Wouldn’t it be great to have a student that is earning over $139,000 during their four years in college? What if I told you I had the secret formula for saving tens of thousands of dollars off college tuition? Would you listen?
Here is the good news! I can show you how to do exactly this. To be honest with you, it’s not that secret of a plan!
The key to making this happen is to be prepared. A prepared parent is someone who has looked at all their financial options and then takes the appropriate steps. A prepared student is someone who has a detailed goal for each year of high school.
Let me give you a real life example from one of my families. We provide free educational seminars. This family came to one of our seminars and then sought me out during the student’s freshman year in high school. This was great because it gave us time to plan financially and academically.
They had a group of colleges they were looking at and the total cost of attendance for the four years was going to be around $199,000. Basically you will be buying your child a house that they will never live in. What if you have multiple children? You think this is going to be expensive… but it doesn’t need to be.
Now let’s take a look on how we can start cutting this expense down and make it more reasonable.
I met with the family and looked at their current situation. One of the main goals of our plan is to make sure the family does not jeopardize their current lifestyle or jeopardize their own retirement. The parents took my financial planning recommendations and by doing this they earned the student a guaranteed scholarship valued at $16,500 without making any changes to their current spending plan or current lifestyle. The student followed my yearly recommendations and he earned a guaranteed scholarship valued at $15,000.
We have now cut the $199,000 college bill down to $167,500 and this has nothing to do with the students’ academic ability to earn scholarships.
The next step is to guide the student in creating a student portfolio over their high school years. This was easy as I already had a step-by-step plan for the student where he worked on this for no more than one hour a month! The student will spend around 48 hours over their high school years building this student portfolio. That’s basically one work week for the parent over the next 4 years.
The plan I designed also built in a step-by-step study plan for the SAT and ACT tests without adding additional hours to his studies. A two point increase in the ACT test can be an additional $5,000+ per year of a college scholarship.
By completing this step-by-step plan, he will be able to develop a highly successful college admission application. The student is now more likely to be offered a scholarship from the college because of the planning he did over this time. The average academic scholarship to this college is $15,000 per year.
So the college bill is now down to $107,500. So far we have the family $91,500 without causing any stress or pain to their current lifestyle.
Experts agree one of the most common reasons students don’t fill out the FAFSA is because they believe their parents make too much money, so they won’t qualify.
I always have my families complete the FAFSA so I made sure this family did as well. The family made a good amount of money and they had an Expected Family Contribution (EFC) of $17,500. The government was telling them based on their income and assets that they could afford to pay $17,500 a year of college expenses. Most families never agree with this number.
Did you know that because the college historically meets 70% of the families’ financial need, the school then offered the student another $11,950 per year in the form of an institutional grant because they had remaining financial need?
So now we have the college bill down to $59,700 total. That’s $14,925 per year. If you break it down, that is only $1,243 dollars per month each year the student is in college. The student still had the option to take the federal student loan and if they took these low interest loans, they would get another $27,000 deferred. This would take them to $681 per month for each year the student is in college.
The family was amazed. College is now affordable for them and the stress is relieved. I never get tired of seeing families getting this excited. My only requirement for the family is to spread the word that college can be affordable if you take the appropriate steps.
We took an absolutely outrageous bill of $199,000 and brought it down to only $32,700. This is how we were able to say the student made over $139,000 over their college years and it all became possible because they became a family prepared for the college process.
Make sure you take the appropriate steps today and contact me at 708-771-7777. We are in the business of helping families through the major life transition of sending their children to college.
For many, it will be the most expensive time of their lives and, if not handled properly, could cost them their retirement. If you or someone you know needs the help and guidance of a trained financial professional, don’t hesitate to contact me. Remember, you shouldn’t have to choose between your child’s college and your retirement.
When you are ready to learn more about how Everett Wealth Solutions, Inc. can help families pay for college without derailing retirement or amassing unmanageable debt - email us or call at 708-771-7777.