by Tom O'Hare | Aug 31, 2023 | College Planning, Financial Aid, Paying for College
College to career planning begins before the drop of leaves and the shift in the winds. Summer closes, and the seriousness of the Fall returns to households and all who support the education-seeking student. This year, by all indications, will be another fun and exciting experience. To help, I’m flying above the crowd to identify what’s on the radar.
Forty-six million borrowers will return to making their monthly loan payments as the freeze on Federal Student Loan payments ends. Borrowers should assess their financial budgets and eligibility for repayment relief or forgiveness.
A new group of high school seniors are now entering the three-stage, admissions application cycle, hoping to join the incoming Class 2024. Prepare and apply early. Colleges and universities are now making offers to the highest percentage of applicants who apply in November.
Families complete and submit the Free Application for Federal Aid (FAFSA) to qualify for financial aid from all sources. This year, the application filing date is pushed back from the traditional October start to an anticipated late December-early January 2024. Families should still get a jump on estimating their investment by visiting sampling public and private schools and using their Net Price Calculators.
Pop Quiz – How should you begin the college search process? Answer below
Scheduling campus visits is historically a Fall and Spring activity critical to the evaluation and investigation process when learning about college options. It is an excellent drive by experience for 9th/10th graders, mandatory for 11th grade, and necessary as 12th-grade students and families decide on the final cut.
Families will measure college as a pathway and question if there are other routes to follow after high school. The answer is a resounding yes!
After paying the tuition, college-bound and currently enrolled families should pause and check resources. Recalculating a family’s ability to finance future semesters is critical. Meeting college costs is one of the common reasons students leave school.
Communicating with college-age students can strain parents, especially moms. Creating a plan for when and how to stay in touch can account for the dead space.
Expectations and reality will reset after the first semester, with many students realizing college is more challenging than anticipated. Getting ahead of emotional and academic shifts early can help a student bounce back and feel successful.
Pop Quiz Answer: Traditional guidance given to 10th and 11th-grade families is to run a college list, visit, apply, and hope for financial aid. The first three are accurate steps, but only after pre-determining a family’s ability to meet the cost of education, public and private. You would not buy a $300,000 home without knowing your payment. Finding the college starts here.
The governor’s budget adds juice to making higher education affordable for residents of the Commonwealth. The new Mass Reconnect Program and expanded provisions for in-state tuition recipients provides many ways for students and families to find affordable and achieve education pathways. Learn more with this two minute read – https://wp.me/p7FUFP-2lv
by Tom O'Hare | Jun 16, 2023 | College Planning, Financial Aid
The season for scholarship awards. Congratulations to ALL
Recognition of academic and personal accomplishments in and out of school. Shared with students and families at commencement ceremonies, local civic and community award dinners, and workplaces for employees’ children. Valuable financial resources that students and their parent(s) spend countless hours researching, searching, and competing applications. Funded by individuals, groups, and philanthropic donors who support students and families working to finance their education to career journey. Vital for first-generation, low-income families, students already enrolled, or even those returning to complete a journey started.
Scholarships are a valuable gem that, when found and received, can mean the difference in attending, squeezing a tight family budget, or turning to borrow from a private education loan lender. As an advisor, I encourage students and families to seek these valuable financing resources. I have co-authored a Scholarship Workbook with my colleague Shelley Honeycutt of Pivotal College Years.
But there is a hidden dilemma, a concern that students, parents, and even the providers of these valuable financial resources may need to be made aware of – Scholarship Displacement.
Scholarship Displacement is a practice used by many private and public colleges and universities, often resulting in a negative net gain for students and their families. An action governed by institution policy, not a regulatory requirement, whereby a school replaces its funds with external scholarship funds. A swap, saving (replacing) the school funding and leaving the student and family absent of the resources they worked hard to secure.
Federal Regulations require a school to adjust a student’s need-based aid package to prevent an over-award when made aware of (receipt of fund or a letter) of the awarding of external funds. In question is not the occurrence of an overworld, but what action the school takes to correct the problem. In most cases, the school swaps out the funds for a need-based grant they have extended to the student as part of their enrollment and recruitment practices.
- Be sure to read your school statement regarding outside aid, private, federal, or state aid that arrives after a school has calculated and awarded need-based aid.
So, what is the solution? Here are some suggestions if you find yourself (student/family) in such a predicament:
Contact the Financial Aid Office to inquire:
- What is the institution’s procedure for adjusting a need-based financial aid package in the case of an over-award caused by an external scholarship?
-
-
- Deduce or eliminate a Direct Student Loan (subsidized or unsubsidized) or Federal Work-Study award? 100% preferred action.
- Ask the school to allow the funds to pay indirect educational costs, including a computer, transportation, food, academic support services, and other campus expenses.
- Credit the scholarship to a future semester or academic year
- Will the institutional need-based grant be untouched?
- Does the school have a tolerance dollar value where no action is required?
If the school takes no action, it may be up to you to eliminate the over-award. This may require the student to:
-
- Decline the Federal Direct Loan or Federal Work-Study up to and including the total of the external scholarship amount, eliminating a loan. A 100% preferred action.
- Notify the scholarship provider you have been the victim of Scholarship Displacement. They may not even know. Ask them to communicate with the school to request that the funds be used for educational costs, including a computer, transportation, food, academic support services, and other campus expenses.
- If you know the school’s practice and policy and can inform the scholarship provider before the award, they can take corrective action, including delivering the funds directly to the student.
- Ask them to discontinue using a School Notification Form, which placed the burden on the student, and family to notify the school that you have an external scholarship.
Along the way, there may be some pushback regarding the IRS Tax Codes. OK, technically, the awarding of scholarship funds should be considered untaxed income. OK, follow the tax codes; however, in 2024-2025, the question regarding untaxed income is projected to be removed.
Thanks to the work of Michele Waxman Johnson, Zanya Lewis, my colleague Shelley Honeycutt, and countless others, many states are waking up to this concern and passing legislation to stop Scholarship Displacement. Contact your legislative representatives locally and nationally to make them aware of this concern.
Financing college is hard enough.
by Tom O'Hare | Jun 15, 2023 | College Planning, During & After - Just Thinking, Financial Aid
Congratulations, Class of 2023
WOW – To the students and the parents of the graduating Class 2023 – WOW
Kindergarten, elementary, middle, high school, college, and graduate students – Congratulation!
It is time to pause, recharge and refuel. But let’s not hit the pause button for too long.
No summer sliding unless it is down the famous slip-and-slide in the yard.
Whether moving up a grade, to a new location, taking on an internship or apprenticeship, or joining the workforce, use the summer to champion forward. The Route One family is here to help!!
Exciting News!
We are thrilled to announce the release of our latest book, the “Pivotal College Planning Workbook,” now available on Amazon!
Unlock the secrets to successful college admissions by discovering valuable tips on your college search, securing funding, insights into financial aid, and more. Order your “Workable Workbook” today – available on Amazon now: https://amzn.to/3NG0BX7
Summer Checklist
Protecting Your Student and Family
In the eyes of the legal and medical world, when a student turns eighteen years of age, they’re an adult. Yes, we will always consider them our little kids, but it is important to put the correct documents in place to continue advocating and supporting them. Review and put in place safeguards before they leave home-
- HIPPA Agreement (medical)
- Durable Power of Attorney (legal)
- Liability Insurance (financial), and
- FERPA Waiver (college).
Speak with a professional to protect your student and family.
Summer Assignment – Read and Explore
Reading is fundamental. It improves English, writing skills, and vocab. In my private counseling practice, I ask all students to spend time reading during the summer. One novel a month. If sharpening academic skills, study habits, and testing prep is needed, consider introducing a tutor to the summer schedule.
For families of 10th and 11th grade students use the summer to pop on to a college campus. Check out a large, small, city or one located in a town. Students who have never seen or been on a campus will benefit from a brief (not a tour) look at what might be in their future.
Scholarship Employment
Working during the summer is important for high school or college-age students. It provides valuable spending money when returning to school. But there is an equally important summer job, a Scholarship Searcher. Committing time during the summer to research, identify, and create a database of eligible scholarships is an important job for rising seniors, 11th and 10th grade families. Its reported that hundreds of scholarship with Fall application deadlines are left in the money room. Obtain a copy of your Scholarship Workbook, how to be a scholarship searcher by subscribing to Pivotal College Years.com. Don’t wait till the Fall to learn you missed a valuable financial resource.
Rising Seniors
Get ahead of the Fall. Spend time on critical assignments to make the senior year enjoyable. If you’re college-bound, focus on four critical tasks:
Drafting your Essay
Completing the Profile Section of the Common Application
Narrowing your college options
Engaging your College Representatives
If your path after high school will lead in a different direction, don’t delay. Your planning process needs attention too. Whether it will be a skilled apprenticeships, work, or services, use the summer to map out your post high school pathway.
.Parents – your task is to determine your college financing strategy, and it is not just about your family resources. Where you apply is equally, if not more, important!
Right Around the Corner -Repaying Federal Education Loan
The end is nearing pandemic freeze on the repayment of Federal Student Loans is over. Repayment is set to restart in September, with the first payment due in October. It is time to dust off your Student Aid ID and PW to check your loan details and determine the next steps. Regular monthly payments, applying for an Income-driven repayment program (IDR), or Public Service Forgiveness Program (PSLF), and refamiliarizing yourself with your loan servicer. Consult the Federal Student Aid website to learn more https://studentaid.gov/
Education loan refinancing and modified repayment may be an option for a family whose budget has continued to experience financial strain.
Employer-sponsored education programs is no longer just tutition reimbursement. Today companies are offering employees services to help with student loan repayment, managing education debt, financial literacy and even colege planning advising. Consult with your companies HR department or associations employee benefits provider.
Consult an Independent Education Advisor
Need help with your checklist, calming the waters, managing education loan repayment, or hosting an onsite employee education and enrichment session? Consider speaking with an experienced Independent Education Advisor. Get College Going, a North Shore-based full-service education advising practice, has been helping families for four decadents through its extensive resources and expertise before, during, and after college. Visit www.getcollegegoing.com to schedule a conversation.
by Tom O'Hare | Apr 25, 2023 | College Planning, Paying for College, Uncategorized
The average amount a family can anticipate spending for one year of the post-secondary cost will range from $15K (public), $25K (private), and $30K (for-profit trade school). Keep in mind that four key variables can affect the range:
- The family’s overall financial profile
- Household size
- Demonstrated financial aid need, if any, and
- A college’s interest in the student (recruitment) and if they will discount the cost, OR
Keep in mind selecting an alternative education to career pathway that meets a student goals can result in a reduction in cost and time.
- Enrolling in a Community College
- Utilizing a 2+2 degree completion pathway
- Enrolling in work and learn apprenticeship program (IBEW, Teamsters)
- Employment with OJT
Why Is the Current Approach Wrong?
80% of families unfortunately look, select, and then consider how to pay. For many this approach can result in unforeseen debt, excessive borrowing, strained family budgets, and ultimately the wrong pathway to a successful career.
I have written before, to some claims (that I’m preaching) that families of college-bound students need to apply a different process. An approach that first calculates the anticipated spend (budget), then turns to the purchase (shopping). The exercise assesses a family’s funding capabilities, including accumulated savings, dependency on financial aid, and potential scholarship eligibility. What’s left is net costs (the expense) for one or more schools in the running. If borrowing is necessary, does the ability exists, and what is the debt tolerance? The result does not limit the search and evaluation of school options but strengthens the selection of affordable schools that meet a student’s authentic academic and personal profile.
Financing September’s Enrollment
Congratulations, May 1st, College Decision Day is in the rearview mirror; the school choice has been made for September. Orientation, the Summer Checklist, and moving in is left. Oh, Ya, let us not forget that a bill will be coming, and the balance will need to be resolved before access to dorms, dining halls, and classrooms will be granted.
Four financing vehicles
1 – Lump Sum Payment – using accumulated savings, investments, or available insurance programs, reduce the education bill by semester or for the whole year.
2 – Monthly Tuition Payment Plan – using disposal monthly resources spread payments over ten months. Perfect for families with rental income or previous expenses like a car payment, high school sports, or dance expenses. Work with the school’s Student Account Office and plan administrator.
3 – Borrowing – using credit-based home equity and private education loan programs are available to credit-worthy borrowers. A co-signer is generally needed, interest rates have a range, and repayment can begin during the in-school period or be deferred until graduation or early separation. A family can finance a portion or all of the remaining balance due to the school.
4 – Wildcards – vary based on a student’s high school resume, the family financial profile, and school selection. Hunting for scholarships, student employment, chatting with relatives, and following the classic Oliver Twists ask, “Please can I have some more,” should be pursued throughout the summer and after school starts.
Note: programs can be used separately or combined. The first bill will be in the mail on or before July 1.
College planning begins with understanding financing capabilities (budget), then continues with shopping and evaluating options, and culminates in wise financial, academic, personal, and career-focused selection.
It all starts now; you need help calming the waters, getting started, or addressing technical questions before, during, or after college; everything begins with a conversation. Whether living with a pre-teen, on doors steps of 11th grade, scrambling, or questioning post-high school options, consider adding resources to your team.
Start a conversation today – 617-240-7350 or learn more about the Tom O’Hare at getcollegegoing.com
by Tom O'Hare | Mar 11, 2023 | Before, College Admissions, College Planning, College Readiness, Financial Aid
Recently I spoke with an employee group as part of an educational enrichment program attended by parents of high school and college-age students. We talk about the classic nuts and bolts, managing deadlines, scheduling campus visits, the application processes, and how to pay for college. All are part of the responsibilities parents must oversee as they navigate selecting their students (families) right education pathway after high school.
As the meeting started to break up, a few parents voiced their frustration, some even saying they might have a better chance throwing a lucky penny into a fountain than getting their kids into school and being able to afford it. I looked at the session organizer and asked if we could extend the lunch and learn for those who wanted to continue.
For the next twenty minutes, we discussed the importance of planning, with a twist – it’s time to understand and recognize the wild vortexes families can get drawn into, willingly and unknowingly – why – because we allow ourselves. Parents must rethink their approach to education, work, and careers after high school by first accepting that the system has created some significant pitfalls.
Six Vortexes To Avoid
- Emotions – we hope we follow a natural thought process. Still, once our son or daughter gets their hope up, it becomes emotionally driven, and things like the right choice and our financing capabilities get thrown out the window.
- Financing Realities – after purchasing a home, investing in college is the most expensive life change event in a family’s life. So why do educators, financial planners, and other advisers position families to focus on paying for college incorrectly? Knowing if we can afford the cost is paramount to how we help our students find their authentic education path in high school. Financing first – shopping for the beautiful campus is second.
- Vanity and Prestige – for some psychological reason, we worry about what our neighbors, relatives, and friends think about the choices we hope our students (family) will make. Are they paying the bill? Are they losing sleep over the agonizing process? Do they really know your student – truly. Or is it some misguided reality game we are allowing ourselves to be playing? Why?
- First Generation – like having a child (I have four), first-time high school and college-age families have questions and need help. Even if you are a veteran college parent, without practical and experienced-based guidance, you can get overwhelmed with stress and anxiety. Always ask why? How come, and can you help me? Knowledge is power!
- Poor Communication – there is a massive gap in the flow of information. School systems expect students to communicate vital information to their parents – NOT! Parents with questions or inquiries must seek answers, not wait for meetings. Living in the dark is another primary source of stress and anxiety.
- Peer Pressure – what 17-year-old will raise their hand and proclaim, no, I’m not following the herd; I’m going to do my way? Education to career planning post-high school is no longer a one-fits-all process. Helping students step out of social media’s shadows and peer pressure to find their authentic self takes courage. Celebrate the student-athlete, the skilled trade professional, the academic dancer, and the community college learner on the same level.
Starting Point – Just One
- Goals and Expectations – if you are a parent of a high school student and have not discussed four critical topics, then get at it – start helping them shape their future – ask:
- What are your strengths, skills, and experiences – in and out of school
- Who do you balance a checkbook, calculate compounding interest and be financially literate
- What are you interested in, values, hobbies, ideas, and the occasional job, and
- What do they like their life to look like? What hopes, dreams, and lifestyle preferences
We ended the intense and highly energetic session with the need to keep talking. Everyone had to go back to work. I shared my number – the office door is always open.
A reminder – this is an emotional process with many peaks and valleys for their students and themselves. And yes (I beat a dead horse), proper planning and asking (not waiting) for guidance, advice, and help will make the journey much more enjoyable.
Ben Franklin once said, “Failing to prepare is planning to fail” The college search, selection, and payment process can be a long, sometimes consuming experience. Understanding the twist and turns, rules of the road, and how they apply to you and your students are crucial to surviving the journey. Need help with your plan? Schedule a free consultation to learn how we are helping students and parents. Text or call 617-240-7350 or email tom@getcollegegoing.com. Learn more at www.getcollegegoing.com
Our four pillars at Get College Going: find the right education pathway, for the right reason, at the right school, at an affordable cost
by Tom O'Hare | Dec 16, 2022 | College Admissions, College Planning, College Readiness
December is one of the most exciting yet emotional times for families of high school and college-age students. It is the month when 12th-grade students anxiously await news on their college applications and choices for September 2023. First-year college students return home having experienced the college grading system and the reality of being independent. For 9-11th grade and younger, it’s about the start of winter sports, Christmas concerts, dancing in the Nutcracker, and the anticipation of Santa.
Parents, you continue to juggle work-home responsibilities, tweaking the transportation schedule, finishing Santa’s list, and looking forward to 2023.
It is a magical time of the year.
YEAR ENDING
Preparing for Guest
During the holiday, questions arise from visitors that can increase stress levels. Good-hearted aunts, uncles, grandparents, and friends will ask, have you heard yet? OR, Did you apply where I went? OR even more piercing, have you started your college search yet? Help your students be ready. If an acceptance has arrived, even if it is not the dream school, hang it on the frig. If the process has yet to end, coach your student to smile and promise to send an update. Announcements are arriving, and more are to come from Admissions and Financial Aid. Comparing offers is next and saying yes to the college is right around the corner.
Adjusting to Winter Break
Disruption, late nights, yes, our college students have returned for winter break. Students return from college ready to eat, sleep and hang out. Ask them about their roommates, grades, and the Fall semester; it could be silence, joy, or tears. Be ready for it all. Be patient in responding and, if needed, consider what alternative plans might be made if returning to college is not in the cards. Plus – tips for students adjusting!
Talk with Your Financial Coach
As the year ends, it is essential to discuss your financial house. You check your vitals at the doctor’s office, and winterize your car. Families of high school college-bound students and those already enrolled should not miss the chance to conduct a year-ending financial wellness check up. Do you know if you will have the resources to pay for college, a post-secondary financing need? that dream college. Talk to your Tax Preparer, Financial Planner, or CPA. If you run your own business, are considering a divorce or have multiple students bound for college, financial aid rules are changes. Learn your families financial readiness and capabilities. Once you know where your family stands, we can help you find the right education, for the right reason, at the right school at an affordable investment!
Hats off to Melrosekind
Recently I presented at the Melrose Parent University, a great morning full of informational and educational sessions sponsored by the Melrose Education Foundation. I had the pleasure of meeting the coordinators of the wonderful community-based group Melrosekind. They are on a mission to foster the art of sharing kindness. In this season of giving and celebration, I encourage everyone to follow their slogan – tag your it.
CALMING THE WATERS – Have questions? Feeling paralyzed, Everything Starts with a Conversation – Learn more at www.getcollegegoing.com
