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Your 9-Step Plan to Cut Education Costs & Pay for College

March 27, 2020 by Rana L. Choubah, CFP®

For many parents, the cost of college elicits intense sticker shock.

A private four-year college runs at nearly $37,000 per year for tuition and fees alone. So it’s no surprise that even new parents wonder how they’ll pay for college or save enough to cover the expense.

But it can be done. With the right strategy, you can slash the cost of higher education, maximize the power of your money, and get to graduation with little or no student debt. Here’s your 9-step blueprint for making it happen:

1. Nail down your EFC

When you apply for aid, the government estimates the amount of money your family can afford to contribute to the cost of college. That number is called the Expected Family 

Contribution (EFC). It’s calculated directly from the information you provide on your Free Application for Federal Student Aid (FAFSA). And the formula — while complex — is published each year for anyone to see. Unless you submit the application as an independent student, the EFC represents the amount that the student and his/her parents are collectively expected to pay each year.

Why does your EFC matter? It’s an essential tool for the following tasks:

    • Determining which schools to include on your college list.
    • Estimating the amount of financial aid you’ll receive.
    • Evaluating a school’s aid letter.
    • Creating an educational savings strategy.

>> What’s your number? Compute your Expected Family Contribution with this easy EFC calculator

2. Research colleges’ approach to financial aid

Once you know your EFC, it’s simple to determine your “financial need” number. For any given school simply subtract your EFC from the school’s cost of attendance (COA).

Now, when you go to make your college list, explore the percent of financial need that each school covers on average. Ideally, a school will meet 100% of students’ financial need. But knowing a school’s number — the amount of aid it provides relative to a student’s financial need — can help you plan ahead.

To research how a school provides for financial needs, search for that school on the CollegeBoard site. Or filter a list of schools by amount of needs met and other criteria. Click a college, select the “Paying” tab, then choose “Financial Aid by the Numbers.” There, you will find valuable information on the percentage of students’ needs met, the amount of aid given, the types of aid offered, and more.

3. Lower the cost right out of the gate

Before you start looking for ways to cover the cost of college, take the vital step of actually reducing that sticker price. Choose a combination of these strategies:

    • Target affordable schools that give you the best value for your money.
    • Explore local schools that offer discounted rates to in-state residents. These schools cost, on average, 73% lessthan private institutions.
    • Consider starting at a community college, then transferring those credits over to a four-year school.
    • Sign up for high school AP testsand CLEP exams that translate to course credit at your chosen colleges.
    • Slash college housing expenses: Compare on-campus housing with off-campus. Share expenses with roommates. Or have your kid live at home while commuting.
    • Cut down on pricey food costs. Choose the lowest-cost meal plan that fits your needs. Or skip the meal plan and have your college-bound student grocery shop and cook.
    • Buy textbooks used, rent them for the semester, or get a low-cost digital version

4. Save money wisely

If you’re saving up to cover college costs, maximize the impact of each dollar. Beyond a simple savings account, consider the tax-advantaged perks of a 529 savings plan, a 529 pre-paid tuition plan, or a Coverdell Education Savings Account (ESA). Explore the pros and cons of accounts not explicitly designed for college savings — UGMAs and UTMAs, IRAs, taxable brokerage accounts, and more.

Keep in mind that some accounts are considered parental assets, while others belong to the child. Account ownership is factored in when calculating your family’s expected financial need.

5. Apply for aid ASAP

In general, the sooner you submit your request for aid, the better off you’ll be. While some forms of financial aid are consistently available, others run out over time or are given to the first applicants in the door.

Complete the FAFSA and — if your school requires it — the CSS Profile. You’ll be asked about income, assets, benefits you receive, the number of people in your family, and how many are currently going to school. The CSS Profile requests additional details, like the amount of equity you have in your home.

Some schools require additional forms before considering you for aid and scholarships. Check the application details for each school on your list. When your financial aid award letter arrives, review it thoroughly. If the assistance offered is insufficient, appeal the decision with the college.

6. Pursue school-sponsored scholarships

Scholarships, grants, and fellowships are the ultimate boon of aid. Why? They never need to be repaid.

Each school offers its own set of free-to-you financial awards. Visit the admissions section of each school’s website to find details on the types of scholarships they provide. Offerings may target students who excel in academics, athletics, art, community service, and more. Additional awards may go to women, minorities, or children of alumni.

For some scholarships, submitting your application will get you automatic consideration. Others involve some extra legwork — a separate application, an interview, or an audition. Be sure you understand each scholarship’s requirements, deadlines, and process for consideration. 

7. Track down independent scholarships

When it comes to free money for college, you’re not limited to what a school is willing to offer. There are millions of scholarships offered by other groups — businesses, academic organizations, professional societies, religious institutions, veterans’ associations, newspapers, local clubs, and more.

Some awards are just a one-time payout of a few hundred dollars, while others stretch to five figures per year in school. The more awards you can earn, the less money you will need to spend or borrow for college. Best of all, these independent scholarships are portable. Some limit you to schools in a particular state or a specific field of study. But others can be used at any college you choose.

To find these scholarships, first, check with the organizations with which you’re already affiliated. A little research may turn up unadvertised, available funds for which there’s little competition. Next, dive into the results of a scholarship finder tool. 

This tool will typically help you learn:

    • Exactly what school-based scholarships your student qualifies for – even if they’re not at the top of their class.
    • The requirements associated with each scholarship in order to obtain them
    • Additional scholarships are available to the student with only a modest increase in test scores.

Many families miss out on thousands of dollars of scholarship money because they don’t know what’s available to them and exactly what the requirements are to obtain them. 

Finally, see if the schools on your list participate in RaiseMe, a program that lets you earn and stack micro-scholarships.

8. Take advantage of employment.

One time-tested way to pay for college is to hold down a job while attending school:

    • Work-study programs are a popular path. If you’re eligible for participation, you’ll find the offer detailed in your financial aid letter.
    • On-campus jobs are another solution that typically offers to schedule flexibility around classes. Get paid to tutor other students, ring up purchases at the campus bookstore, or work the box office during college performances.
    • Jobs not affiliated with your school might be right for you. Get a part-time job bussing tables down the street, apply for a summer internship, or do some freelance work.
    • Tuition reimbursement opportunities can work beautifully if you hold down a job that offers it. Often, you’ll work full time at a company and take a few classes each semester toward your degree. Check your employer’s policies to see which colleges and courses are covered. 

9. Evaluate choices for student loans.

When you’ve exhausted your supply of scholarships, savings, and net earnings, you’re ready to look into loans. Remember that your loans should be affordable. If the only way to pay for a given college is to bury yourself in student debt, reconsider your choice of school and the cost of living.

Start with federal student loans. They typically offer several advantages over private loans, including a low and fixed interest rate, no credit check, options for repayment plans, and even loan forgiveness. Subsidized loans are best since the Department of Education covers your interest payments while a student is still in school.

If you pursue private student loans as well, compare offerings from banks, credit unions, and online lending platforms. Look for desirable features: competitive rates for excellent credit, low fees, and options for postponing repayment.

Understand that the rules and qualifying criteria differ for each loan. Some lending options are available only to those who demonstrate financial need, while others are available to most students. Some loans require parents to pay during college. Some insist on cosigners. Some allow for deferment down the road. So, before you commit to any loan, evaluate all your options and read the fine print. 

It’s no secret that a college education doesn’t typically come cheap. But making it affordable is possible. By taking these steps, you can send your children to college while ensuring your family’s financial health.

 

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Eric C. Jansen, ChFC

Fun Facts About Me

When he is not researching the next great stock to add to client portfolios, you can find him travelling frequently with his family to Jackson Hole Wyoming.

  • Hometown: Chicago, IL
  • Birth Month & Year: November, 1964
  • Favorite Hobby: Goldmining in Nome, AK
  • Favorite Food: Steak at Charley’s Steakhouse in Orlando FL
  • Can't be interrupted when: Watching the Discovery Channel
  • Hidden Talent: Finish Carpenter
  • Something on bucket list: Obtain Helicopter Pilot License
  • Family Pet: Goldfish

Steven C. Johnson, ChFC

Fun Facts About Me

Steve would tell you that one of the best parts of the day is spent talking to clients and relationships that result from it. When away from the office, he loves to travel the back roads of New England enjoying all the great sites that can be found off the beaten path.

  • Hometown: Townsend, MA
  • Birth Month & Year: December, 1967
  • Favorite Hobby: Playing Hockey
  • Favorite Food: Chicken Caesar Salad
  • Can't be interrupted when: Watching the Bruins
  • Hidden Talent: Cooking – Makes a great Thanksgiving turkey
  • Something on bucket list: Travel to Italy and Greece
  • Family Pet: Max – our Pomeranian

Frederick M. Lane, ChFC, CASL

Fun Facts About Me

When not managing client portfolios, Fred can be found relaxing with family and friends.

  • Hometown: Nutley, NJ
  • Birth Month & Year: July, 1954
  • Favorite Hobby: Dog Walking
  • Favorite Food: Italian
  • Can't be interrupted when: Listening to Pink Floyd
  • Hidden Talent: Landscaping
  • Something on bucket list: Space Flight - Tourism
  • Family Pet: None

Catherine Utley

Fun Facts About Me

  • Hometown: Huntington Beach, CA
  • Birth Month & Year: February 1977
  • Favorite Hobby: Anything that gets me outdoors exploring nature
  • Favorite Food: Anything Mexican
  • Can't be interrupted when: Drinking first cup of coffee for the day
  • Hidden Talent: Putting together complicated puzzles
  • Something on bucket list: Over the water bungalow in Fiji
  • Family Pet: Currently between pets. Previous owner of 2 adorable pugs

Catherine M. Gareri

Fun Facts About Me

When not caring for her clients Cathy enjoys relaxing in her yard at home.

  • Hometown: Bellingham, MA
  • Birth Month & Year: July, 1957
  • Favorite Hobby: Cooking and Entertaining
  • Favorite Food: Steak at the Capital Grille
  • Can't be interrupted when: It's family time
  • Hidden Talent: Dog Whisperer
  • Something on bucket list: Spending a couple months on the Almalfi Coast
  • Family Pet: In Between Mastiffs now so a little blue fish “Willy”

Katie E. Moore, CLTC

Fun Facts About Me

When Katie is not busy taking care of her clients, she spends her time being a mom to her two little ones, Owen and Isla.

  • Hometown: Modesto, CA
  • Birth Month & Year: September, 1982
  • Favorite Hobby: Swimming
  • Favorite Food: Mexican Food
  • Can't be interrupted when: I'm cooking
  • Hidden Talent: Climbed Yosemite's Half Dome, twice - no fear :)
  • Something on bucket list: See the Northern Lights and Potty Train my 2 year old
  • Family Pet: Caddy and Sierra – our two cats

Herbert Kyles

Fun Facts About Me

When Herbert isn't reviewing your portfolio or assisting you with your financial well-being you can probably find him relaxing with friends.

  • Hometown: Overland Park, KS
  • Birth Month & Year: November, 1989
  • Favorite Hobby: Hockey, Golf & Cooking
  • Favorite Food: Chipotle
  • Can't be interrupted when: Studying
  • Hidden Talent: Fluent in French
  • Something on bucket list: Demolition Derby
  • Family Pet: None

Hesper Duval

Fun Facts About Me

Loves spending time with 2 daughters and enjoys participating in 5k obstacle races throughout the year.

  • Hometown: Charlton, MA
  • Birth Month & Year: October, 1981
  • Favorite Hobby: Running
  • Favorite Food: Cheesecake
  • Can't be interrupted when: Reading a good book
  • Hidden Talent: Interior Design and furniture restoration
  • Something on bucket list: To travel cross-country in an RV
  • Family Pet: Charlie and Nora, both black labs from the same litter

Donna Fournier

Fun Facts About Me

When not cheering for the Patriots, Donna spends her free time travelling throughout the United States looking for new haunted places to explore. She loves to wear her cowboy hat and boots when travelling out west.

  • Hometown: Swansea, MA
  • Birth Month & Year: February, 1961
  • Favorite Hobby: Exploring haunted locations
  • Favorite Food: Pizza
  • Can't be interrupted when: Eating my pizza
  • Hidden Talent: Rollerblading
  • Something on bucket list: Travel to Australia
  • Family Pet:  Had a pet skunk

Anne Whitney

Fun Facts About Me

  • Hometown: Jaffrey, NH
  • Birth Month & Year: September 1988
  • Favorite Hobby: Drawing and painting
  • Favorite Food: Anything spicy!
  • Can't be interrupted when: Reading a good book
  • Hidden Talent: Expert calligrapher
  • Something on bucket list: Go to San Diego Comic Con
  • Family Pet: Most recently, a rescued beagle named Max

Steve Taylor

Fun Facts About Me

  • Hometown: Franklin, MA
  • Birth Month & Year: May 1975
  • Favorite Hobby: Golf
  • Favorite Food: Pizza
  • Can’t be interrupted when: Spending time with my family
  • Hidden Talent: Juggling
  • Something on bucket list: Play golf at Pebble Beach
  • Family Pet: none

Sarah Kupec

 

  • Hometown: Wyckoff, NJ
  • Birth Month & Year: November, 1992
  • Favorite Hobby: Hiking
  • Favorite Food: Chipotle
  • Can't be interrupted when: Watching LSU football. Geaux Tigers!
  • Hidden Talent: Chalkboard art
  • Something on bucket list: Travel to Germany
  • Family Pet: Max, a 14-year-old Westie

Cathy Hession

Fun Facts About Me

When away from the office, Cathy enjoys working out and participating in the 26.2 mile Jimmy Fund Marathon Walk each September.

  • Hometown: Hanover, MA
  • Birth Month & Year: May, 1964
  • Favorite Hobby: Travel & hiking
  • Favorite Food: Danny's Homemade Sauce
  • Can't be interrupted when: Watching Katie ride
  • Hidden Talent: Equestrian photographer
  • Something on bucket list: Spend a month in Monterosso Al Mare w my family
  • Family Pet: Sassy, our Australian terrier

Kieran Lavery

  • Hometown: Bedford, NH
  • Birth Month & Year: November, 1989
  • Favorite Hobby: Playing tennis and softball
  • Favorite Food: Tex-Mex
  • Can't be interrupted when: Watching college basketball
  • Hidden Talent: Can solve a Rubik's cube in under 2 minutes
  • Something on bucket list: Attend Oktoberfest

Matthew Cleary

In his free time, Matt likes to hike, camp and travel with his wife Gina.

  • Hometown: Farmington, Maine
  • Birth Month & Year: March 1986
  • Favorite Hobby: Hiking
  • Favorite Food: Lasagna
  • Can't be interrupted when: Watching the Celtics
  • Hidden Talent: Water skiing
  • Something on bucket list: Traveling to Greece
  • Family Pet: Aspiring British Bulldog owner

Justin Giuliano

When not helping clients, Justin enjoys spending time with his wife and family while settling into his new home.

  • Hometown: Wethersfield, CT
  • Birth Month & Year: July 1988
  • Favorite Hobby: Exploring new destinations with my wife
  • Favorite Food: Frutti di Mare
  • Can’t be interrupted when: Grilling
  • Hidden Talent: A unique inability to sit still
  • Something on bucket list: Traveling to Europe

Rana Choubah

When Rana is not helping clients with their financial needs, she spends her time with her family traveling, hiking and running.

  • Hometown: Beirut, Lebanon
  • Birth Month & Year: October 1967
  • Favorite Hobby: Running
  • Favorite Food: Pizza
  • Can't be interrupted when: Reading a good book
  • Hidden Talent: Construction and home repair
  • Something on bucket list: Complete a triathlon
  • Family Pet: Two sweet cats, Macy and Maya

Krista Isabelle

In her free time, Krista can be found crafting or playing outdoors with her husband and son, curled up reading next to her beloved cat, "Berg", or cooking her favorite go-to meals.

  • Hometown: Acton, MA
  • Birth Month & Year: August 1994
  • Favorite Hobby: Graphic Design
  • Favorite Food: Anything with peanut sauce
  • Can’t be interrupted when: Reading
  • Hidden Talent: Cartoon Drawing
  • Something on her Bucket List: Fostering animals

Danielle Drew

When Danielle does not have her head in a book studying to expanding her financial planning knowledge, she enjoys anything active and outdoors, including visits to the beach and hiking.  

  • Hometown: Dennis, MA
  • Birth Month & Year: November, 1985
  • Favorite Hobby: Working out, concerts, and exploring wineries
  • Favorite Food: Lobster pot pie, cheeseburgers, BBQ, the list goes on...
  • Can't be interrupted when: Working out 
  • Hidden Talent: Country line dancing
  • Something on bucket list: To hike the 48, 4000 footers of New Hampshire
  • Family Pet: none, hopefully a big dog someday

John "JP" Bisceglia

JP loves spending time with his niece and enjoys weekend trips to the cape during the summer.

  • Hometown: Shrewsbury, MA
  • Birth Month & Year: October 13th 1993
  • Favorite Hobby: Fishing with friends and family
  • Favorite Food: Pasta Alleluia
  • Can't be interrupted when: Hiking Wachusett Mountain with the pup
  • Hidden Talent: Navigating and driving boats
  • Something on bucket list: Helicopter snowboarding in Japan.
  • Family Pet: Alaskan companion noble dog

Jay Willwerth, ChFC

Fun Facts About Me

Jay’s days are spent helping clients achieve their financial goals, followed by nights and weekends typically watching his daughters play competitive volleyball.

  • Hometown: Melrose, MA
  • Birth Month & Year: September, 1959
  • Favorite Hobby: Golf
  • Favorite Food: Anything at a Patriot’s Tailgate
  • Can't be interrupted when: Watching the Patriot’s Game
  • Hidden Talent: Competitive Volleyball Watcher (Mostly his 2 daughters)
  • Something on bucket list: Play a round of Golf at Pebble Beach
  • Family Pet: Bella, our Shih-poo