Why it’s important to fill out the FAFSA
February 3, 2012

Ian Welham tells why it’s important to fill out the FAFSA form if you want to pay less than sticker price for college

There’s a very good – and amusing – book out called “Crazy U” by Andrew Ferguson that chronicles his family’s journey “through the surreal rituals of college admission.” I recommend it, even if you do nothing more than read the first chapter.

Chapter 1 introduces the reader to a famous (or perhaps I should say infamous) college admissions counselor from New York City. Her full-service “platinum package” of advice and guidance costs $40,000.

That’s not a typo. She indeed charges forty…thousand…dollars. Per student.

What kind of advice does 40 large get you? Here’s one of her pearls of wisdom as quoted in the book: cultivate a strong relationship with one of your teachers so you can get a good letter of recommendation.

That kind of “insider” information is no doubt priceless. In an effort to measure up, let me share with you my own (hopefully more valuable) pearl of wisdom:

Be sure to fill out the financial aid forms, even if you think you make too much money to qualify. Why? Because:

1. it’s free to apply (and you never know)
2. you won’t get low-cost government loans without submitting a FAFSA
3. at some schools you won’t get merit aid without filling out a FAFSA application
4. some colleges are giving parents of high cost-of-living areas such as New Jersey and San Francisco a break

Let me tell you the story of 3 families from the class of 2011. The first father, from our initial meeting, avowed his family would never get any college aid because he made too much money. He got $68,000. A second middle-class family who also expected to get nothing instead got two out of four years paid for. Another family was giddy when they were offered $96,000 in free money.

I can assure you, every one of these families makes a very comfortable six-figure income. In one case, I’m talking over $600,000. This family could even afford to spend $40,000 on college counseling.

But they didn’t have to.

Why the SAT test is no longer the be all and end all it once was
February 1, 2012

Ian Welham gives a different perspective on the SAT test and discusses SAT vs ACT

This is the time of year when high school juniors are prepping to take the SAT test for the first time. Kids tremble at the mere mention of the SAT. Parents are just as timorous – concerned that if Suzie doesn’t get a good SAT score she’s going to be relegated to a factory line the rest of her life.

Let me tell you what some college admissions officers admit privately about the SAT: It’s useless.

Originally, the SAT was designed to predict how well a student will handle college level courses. Does it work? The data are mixed, at best. Many admissions officers don’t believe the SAT accurately assesses a student’s capabilities and potential. Furthermore, they don’t like to be restricted by that one number.

That’s why there are now over 800 colleges and universities who no longer require applicants to submit SAT scores. Schools such as Bates College, Bowdoin, Franklin and Marshall, Wake Forest, and Providence College all have made the SAT optional. (You can find the entire list at: www.FairTest.org )

There’s no doubt, the SAT is still important at some super-elite colleges and universities. But mostly as a competitive credential. These schools get so many applications from A+ students that they need another differentiator to pare down the list.

What if you have a student who doesn’t test well? Here are some options:

1. Concentrate on the 800+ schools that have abolished the SAT from their admission requirements.
2. Find the colleges that give less weight to standardized scores.
3. Try the ACT as an alternative. Many students who struggle with the SAT do significantly better on the ACT. Colleges will accept either score.
4. Take a prep course. Parents have many options here, from one-on-one tutoring to group classes to virtual classes. With our online prep courses we see around a 200-point average increase on the SAT math and reading scores and a 2-4 point average increase on ACT scores (36-point scale).

Why some parents pay more for college than they need to
January 30, 2012

Ian Welham gives an example of how parents end up paying more than they should for college

It always surprises me how many accountants and financial planners come to us for college funding advice. You think they would know how to plan for and pay for college. But the truth is, they don’t get any training in this highly specialized area.

Most financial planners are trained that stocks and mutual funds are the way to save for college. You buy and hold and hope for the best. They don’t realize that, besides being risky, these investments count against you in the financial aid formula. In other words, they reduce the amount of financial aid you might otherwise receive.

It’s not their fault. Accountants and CPA’s are trained to view everything from a tax perspective. Avoiding taxes is their mantra. They don’t realize that it’s sometimes better to pay a little extra in tax for the chance to save much more than that on the college bill.

Recently a husband and wife came to my office. They were both CPA’s. They had not managed to save very much for college, and were nervous about how they were going to fund their children’s education. As we explored various options, I pointed out how we could reduce the family college bill by between $40,000 to $50,000 by implementing various strategies to increase their financial aid away. However, our actions would create a tax bill of approximately $5,000.

Would you invest $5,000 today to reap $40,000 to $50,000 over the next several years? I believe most people would. But to these two CPA’s, the notion of paying “extra” taxes was something they could not bring themselves to do. They couldn’t see the forest through the trees, and as a result, will lose out on college financial aid that rightfully should be theirs.

Sadly, there’s a domino effect that makes the situation 3 times as bad. Because
besides significantly overpaying:

1. they will be forced to take on college loans to pay the bill and be saddled with principal and interest payments for years to come
2. the money needed to pay off the college loans is money that won’t be going towards retirement, thus lowering their retirement savings (they lose out on both the principal and growth of that money over time)

The lesson here is to keep your eye on the big picture. Not doing so can be more costly than you realize.

Parents in Basking Ridge High School
October 3, 2011

Parents in Basking Ridge High School

Over 135 parents came to Basking Ridge High School to hear Ian Welham of Complete College Planning Solutions.

College Planning Workshop Draws Big Crowd in Bridgewater, NJ
May 3, 2011

Bridgewater, NJ families learn the ins and outs of college planning and financial aid.

I had been looking forward to our Bridgewater workshop for a couple of reasons:

1. We always get a good turnout in Bridgewater, and our hints and tips on college planning and college aid are well received (it’s always a polite, attentive and appreciative crowd).
2. We had a new testimonial video we were going to show for the first time, and I was anxious to see the reaction of the audience.

Well, I’m happy to say the first part turned out to be true. We had the perfect sized crowd, and the parents were engaged, enthusiastic, and laughed at my jokes (always a plus).

But in the isn’t-technology-a-joy department, we had a couple glitches. First, the room was too hot. Then it was too cold. Then when it came time to play the exciting new video, the computer decided to get finicky and not cooperate. The audio was fine. We could hear the students and parents perfectly. But the video… yikes, what a garbled mess! To the point where I had to shut it off.

Reminded me of the old saw: “Man makes plans. God laughs.”

Fortunately, the crowd rolled with it, and it didn’t really slow us down. But I REALLY wanted them to see it, because it’s quite excellent, imho.

I have to tip my hat to the staff at the Shimon and Sara Birnbaum Jewish Community Center (where we held the workshop). First, they check on you every 5 minutes to make sure everything is OK. When the room went from too hot to too cold, they kept a staff member in the room until the temperature was exactly the way we wanted it. One of the staff brought her own jacket in and offered to loan it to anyone who was uncomfortable.

They always make us feel at home, cater to our every whim, never rush us out, and basically spoil us compared to some of the other facilities we use. I highly recommend them.

FYI, our next live community workshop, “7 Ways to Get Into College and Never Worry About the Cost,” is Tuesday, May 10th at the JCC MetroWest in West Orange on 760 Northfield Ave. Reserve your seat online at www.myacfa.com or by calling (973) 467-0101. There is no cost to attend. Parents from any town are welcome.

FREE College Workshop in Bridgewater, NJ
April 27, 2011

A free community workshop for parents of college-bound high school students will be held at the Shimon and Sara Birnbaum Jewish Community Center in Bridgewater, on Thursday, April 28 at 7:30 pm. The focus of the workshop is “7 Ways to Get Into College and Never Worry About the Costs,” and reveals what all parents of juniors, sophomores and freshmen need to know as they take on the challenge of applying to, being accepted at and paying for college.

The workshop will be conducted by Ian Welham, one of New Jersey’s leading College Funding Advisors. Topics include:

• The 3 biggest mistakes New Jersey parents make when planning for college that cost them thousands of dollars (and how to avoid them)
• How to pick colleges that will give you the best financial aid packages
• How to get college aid even if you have a “B” student
• How to send your child to a top-tier private university for less than the cost of a state school
• How to pay for college in a failing economy without relying on 529 plans, expensive private student loans or winning the lottery

The workshop also shows how to solve the cash flow crunch of paying for college and saving for retirement at the same time.

Parents from Bridgewater, Bound Brook, Raritan, Somerville, Warren, or any school district are welcome. All families who attend will receive the online version of Cash for College, the best-selling book on college planning and funding, plus a checklist of “The Top 10 Strengths and Experiences Colleges Look For in a High School Student.”

Reservations are suggested because seating is limited and this workshop fills up quickly. Reserve your seat online at www.myacfa.com or by calling (973) 467-0101. There is no cost to attend. The Shimon and Sara Birnbaum Jewish Community Center is located at 775 Talamini Road in Bridgewater. Attendees are invited to bring a friend.

Parents listen to Ian Welham discuss college financial aid and college admissions at a recent Complete College Planning Solutions workshop.

Trend: College Students Turn to Social Media to Find Jobs
April 13, 2011

Ian Welham discussed the Twitterization of college job searches on college campuses

I supposed this should come as no surprise considering we live in the age of Facebook and Twitter.

In the olden days (2009), companies would send recruiters to college campuses, and students would sign up for interviews. The system worked great for both sides. Companies had a chance to interview hundreds of potential employees at one place, in a short time. College students had a chance, over the course of their senior year, to meet with lots of companies and (hopefully) receive a range of offers.

This process continues apace at hundreds of universities across the country. But according to a recent USAToday article, today’s college grads are not relying solely on the university’s job placement office to seek employment. They’re taking a more active role, using social media to find their dream jobs.

Facebook, LinkedIn and Twitter are the tools du jour. Almost 28% of college students plan to use LinkedIn to find work, for example – an increase of over 500% since last year.

Students find out information on companies by visiting their websites and Facebook pages, and stay current via Twitter updates. LinkedIn profiles are tapped for possible contacts and connections. Comments by past and current employees on job-oriented websites also serve as a source of information.

In 2010, UPS used social media to land 955 new employees. In 2009, it hired 29 employees through social media.

Whether companies hire via the old-fashioned college campus interview or via social media, here’s the best news: According to the National Association of Colleges and Employers, “more than half of employers expect a rise in college hiring this year.”

That calls for a Tweet.

FREE College Workshop in Clark, NJ
April 11, 2011

A free community workshop for parents of college-bound high school students will be held at the Clark Public Library in Clark, on Thursday, April 14 at 7:30 pm. The focus of the workshop is “7 Ways to Get Into College and Never Worry About the Costs,” and reveals what all parents of juniors, sophomores and freshmen need to know as they take on the challenge of applying to, being accepted at and paying for college.

The workshop will be conducted by Ian Welham, one of New Jersey’s leading College Funding Advisors. Topics include:

• The 3 biggest mistakes New Jersey parents make when planning for college that cost them thousands of dollars (and how to avoid them)
• How to pick colleges that will give you the best financial aid packages
• How to get college aid even if you have a “B” student
• How to send your child to a top-tier private university for less than the cost of a state school
• How to pay for college in a failing economy without relying on 529 plans, expensive private student loans or winning the lottery

The workshop also shows how to solve the cash flow crunch of paying for college and saving for retirement at the same time.

Parents from Clark, Cranford, Scotch Plains, Fanwood, Westfield, or any school district are welcome. All families who attend will receive the online version of Cash for College, the best-selling book on college planning and funding, plus a checklist of “The Top 10 Strengths and Experiences Colleges Look For in a High School Student.”

Reservations are suggested because seating is limited and this workshop fills up quickly. Reserve your seat online at www.myacfa.com or by calling (973) 467-0101. There is no cost to attend. The Clark Public Library is located at 303 Westfield Avenue in Clark. Attendees are invited to bring a friend.

Parents at a recent Complete College Planning Solutions workshop learning the ins and outs of college admissions and college financial aid

Beware Potential New College Financial Aid Scam
April 8, 2011

Ian Welham alerts parents of college-bound high school seniors and college students about a potential new college financial aid scam

Here’s a heads up for you…

It has come to my attention that a growing number of high school seniors and college students have been receiving a letter, via postal mail, from a group calling themselves the College Financial Advisory. They are requesting $59.00 to process an application for additional financial aid.

Unsuspecting parents may be duped because the letter may include some personal information, such as your name and college choice. And they use “official” language, such as FILING STATUS: Pending. The letter looks and sounds official and refers to a “Student Aid Profile Form” that needs to be submitted to request additional aid.

Let me be clear: no college needs this form. Therefore, we recommend you do not fill out this form. It is unnecessary.

From what I can tell, all they seem to do to justify the $59 cost is a scholarship search – the same kind of scholarship search you can do yourself online, for free, at any number of websites including ours.

To see a copy of this form (so you know what to look out for), click on the image below. If you receive it in the mail, you can simply throw it away or shred it. Virginia Tech was warning parents and college students about this weeks ago. Here’s what Virginia Tech reported: http://www.collegiatetimes.com/stories/10682/potential-aidscam-targets-tech-students

College Workshop at Chatham, NJ Library a Success
April 1, 2011

Parents at Chatham, NJ library learning about college planning and college financial aid.

Despite the fact that the seats were a little far away and the infrared projector pointer was on the fritz, the workshop at the Chatham, NJ public library was a success.

Around 40 parents — I also spotted at least one student — attended, to learn about college planning, college financial aid, and smart ways to pay for college. I always enjoy speaking at the Chatham library. The facilities are excellent, and the staff is very helpful and professional.

There’s an old saying that the teacher always learns more than the students. Well I learned something new last night that I found very interesting. One of the parents in attendance told us about an exciting new major being offered at Penn State-Altoona.

It’s called Rail and Transit Engineering (RTE), and combines civil engineering courses with new, customized courses in rail business, mechanical systems, track, operations, communications, and regulation. Altoona has always been knows as a hub for railroading, so Penn State-Altoona seems like the perfect place for such an unique program.

I understand Warren Buffet is a big fan of railroads, so this might be an interesting major to pursue for you engineering wannabes out there.

BTW, our next live community workshop, “7 Ways to Get Into College and Never Worry About the Cost,” is Thursday, April 14th at the Clark Public Library on 303 Westfield Avenue. Reserve your seat online at www.myacfa.com or by calling (973) 467-0101. There is no cost to attend. Parents from any town are welcome.