How to Get Maximum Money for College if You're Divorced , A Minority ,Own a Business , Recently Unemployed or 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.Or sign up for a Free consultation : http://redoakcollegeplanning.com

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.