College Funding Mistakes – Avoid These Traps

By Doug Eaton

Sending your kids to college or a boarding school in preparation for tertiary education can be financially challenging for most parents. Whether your kid wants to be a doctor, an attorney, or a pilot through a flight training program with a guaranteed Aviation educational scholarship, you want to provide them the best education. However, the transition to college can be disorienting. Fortunately, most colleges and universities recognize this and try to support new students by offering orientation sessions from https://advantagedesigngroup.com/. Early preparation and effective planning to get the funding for your kids’ education can also be a big help. And applying for financial aids can be a part of that plan. Here are some common pitfalls to avoid that will enhance your chances for financial aid success:

1. Waiting too long to think about financial aid: Financial aid criteria that determines financial aid package are based on the family’s income FOR THE ENTIRE CALENDAR YEAR BEFORE YOUR CHILD ENROLLS IN COLLEGE, NOT THE SCHOOL YEAR PRIOR TO STARTING.

The year that REALLY counts is the year that begins on January 1 of her JUNIOR YEAR and runs through December 31 of her SENIOR YEAR.

Therefore, it is quite important that you can aggressively reduce your income and assets in that year PRIOR to completing the financial aid forms

2. Not applying because you think your income is too high: There are numerous factors that determine eligibility – not just income (for instance, the cost of the school or how many children are attending school at one time).

3. Putting money into your child’s name: Remember, the schools/government looks at 5.6% of PARENTS’ assets and 20-25% of the STUDENTS’ assets.

They (the Federal Government/schools) assume that the children should spend a far greater percentage of their money on school.

Therefore, the students’ assets have a much higher impact on LOWERING eligibility for aid.

4. Divorced parents not working together: Only the “custodial” parent is required to list income (Custodial means with whom the child has lived for majority of previous 12 months). This is regardless of whom has legal custody.

So, if you wish to make the most of the potential aid award, you may have the child live with the parent whom can demonstrate the greatest need.

****A key for families (both high and low income) to maximize possible funding sources and solutions for their children’s higher education is to stay focused, persistent, and educated about existing and emerging opportunities.

Eaton Financial Group is a full service, fee-based financial advisory firm.

They focus on financial planning for the conservative investor.

(954) 575-9323

www.eatonfinancialgroup.com

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