College Without Student Loans

Attend Your Ideal College & Make It Affordable Regardless of Your Income

Dave Smith

• Publisher: Morgan James Publishing
• Year: 2013
• ISBN:
  9781614486343
• Topic: Business
• Subtopic: Business Education
• Index: Business

College Without Student Loans is the springboard to beginning a successful professional career while being free of the debt burden that encumbers over 80% of those currently graduating. You do not have to be another statistic for Federal government loan program or be saddled with long-term monthly payments to Uncle Sam. Attend the institution that fits you the best, while securing meaningful employment, with your undergraduate degree in hand. These are just a few of the reasons why you need to read this book and uncover the secrets to winning the "Game of College". When you follow the SAFE steps your results will be dramatic and predictable, positioning you for a productive, meaningful and happier life.

Chapter One

IT’S ARITHMETIC

Former president Bill Clinton entertained the American people with one of the most enthusiastic speeches of his life during the 2012 Democratic Convention. Political beliefs aside this is a speech I will remember for quite some time because I was captivated by the clear, concise, and understandable message. He had so much fun with just two words, “It’s Arithmetic”.

My goal is to have a meaningful impact on you with the same two words. When talking about funding a college education today “It’s Arithmetic” or in this book I’ll call it “Dave’s Math.” And here are key facts to keep in mind:

Average Cost of Attendance (COA) $40,000+

Average Time to Graduate (Undergrad Degree) 5.8 years

Average Cost for Undergrad Degree $232,000

Average Student Loan Debt-Approximately $30,000+

By now you know that there is no manual on how to be a parent and even if there were a chapter on getting your kids out of the door and off to college it would be vastly different from your parent’s experience with your college education. Times have changed.

In your drive and determination to be a good parent you most likely enrolled your children in piano lessons, paid for orthodontics, and bought various trinkets from the school fundraisers. As your child gets ready to leave the nest you, like many parents, may feel like throwing your hands in the air and let whatever happens happen in the college enrollment process.

College is vastly different from your own experience 30, or even 20 years ago. The process, the expense, and the competition are different today. Back in the day you took the ACT or SAT and filled out a few applications, then either worked part time to help pay for college or signed your life away with student loans.

Today there is the need to oversee timelines, application deadlines, fees, FAFSA filings, and CSS reports while motivating your teenager who only hears “blah, blah, blah” above the drone of peer pressure, hormones, and video games.

As parents have come to realize the sheer amount of time, research, and funds the college application process entails, many are turning to outside services to guide them through the process. It is something I highly recommend not just as one who is in this line of work but because those families that I’ve assisted have all emphatically had the same reaction–“We’d be stupid to do this on our own.”

Let me provide a few cautionary guidelines before you start your search:

The industry is still fairly new so there are no governing bodies that certify college placement entities. With so many facets involved in the process most professionals focus on one segment such as essay coaching, taking SAT/ACTs, or financial aid rather than cover the full gamut of requirements.

Choose your planner just as you would choose any other professional service such as your tax preparer, doctor, or lawyer. A former teacher or counselor’s training and background is better suited to work with students through the test preparation and essay process. Conversely a C.P.A. or business person who has no teaching or counseling training would be more adept at assisting parents through the financial process.

Keeping the intent of attending an elite school in mind you should consult multiple persons to accomplish admission and financial aid requirements. Assembling a dream team of professionals to make it happen is not only possible but is well worth the investment. My organization partners with local and national subject matter experts including college counselors, admissions personnel, and essay and testing experts. In essence I manage college prep dream teams.

In order to fully understand the team participation and dynamics of this process we’ll use the bicycle as a metaphor. Picture a bicycle-the student represent the front wheel because they control the direction and the parents represent the back wheel because they provide the power. You need both parts to get anywhere.

I met with the Clark family early in their son John’s high school career. While they were confident that their son had the potential to get into an elite college they also realized that there was a lot that they didn’t know even though Dad was a professional financial planner. Working through our network John and his parents received coaching, support, and financial education that would ultimately result in a hefty merit-based financial aid package. Through the process his parents realized that positioning their son on their own would have been like taking on another full-time job.

Their investment paid off: John was accepted to an Ivy League school with a 95% cost of attendance valued at over $250,000 for four years. The family’s investment was a mere $8,000! Would you invest $8,000 to get that kind of return? Can you put a value on a Harvard, MIT, or Duke education and understand the difference it can make over a person’s lifetime?

If you’re still not convinced ask yourself where else could I invest $8,000 and receive a 312% rate of return?

Students currently entering state universities rely heavily on financial aid. Many schools expect that 70-80% of their students will access financial aid. Most parents have no clue where to start in terms of accessing needs-based and merit-based awards. Looking to their high schools for answers won’t help much. I’ll make a very bold statement that unfortunately is true: high schools don’t understand how to get financial aid-as a parent you are wise to seek out those who do understand the process.

Just as consulting a professional tax strategist as opposed to using a do-it-yourself software program can potentially minimize your tax liabilities, engaging a qualified college planner will save you tens of thousands of dollars and dramatically increase the odds that your student will complete their degree in a traditional four-year plan.

There are many pitfalls surrounding the college admissions process. Understanding scholarships and academic awards is one of the most puzzling and frustrating of those for parents.

Here’s an example of what happened to Lynn, a bright and gifted student who had been active in her community.

Lynn had been accepted to a state university complete with an academic award of $15,000. As her high school graduation approached she received a $1,500 scholarship from the local Rotary Club. Lynn and her parents were banking on the fact that she now had $16,500 to apply to her tuition and fees that fall. The University then deducted the $1,500 from her academic award and Lynn was back to $15,000.

Frustrating? Yes. Fair? Yes, in the eyes of the university. Their academic award was the school’s way of discounting their costs for the student. When she was able to contribute an additional $1,500 the school reasoned that their discount didn’t need to be so deep.

The planner and their team serve as a coach to help your student maneuver the intricate path to matriculation. The information encompasses where to apply, specific areas of study, how to complete the applications, effective essay writing, and a clear picture of the admissions process along with what to expect all the way to the final stage which could be an interview at their dream school.

The sheer number of students following the herd mentality of attending state and local colleges reduces the amount of merit based and academic awards available there. Elite, selective, and competitive colleges typically perceived as too expensive or exclusive have ample means of discounting their tuition for those students deemed as desirable. Merit-based aid has no income requirement or limitations; it’s the school’s subjective decision. The more valuable your student is to them the more they will discount their services in order to secure their attendance.

Up to this point schooling your children was relatively easy. Most likely all you had to do was to register them at the local public school and make sure they showed up for the first day of class. While that statement is over-simplistic the college process is a whole new challenge. While the work of keeping up with what needs to be completed, submitted, and executed is daunting and time consuming, too many families leave this one life-process up to chance.

The S-A-F-E Way

Selection, Acceptance, Funding and Execution, or S-A-F-E will give you a better understanding of what’s involved and how a professional planner can assist you. Regardless of whether you are prepared financially or emotionally to send your child off to college, the day the high school says “You’re done, don’t come back,” will be here before you know it. The good news is that there is still time to position your student for success.

Elite? Selective? Competitive?

There are approximately 2,000 non-profit institutions in the U.S. College and university system. There is a specific breakdown of how schools are ranked. Schools such as Stanford, Harvard, MIT, Duke, Vanderbilt, Yale and Pomona are some of the 50 “Elite” schools. Next are ‘Selective’ schools made up of roughly 150 colleges including USC, Cal, UCLA, Santa Clara, Cal Tech, and Pitzer. The third category is made up of approximately 250 ‘Competitive’ colleges such as Pepperdine, USD, Occidental, LMU and UC Davis. The remaining 1,750 are basic, standard colleges, such as state schools and universities. The purpose of this book is to help you align your student’s unique talents and abilities with an elite, selective, or competitive school that will offer attractive admissions and financial aid packages.

For more information regarding the S-A-F-E Way go to:

www.collegewithoutstudentloans.com/safe.html

Chapter 2

SELECTION

Ray was ‘Mr. Everything’ on the football field in high school. He was MVP during his senior year when his high school team won the sectional championship. Recruiters from around the western states courted Ray with the intention of getting him to attend their school and play football.

Besides his ability to play football Ray was a moderately good student with a 3.1 GPA and a 1570 SAT score. As a result he had so many options for college from various schools that he was overwhelmed and not sure how to proceed.

Not sure who to consult Ray sought guidance from his high school coach who urged him to accept a scholarship to attend college in Montana. Ray’s coach had a good friend on the coaching staff in Montana and believed playing for a perennial championship team would offer professional opportunities to Ray in the future.

Ray’s parents preferred he stay close to home and the relatives that supported the family. They had moved to the United States from Samoa when Ray was two years old and had never even travelled outside of southern California. They didn’t clearly understand the difference in schools or what moving to a new location entailed.

Based upon his coach’s recommendation however, Ray accepted the scholarship to attend the University of Montana.

By April of the next year one of Ray’s former high school football coaches saw him working as a box boy at a local grocery store. The coach asked Ray, “Why aren’t you in Montana?”

Ray’s response was, “I missed my family and came home for good.” Living in Montana was a culture shock for Ray without any family support. Most of the years he was growing up Ray would wear tank tops, gym shorts, and tennis shoes. In Montana the climate required layers of clothing Ray was not prepared for and couldn’t afford. Being alone for the first time in his life he became depressed and eventually flunked out of school.

No other decision has such lasting academic and financial impact as the choice of the college your student attends. Most families use emotional criteria such as a school’s proximity to home, school reputation, or even the best football team in order to pick a college and just assume that the student will fit right in. (Remember my mother’s idea that I’d live at home and go to community college?) They are not aware that there are schools out there that will be a good fit due to class size, major offerings, environment, and overall attitude.

In Ray’s case his moving far away coupled with a drastic climate and cultural change proved too much of an adjustment. Yet ...

Table of contents

• Cover
• Half title
• Title
• Copyright
• Dedication
• Contents
• Foreword
• Acknowledgements
• Introduction
• Chapter 1 It’s Arithmetic
• Chapter 2 Selection
• Chapter 3 Acceptence
• Chapter 4 Financial Aid
• Chapter 5 Federal Financial Aid Programs Defined
• Chapter 6 Where’s The Money
• Chapter 7 Set Yourself Apart
• Chapter 8 Execution
• About The Author