Your Questions Answered - How Do We Get More Money For College?
<music> welcome to afford in college with aaron green founder and president of college liftoff. Thanks thirty guy so welcome to foreign college. I'm aaron greenhouse of affording college and founder of college liftoff colors of college planning firm. I started to provide solutions for anybody. Nobody in everybody that's going through college. Planning has college planning needs. Our mission is to secure teens brightest future and save them and their families thousands of dollars in the process. Yes we work with teams. Throughout the entire college planning process starting with personalized one on one critical element work from there we find the best schools to match our students chosen career paths hats and interest then offer support throughout the entire mission's process next we work with families budgets to find the price that makes the most sense for their kids education all while ensuring ensuring it's the right fit today. We are ohio's premiere college planning firm. I'm happy to say that we're shooting for the world by the way and we strive to save time stress and money when it comes to your child's else higher education so that's a little background on myself and college liftoff. I do this podcast. I really wanna family some solid advice when it comes to planning for college in higher education because there's so much misinformation out there. The purpose of this podcast is to dispel the mets and misinformation really help families so every so often we get questions from the audience through our website and through facebook and twitter anything like that <hes> just asking questions about college. Just anything on your mind that you may want answered and we love to answer them. <hes> so i'm sitting here with allison page and alex typically sees these questions i so without we bring to the table and just be able to answer answer some through ooh yeah this summer. We have seen a lot of questions. Thank you for submitting <hes> but one of the questions <hes> that we've seen most <music> as of late as the summer is winding down it are actually from <hes> the parents of students that are college college bound so recently. We've been seeing a lot of questions from parents <hes> saying you know hey. My kid is already committed headed to college. They're going in the fall. How do we get more money now. Yeah okay okay so this is. This is a harder topic to tackle because the truth is there's no good answer and it's again as i've talk talk about an all pass podcasts of how this process likened house it think of the concept of you bought a house and you see something that happened or something thing went wrong or nothing and you just like you know what i think. I want more money off of this. That's not gonna happen. You've already bought the house you've already. You've already gone through closing closing. You've already done all that. There's no reason for the seller at all at that point to go back and give you anything else. <hes> i really wanna make sure so that people understand what they're doing when they when they buy college you're buying college and i mean that i want you to understand that that is the full aspect of this. You've gone to the school. You picked it. This isn't something that it's not it. It's schools are nonprofits and twisted. They do their best but they're in business awesome business tomorrow and in that same vein. They're not gonna give you really anything else. You've you've already bought them based off of the deal that you've already agreed to which is is the financial aid package that you accepted. When you sign on the dotted line to come to that school. There is potential for more scholarships through other methods and now mind you these are small. These are not gonna by any measure cover tuition cover room and board for the vast majority of schools. You're looking at things that you know maybe two or three thousand thousand dollars here from your department as you go further on into school because in your department whatever you're going to school for <hes> as you gradually get older meaning <music> as you get into your software especially junior specially senior year and your student in that specific department that degree your more dedicated to that major so the individual apartments or colleges the college nearing his more willing to give you money to help you with your education because now you're full-fledged engineering student versus. If you're an incoming freshman shman fifty percent of incoming major changer a fifty percent of incoming freshman change a major but in the whole aspect of it the majority of money you get for college comes to admissions missions so when you apply to a school you do the fast food you do all the things you start getting financial aid offers and this is why i really really encourage you guys as an audience pay attention to the financial aspects just as much as you do to the other ends whether it be the academic the fifth pieces the financials justice just as important because we run into these situations all the time where you have to see what the financial package looks like before you signed dotted line for the school again house comparison. You're not going to go buy a house without seeing the price tag. You're not gonna go out there and just say oh give me that one and now all of a sudden. It's an eight hundred thousand dollar house with a four thousand dollar mortgage per month and your last homeless two hundred and fifty thousand dollars. That's not going to happen. You have to do this in the same way the system the situation is set up that that you can do it that way. Though that kid falls in love with the school you go visit you apply you get in by by holloway or by christmas. You say yes on january first your financial. The packers will show up until april but you're stuck and especially if you go through early decision you're really stuck so you have to do your financial due diligence at the beginning. There's really not a good method or way to make up for it down the road and my pagent raining here but i guess but what are your thoughts. I mean honestly other than <hes> <hes> submitting like special circumstances so say you've said yes. It was april. We've all agreed. This is the package that we're getting. I'm off to you college you in the fall and then their special circumstances. Maybe a an illness or a job loss or something you could submit and ask for <hes> some additional accommodation but other than that. I think you really just need to look forward to the next fafsa which is again october first. The new fafsa graphs will open. You'll you'll fill up again for your next year of school. <hes> you can try to look for additional moneys. You can indicate a change in circumstance or <hes> you know you can do more of the work to look for additional scholarships and things like that but i honestly by the time we get you. August rest is really too late to do much of anything to change your financial outcome by the time you may. It's too late honestly. If you have a financial situation that has abruptly changed then you do absolutely submit the it's called the special circumstances form goes to the financial aid department right there on that spot or something abruptly happens if you knew ooh this job loss was a thing six months before you need to submit that special circumstances form six months before when you submit that application so that way that can be written into your financial aid package going forward and you can still check on it then that's why it's so important to govern this process with logic and thought and reason not emotion not strictly emotion <hes> and now your kid wants to go to school acts. Are you and i know that this is beautiful and your parents or whatever the reasons reasons are that we sometimes chew schools emotionally. We've got to take a bigger step back because they're asking for an annual salary out of you. They really are and or four years. That's the house that you've just bought. That's why compared to off into that. So you have to be really on top of that again. The things you can do their small they make a difference france on a small scale. I mean i'm talking. Factors of five ten percent of wichita struck shar <unk> search has form. If you need it always do the fast food ah but you know from the previous year if that's gonna make a difference or not anyway <hes> and go to your departments within the school and try to see if they can apply and get something for you as well. If it's too much of a heavy burden <hes> the truth is and again. This is coming from an honest perspective. You really may have to consider swapping tools that it really may be your next and community. Colleges are wonderful tools tools to be able to kind of reduce costs and do the same coursework in order to get back to that same university to finish out your degree set in the end. It's all about where you finish your degree somewhere you started. Let's start at anywhere. What about a gap year are sometimes a gap year is helpful. Sometimes i feel that most people use a gap year. At least you can correct me if i'm wrong because you hear different things for different people and it's all of it. I hear a lot of people say oh go. Use a gap your figure out what you wanna do. That doesn't teach you what you wanna do but what about a gap year to in order to address this financial issue yeah so sal. The problem is for the gap year. Is that in order to a gap your effectively. You have to do the exact same process in your seniors. Everybody else does she have to apply and you have to do all the financial things you should be doing that at the beginning anyway and then once you get your deal set with at school then you tell the school. I'm taking a gap year the package. That's the way effectively done. If you decide to delay applying to a school that's different if you decide to delay applying until the next year the truth is your marketability is vastly deteriorated. So what about these families though who are saying. Can you help us gets. We're getting ready to send her kid off to school and we figured out that we're short does a gap year makes sense while they kind of figure things out. I mean i know a lot of our families might say not a alive but families may say well you know here she could work for the ear puts money away and then i mean does that make sense for our kids we'd be. I think there's a lot of things that have to like a a big list of chip of checks that we have to go through. Yes nos one is their financial aid package secure that actually be held for the next year where if we actually go make more money this will help and we can shorten our time and i think that's one thing that might not be the case. You're saying it might not be <hes> if they may say well. If you didn't show up then gone <hes> so you have to see what's going on there. <hes> i wouldn't say do a gap here. I would really if the gap here's the thing for time and money. I would go work and go to community college to be honest us with because this is an easy math problem in the sense english one. Oh one every freshman is basically going to take a version of its usually a three to two five credit hour course at a private school in this country a on average that per credit hour costs is thirteen hundred dollars at a state school. When you live on campus it's six hundred sixty dollars again multiple by three or five credit hours in both cases at a community college. It's about one hundred ten so in the same class in a sustained glass it'll transform backwards and forwards between all options and honestly at a community college you are more likely what happened with the professor then at a larger school. Sometimes i know all of my courses like all of my gen. Eds were taught typically by graduate students. Just that's great. I got some great experiences that way too but you know i mean i think it was really helpful that i took a chemistry class with chemistry professor who had been teaching chemistry three for a long time but i took it during the summer at community college so and your your your degree to education so chemistry wasn't really a part of your degree theresa so you didn't need it right per se but you had to fulfil a credit so that makes it even better so truthfully. The mathworks almost better if the kid could doesn't work and just goes to community college because the truth is you're going to be more cost effective by knocking out the coursework on the cheap versus making more money to go so to keep these things in mind. I think these are things that we may want to think about another not popular but at the same time these if you're in that position this these are the options that are left on the table. I mean i was looking down the barrel of too much debt for my kid to go off to dream school number one i mean it's something that we would talk talk about really seriously so i just can't even imagine speaking of somebody who did just pay my student loans off this weekend. After twenty twenty years after my husband finish finish graduates cool speak day. It was kind of like burning a mortgage which really hasn't happened yet but yet now. I can't even imagine decided well. We'll figure it out or we'll just we'll deal with the debt this year we'll try to we'll try to make it better next year. You're setting yourself up for a really long painful road. Uh and i want to acknowledge to that. Nobody towels parents this in advance. You know nobody. Nobody is here well. That's why we're here. That's why we exist really to help guide parents and students through this process because nobody else university is not going to tell you to you. Know have all like your financial situation. Relation really figured out before you accept the just want your money. You know nobody. Nobody is your kids. High school is telling you. This probably not right. No no no because it's funny where in this is a little sidetracking but it'll make sense for that comment the majority of clients we get come from almost financial advisers because of the reason that you just stated the question is pain pain points right who actually feels the pain points guidance counselor's really don't feel it because once your kid has done with their senior high school they're done over like they move onto the next step. <hes> the parents don't fully in most cases as we're talking about. The financial difficulties of this interestingly is the financial advising world whether seeing parents liquidating retirement assets that can send kids to school are feeling the real brunt of this pain and we're seeing what the financial implications of this thing looks like long term so they come to us and say help us with our families figure this out because we can't have them liquidate two hundred thousand dollars per kidney got three kids. They're retire. Their retirement is gone if they do that so we work with and say okay well. The truth is spending forty thousand dollars in total for this education based off the vibe that agree based off of the work we've done we set it negotiated. We do all the things we need to in order to make that work before and now we've saved a hundred sixty thousand dollars per kid and that's a doable thing but that's why you have to do that stuff well before and that's hard and that's why we have this podcast to to try and help people fault because there really aren't enough advocate for parents out there and i keep saying it but it's true schools are invisible tomorrow and they do a lot of things that i don't particularly love in the financial way of this and we have kids seventeen or eighteen sign off and more debt than your house is worth with with a swipe of a signature a blink of an eye when the truth is it takes what forty signed documents three witnesses to get a mortgage in this country. So what are we talking about. Here is somebody at some point is gonna wake up to this and be like oh my goodness. I can't believe we're doing this and striping our kids to this responsibility when when nobody really knows what's going on. That's what we're trying to blow this out there and say like oh this is this is what's happening with folks like or parents so i mean i know it's is one thing when we talk. We talk a lot about student loan debt and for the students but parents take on debt just as quickly and the terms are usually less friendly right. There's the interest rate is usually higher or they're they do things like pilfer their own retirement or take equity out of their house or borrow from a relative with the assumption that they're going to pay back but there's a huge cost and it i get it like in in hanging out with other their parents. There is a lot of pressure to be able to say yeah. I'm sending my kid to a great school. And of course you know like everybody else on. The street has their kids banner out on the front line on. I think people feel a little anxious about it but that's one of the reasons. I like what we do because a we're going to help you manage your cost to. We're gonna make sure that you feel really good about the school that you are going to because it's the right school for you and we can find you the right school whether you want to go spend close to eighty thousand dollars at <hes> chicago right now al like they just you just just beneath the eighty mark. That was big news last week or you decide that you're going to go to an in-state school that that offers you. The kind of great programming and traffic stayed that will make it possible for you to get a great education at a reasonable price or even a small privates will do the same thing ah honestly and totally harley munis go listen arrest of our podcast. 'cause we talk in depth about how that is. The linchpin finding the right school for the right person on all those pieces is because these are the situations. We don't want to end up in where you're kind of feeling like. You're bent over a barrel in the sense of you know. Johnny just loves it there and now we have to go live in an apartment which i'd say that we know situations where that's happened whether decided to give up well more more than they should. In order to make johnny or jessica really happy about college choice and we have a is part of the bigger contract for a problem that we have in our one on saturday just delayed gratification about things. Sometimes you just gotta be patient. You know yeah you really want to go to do kosonen five thousand analogy year. Maybe go for two years not for you know what i mean graduate school or graduate school or they help you pay for it. Exactly there are plenty of ways to get there air. It may not be the best to go there tomorrow. You just have to look at it and see what's going on. I know you know it's your it's like we've turned it into disneyworld like you've got to be there. Oh my gosh you're going to pay anything but really this is more expensive than we really want to recognize and if we don't it's it's the it's i can't even describe how bad it's going to be further financial future right not to besmirch duke or chicago or any any of the other terrific schools but john. It's got to be the best fit for your family but house mixer us all the right tools for it. Make sure you biologically make sure you buy it with reason then and then of course mature happy there but it's got all those things have to be men. Don't wanna make sure it's the right choice so as always listeners feel free to submit submit your questions to hello at college liftoff dot com <hes> or you can visit our website and write to us through our website or website is college liftoff half dot com college liftoff can help empower you to make college affordable for your student. If you want to learn more about your options aaron will be responding directly to your email email him a question at erin at college liftoff dot com. Thanks for listening to affording college with aaron green of college liftoff if you'd like more for information visit college liftoff dot com.