Building A College Funding Plan
Clearly understanding the risks families face during the college decision process, we can start the process of putting together a plan.
A college funding plan is comprehensive in nature, taking into account both financial and non-financial aspects of one’s life. College planning has become a daunting process for most, mainly because parents do not "plan" a way to execute their student’s college experience. In order to generate a plan, that will meet your college planning needs, a broad range of factors must be considered:
- Analyzing current financial situation (household balance sheet)
- Calculate family’s Expected Family Contribution (MOST IMPORTANT)
- What can be done to lower your Expected Family Contribution and/or your family’s overall college costs, while maximizing your eligibility for financial aid and/or merit based aid.
- Organize college goals (size, location, public vs private)
- Analyze major and average starting salary 5 years out of school
- Graduation Rate for each school (Graduate in 4 years or less)
- Comparing price of each school (Calculate ACTUAL price of each school by using tools that help us analyze the true price vs the schools sticker price.
- Determine how/if your child can attend an expensive private college for less than the cost of a state school…yes its possible!
- An estimate of how much your situation could improve by incorporating applicable college admissions and financial aid strategies.
- How your income, investments and savings shape your financial aid approach
- Best way for Grandparents to help without jeopardizing your financial aid approach
- College costs impact on retirement (lost opportunity)
- Funding college using education loans (Estimate student and parent loan costs)
A properly-constructed and well-developed college funding plan can improve your financial position. There is real value in planning when it comes to college funding.