How To Get Maximum Money For College If You're Divorced, A Minority, Own A Business, Recently Unemployed or an Athlete

How To Get Maximum Money For College If You're Divorced, A Minority, Own A Business, Recently Unemployed Or The Parent Of An Athlete...

In this article I am going to talk about special topics or circumstances
that may make your family situation stand out from the "norm."

What I mean by the "norm" is...married, average student, average grades,
employed by a company (not your own), non-minority, etc. You get the
point.

Anyway, most families, in one way or another, don't fit into the statistical
norm, and must be aware of how this will affect their chances of
qualifying for financial aid.

Vital Things You Must Know If You Fit Into One Or More Of The Following Categories:

Category #1 - Divorced Or Separated Parents.

If
you are currently divorced or separated (or will be soon), and your
child will be applying to colleges next year, there are a few key things
you should be aware of:

1.
The financial aid forms should be completed by the parent with whom the
student lives for the greater part of the year. For example, if a child
lives with his mother for 8 months out of the year and with his father
only 4 months, the income and asset information should be based on the
mother only.

2.
If the parent with whom the child resides is remarried, you must
include the income and the assets of the stepparent as if he or she was
the biological parent. This may not sound fair, but this is the way the
financial aid formulas work.

3.
Private colleges and universities can ask to see the income and asset
information of the "other" divorced parent when awarding their own
funds. However, this information will not affect federally based funds.

Category #2 - Academically Or Athletically Gifted Students, And Minorities.

Although
most financial aid is based on "need", it is also important to remember
that financial aid packages are based, to some extent, on how badly
colleges need your child.

There are three major areas that you should pay close attention to when applying for financial aid:

1. Academically Gifted Students -
One of the primary scholarships awarded based on academic merit is the
National Merit Scholarship Program. It is given to students who do
extremely well on their PSAT/NMSQT scores. Also, many schools (outside
of the Ivy League) try to attract top students away from the more highly
rated schools by offering academic scholarships. If your child is
academically gifted, use this as a bargaining chip.

2. Athletes
- Even if your child is not Division #1 sports material, don't assume
that Division #2 or #3 schools won't offer you preferential packaging
(more grants, less loans) to attract your child to their school. Make
sure you get in touch with the athletic department and make it a point
to meet the coach at each school you visit. Also, get the high school
coach to write letters of recommendation to each school.

3. Minorities -
If your child is African American, Hispanic, or Native American,
contact the colleges and find out about the availability of scholarship
programs for minorities. Although there is some debate over awarding
these types of scholarships, colleges in 19 states currently make these
types of awards.

Category #3 - Owning Your Own Business.

If
you currently own your own business, or you are thinking of starting
one, there are significant benefits when it comes to getting money for
college.

To begin with, business assets are counted much less heavily than personal assets.

Also,
you have the ability to control (or lower) your income during the years
that your child is in college, thereby making you eligible for more
financial aid.

All in all, owning or starting a business can be a big help in getting money for college.

Category #4 - Recently Unemployed.

If
you were recently terminated, or have received notice that you will be
terminated, or if you own your own business and cannot make a living due
to current economic conditions, you must make the college financial aid
officer aware of this.

There is something called "professional judgment" that a financial aid officer can use to help you out in this situation.

Most frequently, what they can do for you is use "expected income" rather
than the previous year's income which is more reflective of your current
financial state.

Category #5 - Independent Students.

For those of you who plan to try to make your child appear to be
"independent" so you can get more financial aid, you're in for a shock!

There are 6 criteria that will be used to determine whether or not your child will be considered independent:

1. They will be 24 years of age or older before December 31st of their 1st year of college.

2. They are a veteran of the armed forces.

3. They are an orphan or ward of the court.

4. They have legal dependents.

5. They are a graduate or professional student.

6. They are married.

If your child doesn't fit into one of the above criteria, forget about
trying to prove that they are independent - it won't work!

Category #6 - Applying For Early Decision.

If you plan to apply for financial aid, we have only one recommendation concerning applying for early decision...

Don't Do It!

If
your child gets accepted to a school for early decision, they must go to
that school even if they offer you an unfair financial award. The
school is also aware of this, which gives them an incentive to
"under-award" you.

If you still decide to apply for early decision, just be forewarned.

Conclusion:

When it comes to navigating the college financial journey there are
many opportunities and pitfalls for obtaining or losing funding for your
child. A good college financial planner can help you to maximize the
aid available to your child while protecting your income and assets.

College is an expensive business, but when you know how to play the
game you can finish as a winner! To help you get started, Red Oak
College Financial Planning offers a free one-hour consultation where you
will discover:

• Your Expected Family Contribution (EFC): What colleges expect your family to be able to contribute towards tuition (this is different for every family).
• A proper evaluation of your home: Assigning the wrong value could decrease your chance for merit aid and scholarships.
• Your asset protection allowance: The amount of assets you can rightfully exclude from your FAFSA application.
• Any opportunities to reposition your assets and income (to help reduce your EFC).

To schedule your free session, please email us at: mike.velasco@redoakcollegeplanning.com or call 908-758-1322.

Visit our website to learn more about College Financial planning : http://redoakcollegeplanning.com

About Red Oak College Planning:

Red Oak College Planning is located in Basking Ridge N.J.
Mike Velasco the President of Red Oak College Planning has over 30 years
of experience in the financial services industry, with expertise in
college financial planning, retirement planning and family income and
estate protection. Red Oak College Planning is affiliated with the
College Planning Network ("CPN"), and together they have helped numerous
parents successfully navigate the college admissions and financial aid
process so they can comfortably afford to send their children to
college... regardless of the cost.

CPN is the Nation's largest and most reputable college
admissions and financial aid servicing center and has averaged nearly
$19,075 per year in college aid for its average family and nearly $4,900
in financial aid award appeals.