Anyone ever use HERFA?

Paying for College
1

It’s a nonprofit that meets with families to find ways to lower their EFC so they can qualify for money from the FAFSA. I called them and they talked about “moving money around” and refinancing homes and opening a 529 in a grandparents name?

I’m already incredibly skeptical but I still want to learn more and hear about anyones experience with them. Thanks!

2

To start with, FAFSA is just a form that states whether you qualify for federal funds (a student loan which any US citizen can get, and grants for low income families). The vast majority of schools that have deep pockets for aid use the CSS Profile which goes into family financials much more deeply. Yes, grand parents can start a 529, but I would be leery of anyone who starts talking about moving money around and refinancing homes.

3

When does your kid start college?

HERFA sounds like you should view it with caution.

  1. Sure, you can give grandparents money to open a 529, but if do, the grandparents have control over that account.
  2. The only real way to “get rid of money” and assets are to truthfully give them away. If they suggest that you move your money to an annuity, run in the opposite direction.
  3. For FAFSA purposes, your primary residence isn’t mentioned...at all. Not at all. BUT if your kid applies to a Profile School the equity in your primary residence is what matters...not your mortgage payment.

The very vast majority of colleges don’t meet full financial need for all accepted students. Your financial gymnastics could leave you with not one dime of additional need based aid.

So…are you saying that you want to hide some of your income or assets so that you won’t have to tap those for college costs?

Or do you think the net costs for college will exceed what you are willing to pay?

Are you self employed? Do you own a business? Are you divorced? Do you own real estate in addition to your primary residence? If no to all those questions you can run the net price calculators on colleges your kid might consider. These are currently set up for students enrolling in fall 2021. So, if your kid isn’t starting college that year…this will be a gross estimate of your net costs.

Another thing…any chance your kid has strong enough stats to be competitive for good merit aid someplace?

“Moving” money that is still your money will still need to be counted as YOUR money.

@BelknapPoint what did I miss?

4

I cannot find this organization online. Do you have a link so I can review their claims?

5

I think you hit all the high points.

Like kelsmom, I also couldn’t find anything online related to an organization called HERFA. That alone would make me wary about interacting with HERFA (whatever that is).

6

I am incredibly skeptical of this sort of thing.

7

I think OP might mean The Hefar Group? Here is their website:

https://www.money4college.org/

8

Well that organization looks horrifying.

Run, don’t walk away from it.

Here’s the FAFSA formula for 2021-2022. You can print it out and crunch your own numbers. https://ifap.ed.gov/sites/default/files/attachments/2020-08/2122EFCFormulaGuide.pdf

9

From a testimonial on the website: “With the information in the College Planning 101 course that they offer, we easily completed the FAFSA to get more financial aid and not have to worry. We were even able to apply to some private colleges with the amount of financial aid and grants that they offered.”

  1. There is no need to engage the services of a consultant to complete the FAFSA. You just answer the questions. They cannot give you any information your chosen college (or any school, for that matter) financial aid office can give you.

2). You first have to apply to and be accepted by colleges (private or otherwise) before you’ll be offered any scholarships or grants from them, so I don’t understand this comment.

I recommend Paying for College Without Going Broke, spending time with The Google (including searching CC), and talking with individual colleges rather than paying for this service. But yo each his own.