan	Community College Loan
Interest rate
Unsubsidized Stafford Loans 6.8% Subsidized Stafford Loans (2009-2010) 5.6%		5% fixed	Variable, based on credit history	Variable, based on credit history	Variable, based on credit history
Fees
For loans first disbursed July 1, 2007–June 30, 2008: Up to 2.5% in fees that includes a 1.5% federal origination fee and a 1% federal default fee. There are lenders and guarantors that work with Sallie Mae that pay all or a portion of these fees.		None	No disbursement fees for most borrowers Repayment fees are 0%–3%	Disbursement fee is 1%–6.5%	No disbursement fee Repayment fees are 0%–6.5%
Annual loan limits
Dependent Freshman $5,500 Sophomore $6,500 Junior or senior $7,500 Independent Freshman $9,500 Sophomore $10,500 Junior or senior $12,500 Graduate or Professional $20,500 For loans first disbursed on or after July 1, 2008.		$4,000	Minimum: $500 Maximum: cost of attendance minus financial aid	Minimum: $1,500 Maximum: $40,000	No limit

Aggregate loan limits
Stafford Loans	Perkins Loans	Signature Student Loans	Tuition Answer Loan	Community College Loan
Dependent $31,000 Independent $57,500 Graduate Level $138,500				$130,000
Repayment
Six months after student graduates, withdraws, or attends school less than half time.	Nine months after student graduates, withdraws, or attends school less than half time.	Six months after student graduates, withdraws, or attends school less than half time.	Pay both principal and interest immediately. Pay only interest while you are in school (at least half time). Defer all payments (principal and interest) while you are in school at least half time.	Standard, graduated, and extended repayment options are available. Pay only interest while you are in school (at least half time). With the $10 deferred repayment option, defer payments for up to 12 months.

Federal Stafford loan

Federal Stafford loans first disbursed July 1, 2006 are fixed-rate, low interest loans available to undergraduate students attending accredited schools at least half time. Stafford loans are the most common source of college loan funds.

Eligibility

You must have submitted a FAFSA to be eligible for a Stafford loan.
For subsidized Stafford loans, you must have financial need as determined by your school.
You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.
You must be enrolled or plan to enroll at least half time.
You must be accepted for enrollment or attend a school that participates in the Federal Family Education Loan Program.
You must not be in default on any education loan or owe a refund on an education grant.

Features

Sallie Mae lenders offer borrower benefits on Stafford loans that can save you money in repayment.
Flexible repayment options are available for Stafford loans.
No payments are required while you are in school at least half time.
You can manage your account online 24/7 at www.ManageYourLoans.com.
You get life-of-loan servicing from Sallie Mae.
There is no prepayment penalty.
No credit check is required for a Stafford loan.
Six-month grace period when no payments are required immediately following your graduation or dropping to less-than-half-time status.

One way to help pay down your loan

With Upromise Loan Link^SM student and parent borrowers who join Upromise^® can link their Sallie Mae loan account to their Upromise account and use their Upromise rewards to help pay down their eligible Sallie
Mae serviced student loans. Visit www.salliemae.com/upromise to learn more and enroll today.

Legal

You are responsible for all of the interest that accrues on your unsubsidized Stafford loan while you are
in school, but you do not have to pay the interest during this time. Unpaid interest that is deferred until after graduation is capitalized (added to the loan principal) and you will therefore pay interest on a higher loan amount. Interest does not accrue on subsidized Stafford loans while you are in school, during grace, and during authorized deferment.

Federal Perkins loans

A Federal Perkins loan is a low interest (5%) loan for undergraduate and graduate students with “exceptional” financial need.

Perkins loan qualification requirements

Enrollment in an eligible school at least half-time in a degree program
U.S. citizenship, permanent residency, or eligible non-citizen status
Satisfactory academic progress
No unresolved defaults or overpayments owed on Title IV education loans and grants
Satisfaction of all Selective Service requirements

The U.S. Department of Education provides a programmed amount of funding to the school. In turn, the school determines which students have the greatest need. The school combines federal funds with some of its own funds for loans to qualifying students.

To apply for the Federal Perkins loan, you must submit the Free Application for Federal Student Aid (FAFSA).

Your school will pay you directly (usually by check) or apply your loan to your school charges. You’ll receive the loan in at least two payments during the academic year.

Federal Perkins loans share many of the characteristics of subsidized Stafford loans. The most notable differences are no fees and a longer grace period.

SallieMae Signature Student Loan

The Signature Student Loan is a popular after-Stafford loan with competitive rates and industry-leading servicing. If grants, scholarships, and Federal Stafford loans have not covered the total cost of your education, Signature Student loans can help.

Eligibility

You must attend an eligible community college or a four- or five-year college at least half time and be working toward your degree.
You must meet current credit criteria.
You must be making progress toward a degree.

Benefits

No income requirement.
Cosigner release available after the first 24 on-time payments of principal and interest.
No payments required while in school.
You can borrow as much as you need to pay for the cost of your education as certified by your school.
Flexible repayment options.
Upromise Loan Link allows you to pay down your loan with everyday purchases.

Features

Easy, secure online applications with fast credit decision and electronic signature.
Available for U.S. students in study abroad programs.
Available to international students with an eligible cosigner.
Easy online account management 24/7.
Convenience of having all your student loans in one place and receiving one monthly bill when your Stafford loans are serviced by Sallie Mae.

Loan terms

Aggregate loan limits

Community colleges

$50,000

Four- and five-year colleges

$100,000 for undergraduates.*
$150,000 for graduate students.*
$220,000 for graduate health disciplines.*

*Includes all private student loan debt.

Interest rate

Interest rates are variable and based on either the Prime or LIBOR rate.
Manage your credit well and get a lower interest rate.
Make interest payments during school so you have a lower amount to repay.

Fees

Usually 0%; a fee may be assessed depending on credit history.

Repayment

Standard repayment term of 15 years, with the option to extend terms (up to 30 years) for higher aggregate loan balances.
Prepay your loan at any time without penalty.

Another way to help pay down your loan

With Upromise Loan Link^SM student and parent borrowers who join Upromise^® can link their Sallie Mae loan account to their Upromise account and use their Upromise rewards to help pay down their eligible Sallie
Mae-serviced student loans. Visit www.salliemae.com/upromise to learn more and enroll today.

U.S. Bank No Fee Education Loan

You may want to consider a loan from U.S. Bank or a similar institution.

Supplemental Loan Options

U.S. Bank No Fee Education Loan The main difference between this and other U.S. Bank supplemental education loans is that no reserve fees are charged. The amount approved for the loan is the same amount
disbursed to you.

Cosigner Encouraged: With
the help of a qualified cosigner, you may more easily qualify for a loan and receive a better rate.

Loan Details:

Borrow up to the cost of attendance, less financial aid received. This amount will be the lesser of what the borrower requests, program limits, or school certified amount.
If you plan to enroll for more then one term, consider the cost of your annual enrollment and apply for a loan to cover the full year expense.
No application, administration or reserve fees (reserve fees are similar to federal loan guarantee fees that are deducted from your approved loan amount)
Three repayment options

Enrollment: Part-time or full-time in an eligible four-year or graduate school.

Loan size: $1,000 minimum, $120,000 aggregate borrowing limit from all student loan programs (which includes federal). Loans at the highest interest rate tier are subject to $20,000 maximum.

Repayment Discount: Use our convenient auto-pay option and receive a 1/2% interest rate reduction.

Note: Program rules and qualifications are subject to change at any time without notice.

To learn more about U.S. Bank’s loan options, click here.

The Law of Unintended Consequences

2009-04-18T07:55:00.000-07:00

Tuition locks are becoming common at many colleges, but schools are making up the difference by increasing fees. That’s the jist of the story from reporter Pete Nickeas. In his recent article titled… Tuition Law May be Having Unintended Consequence, Pete describes how many states (Illinois in this particular case) passed laws to lock in tuition at their public universities for incoming Freshmen. That way, students and their families would be able to plan on consistent costs throughout their time in school. At least that was the intent.

But as with most things government does to regulate costs, it doesn’t work out the way you want it to. Colleges still have costs they have to manage, and those costs don’t care about a law passed by some legislative body. There were two very noticable consequences:

Colleges and Universities resorted to increasing various fees to make up the revenue short fall. These fees included items such as: Sports Fees, and Building & Grounds Maintenance Fees.
There were dramatic increases to first year tuition rates at the state universities.

The second consequence has really put state schools at a disadvantage. By increasing their first year tuition costs in anticipation of freezing those costs for the students throught the next four years, the state universities in Illinois have driven their prices through the roof. This makes schools like the University of Illinois and Western Illinois University much less attractive. At this time, you can send a student out of state to any of the Missouri Univerisities next door at a lower cost than the in-state rates at the Illinois colleges.

This also means that the private colleges are going to find it much easier to compete with colleges that have adopted frozen tuition policies. Because the state colleges typically do not have the per-student resources common at many private colleges, private colleges will find it much easier to lower the student’s out of pocket costs when compared to the state schools.

So here are my recommendations based upon Pete’s article:

1 — Do not be taken in by the good sounding marketing of tuition freezes. You have to pay attention to your bottom line, out-of-pocket costs.

2 — Do not ignore out of state colleges. Just like in the case of Missouri vs Illinois, many out of state rates may be less than your state’s in state rates.

3 — Do not ignore private colleges. Private colleges may appear to be more expensive at first glance. But the private colleges typically have much more in per student funds available to lower your out of pocket costs at those schools.

If you would like to read Pete Nickeas’ article, click here.

Changes in FAFSA could save some money

2009-04-02T06:53:00.000-07:00

There were some significant changes in the FAFSA with regards to dependent/independent status of students. This is very important considering independent students are often eligible for much more financial aid than dependent students.

Previously, the FAFSA had a very hard 7 question test to determine whether or not the student was a dependent or independent student.

Is the student older than 23?
Is the student working on a graduate level degree?
Is the student married?
Does the student have children that they support more than 50%?
Does the student have other dependents living with them?
Are the student's parents deceased, or is the student a ward of the court?
And finally, is the student a veteran?

The questions were virtually impossible to get around. Although the student may have been a position of recieving no support from their parents, they could not be an independent student unless they could answer "yes" to one of the above questions.

Now let's look at the new set of qualifying questions FAFSA is using for 2009...

Are you older than 23?
Are you married?
Are you working on a graduate level degree?
Are you currently serving in the US Armed Forces other than training?
Are you a veteran?
Do you have children you support more than 50%?
Do you have other dependents you support more than 50%?
At any time since you were 13 regardless of present condition... are your parents deceased, or in foster care, or a ward of the court?
Are you or were you an emancipated minor as determined by a court?
Are you or were you in legal guardianship as determined by a court?
At any time on or after July 1, 2008, did your high school or district determine you to be an unaccompanied youth who was homeless?
At any time on or after July 1, 2008, did the director of an emergency shelter or federally funded transitional housing program determine you were a unaccompanied, homeless youth?
At any time on or after July 1,2008, did the director of a runaway or homeless youth center you to be an unaccompanied youth who was homeless or were self-supporting at risk of being homeless?

If the student can now answer "yes" to any of the above questions, they are considered independent and typically eligible for much more financial aid.

The question that is likely to get a lot of attention from many parents is #9 -- Are you an emancipated minor as determined by a court. Over the years, I have had a number of people ask me if it would make any difference if their student was declared emancipated. Previously, the FAFSA had no means of indicating emancipation. Obviously, that has changed. This could mean the potential of thousands of students seeking emancipation.

My concern is what are the hidden ramifications of emancipating a minor. I asked Attorney Elizabeth Cervantes for an opinion. Here is a summary or her comments...

Emancipation in some states is not a cut and dry process. Some states have a defined process, others are vague.

Courts most often will require the minor to show they can support themselves.

Courts typically want to keep the family intact.

Eligibility for additional financial aid may not be a sufficient reason for the court to grant emancipation.

If you are going to investigate emancipation, I highly encourage you to seek professional, legal advice early in the process. You can contact Elizabeth Cervantes at the law firm of Katz, Huntoon & Fieweger in Moline, Illinois at the following email address -- ecervantes@katzlawfirm.com

Obama Proposes Financial Aid Increase

2009-03-13T07:38:00.000-07:00

President Obama in his recently proposed budget is asking for substantial increases to college financial aid. This is not a surprise. There has been a lot of news coverage over the past several months about how student loans are harder to come by, how many loan companies have locked their doors, and how colleges endowments have taken a hit.

While the news coverage painted a picture of fund availability that was far more gloomy than reality; an increase in federal funds was virtually inevitable. Only social security is probably a greater hot button issue than helping students pay for college. So how will these changes affect students on the way to college and those already there? The answer is two-fold...

There will be a substantial increase in funds available to college students. The Perkins loan program has been one of the least expensive methods for student's to borrow money for years. Many in our industry regard Perkins as perhaps the best type of loan that students can get their hands on. The only problem with the Perkins is its rarity. Hold on to your hat, because the Obama administration wants to increase the Perkins program 6-fold. They have proposed an increase in funding from $1 billion to over $6 billion. The President also wants to increase the number of schools participating in the program from 1,800 to over 4,000. The Perkins loan program just got an incredible shot in the arm.

The President has also asked for a substantial increase to the Pell Grant program. Although numbers are sketchy at this time, expect that increases in Pell resources for the coming year will be some of the largest in the program's history.

I wouldn't expect to see these changes for the 2009-10 academic year, but more likely for the 2010-11 academic year. In the short run, these changes will be very welcome help to many students around the country. There is however a downside to this helping hand.

Mark Kantrowitz, publisher of FinAid.org said in a recent interview... “It puts pressure on colleges to start controlling their costs, because if they know the Pell Grants are only going to go up by so much, then it means that they’ll either have to control their costs or find other sources of funding to help the students if the college costs go up even faster.” With all do respect, I have to disagree with my colleague.

Pouring more money into the college funding system does not put downward pressure on controlling college costs. It has the exact opposite effect. Although these increases in available financial aid will help many students' immediate needs, it will also have a continued inflationary impact on overall college costs. It's simple economics. If you inject more money into a system to pay for a limited resource (such as college education), you will increase the price of that limited resource.

This, however, is not a new problem in college financing; it's just exacerbating the same old problem we've been dealing with for years. How do we make college costs manageable in a market that rises two to three times faster than the average inflationary rate. You can expect to see another spike in cost of attendance figures in the next 2 - 3 years, and I and CFS will continue to find ways to mitigate those increases.

How to Appeal Mid-Year

2009-02-10T11:01:00.000-08:00

Unfortunately, our economy is necessitating more and more people appeal their students financial awards in the middle of the year. Being laid off or having a cut in your pay is an all too real problem which is making paying for college even more difficult.

CNBC and Christopher Penn of FinancialAidPodcast.com provide some excellent information for families in just such a situation. Check out this video...

Kathy Klavon brought up an excellent question on our Real College Savings discussion group on Facebook...

"I am looking for objective opinions on the importance of sending kids to university for thier prereqs vs. Jr College -- finances vs away from home college experience"

Here is our response...

"Kathy brings up a topic that I am asked about very often. Does it make sense to send a child to a less expensive Jr. College for the first two years, and then send them on to the 4 yr college or university?

First off, you need to have a strategic approach to the schools that your students will apply to. I always recommend that students apply to at least 6 - 10 different colleges or universities. One of those schools should always be a safety school. The community colleges are always great safety schools. So CC's should be part of the mix your student applies to.

When you receive the financial awards back from the colleges (which is typically in March or April of their Sr. year), then you can judge apples to apples and see if it makes economic sense to go the CC route, or head straight to the 4 yr college.

Don't be afraid that the CC might be detrimental to their job prospects. No one cares what school you started at. They only see what school you graduated from.

A couple downsides are possible. Some colleges and universities will provide more money to freshman students over transfer students, but you can probably appeal this if you have a student the school wants. And sometimes it can be difficult to transfer CC credits to other schools. You'll want to work with those schools your student wants to terminate at to ensure your picking the right classes."

If you would like to join the discussion, join Facebook.com then join the Real College Savings discussion group here.

Staffords, PINs, and Selecting Colleges

2008-12-30T09:34:00.000-08:00

In this edition...

Explanation of the Stafford Loans
Getting the All Powerful PIN
Tips on selecting colleges

Stafford Loans

Stafford Loans are the most common form of college financial aid. If you complete the FAFSA (acts as the Stafford Loan application), your student is virtually guaranteed to receive one of the two types of Stafford Loans. Dependent students can borrow the following under the Stafford program...

Freshmen: $5,500
Sophomores: $6,500
Juniors: $7,500
Seniors: $7,500

Independent students can borrow the following under the Stafford program...

Freshmen: $9,500
Sophomores: $10,500
Juniors: $11,500
Seniors: $11,500

Stafford loans are divided into two types: subsidized and unsubsidized. The Department of Education determines which of these loans you will receive based upon the information on your FAFSA.

Subsidized Staffords are no interest and no payments while your student is in college. Interest rates on subsidized Staffords are based upon the year the money is disbursed as follows:

July 1st 2008: 6.0%
July 1st 2009: 5.6%
July 1st 2010: 4.5%
July 1st 2011: 3.4%

Unsubsidized Staffords are no payments while your student is in college, but interest accumulates. The current interest rate for the unsubsidized Stafford is 6.8%.

Both Stafford loans require repayment 6 months after graduation, after leaving school, or after dropping below half-time student status.

The All-Powerful PIN

Filing your FAFSA online is the only way we at CFS would recommend it be done. In order to sign your FAFSA electronically, both the student and one of the parent's need to have a FAFSA PIN (personal identification number). Check out the video below for more information.

You can file for a FAFSA PIN at this website, The PIN Website.

College Selection Help

CFS always recommends applying to 6 to 10 colleges. Here is some more great advice on how to select colleges.

2008-12-01T14:49:00.000-08:00

The High School Senior Christmas shopping list

Therefore buy what they need for college in the fall for their Christmas presents, and use their money doing it.

Here is their Holiday 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 gift. Consider a multimedia computer with a TV tuner card. 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.

If you don’t want to send your student out the door with one do it all machine like above, here are the minimum requirements for a student computer (considering Microsoft Vista is now standard):

v Processor: AMD Turion, Intel Core Duo (minimum 1ghz speed)

v Memory: at least 1GB (I would recommend 2GB or even 4GB; more memory is often the single most important factor to computer performance)

v Hard Drive: at least 100GB

v Disk Drive: DVD+RW

v Wireless and wired networking equipped

v Operating system: Windows Vista Home or Apple MAC OS X (ten)

v Software: Microsoft Office 2007 Home & Student edition

Standard computers would include:

v Dell Studio S1535 (I am on my second Dell laptop and love their customer service)

v HP dv4 (Two of our desktop machines are HP and we’ve had great success with them)

v Apple MacBook

More capable multimedia machines would include:

v Apple MacBook Pro

v Dell XPS

v Alienware Area 51m17x (the gold standard of super horsepower gaming machines)

v HP Pavillion dv7

v Acer Aspire 8920

I’d recommend checking out www.cnet.com for reviews and information on computer comparisons.

The Printer: 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 someway 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.

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.

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.

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

v Coffee Maker – they can’t be a Starbucks all the time

v Microwave – if you check out www.sears.com, you’ll find quite a few small microwaves for under $100

v Refrigerator – you can get several dorm-sized refrigerators for under $100 as well

v Art – Most college art isn’t much more than posters on the wall

For around the dorm room

v Kitchen type tools: bowl, cup, glasses, can/bottle opener, etc.

v Desk Lamp

v Alarm clock (one with a really loud and annoying alarm -- they'll need it)

v Bulletin board and dry-erase calendar board

v A small toolkit (I do not suggest the Craftsman, rolling tool chest; a small bag will do)

v Bed linens & Bedding

HAPPY SHOPPING!

Great Advice Videos & Upcoming Workshops

2008-11-07T08:27:00.000-08:00

The Maximizing Money for College Workshop is upcoming in Rockford, and the Student Goals & Passions Workshop is upcoming in Davenport!

Our next Goals & Passions Workshop will be on Saturday, November 22nd in Davenport at the CFS Building at 3011 N Harrison Street. It will start at 10am and finish at 2:30pm. We'll order in pizza for lunch. Please call our office to make reservations before noon on Friday, November 21st.

There is some great advice available for prospective college students available on the web. Here are two videos I thought were worth you and your student's time. The first video is advice from students for students. The second is... well... umm... be careful what you ask a Ninja.

Avoiding the Ten Most Common College Admission Mistakes

2008-10-01T07:25:00.000-07:00

by Frank Burtnett, Ed. D.

Dr. Frank Burtnett, veteran counselor and educational consultant, has written extensively on the mistakes made by college-bound students in the exploration, decision-making and application process. Following are the errors that savvy admission professionals tell Frank are commonly made, ones that should be avoided at all cost:

Mistake # 1 - You miss the boat academically

The single most importance factor in gaining admission to the college of one's choice is how well one performs in the most challenging college preparatory curriculum. Simple translation: Take tough subjects---do well in them!

Mistake # 2 - You ignore great resources

In this age of the Internet and the information explosion, too many students still fail to "zero in" on the resources and information that can help them the most. Counselors, librarians and teachers can guide a student toward these resources. Seek their guidance.

Mistake # 3 - You follow the pack

A student should explore colleges, make application and eventually enroll at the college that is best for him or her---not the one that their friends are considering. It's all about comfort and fit and the college you select should be the one that meets the student's personal criteria.

Mistake # 4 - You don't take the college for a test drive

It is amazing how many college-bound students pursue their interest in a college or university without even looking at it "up close and personal." In order to take the pulse of an institution, one needs to go there, sit in on a class or two, eat in the cafeteria, attend a concert or athletic event ---even stay overnight in a dorm room if possible.

Mistake # 5 - You decide there is only one "right" college.

The last time I checked there were more than 3,500 two and four year colleges in the United States. So don't be upset if I don't buy into your idea that there is only "one" right one for you. Create an exploration list, followed by an application list of those schools that match up with your personal criteria. Take the broad view of your options before you begin to narrow your selection. It's amazing what you will learn.

Mistake # 6 - You make price your priority

It's hard to look at colleges and not look at the price tag associated with each, but recognize a couple of things as you do. First, at some institutions upwards of two thirds of enrolled students are using financial aid in order to attend. Also, you don't really know the final cost until you exhaust all of the forms of financial assistance---many of which will bring down the final price.

Mistake # 7 - Your essay or interview "bomb"

If a college asks you to write an essay or sit for an admission interview, they are going to factor what you give them into their admission decision. The key here is to be yourself. Write about a subject that is close to you or you know something about. Be poised and curious in your interview and don't try to give answers you think the interviewer wants to hear.

Mistake # 8 - You let the dog eat your application

Your application and supporting materials are all the admission staff or committee have to examine once the evaluation process begins. The application is your voice. Make certain it is complete, accurate and neatly prepared.

Mistake # 9 - You fail to manage time

The college exploration, decision-making and application process are time consuming and come at a time when you have a lot of work to do in high school and many non-school things (i.e., concerts, athletic events, ski weekends, etc.) that can siphon away your time. Create a list of things that need to be done and a timetable for their accomplishment. Then practice good time management.

Mistake # 10 - You ignore the very allies that can help you

Counselors and college admission and financial aid officers can be your greatest allies during this period. Use them, but remember you are not the only student they are helping. They are very good at what they do and you can benefit from having their expertise and understanding on your side.

If you have conducted a smart search and avoided the mistakes mentioned here, there is a strong likelihood that a letter of acceptance will find its way to your mailbox.

Thank you to NICCP and Dr. Burtnett for this contribution.

Incredible Debt Reduction Tool & New Workshop

2008-09-22T14:16:00.000-07:00

Don't miss our upcoming Maximizing Money for College Workshop September 30th and October 2nd in the Quad Cities.
The third tenet of saving money on college is wise cash flow management. I have been teaching people about this since I founded CFS in 2001, but I've never been quite satisfied with the results of my analysis. I was always pleased to find those clients for which we could demonstrate a significant cost savings, but I was disappointed when I couldn't help those who were truly in a tight financial situation. I always wanted to be able to do more. Now we can!

CFS has partnered with United First Financial. In August, I was introduced to UFirst by Dr. Jospeh Umidi, my former advisor at Regent University where I completed my MBA and MAT. I immediately recognized the immense power of the UFirst strategies. They were based on the same basic principals I had been recommending to my clients for years, but UFirst has taken the strategies light years beyond what I could have hoped for my clients.

If you have debt, any debt (mortgage loans, home equity loans, car loans, credit cards, student loans, etc.); or if you anticipate using any kind of debt for your student's education, then you need to complete our free analysis. Our first client we ran the numbers for is now in a position where they can pay off the 25 years left on their mortgage, their car loans, and their credit cards in less than five years with no refinancing, no debt consolidation, and no change to their living style and expenses! Now that's powerful!

Go to our UFirst Website and request a free analysis. Or you can contact us directly at our office.

Insider's Guide to Admissions

2008-08-28T12:50:00.000-07:00

The CFS office will be closed September 1st through the 8th. We'll be back in the office on September 9th.

This Friday, September 29th, is Natalie's last day. I want to thank her very much for the four years she has worked with me. She has been a great blessing to me and our clients. Natalie, God bless you in your future endeavors.
____________________________________

Douglas Christiansen is Vanderbilt University's associate provost for enrollment and dean of admissions. He's spent the last 20 years in admissions leadership roles in both public and private universities. Now he's using his expertise to give students practical advice on what they can do to get into the right college, in hopes of clearing some of the mystery and misconceptions surrounding the admissions process.

In a series of short and direct video clips, Christiansen tackles questions such as, "How should I prepare for my college essay—what if I'm not the greatest writer?" "My parents have decent jobs, but we haven't saved much for college. What are my chances of getting financial aid?" "As an admissions insider, what tips can you give to help me sound my best in my application?"

Christiansen also talks about when extracurricular activities can actually hurt an applicant and how to ease the stress surrounding the admissions process.

ALERT: Early Decision & Early Action

2008-08-18T07:03:00.000-07:00

It's coming up on college admission time. So you need to start thinking about having your students fill out their admission applications. This is a great time to revisit the pitfalls of the "early decision" and "early action" processes.

Early decision and early action are two very misunderstood policies used by colleges to boost their enrollments as early as possible.

These policies make good business sense for the colleges, but do they make sense for you? Unequivocally, NO... and maybe.

Early decision is a legally binding agreement between a college and the student. The student can apply to as many colleges as he or she desires, but they can only apply to one college under the early decision criteria. Students apply under early decision hoping to have an admission decision from the college of their choice as early as possible. If the student is not admitted to the college under the early decision criteria, that students application most often is not reconsidered during the regular admission process. However, if the student is admitted to the college under the early decision criteria, then you have got a really big problem.

Any student that is admitted to a college under the early decision rules, must go to that college no matter what kind of offer they receive from any other college. In fact, most colleges utilizing early decision require students to immediately withdrawal their applications to all other colleges if they are admitted. This is well before you have seen any kind of financial package from any school. Under early decision, you are required to commit to one and only one college before you have any idea what it will cost you to go to school there. Used car salesmen can only dream of a sales tactic that is so underhanded.

Never under any circumstances agree to early decision. If you do, you will lose all hope of negotiating; and you will lose any flexibility of accepting a better offer from another college, even if it was thousands of dollars more.

Early action is a horse of a different color. Early action operates on essentially the same timetable as early decision, but it does not have the negative effects. There is no legally binding agreement between the student and school under early action criteria. However, you need to review the individual school's early action criteria because some schools may withdrawal their offers for admission if action is not taken. Early action notifies students early in the admissions process whether they have been accepted or not. If they are not accepted under early action, sometimes their applications are moved to the normal admissions process.

In many cases, early action does not have negative impacts, but you should always read the fine print.

The bottom line is never put yourself in a position that you have to make a decision to attend a college before you know what it will cost. Otherwise, you are truly buying the proverbial “pig in a poke”. Always wait for the financial award offers before committing to any college.

We Blew Our Record Right Out Of The Water

2008-07-02T12:39:00.000-07:00

In April of this year, I had a mother come to me who was way behind the eight-ball. She was going through a divorce and had not filed any of the financial paperwork for her son. No FAFSA. No Profile. No nothing. Worse yet, her son was a worse case scenario. He wanted to go to Tufts University and Tufts alone. This really gives us no wiggle room to work with.

I made sure she understood that she was in a tough position, but we would do our best to see what we could make of it. She was elated just to find someone who would take the paperwork headache of her shoulders. So we went about getting the FAFSA, the Profile, and the other ancillary forms filed. And Tufts came back expecting her and her son to come up with... over $50,000 each year. Ouch.

I told her we still had the negotiations phase to go through. Now anyone in my position will tell you that negotiating this late in the year is difficult at best. It is normal to get minimal results. Well let me tell you what happened yesterday.

Joan (we'll call her Joan) received the new financial aid award on June 30th. She was in my office on July 1st. As we sat down and looked over the new award summary, it hit me. We had just blown away our previous average improvement for negotiations. For years, I've been proud of our $2,000 average annual improvement during the negotiations phase. Just that phase alone is more than double of our highest service level price. That always assured me that we provide a service that has substantial value. Well, that average is no longer accurate. Sitting with Joan yesterday, we were looking over an annual improvement of... now get this... over $35,000!

$35,000!!! Holy cow!

Folks it just goes to show you; there is no situation that is hopeless. There is no one that we should not at least try to help.

$35,000! That's good.

Click on the image below to check out the invitation to our next Quad City workshops...

New Office & US News Critique

2008-06-23T13:28:00.000-07:00

We have moved to our new offices at 3011 North Harrison Street in Davenport. It took us a while to get the building ready, but we're very pleased with the work that has been done. We'll be hosting an open-house in the near future, but in the mean time, schedule an appointment and stop by to see us.

View Larger Map

The following are two critiques of the US News and World Report college rankings that come out every year. In a nutshell, beware of beauty contests.

You can also check out a CBS News story on the ranking system here at this link.

College Reviews: Pitt & Penn

2008-04-04T05:02:00.000-07:00

With the Democratic nomination coming down to the wire, many people are turning their attention to Pennsylvania. So let's look at two schools from the cradle of our democracy.
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University of Pittsburgh
Pittsburgh, PA
http://www.pitt.edu/

Out of state COA: $33,286
In state COA: $23,776

Family Need Met: 78%
Avg Free Money: 45%
Avg Self-Help: 55%

Founded in 1787 as a small, private school, the Pittsburgh Academy was located in a log cabin near Pittsburgh’s three rivers. In the 220 years since, the University has evolved into an internationally recognized center of learning and research.

Factors like performing arts, museums, sports, healthcare, and safety make Pittsburgh the "second-most attractive college town" in the U.S. among cities of its size, according to a recent survey. Pitt Arts connects our students to the extensive cultural life of the region, providing free admission to many of our neighboring museums and city events.

_____________________

University of Pennsylvania

Philadelphia, PA

http://www.upenn.edu/

COA: $49,233

Family Need Met: 100%

Avg Free Money: 72%

Avg Self-Help: 28%

For more than two centuries, the University of Pennsylvania has been committed to excellence in scholarship, research and service. From its highly regarded undergraduate, graduate and professional schools to its wide-ranging program of interdisciplinary research and scholarship, Penn takes pride in being a place where students and faculty can pursue knowledge without boundaries, a place where theory and practice combine to produce a better understanding of our world and ourselves.

At the University of Pennsylvania, you'll find a historic, Ivy League school with highly selective admissions and a history of innovation in interdisciplinary education and scholarship. You'll also find a picturesque campus amidst a dynamic city and a world-class research institution.

Penn carries on the principles and spirit of its founder, Benjamin Franklin: entrepreneurship, innovation, invention, outreach, and a pragmatic love of knowledge. Franklin's practical outlook has remained a driving force in the university's development.

What's Missing from These 50?

2008-03-21T08:08:00.000-07:00

Now as many of you know, I am not a fan of the "Best" school lists. I think they put way too much emphasis on marketing, and no emphasis on what is the best school for your student. That said, I'm going to discuss a recent article from Business Week magazine. There is something very peculiar about it.

In the February 28th issue of Business Week, the magazine ran an article on the top 50 schools to get a Bachelors degree in Business. The article starts with Rutgers University and finishes with the Wharton School of Business at the University of Pennsylvania. But there are some glaring omissions from this list that everyone would assume would be in the top ten. No where in this list will you find the names of Harvard, Princeton, Yale, or many other excellent schools. Harvard, home of the Harvard Business Review, the gold standard of business case study education did not even make the list?

Does this mean that Harvard, Princeton, and the like have not been putting enough resources into their business schools to compete with schools like the University of Illinois, the University of Texas, or Brigham Young? No, obviously that is not the case. What this article does show is there is no practical standard that anyone can use to come up with a list of the 50 "Best" schools of anything. I will say it once again, the "Best" school lists are not much more than beauty pageants that do little to nothing to help your student find the best school for them. Avoid them.

Hawaii & FAFSA Truth

2008-03-03T14:50:00.000-08:00

Weather like what we've been having here in the Midwest makes me think of warmer places. So I'm profiling two schools in Hawaii: The University of Hawaii at Manoa and Hawaii Pacific University.
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University of Hawaii at Manoa
Honolulu, Hawaii
www.manoa.hawaii.edu

Out of state COA: $24,782
In state COA: $15,518

Family Need Met: 68%
Avg Free Money: 39%
Avg Self Help: 61%

Founded in 1907, the University of Hawai`i at Manoa is the flagship campus for the University of Hawai`i System. A land-grant, sea-grant, and space-grant institution, it is the only public university in Hawai`i. UH Manoa is a diverse and doctorate-level university that emphasizes academic quality; research in Hawaiian, Pacific, and Asian studies; and community services.

Founded: 1907
Location: Honolulu, Hawai`i; in the Manoa valley on the island of O`ahu
Campus size: 320 acres
Colleges: 11
Schools: nine
Degrees: bachelor’s degrees in 87 fields; master’s degrees in 87 fields; doctoral degrees in 51 fields
Average class size: 31 (freshman and sophomore)/20 (junior and senior)
Student-faculty ratio: 16:1
Percentage of faculty with doctoral degrees: 80
Accreditation: Accrediting Commission for Senior Colleges and Universities of the Western Association of Schools and Colleges

________________________

Hawaii Pacific University
Honolulu, Hawaii
www.hpu.edu

COA: $26,740

Family Need Met: 79%
Avg Free Money: 40%
Avg Self Help: 60%

Hawai'i Pacific University is more than an excellent university with outstanding and rigorous academic programs, an ideal location, faculty who are well-respected in their fields, students from all over the world who come to learn in a multicultural environment, and a service orientation emphasizing individualized attention to each student. It is also a comprehensive university offering a number of unique experiences, events, and traditions for its students, faculty, and staff as well as the community.

_______________________

A recent issue of US News and World Report contained an enlightening article on the college financial aid system. Two Harvard University economists have completed a thorough study of the FAFSA process. Not surprisingly, they concluded that the FAFSA on average takes ten times longer to complete than what the schools and Department of Education claim.

Borrow against your 401K and The Superbowl

2008-02-04T14:24:00.000-08:00

Because of weather, the January 29th workshop at the Moline Public Library in Moline, IL has been rescheduled twice. We will be having the workshop on Tuesday February, 12th at 7pm. It is still at the Moline Public Library. Thank you to the staff over there for being so flexible.

In this months issue:

What to consider when you are thinking about borrowing money from your 401k to pay for your student's college education. 401k loans are very different animals when compared to your home loans, credit cards, auto loans, and education loans.
Webinars will soon be provided by College Financial Strategies.
Just for grins... my favorite picks of the SuperBowl commercials.

Does it make sense to borrow from your 401k to pay for college?

This is a common question I receive. My standard answer is "no". Here's why...

Your student has much more time to prepare for their retirement, than you have to prepare for your's. I know we all want to provide our students with the best possible opportunities, but bankrupting your retirement is not the way to do it. Don't worry, your student will have over 40 years of time to pay off their education and save for their retirement. How much time do you have as their parent? 20 years? Maybe?

The costs of borrowing out of your 401k are much greater than the interest rates. You also have the opportunity costs of your missing returns.

Depending upon what the interest rates and administrative costs are on your 401k loan, you could be looking at some very substantial losses when borrowing. The cumulative impact is much more than what you would have with more traditional types of financing such as home equity or education loans.

Webinars Coming Soon!

Keep watching CFStrategies.com. We will be announcing soon about our new Webinar schedule. This will allow us to better serve people all across the country. Our first webinars will be our Money and College presentation, and the new Student's Goal & Passions Workshop.

Just for Grins...

Ok, just for the heck of it. Last Sunday was the Superbowl. It was one heck of a game. This was one of the few years I had just as much fun watching the football as I did the commercials. That said, here are my favorite commercials.

Diet Pepsi Max...

Bridgestone tires...

SOBE...

And Audi pays homage to The Godfather...

I just get a kick out of those.

We're splitting up the newsletter. Look for the College Profiles mid-month.

What can you do with UGMA & UTMA accounts?

2008-01-10T12:42:00.000-08:00

Upcoming Workshops in the Quad Cities and Rockford

CFS will be holding free workshops in Moline and Bettendorf at the end of the month.

Tuesday, January 29^th, 7pm
Moline Public Library, 3210 41^st St, Moline, IL

Thursday, January 31^st, 7pm
Bettendorf Public Library, 2950 Learning Campus Dr, Bettendorf, IA

Scott Anderson will also be teaching at Rock Valley College in Rockford, IL on Saturday, January 26^th at 10am. Contact Rock Valley College and ask about the Maximizing Money for College class.

What can you do with Custodial Accounts?

Custodial accounts (UGMA & UTMA) have been common methods for saving money for college. UGMA stands for Uniform Gift to Minors Act and was implemented in the 1950’s. UTMA stands for Uniform Transfer to Minors Act, was implemented in 1986, and supercedes the UGMA rules in all states except South Carolina and Vermont. UGMA & UTMA accounts are students’ monies and cannot be transferred to parents or other siblings. These accounts are common, but they can be sources of a lot of confusion. Worse yet, these accounts are penalized at the highest level in the financial aid process.

To maximize your opportunities for various monies from the colleges and government, it is important to get as much money as possible out of your student’s custodial accounts. So what can you do with them?

The first thing you can do with them is spend the money. UGMA & UTMA monies must be spent on behalf of the student, but cannot be spent on items considered “parental obligations”, or those items which are normal to the raising of any child. This means you cannot spend the money on a student’s clothes, food, shelter, health care, etc.

You can spend the money on those items for the child which are not considered normal, everyday expenses associated with raising any child. These items can include cars, computers, college tuition, summer camp, musical instruments, special school expenses, private school tuition, paying taxes on the UGMA or UTMA account, etc.

Parents often ask if they can be reimbursed for previous expenses out of their child’s UGMA or UTMA account. This is kind of a grey area. The expense at the time may have been for the benefit of the child. But is the reimbursement after the fact for the benefit of the child or the parent. Timeliness is probably the key in this instance. How timely is the reimbursement to the expense. If the parent wants a reimbursement for their child’s summer camp expense five years ago, that’s probably not going to be kosher. If the parent is taking a reimbursement in the fall for a car purchased over the summer, that would probably be ok.

No matter what , always make sure you have a written permanent record of the expenses paid out of the custodial account. If you don’t have a written permanent record, woe unto you if you ever have a run-in with the IRS.

The second thing you can do with the money in UGMA & UTMA accounts is shelter it. In sheltering, you keep the money in the student’s name, but you move the money to assets which are not penalized in the financial aid process. It is recommended that you shelter monies when you still need the student’s money while in college, or you want to keep the money around after the student graduates.

Sheltering can be fairly complex. Please contact us for further information.

Michigan State University
East Lansing, MI www.msu.edu
Next stop on the campaign trail…

Cost of Attendance

In-State

Cost of Attendance

Out-State

Family Need Met

Free Money

Self-Help

$18,658

$32,518

82%

53%

47%

Known internationally as a major U.S. public university with global reach, Michigan State University has been advancing knowledge and transforming lives through innovative teaching, research, and outreach for over 150 years. MSU is a member of the Association of American Universities, the National Association of State Universities and Land-Grant Colleges, and the Big Ten athletic conference.

Michigan State University holds a unique position in the state's educational system. As a respected research and teaching university, it is committed to intellectual leadership and to excellence in both developing new knowledge and conveying that knowledge to its students and to the public. And as a pioneer land-grant institution, Michigan State University strives to discover practical uses for theoretical knowledge, and to speed the diffusion of information to residents of the state, the nation, and the world. In fostering both research and its application, this university will continue to be a catalyst for positive intellectual, social, and technological change.

St. Anselm College
Manchester, NH www.anselm.edu
Last stop on the campaign trail…

Cost of Attendance	Family Need Met	Free Money	Self-Help
$38,690	87%	54%	46%

Saint Anselm is located on a hilltop overlooking Manchester, N.H., within an hour of the seacoast, Boston, the White Mountains, and New Hampshire's Lakes Region.

Founded in 1889 by the world's oldest religious order, the Benedictines—a Catholic order that has endured and thrived for more than 1,500 years—we have spent 118 years shaping an academic community designed to meet your expectations.

Whether you want to be a doctor, teacher, nurse, or lawyer; start your own business or make films—or you simply know you want to make a difference and you want to figure out the best way to do it, Saint Anselm will give you the options, experience, and mentors to connect, solve, to serve, lead and especially to do the right thing.

Named one of the country's "Colleges with a Conscience" by The Princeton Review, Saint Anselm shapes the kind of leader the world is hungry for; not only smart, but good. We invite you to be one of them.

Closed for Christmas and New Years

2007-12-17T13:16:00.000-08:00

CFS will be closed for Christmas and New Years from Monday, December 24th through Wednesday, January 2nd. The office will reopen on Thursday, January 3rd.

You can still contact us, our email and voice-mail will be checked regularly. If you need to contact Scott Anderson during this time, the best method will be email at scott@cfstrategies.com.

The High School Senior Christmas Shopping List

2007-11-27T12:44:00.000-08:00

Your student doesn’t want to have money in their name in January when you file their financial aid forms. Students do not have an asset protection allowance. Every dollar they have in their name is going to increase their expected family contribution.
Therefore buy what they need for college in the fall for their Christmas presents, and use their money doing it.
Here is their Holiday 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 gift. Consider a multimedia computer with a TV tuner card. 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.
If you don’t want to send your student out the door with one do it all machine like above, here are the minimum requirements for a student computer (considering Microsoft Vista is now standard):
v Processor: AMD, Intel Pentium 4-M (minimum 800mhz speed)
v Memory: at least 1GB (I would recommend 2GB or even 4GB; more memory is often the single most important factor to computer performance)
v Hard Drive: at least 100GB
v Disk Drive: DVD+RW
v Wireless and wired networking equipped
v Operating system: Windows Vista Home or Apple MAC OS X (ten)
v Software: Microsoft Office XP Standard or Student edition
Standard computers would include:
v Dell Inspiron 1720 (I have had a Dell in the past and love their customer service)
v HP Pavillion (Two of our desktop machines are HP and we’ve had great success with them)
Multimedia Machines would include:
v Apple MacBook or MacBook Pro
v Dell XPS
v Toshiba Satellite X205 (my current laptop is a Toshiba and I have been very happy with it)
v HP Pavillion HDX
The Printer: 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 someway 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.
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.
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.
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
v Coffee Maker – they can’t be a Starbucks all the time
v Microwave – if you check out www.sears.com, you’ll find quite a few small microwaves for under $100
v Refrigerator – you can get several dorm-sized refrigerators for under $100 as well
v Art – Most college art isn’t much more than posters on the wall
For around the dorm room
v Kitchen type tools: bowl, cup, glasses, can/bottle opener, etc.
v Desk Lamp
v Alarm clock (one with a really loud and annoying alarm -- they'll need it)
v Bulletin board and dry-erase calendar board
v A small toolkit (I do not suggest the Craftsman, rolling tool chest; a small bag will do)
v Bed linens & Bedding
HAPPY SHOPPING!

Texas A&M University – Corpus Christi
Corpus Christi, TX www.tamucc.edu

Cost of Attendance
In-State

Cost of Attendance
Out-State

Family Need Met

Free Money

Self-Help

$16,924

$25,264

63%

Texas A&M University-Corpus Christi is the only one in the nation that is located on its very own island. With palm trees lining the pathways throughout the 240-acre campus, nearby natural wetlands, and a beach the full length of its Ocean Drive address, Texas A&M-Corpus Christi becomes a first-choice destination for many.

Our attitude stays young because we are able to adapt quickly to new technologies and engage new energies. These are important assets when students seek a university that takes the lead, rather than follows.
We invite you to come see why we are one of the fastest growing universities in the state of Texas. Visit the Island University today!

Lehigh University
Bethlehem, PA www.lehigh.edu

Cost of Attendance

Family Need Met

Free Money

Self-Help

$47,160

96%

68%

32%

Set foot on Lehigh University's majestic campus, considered one of America's most beautiful, and you'll be impressed. Learning opportunities abound. Some of the finest faculty and facilities anywhere complement a national academic reputation that draws scholars from all over the world.
But what will transform your life as a Lehigh student happens as much outside the classroom as in. You'll take part in an array of experiences and activities that will shape not only your career, but the rest of your life.

New Website, College Selection, Admissions Applications

2007-11-20T06:45:00.000-08:00

Article: New CFS Website
Article: College Selection & Admission Applications
School Profiles: University of Minnesota – Twin Cities
Stetson University

New CFS Website

You have got to come check this out! www.CFStrategies.com is all new and better than ever. It is chock full of reports for parents, students, church leaders, and educational professionals. There’s a new blog where you’ll now be able to go back to newsletter archives, and it will allow us to post timely information immediately. The new and improved audio workshop is up. And… this site has all the information for our now permanent Referral-Bonus Program.

College Selection & Admission Applications

If your high school senior has not done so by now, they need to be cranking out their admission applications… Immediately! Here are some tips to help.

1. Always apply to a minimum of four colleges. Four is a minimum! I would much prefer that student apply to six. Students will not always get into the schools they apply to. Not too long ago, I had a client whose daughter applied to ten colleges. Now she was a sharp student, but she was still rejected by nine and wait-listed by one. Imagine the turmoil that student was going through as she was rejected by school after school. This is a competitive process, and prudence demands multiple applications to minimize risk. Multiple applications will also give your student multiple financial awards. You’ll be able to see the differing amounts of money a school wants to give your student. And you’ll be able to see which schools really want your student.

2. The second lesson to learn out of the above example is to not populate the list of colleges your student is applying to with only the most competitive schools. You may have the most stellar student in their high school. But it is not a good idea to apply only to highly selective schools in the hope they may get the brass ring. You need to apply to at least one safety school. At the safety school, you know your student is getting in, no matter what. Community colleges are good examples of safety schools. You need to apply to 3 to 5 “core” schools. Core schools are where your student will have a very good opportunity to place in the top 25% or 50% of the incoming freshman class. This will provide a good selection of schools where your student has more likelihood to stand out and therefore get more money. Then you can apply to one or two “stretch” schools. Stretch schools are where you’re not sure if your student can get in, but it would be a real accomplishment if they did. The two primary indicators of how a student places in the incoming freshman class are measured by GPA and the standardized test scores.

3. Apply online if at all possible. Most colleges today have online admission applications. These can be found in the admissions or prospective student sections of the colleges’ websites. The following is an example of the online admissions application at Iowa State University www.applyweb.com/apply/iastate/

4. Put together a student summary sheet that can be presented to anyone requested to write a letter of recommendation. This summary sheet should include high school activities, GPA, significant accomplishments, and leadership positions held. Think of it as a mini résumé. This will considerably help those you ask to write recommendation letters.

5. Finally, avoid the temptation to try and identify the “Best” schools. The “Best College” guides, such as from US News & World Report, have done incredible harm to the college selection process. These beauty contest guides have little to do with the excellence of education, and far more to do with the marketing budgets of colleges. Applying to colleges is not about trying to identify the “best” colleges… if there is such as thing. This process is to find the best college for your student.

If you have a topic you would like covered for our newsletter, please email us and let us know.

University of Minnesota – Twin Cities
Minneapolis, MN www.umn.edu/tc

Cost of Attendance

In-State

Cost of Attendance

Out-State

Family Need Met

Free Money

Self-Help

$20,353

$31,983

88%

42%

58%

The University of Minnesota was founded as a preparatory school in 1851, seven years before the territory of Minnesota became a state. Financial problems forced the school to close during the Civil War, but with the help of Minneapolis entrepreneur John Sargent Pillsbury, it reopened in1867. Known as the father of the University, Pillsbury, who was a University regent, state senator, and governor, used his influence to establish the school as the official recipient of public support from the Morrill Land-Grant Act, designating it as Minnesota's land-grant university.

The University of Minnesota, founded in the belief that all people are enriched by understanding, is dedicated to the advancement of learning and the search for truth; to the sharing of this knowledge through education for a diverse community; and to the application of this knowledge to benefit the people of the state, the nation, and the world.

Stetson University
DeLand, FL www.stetson.edu

Cost of Attendance	Family Need Met	Free Money	Self-Help
$38,468	87%	75%	25%

As Florida’s first private university, Stetson University sets the standard for excellent teaching and innovative, superior programs. We’re proud to be a nationally recognized leader in education with a commitment to values and social responsibility. Perhaps most important of all, Stetson is committed to making top-quality, private education affordable to a diverse group of qualified students.

Stetson University’s rich tradition began in 1883 when it was founded by New York businessman Henry DeLand and named for his friend, Philadelphia hat manufacturer John B. Stetson.

Today the DeLand campus serves about 2,500 undergraduate and graduate students in the College of Arts and Sciences, School of Business Administration and School of Music. In St. Petersburg/Gulfport, the Stetson University College of Law serves about 900 students. Stetson University’s four colleges and schools offer 13 degree programs in more than 60 majors and minors, giving students the best of two worlds: the variety of a university with the individual attention found at small colleges. The $7.2 million Stetson University Center at Celebration opened in 2001 and offers graduate programs in business, education and counseling, along with professional development programs for educators and an arts academy.

Real College Savings

Where does a student's time go?

Let's Help More Students!

College Financing Options

In this post, you will find tips on:

· Deciding how much to borrow

· Rights and Obligations as a borrower

· Facts on being a Co-Signer

· Some important questions to ask a lender before signing on the dotted line

· Some suggestions of reputable lenders

If you read through this information and have any questions, please feel free to contact our office at 563-359-1104.

Before embarking on the search for an education loan, we strongly recommend that you examine the benefits of home equity financing. After the federal loans (Stafford and Perkins), utilizing home equity is by far the least expensive method of borrowing for college.

DecidingHow Much to Borrow:

A school’s COA includes:

· Tuition and Fees

· Housing

· Meals

· Books and Supplies

· Personal Expenses

· Transportation

Once you know what the school is leaving up to you to cover out of pocket, the next thing to do is decide how much you want to actually pay out of pocket and how much you want your studentto take on with student loans.

Here are some tips on how to decide on a specific amount.

Also remember that interest plays a big factor in the amount your student will pay back tothe lender. The amount you pay back will always be more than the amount you borrow, so try and find loans with as low of an interest rate and interest accumulation as possible.

Federal loans are the best to start with. Federal loans have fixed rates that are establishedupon disbursement of the loan. These loans also do not require a cosigner and some do not accrue interest while the student is in school.

Private loans are the next best solution. While they can have variable rates and can requirea cosigner, they are designed with students in mind and often have reasonable interest rates and payment plans.

Rights and Obligations of the Borrower

Rights as a borrower:

· You may accept all/some of your Federal Student Loans. While the school may offer your freshman $5,500 in Stafford loans, you do not have an obligation to accept the entirety of the loan offered. You can indicate to the school how much you feel your student should take on from that amount.

· You are entitled to a copy of the loan promissory note. Both Federal and Private loans must offer a promissory note for your records.

Some questions to ask lenders (as suggested by Sallie Mae Student Loans)

Comparison by Sallie Mae of Federal Loans Vs. Sallie Mae Private Loans.

SallieMae is typically CFS’s first choice for private education loans.

Federal Stafford loan

Eligibility

Features

One way to help pay down your loan

Legal

Federal Perkins loans

Perkins loan qualification requirements

SallieMae Signature Student Loan

Eligibility

Benefits

Features

Loan terms

Aggregate loan limits

Interest rate

Fees

Repayment

Another way to help pay down your loan

U.S. Bank No Fee Education Loan

The Law of Unintended Consequences

Changes in FAFSA could save some money

Obama Proposes Financial Aid Increase

How to Appeal Mid-Year

Staffords, PINs, and Selecting Colleges

Great Advice Videos & Upcoming Workshops

Avoiding the Ten Most Common College Admission Mistakes

Incredible Debt Reduction Tool & New Workshop

Insider's Guide to Admissions

ALERT: Early Decision & Early Action

We Blew Our Record Right Out Of The Water

New Office & US News Critique

College Reviews: Pitt & Penn

What's Missing from These 50?

Hawaii & FAFSA Truth

Borrow against your 401K and The Superbowl

What can you do with UGMA & UTMA accounts?

Closed for Christmas and New Years

The High School Senior Christmas Shopping List

New Website, College Selection, Admissions Applications

Deciding
How Much to Borrow:

Once you know what the school is leaving up to you to cover out of pocket, the next thing to do is decide how much you want to actually pay out of pocket and how much you want your student
to take on with student loans.

Also remember that interest plays a big factor in the amount your student will pay back to
the lender. The amount you pay back will always be more than the amount you borrow, so try and find loans with as low of an interest rate and interest accumulation as possible.

Federal loans are the best to start with. Federal loans have fixed rates that are established
upon disbursement of the loan. These loans also do not require a cosigner and some do not accrue interest while the student is in school.

Private loans are the next best solution. While they can have variable rates and can require
a cosigner, they are designed with students in mind and often have reasonable interest rates and payment plans.