Becoming Who You Want To Be

Mistake #6: Not understanding the difference between “included assets” and “unincluded assets” for purposes of filling out financial aid forms.

Reality: Some assets are counted differently than others in financial aid formulas. All included and asked on Federal Financial Aid are; savings accounts, CD’s, and stocks and bonds. The said form does not actually ask about value of annuities or any cash-value insurance.

Mistake #7: How you keep your money is not important; it’s still going to be counted the same.

Reality: The truth is not far behind. The place where you keep your money can actually spell the difference between getting $10,000 in financial aid or none at all. An example would be, money under a child’s name is more heavily than money under the parent’s name.

Not knowing how to put your money into good use for financial aid purposes can costs you to end up losing thousands of dollars in financial aid that you might actually deserve.

Mistake #8: Having a CPA or tax preparer fill out forms for financial aid for you. having them do it for you.

Reality: Unfortunately, CPA’s and tax preparers are experts at tax planning and preparation – not financial aid planning. For example, a CPA or tax preparer might suggest that you put some or all of your assets in your child’s name to save money on taxes. While this advice is well meaning, it will usually kill most or all of your chances of getting financial aid.

Also, CPA’s and tax preparers are not trained in filling out financial aid forms. In many cases, they will unknowingly fill out these forms improperly (i.e., using pen instead of pencil, using white-out to cover mistakes, omitting social security numbers, etc.). These “minor” mistakes will bump your financial aid forms back to the dreaded “bottom of the pile.”

If your forms are filled out wrongly, you would need to re-submit them all over again and you will lose a thousands of money, since, the financial aid is a first come, first served basis. However, properly filled out forms will be considered first and will belong to the “top of the pile” consideration.

Mistake #9: Waiting until January or even worse after January of your child’s senior year of high school to start working on your college financial aid planning.

Reality: Your financial aid is based from your previous year’s income and assets, and it’s better for you to start planning as soon as possible before January of your child’s senior year. You can actually maximize your eligibility for financial aid by legally setting up your income and assets. Work on his one year in advance, usually at the beginning of your child’s Junior year in high school.

Waiting longer and getting closer to your child’s senior year, is tough when trying to set up your financial aid, you create a “red flag” fort he college and universities. Know your “Expected Family Contribution” before starting to save.

And, you should also know which schools can give you the best packages before you start visiting and applying to them. My advice is if you haven’t started planning, DO IT NOW!

Mistake #10: Doing the Financial Aid Process by yourself because you can save money that way.

Reality: If you are most likely to be guilty of these, then colleges and Federal government will have a wonderful day, they will surely love you! here are the reasons why.

This would have them control instead of you the parent, you must understand how it really works and take control of it. It’s always a fact that we constantly go to a doctor when we get sick, go to a lawyer when we get sued, but then I cannot understand it when we wanted to send our child to college, and would readily spend $10,000-$45,000 per year, we wanted to save money and do it ourselves without any help.

What do I mean? Well, thanks to the complicated system that grew up – a blend of federal and government bureaucracy, mixed in with involvement of private, for-profit and non-profit enterprises, a maze of rules, deadlines, regulations and other complications resulted. Bottom line: it ain’t easy to figure this stuff out!

you must spend 5-10 years of your life studying and understanding the financial aid process, there is no way for you to know hoe to get the maximum amount of money from each school. You’ll spend hours trying to figure it out, if you try to do it yourself. You have to quit your day time job, If you want it done.

The moral to this story: “Don’t Be Penny Wise And Dollar Foolish!” retain the services of a bona fide expert to help you through this process! Typically, the cost of your investment returns a multiple of profit in the way of college aid that you never could have obtained as a “do-it-yourself!

To know exactly how I can help you with financial aid for college, visit my website about Tips for collefge in Illinois and get a FREE Report: “How to Pay For College Without Going Broke”