Seeking a consultant to advise on financial aid

My older daughter is a rising junior. Excellent student, interesting ECs, and excels on standardized tests, so we’re anticipating top SAT scores.

Problem is that we have had unusual financial circumstances that will make it impossible to meet the EFC according to schools’ NPCs. We are looking for an independent financial aid counselor to advise us before we waste the money and time visiting schools she could likely be accepted to but not afford to attend. There seem to be a lot of businesses and consultants that help kids get admitted – we are looking for one that can help us select schools where she can afford to go. The whole merit/need/outside scholarship maze is bewildering. Any suggestions?

I’m not sure what you hope to gain that you can’t learn yourself.

Go to each college website. Look for scholarships…merit awards…which are NOT income dependent. See if your daughter qualifies for any of these, and see if they are automatic and guaranteed.

If you find a financial consultant, that’s what they will do…but they will charge you for this.

And please…stay away from anyone who tries to sell you an annuity…lots of college financial.aid consultants are in this business.

Why are her SAT or ACT scores and her GPA? I’m sire folks here would be happy to give you suggestions (for free) on colleges where she would garner guaranteed merit aid.

Also, you say you have some unusual financial circumstances? You might find that these are not so unusual.

ETA…this thread I’m linking has NOT been updated…so younwill need to checkmeach college website for the specifics NOW.

http://talk.collegeconfidential.com/financial-aid-scholarships/1678964-links-to-popular-threads-on-scholarships-and-lower-cost-colleges.html#latest

If paying the EFC will be tough, I wonder about paying what could be a hefty sum to a consultant. That could go for other things.

When we say folks here can help (and we really mean a wonderful few, who know their stuff,) it’s because we’ve been through it. Up front, it seems daunting, but in reality, it’s a series of rational steps.

First, how much do you think you can pay and what EFCs are showing? What possible major or direction?

Also, sometimes you can google a college name and “merit” or "merit scholarships " and hone in, then look for details. Skip colleges you know are “meet full need,” aka need-only.

Why not just look for schools that guarantee merit? If she does well on standardized tests have really prep for the 11th Grade PSAT and go for National Merit? Check out these lists, be sure to double check with each school you are interested in because these lists are getting outdated. Schools change their scholarships from year to year. Also there are big changes afoot in FL and National Merit kids from OOS may qualify for a full ride at any FL state college.

http://automaticfulltuition.yolasite.com

http://nmfscholarships.yolasite.com/

Our D16 is currently at OU on a National Merit Scholarship in the Honors program double majoring in Meteorology and Comp Sci, S18 hopes to be National Merit and plans to attend UT Dallas for Comp Sci. Even if he misses NM he’ll still qualify for their highest level academic scholarship which would still make it affordable for us. I would not waste money on a consultant. Pick some schools that offer assured merit for her stats and maybe some that offer competitive merit if you think she’d be a good fit.

http://competitivefulltuition.yolasite.com

My understanding…

Things colleges WILL consider as unusual and special circumstances.

  1. Unreimbursed medical expenses for your immediate family (not grandparents or aunts and uncles...or other extended family).
  2. Loss of income by parents.
  3. Some kind of unreimbursed financial crisis...like your house burns down and you had no insurance.
  4. Essential unreimbursed expenses for a disabled sibling.

Things like that.

Things colleges usually won’t consider:

  1. Consumer debt of any kind...including mortgages, car payments credit cards, parent college loans, other loans. Etc.
  2. Money sent to extended family. That is viewed as a choice.
  3. Desire to preserve ownership of things like additional real estate or rental properties.
  4. Cost of living in your area if it's viewed by you as high.

But DO check each college for current scholarship info!

I don’t see how a financial consultant can help you…at least not in a way that we can help you for FREE. Why waste money on info that is FREE here???

<<>>

It isn’t bewildering for us. We’ve all been doing this for many, many years. We can help you.

Tell us:

What are her stats? Include test scores that are NOT superscored. (Merit is often based on single sitting scores). And list superscored.

GPA weighted and unweighted. And do these include all classes or just academic ones?

what is her major and career goal?

What is your home state?

How much are you able to pay each year?

What is your EFC from the various schools’ NPCs you’ve run? Name schools and their results. (Include loans offered, grants, etc)

Also…do you own a business or properties? Do you take any business deductions of any kind?

Is there a non-custodial parent??

What type of schools does she like:
Small?
Large?
Spirited rah rah?
Quiet?
Rural?
City?
Greek life ok?
Catholic schools ok?

I am brand-new to the site – did not know there would be great help here! THANK YOU everyone. I considered looking at a consultant because of trying to figure out how to deal with the EFC. I am losing lots of sleep over this. The following may be way TMI but I am taking you all at your word about help!

A little about our financial situation – married couple, income about $120K before deductions. We are older parents – I will be nearly 62 when DD #1 enters college, DH will be almost 61. DD#1 finishes sophomore year of HS next week, DD#2 finishes freshman year. He’s a civil servant, I work for a nonprofit.

Though we have a middle-class income now – I was unemployed for six years and have been employed now for a year. We lost a house. I have not a dime for retirement (DH has a plan through the city he works for). We will not be eligible for some federal loans because we had to file Chapter 13 (our five-year plan will be completed in a May 2018; DD will start college apps the following fall); in any case, we are really hesitant, because of our ages and lack of retirement income, to take on debt. We are currently renters. Will likely own a modest home (FHA) with about 3-4% equity in in when she starts applying.

Both DD’s are scholarship students at elite private school where 100% of grads attend college. Low student to college counselor ratio – each counselor has about 35 juniors and 35 seniors. DD #1’s GPA is 3.85/4 – which is great for this demanding, very academic school – and may be as high as 3.9 when she starts applying. School does not weight so this is a “clean” GPA. Has not yet taken PSAT, SAT or ACT. Her school brings in a college prep tutor who runs an 8-week prep test, 4 weeks prior to PSAT and 4 weeks prior to SAT, or 8 weeks prior to ACT. Based on a pretest and knowing my kiddo, I’m guessing she can score between 1480-1520.

She has worked for the past three summers (starting at age 14) as a production assistant for a local cable access TV station. Certified on several types of video equipment, has been nominated for several awards for short films. Not interested in this as a career. She has volunteered on several political campaigns, was a fellow on Hillary Clinton’s campaign, has an internship at the state Historical Society. Is news editor (had to interview for it and was chosen) on award-winning school paper; hopes to be editor in chief as a senior. In a couple of school clubs but nothing of real note though that may change as the school is quite savvy when it comes to positioning upper classman for college apps – leadership roles, etc.

She is passionate about history and political science. Is willing to go rural, suburban or city – she looked the college counselor at school and said, “I will go wherever they give me the most money.” A conservative school or one that is overly religious would not be a fit. Most schools in the deep South would not be either. Prefers small-medium schools but it also very interested in GWU. DH is a Mason and she would qualify for their Scottish Rite scholarship (1/2 tuition); I don’t know how competitive this is. Would love a Grinnell (understand they have cut merit aid), Bryn Mawr, Mount Holyoke, etc.

Will be considered a first-gen college student as neither DH or I finished college. DD is Asian but because she’s Chinese, that doesn’t help and may hurt with financial aid.

She’s a really good writer and will likely knock it out of the park with her essays. If college is one of the few that do interviews, she would do very well – a “personality” kid.

She will spend time this summer researching independent scholarships, too.

TIA for any help. I’d like to quit waking up at 4 a.m. trying to figure this out.

I’ll add to Mom2’s excellent post- women’s college OK?

any dollar you spend on a consultant is a dollar not available for tuition.

There are a few consultants I’ve heard of in the Northeast and I can boil their advice down for you here:

1- Plan your income carefully- defer as much income as you can to show an artificially low W2 for the “prior prior” year. Note that for most people this doesn’t work-- if you tell your boss you want to defer your bonus, or take home less than you are actually earning in any given year they might have you institutionalized! Most people who earn a paycheck do not have the ability to move their earnings into different tax years.

2- Make a list of every single consumer product and deferred maintenance type item on your house- and the week before you file your FAFSA go on a shopping spree. If you can buy a car to wipe out your savings accounts, money markets, etc. good for you. And buy your kid a new computer.

3- Prepay everything that you can including your property taxes, etc. if you haven’t successfully wiped out all your money with step 2.

4- Take any long term savings not currently sitting in cash or money markets and purchase an annuity or some type of life insurance policy. These products have a hefty fee so your consultant will be assured a steady income stream even if you end up in bad shape financially from this advice.

5- Transfer ownership of your home and any other real estate to your siblings with the understanding that once your kids are out of college they will be transferring title back to you. Sure there are legal steps involved- fortunately your “college financial aid consultant” has a friend who is a lawyer who specializes in this!

6- If you are a dual career couple, figure out if you’ll get more aid if the lower earning spouse quits his/her job. Your consultant won’t bother to show you the actuarial tables which pretty clearly demonstrate that the loss of the ability to contribute the max to retirement by the newly unemployed spouse likely off-sets any gains in financial aid by a tremendous amount, depending on the ages of the parents.

There you go. By carefully reducing your income (almost always a bad idea, more money is usually better than less money), spending all your assets (sometimes a bad idea if you are buying stuff you don’t need just to shelter it for college- who needs more stuff?) AND using the consultants friends for buying insurance, paying legal fees, etc. you MAY qualify for more aid- if your kid can get into one of the few dozen colleges in the US which meet full need. This strategy won’t net you a penny at most public U’s assuming you make too much money for Pell or any state grants, and won’t net you a penny at most private U’s which really don’t care what you can “afford” since they don’t have the money to give you in need based aid.

You’re welcome.

Great profile for her, nicely active and in ways that will help a potential poli sci (or related) major.

But what EFCs are you getting? There are parents on CC at that income level who got good aid from a meet full need.

And what can you actually pay, per year?

@blossom hope some of what you posted was tongue in cheek!!

A couple of things…to the OP…

  1. Your situation is NOT unusual. Other people do not have retirement accounts, have filed bankruptcy, and have little to no assets.
  2. Being first generation might (and I say that...MIGHT) help with admissions at some schools. MIGHT.
  3. Being Asian has absolutely nothing to do with financial aid. Where did you hear that?
  4. Have you even looked at your instate public options? Might they be affordable? Is there an honors college?
  5. A $120,000 income will mean a family contribution in the $30,000 a year range. If that's not doable...look for,less costly options instate...or places where merit will bring the cost down to what you CAN afford.
  6. My opinion...don't rule out schools in the south. Schools like University of Alabama give excellent guaranteed scholarships AND attract a LOT of students who are not from the south...if that is your concern.
  7. The real SAT or ACT score will be a help.
  8. Has she considered smaller schools? You might want to look at the Colleges That Change Lives website...get the book, or go to one of their presentations. Perhaps your kiddo would be eligible for merit aid at these schools.
  9. There are a LOT of smaller LAC schools in the Midwest...places like Denison, Allegheny, and the like...you might want to look at those...as merit might be possible there.
  10. Any place where your kiddo can commute? That can save thousands of dollars a year.
  11. Your private school counselors should be able to be some help to you. They usually don't talk finances...but maybe they can in your situation.
  12. Have you run the net price calculators on the college websites at all...just to get an idea? Do so. You have regular w-2 income...you are not self employed. You are married. You don't own secondary real estate..right? The net price calculators should be pretty accurate.
  13. Remember that for the 2018-2019 academic year, the financial aid forms will use 2016 income tax data.

For 2019-2020 they will use 2017 data.

  1. There are a LOT of colleges out there...a LOT. I put a link in post one of this thread. Start by reading it. But DO look on the college websites for current costs..and data.

How much can you afford per kid per year?

You said your D was interested in GWU and use might be eligible for a half off tuition scholarship

TUITION AND EXPENSES (From collegedata.com)
Cost of Attendance $68,275
Tuition and Fees $51,950
Room and Board $12,500
Books and Supplies $1,275
Other Expenses $2,550

Let’s call half tuition $25K, can you afford $43,275 per year for one child? or more because cost increase every year?

The very first thing you need to do is figure out how much can pay each year for each child and go from there. Keep in mind Room and Board is not cheap so If you can’t afford to pay $10,000+ each year you child will need to go to a school she can commute to from home or look for full ride schools.

  1. Yes, being Chinese can hurt -- with admissions (there is arguably, a quota) and scholarships for people of color that define them as African Am, Native, Hisp/Latino, and Southeast Asian). 5. Definitely not doable 6. Will talk to her about it. 8. Prefers smaller schools. But when I ran calculator on one, they used merit to replace need rather than to replace some of EFC. Will continue to look. 9. Very interested in these schools. 10. Prefer for her to have the on-campus experience but will consider this if we have to. 11. Yes, that's what has me up nights. Thank you.

Very difficult for us to pay more than $10,000 per year. That is actually a stretch.

I think she should start prepping now for the PSAT, she can use www.khan.org/sat online for free and maybe get some other prep books from the library. Remember any time spent prepping for the PSAT will help with the SAT.

There are several schools she could get a full ride to with National Merit but they aren’t the schools she’s looking at. I think she needs to look the possibility of going to school that will give her the money she needs and that might not be in her ideal location.

You can pay $10,000 and she can get a $5500 Direct Loan for freshman year. So…you have $15500 to start with.

If she can get a full tuition scholarship…plus work (and now is a good time to start that) she should be OK…at schools where the room/board costs are modest ones.

So start looking for schools where a full tuition award is there for her.

If you are considering loans, then the student can get more (additional $2.5k?) because the parents will get turn down for a parent loan. But that’s still not going to make the school’s she mentioned so far affordable.

@3scoutsmom

If the parents are turned down for a Parent Plus Loan…the student gets an extra $4000 in Direct Loans for freshman year.

Let’s bypass the Asian thing. Many disagree there’s an issue and many LACs do not get the volume of apps that, say, an Ivy gets, frpm kids with similar profiles. Plus, your D wants humanities, right?
Let’s focus on aid and options, now.