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Entrance Counseling and MPN in 5 Minutes

entrance counseling, master promissory note, federal direct student loan, fdsl

In order to secure the federal direct student loan for freshman year of college, students must complete entrance counseling and the master promissory note.

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Occidental College: A Great West Coast School

college funding services, financial aid, college planning, college admissions, occidental college, college

Occidental College: A Great West Coast School

Occidental (“Oxy”) gives you lots of reasons to love it, from academics, to financial aid, to location—even to its food! If you and your child will consider a California liberal arts college, Occidental should place high on your list.

Oxy wants its students to roll up their sleeves and dig deeply into something through research.  The school provides both access and support to make that happen.  Undergrads can pursue their research interests through joining a faculty team already engaged on a project, through interacting with the resources that Los Angeles offers (like museums, archives, and other cultural institutions), or even through traveling abroad.  As a financial aid recipient myself, I had to earn money towards my tuition over the summers, which made something like a summer research project inaccessible to me.  Oxy uses grant funding to make such opportunities available to all, including those who must earn money to help pay for school.

Increased access characterizes Oxy when it comes to the economics of college as well.  Compared to other elite colleges and universities, Oxy has among the lowest median family income, signifying an unusually high level of socioeconomic diversity on campus, according to The New York Times.  It ranks in the top third on Kiplinger’s Best College Values list for liberal arts colleges.  Financial aid expert Bill Rabbitt calls Occidental “a better value for a high need family” than some other selective liberal arts colleges.  According to Rabbitt, Occidental meets 100% of demonstrated need; however, only about 18% of accepted students receive merit scholarships, making Occidental less of a value than some other schools—like Clark University, for example—for a non-need family.

Finally, don’t underestimate the importance of quality of life.  Oxy ranks #8 on The Daily Meal’s “75 Best Colleges for Food.”  All dining locations at Oxy make food from scratch and in small batches.  If you don’t like what sound like delectable menu offerings (balsamic glazed chicken, butternut squash risotto), you can custom order anything you want.  A little bit of Los Angeles makes its way to campus when food trucks come for lunch every Thursday.  Outside the Oxy campus, Los Angeles awaits.  Anna Hunter, co-founder of a company that provides career support for young professionals, loves her adopted city.  She urges Oxy students to take advantage of their Eagle Rock location, where they can find great hiking and an artsy vibe:  “There’s a lot happening in that part of town.  Eagle Rock is, in a lot of ways, a hidden pocket, a part of L.A. that a lot of people don’t know about.”

Occidental College offers it students access to a top-ranked liberal arts education that includes opportunities for serious research at the undergraduate level.  Those who need it get significant financial aid, resulting in a college community that brings together young people from diverse socioeconomic backgrounds.  Together, they get to enjoy a welcoming campus, complete with great food, and one of L.A.’s hidden gem neighborhoods that gives them access to both the arts and the outdoors.

By: Eva Ostrum

//evaostrum.school/blog/

An award-winning educator, Eva has worked in college admissions on both sides of the desk:  as an undergraduate admissions officer at Yale University – her alma mater – and as a teacher, school administrator, and private college admissions coach supporting students and families through the process.  She is the author of The Thinking Parent’s Guide to College Admissions:  The Step-by-Step Program to Get Kids into the Schools of Their Dreams (Penguin Books, 2006) and the executive producer of Turusma:  A Young Man’s Journey to College, a documentary short that screened at juried film festivals both in the U.S. and abroad and won an award for excellence at the Berkeley Video and Film Festival (2002).  Eva has taught at the high school and college levels, served as a school leader, and consulted on educational interventions and policy for public and private organizations around the country.  She has appeared as a guest expert on education in numerous media outlets (including NBC’s Weekend Today).  Eva graduated from Yale University with a Bachelor of Arts in French Studies and from the Harvard Kennedy School with a Master’s in Public Policy.  She is is currently seeking her doctorate in Educational Psychology.  A native New Yorker, she and her family live in New York City.

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Winning the College Finance Game: Basic Components to Help Maximize Your Family’s Financial Aid Package

i need financial aid, need-based aid, scholarships, financial aid, college, college funding, college planning

Winning the College Finance Game: Basic Components to Help Maximize Your Family’s Financial Aid Package

First things first – don’t feel ashamed if you’re more than a little intimidated by the college financial aid process. You’re in good company.

More good news – we’re here to arm you with the key educational concepts necessary to navigate this financial maze. You’ll come out the other side aware of all the options, regardless of your income and other financial circumstances.

One of the most important initial distinctions to be made is merit-based vs. need-based financial aid. Merit-based aid is awarded to students based solely on their credentials (think academic, artistic or athletic awards), while need-based aid focuses on the larger family’s financial situation.

A logical starting point for all families when determining which schools will be most cost-effective is to understand need-based aid eligibility. The universal equation schools use to calculate a family’s financial need is:cost of attendance, financial aid, need based aid, merit based aid, college funding, college planning, EFC

Example: a school with a $70,000 cost of attendance (COA) minus a $40,000 expected family contribution (EFC) equals $30,000 of need-based eligibility.

Although I’m sure your brain tends to focus on that ever-growing COA “sticker price,” keep in mind we’re initially less concerned with that number, and more so with the other pieces of the equation. It’s not to say that COA isn’t a key factor, but it is the third most important piece in determining overall cost of college for any given family.

The most important concept is a family’s understanding of the EFC. A close second is the probability of a school actually meeting a family’s need, once determined. Frankly, every college or university meets need differently. Some schools meet 100% of a family’s need, while others may only award up to 80% in financial aid and scholarships.

Thus, why the cost of any school is quite subjective; you can fully expect that sending your student to their top choice school will likely cost your family a different amount (for better or worse) than the folks next door.

At the end of the day, the main objective is to drive down your EFC on paper, resulting in increased family need. So how can you be competitive in this college finance game? What can you do as a family to lower your EFC and increase your level of need in the eyes of schools’ financial aid officers?

Here are five ways to be proactive in limiting (or better yet lowering) your EFC:

1. Know the definition of an asset.

Schools consider anything in a non-qualified account (aka non-retirement savings) an asset when determining your EFC dollar amount. Checking accounts, savings, stocks, bonds and mutual funds all fall into this asset category.

In contrast, 401Ks, IRAs, Roths and qualified annuities are retirement funds, and therefore not considered assets in this college finance equation. You don’t have to worry about these being “held against you.” That being said, you are not expected to include them on the Free Application for Federal Student Aid (FAFSA) when asked to report assets. Less is more!

2. Understand the three key methodologies used to calculate EFC.

Each assesses total family income and liquid, non-retirement assets. However, they vary in consideration of financial assets:

Federal Methodology (used by the government/public schools): excludes home equity in a family’s primary residence

Institutional Methodology (used by most private schools): includes home equity of the primary residence

Consensus Methodology (a hybrid used by a small sampling of the most prestigious private schools): considers home equity, but at a lesser percentage than the Institutional Methodology, and with a cap on the assessable amount

In other words, a public school like The University of California will not consider the equity in your primary residence when calculating EFC. However, a private school such as New York University treats that same home equity no different than a checking or savings account, thus lowering your family’s need-based financial aid eligibility and increasing the amount you’re expected to contribute.

Doesn’t sound fair does it? We’re not saying it’s always a reasonable process, but it is the process nonetheless. Know that as a homeowner with a substantial amount of equity in your primary residence, you will have varying EFCs, depending on where your student applies.

While understanding that home equity is assessable at most private schools, you may be able to tactically position the value and debt on your home to maximize your eligibility.

3. Eliminate the lowest hanging fruit – any assets in your student’s name.

This is the first place schools look, and student assets are valued at a much higher percentage than that of parents. Students also lack what’s called an asset protection allowance, as opposed to parents who can generally have between $15,000-$30,000 of non-retirement assets before schools begin to “count” it towards the EFC.

Many families make the rookie mistake of incorrectly reporting traditional 529 college investments as student assets. Although logical to think of this money as a student asset since it’s been saved specifically for that student’s education, it’s actually a parental asset. Don’t beat yourself up if this is news to you. Just be sure to report your hard-earned 529 savings as yours (a parental asset) on financial aid forms to avoid lowering your need-based eligibility.

4. Make the important distinction between parent income and student income.

Similar to assets, schools put greater emphasis on student income. A key difference between assets and income however, is that students have an income protection allowance just over $6,000. This means that until a student begins making more than that amount annually, their earnings will not be factored into the EFC equation. This distinction is especially important for self-employed families paying their student a salary. That’s a great tax strategy, but if you want to qualify for need-based financial aid, it could prove detrimental.

Furthermore, as a self-employed family, be aware that regardless of how your business is structured, if you have less than 100 employees, you are not required to report business assets on the FAFSA. This is another common mistake, but rest assured, the fine print on the FAFSA advises you to report $0 unless you have more than 100 employees working for you.

5. Learn how you may be able to take advantage of tax scholarships.

For exceptionally high-income families who won’t qualify for financial aid, this is another possible way to capture value. Although families are typically only eligible for a $2,500 annual tax credit if making less than $160,000 per year, we’ve discovered a way that wealthier families can take advantage in some creative ways. Over the course of four years, that’s $10,000 back in your family budget!

In short, regardless of your family’s finances, how you present yourself to colleges matters! It’s important to recognize that you’re not merely at the mercy of these educational institutions. Valuable resources exist to help you approach this complex process in the most efficient and effective way possible.

Although we recommend starting with need-based financial aid eligibility, it’s important to understand that many families, regardless of how finances are presented, simply won’t qualify for need-based aid. Once that’s determined, the focus can shift to merit-based aid – this video blog ( Merit Scholarship and Strategies for low-need families) offers a basic introduction on that next step.

Bill Rabbitt 

Partner – College Funding Services

Co-Founder – College Aid Pro

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2019 Paying/Borrowing Timeline

Paying/Borrowing Timeline

Although we’re a little over 3 months away from fall semester bills we want to start to get a better idea on how we will paying that bill.  

The ideal situation is that families have the resources to cover the net cost at the chosen school. In that case, the main focus is how to strategically use what resources and when to use them.  The reality, however, is most families will have to borrow in order to make this happen. In this case, we want to make sure we make educated decisions around that and do it in the most responsible way.  Furthermore, many will likely be somewhere in the middle of these two scenarios.

The video above takes a high level look at the timeline around paying and borrowing for college.

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Corruption, bribery, and college admissions: just another day at the office?

College Admissions Scandal, College Scholarships, College Student loans, Financial aid

Corruption, bribery, and college admissions: just another day at the office?

As breaking news about a college admissions cheating and bribery scandal confirmed many people’s worst fears that the system is rigged.  Parents who have played by the rules felt deflated at seeing yet another data point on the advantages that wealth and connections bring.  College admissions professionals and educators who play by the rules felt demoralized knowing that the story will now cast doubt on the entire field of play on which we operate.  I fall into both categories.

Let’s start with the grasping parents who allegedly committed criminal acts to get their children into “name” schools.  What is it about attending these schools that they thought would add qualitatively to their children’s lives?  After all, these children already came from wealth, privilege, and, ironically, from parents who had, themselves, achieved at a demonstrably high level, apparently on their own merits (although I don’t want to take anything for granted in this case!).  Part of the problem lies, I believe, with this idea of “reach” schools that we have popularized in our culture:  You have access to the best of the best if you attain at a certain level.  Reach as ambitiously as you can and whatever you end up holding in your hand at the end of that process defines part of your worth as a human being.  Even the mechanics of the system, through vehicles like Early Decision, encourage young people to set their heart on a first choice and pray that the calculus works in their favor.  This entire approach to admissions does a disservice to kids and to parents.

Colleges themselves bear some responsibility for encouraging a reputation-hungry mindset among their applicants.  They cater to the U.S. News & World Report rankings that only fuel parental frenzy.  Going test-optional, for example, may sound student-friendly, but it has also traditionally bumped a school up along two of the ranking criteria:  acceptance rate and average test scores (although as of 2019, U.S. News & World Report is no longer factoring admit rate into the rankings).  University of Chicago went test-optional this year and immediately saw a 10% increase in number of applications.  When number of students accepted remains the same (numerator), while the size of the pool from which they are being chosen increases (denominator), the overall percentage of students accepted goes down—which, until just this year, could lead to the school’s U.S. News ranking going up.  As for an increase in average test scores, who do you think submits scores when they don’t have to?  High performers do, thus raising the average for the school.  If I had my druthers, all highly selective schools would model their testing policy on Brandeis and early admission options (both Early Decision and Early Action) would cease to exist.  As a coup de grâce, I would limit the number of schools to which students can apply on the Common Application to 12 and would eliminate supplemental essays for individual schools.  Students would complete their personal statement and one additional short essay, both the same across schools—that’s it.

In reality, every young person has the potential to find multiple campuses that could be a great fit.  I discourage my clients from focusing on a first choice.  Instead, I tell them that I want them to fall in love with every school on their list, including their safety.  “As with marriage,” I tell them, “you only need one to work out—one at a time, anyway.”  Put together your list wisely and you will feel elated if you only get into a single school.  A meaningful list, by the way, does not just mean copying down the top 10 schools from the U.S. News & World Report rankings.  It means understanding what matters to you, what matters to the schools you are looking at, and finding a fit that meets the needs of both—at varying levels of selectivity.  It could also mean buying stock in a school that is on the move.  Tufts, for example, which today stands out as an internationally respected center of research and scholarship, not too long ago had a reputation as a “commuter college” or, at best, “a regional New England institution.”  Similarly, many of my clients see Clark or Occidental on the lists that I create for them:  They already have a lot to offer and, like a small cap stock, I predict they will be breaking out of the box over the next several years.

When people covet something the way they do their children’s admission to a “name” school, you can rest assured that nefarious actors will surface to take advantage of that powerful desire.  That leads to the flashy college admissions advisor in this story who claimed to know how kids could “beat the odds.”  I have had people offer me all kinds of things to get their kids into the “right” schools.  A father told me he would pay me $10,000 if I got his son into an Ivy League institution.  A mother told me that she expected me to get her daughter into Princeton.  The stories continue.  Well, first and foremost, today’s news provided some measure of relief on that front.  I never promise to deliver admission at a particular school because I can’t (in addition to its running counter to my entire philosophy).  I also tell them that any college advisor who promises otherwise is not telling the truth.  I can now credibly add to that sentence, “or is breaking the law.”  Hopefully today’s news will illustrate for families the importance of acting as critical consumers in the college admissions market.  Beware of anyone offering shortcuts or sleight of hand.  They don’t exist, for those of us who are law abiding.

So what is it that legitimate and effective college advisors do?  We help families with the strategizing and long-term planning necessary to navigate confusing terrain.  We relieve parents of pressure that sometimes negatively impacts their relationships with their children.  We stand in as college advisors for kids who attend large schools at which they have to compete with several hundred other students on a counselor’s caseload.  We act as matchmakers, using our accumulated knowledge and understanding of institutions and of kids to suggest pairings that we think will work.  In my case, I have worked in an admissions office, written a book on college admissions that relied on interviews with a dozen deans of admission around the country, and spent my life as an educator working with teens and families, among other things.  I get high schools, I get college admissions, and I get kids.  I love the intersection of the three and have situated myself at that intersection for decades.  Make sure that, if you are considering working with a private college counselor, you look critically and carefully at what they have done that qualifies them to engage in this work.  And please, please, please, don’t believe them if they promise you a rose garden.  What looks too good to be true generally is.

By: Eva Ostrum

//evaostrum.school/blog/

An award-winning educator, Eva has worked in college admissions on both sides of the desk:  as an undergraduate admissions officer at Yale University – her alma mater – and as a teacher, school administrator, and private college admissions coach supporting students and families through the process.  She is the author of The Thinking Parent’s Guide to College Admissions:  The Step-by-Step Program to Get Kids into the Schools of Their Dreams (Penguin Books, 2006) and the executive producer of Turusma:  A Young Man’s Journey to College, a documentary short that screened at juried film festivals both in the U.S. and abroad and won an award for excellence at the Berkeley Video and Film Festival (2002).  Eva has taught at the high school and college levels, served as a school leader, and consulted on educational interventions and policy for public and private organizations around the country.  She has appeared as a guest expert on education in numerous media outlets (including NBC’s Weekend Today).  Eva graduated from Yale University with a Bachelor of Arts in French Studies and from the Harvard Kennedy School with a Master’s in Public Policy.  She is is currently seeking her doctorate in Educational Psychology.  A native New Yorker, she and her family live in New York City.

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How I was accepted at Vanderbilt, Carnegie Mellon, NYU, BU, Michigan and more!

College Funding Services - Accepted at NYU, Michigan, Vanderbilt

How I was accepted at Vanderbilt, Carnegie Mellon, NYU, BU, Michigan and more! Take a few minutes to learn what advice Lucy Altus has for college applicants and and how she was able to have so much success in the financial aid and admissions process.

 

 

 

 

 

 

 

 

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You won’t believe how American University treated this family who made a mistake on the FAFSA

College Funding Services - Mistake on FAFSA

 

Thank you to Magda for sharing her story with the CFS community. Not all schools will conduct themselves as American University did in this situation. Having said that, we always want to shine a light on the fact that, although they are in the world of academia, colleges are very much BIG BUSINESS and are very much concerned about their  own bottom line. Ensure that you are prepared accordingly.

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Class of 2019 July Checklist

Knowledge is power! All CFS clients receive a monthly checklist to stay ahead of the curve and know whats around the next turn. One of the ways we limit the stress, anxiety, and cost of college!