Zoom Logo

McLean School: Little-Known Secrets of Paying for College - Shared screen with speaker view
Jimmy Hicks
17:08
During tonight's presentation, feel welcome to ask any questions you might have here in the Chat box. Thanks!
Jimmy Hicks
29:44
Hi Lindsay. I'd be happy to chat with you offline about different private loan options. Parent Plus loans are convenient, but typically have a high loan origination fee and an interest rate that could be higher than other alternatives.
Jimmy Hicks
31:24
@cheryl amitay: Hi Cheryl. Financial aid can be either needs based or merit based. Grants are typically needs based and eligibility would be based on the family's income and assets that are reported on the FAFSA and/or CSS Profile, Institutional forms, etc.
Nadine Shrager
39:27
Where do you look for scholarships to apply to?
Andrea Daney
39:46
Ditto!
Jimmy Hicks
41:25
Regarding scholarship opportunities, please visit our "Resources" page on our website and you'll see a section for Scholarships there: https://www.thecollegefundingcoach.org/get-help/resources/
Jimmy Hicks
41:55
Hi Cheryl, great question. Parents are allowed a significant allowance for assets that are "assessable" for the purposes of the FAFSA, and that allowance is determined by the age of the oldest parent. The student, however, does not receive any allowance whatsoever for assessable assets. If planning for maximum financial aid eligibility on a needs basis, it is thus wise to avoid have significant savings and an assessable account owned by the student, if possible.
Jimmy Hicks
44:21
Hi Merritt, thanks for your questions. Merit based and needs based grants don't ever have to be paid back. These are truly "other people's money" that will help pay for your student.
Jimmy Hicks
48:40
Hi Sarah, thanks for your question. I personally like the Roth IRA for its flexibility since a 529 is not necessarily efficient for anything besides education. Depending on a family's situation, a Roth IRA can be a good alternative. The only real downside, however, is that you won't receive state income tax deductions for contributions to a Roth IRA (like you would using your state's 529 plan) and there are income limitations for contributions. To learn more about using Roth IRAs for college funding, please read my Blog on this topic by clicking the following link: https://www.thecollegefundingcoach.org/stuck-in-the-middle-how-roth-iras-can-be-used-for-college-funding/
Andrea Ashton
51:13
1. Websites for scholarships:www.FASTWEB.comwww.meritaid.comwww.CollegeBoard.orgwww.ed.gov/finaidwww.finaid.org2. Ten Twitter Handles for scholarship searches:@FAFSA@PayingforSchool (fastweb)@CollegeBoard@volunTEENnation@CollegeNet@DebtFreeScholar@CollegeWeekLive@scholarshipscom@USNewsEducation@ScholAmerica3. Scholarship Safety• Never give out personal/financial information to someone calling your home.• NEVER PAY any fees for a scholarship.• Check with the BBB or run a check on Google to make sure the group, organization or business is legitimate.• Make certain you are applying for a scholarship not a loan.• Beware of scams that try to imitate Government agencies and use terms such as Federal, National and Foundation.
Jimmy Hicks
51:17
Hi Anita - Brock is referencing mainly need based financial aid on this slide, especially for the more elite schools (i.e. Harvard, etc.). If a school really wants to attract a student to attend their school and has the money to give, that would be merit aid.
Jimmy Hicks
57:21
Hi Lisa, thanks for your question. Scholarships are typically based on merit (i.e. academic, athletic, etc.) , but can also be based on financial need. Andrea just shared a great list of scholarship search tools online, which would be a great start. Consider perhaps offering your student 20 cents for every dollar she earns in scholarship $$$!
Jimmy Hicks
59:01
Hi Cheryl, good question. For families completing the FAFSA this fall for the 2021 academic year, the income will be based on one's 2019 tax return. In short, the FAFSA uses the "prior prior year" for its income calculation. The assets are a snapshot at the time the FAFSA is completed.
Jimmy Hicks
01:00:31
Hi Andrea, thanks for your question. Unfortunately, K-12 private school tuition is not factored into the total EFC. In other words, that expense will not help your family's aid eligibility.
Jimmy Hicks
01:04:09
Hi Anita, thanks for your question. Community colleges in our area thankfully are excellent and some of the best in the country. As far as I know, a student's academic performance, skills/talents, creativity, etc. that is demonstrated on the scholarship application is what will most likely be evaluated. In short, scholarships are awarded to the best applicant/candidate and the fact that one attends community college alone does not necessarily help or hurt one's chances.
Jimmy Hicks
01:08:24
There exists a tuition reciprocity program for schools in our geographical area called the Academic Common Market. If your student wants to pursue an area of study that is not offered by a public college or university in your home state, but is offered in another state's public college or university, your student may be eligible for tuition reciprocity. To learn more about the rules for the state of Maryland, for example, please visit the following website: https://mhec.maryland.gov/institutions_training/Pages/acadaff/commonmarket.aspx
Jimmy Hicks
01:09:42
Hi Heather, thanks for the feedback, and we are very sorry for the technical difficulties. I recommend that you use the "Big Future" EFC calculator offered through the College Board's website. Please click the following link to be taken there directly: https://bigfuture.collegeboard.org/pay-for-college/paying-your-share/expected-family-contribution-calculator
Jimmy Hicks
01:11:59
Hi T. We'd be happy to share this chat with you, and you'll have an opportunity at the end of this webinar to submit your request to us for follow-up. Thanks, and please stay tuned for more details soon from Brock on the next steps. Thank you.
Jimmy Hicks
01:14:22
Hi Ivette, thanks for your message. I personally love Scholly and believe it to be one of the most comprehensive algorithms available for targeted scholarship searches. Scholly, however, is not free and there are lots of wonderful, free scholarship tools available (i.e. Sallie Mae, scholarships.com, etc.).
Andrea Ashton
01:14:58
https://www.thecollegefundingcoach.org/get-help/resources/sallie-mae-scholarship-tool/
Andrea Ashton
01:15:37
We have the Sallie Mae Scholarship tool on our site. Unigo is lalso reported to be a very good site.
Jimmy Hicks
01:17:15
Hi Lisa, thanks for your question. I would be happy to help you research tuition reciprocity opportunities for your daughter offline to be sure she meets the Academic Common Market's eligibility requirements. Let's connect on this soon....
Andrea Ashton
01:20:47
The Retirement Savings Time Bomb by Ed Slott
Jimmy Hicks
01:26:33
Thank you all for attending tonight's webinar!
Jimmy Hicks
01:32:47
Hi Lisa, thanks for asking. We would be happy to share the recording and the slides with you. When you complete the survey, we'll be sure you get the recording and slides. Thanks!
Jimmy Hicks
01:33:18
Hi Mary Beth. To learn more about college endowments, please visit www.nacubo.org
Andrea Ashton
01:33:19
The webinar will be "On Demand" on our website.
Andrea Ashton
01:33:25
https://nces.ed.gov/fastfacts/display.asp?id=73
Andrea Ashton
01:33:44
Endowment more info
Jimmy Hicks
01:35:29
Correction: please visit Wikipedia for the endowment information (published by NACUBO).
Jimmy Hicks
01:37:00
Hi Lisa. Once you log off, the survey will automatically pop up. Thanks for attending, and have a good night!
Jimmy Hicks
01:38:22
Hi Kiki, thanks for your questions. Great question, and we would be happy to help you consider all the options that are available. To Brock's point, it would first help to know whether or not there is need based eligibility. If there is room for aid eligibility, there are strategies we can share with you that may help.
Jimmy Hicks
01:38:45
Hi Zambia, thanks for your interest, and we will be in touch soon with the next steps. Have a good night!
Andrea Ashton
01:39:04
Great interaction!