College Planning Scam?

<p>I recently went to a seminar put on by a college planning consultant. I am interested in a private college for my dd and wanted to learn how I would be able to afford it without draining our life savings. I then went to a private consult in order to get more information. In addition, he was offering help with essay writing as well as prep for the SAT and ACT. At the end of our meeting, he told us that we could cut our EFC down from about $40K a year to $10K. All we had to do was pay $3K for his services! And if we signed on the spot, we would get a discount. Of course, I didn't do that! When I got home I did a little research and found that he invests in annuities and life insurance. Apparently that was what he was planning on doing with our money (with probably a hefty fee to boot). Has anybody else stumbled upon a scheme like this? I also found a CNN article called College aid: Don't take the bait. I'd attach it, but I'm new to this so you can probably find it if you google it.</p>

<p>Good thing you did your homework. Interesting aritcle.
[College</a> aid: Don’t take the bait - Jan. 14, 2013](<a href=“http://money.cnn.com/2013/01/01/pf/college/college-aid.moneymag/index.html]College”>http://money.cnn.com/2013/01/01/pf/college/college-aid.moneymag/index.html)</p>

<p>Get some background info yourself, there are some reputable books for self help
[Paying</a> for College Without Going Broke, 2014 Edition (College Admissions Guides): Princeton Review, Kalman Chany: 9780804124362: Amazon.com: Books](<a href=“http://www.amazon.com/Paying-College-Without-Admissions-Guides/dp/0804124361/ref=sr_1_2?s=books&ie=UTF8&qid=1376181658&sr=1-2&keywords=princeton+guide+financial+aid]Paying”>http://www.amazon.com/Paying-College-Without-Admissions-Guides/dp/0804124361/ref=sr_1_2?s=books&ie=UTF8&qid=1376181658&sr=1-2&keywords=princeton+guide+financial+aid)</p>

<p>There is very little that you can’t do yourself with regard to finances. Just start spending a little time every day on the financial aid forum, and you’ll learn more than you ever imagined possible!</p>

<p>As for ACT/SAT prep, if you’re concerned, head over to the test prep forum. Mostly kids there, but some of them really know what they’re talking about. (Keep in mind that a lot of SAT tutors are college students!)</p>

<p>As for the essays . . . well, they suck. Not much you can do about it unless you want to pay someone to write them. But there’s an essay forum here, as well, so at least your kid won’t be suffering alone! :)</p>

<p>I remember, around the start of my senior year of high school, my parents taking my brother and I to a program that claimed that it was going to help parents save money in paying for college. I don’t remember the name of the program, but I remember that they showed parents a presentation, then had one-on-one sessions with one of the program’s advisors. The lady we met was very sweet. She claimed that if we enrolled in the program, they would look over my transcript, college essays, and applications and help identify and eliminate any weak spots. She even said that they could help my brother raise his grades and study for the SAT at no extra cost.</p>

<p>They were so convincing, and I was so naive that the word “scam” never even crossed my mind. When they threw that $2000 or so initial cost at my parents, I was so heartbroken when they refused to pay it that I actually burst into tears. To a super-stressed senior who desperately wanted to get into Harvard, that program sounded too good to be true, and it really was in the end. After doing some research when I got back home, I learned that the program would lock people into the payments, which would grow over time, and give them minimal help. Then I felt very stupid. </p>

<p>I guess the biggest red flag for these programs is if they insist that you pay then and there, it’s probably a scam.</p>