College Tuition funding assistance agencies

[gismo]

I sat through a webinar on college tuition planning and subsequently had a 1 hour teleconference with an agent of the webinar provider. They claim that they can save me $8-10k per year at most of the universities my daughter is interested in attending. She's at the top of her class (currently a Junior) despite taking as many AP courses she could so we were hoping she'd qualify for merit based aid but it appears that most of the good schools only offer needs based aid which I'm going to have difficulty qualifying for (unless I remain unemployed much longer). The cost of this program is $1500 up front plus another $30/mo as long as you continue to use their service. They do offer a full refund if you're not satisfied but there's a time limit on that which might preclude knowing if the claimed savings materialized.

I'm wondering if any PoA folks have used such a service and if it was worth it.

 

[Clark1961]

As a former prof at a public university, I can offer some insight into the scholarship process at the department level. Basically, the awards are based on professor familiarity and academic performance and the money is awarded based on seniority in the program. No third party has a hope of interceding in that process.

The needs based awards given on a university level seem to be based on the federal numbers filed by the student/parent. That aid seems to "go away" after the freshman year. Hey, they gotcha hooked so their job is done.

So what happens with a good student is the first year they may get help on a needs basis. The second year they are on their own (but the school will offer loans). The third and fourth years they may see support from their department.

I have no idea how private schools work.

 

[ScottM]

we were hoping she'd qualify for merit based aid but it appears that most of the good schools only offer needs based aid

Not true. My niece and I have both qualified for merit based aid. I am back at college doing a master's degree and even with my salary I was able to finagle $5500 in merit based last semester. I was just offered a chance for some additional aid but due to non-compete clauses with my present employer I had to turn it down.

The cost of this program is $1500 up front plus another $30/mo as long as you continue to use their service.

My spidey senses are telling me scam'

 

[CJones]

Start searching online for grants and scholarships. When I started college back in 1998, we had to go buy books that were like a 'yellow pages' of scholarships. There are TONS of 'private' scholarships floating around out there that sometimes go un-used because they don't have access to advertising. Check with your religious organization, local civic organizations, private trusts, etc. Most of the private scholarships simply require an essay and maybe an interview. Stack up several of the $500-$1000/yr scholarships and you can make a dent in things pretty quick. I'm guessing this 'service' is doing this research for you and maybe providing some insight into what each particular scholarship is really looking for in their applicants to help you adjust the applications accordingly.

I'm not a big fan of services like this one. As a junior in high school, it became apparent that I had the opportunity to play basketball at the college level. We weren't the only ones that noticed. A local 'athletic promotion' guy came and made a schpeel about how he could get me more exposure to colleges because he 'knew what he was doing'. We were gullible and didn't want to miss out on an opportunity for college sports, so we signed up. Never saw the guy again. Every once in a while I would get a cookie-cutter survey from some obscure school in central Tennessee, but the 'real' communications I got were from schools that I did the leg work and made a promo video of myself and sent it in.

As for needs-based, I can pretty much guarantee you are hosed. When I started back to school a few years ago, I was making about $47-50k/year. Even that was too much income for me to qualify for 'needs-based' financial aid, so I ended up doing Stafford Loans instead. Of course, my last year in school (after a full tax year of being in school), I was eligible for the $500/semester Pell Grant.

Another option is to get her playing golf. It seems there are always athletic scholarships open for women's golf and due to the low popularity of women's golf in high school, the competition usually isn't very tough.

 

[Gary]

I'm wondering if any PoA folks have used such a service and if it was worth it.

My experience with these "services" is limited only to the efforts for my two kids, so the value of my opinion is worth only what you are paying for it.

As far as need-based aid, this is largely based on the FAFSA form and the information you provide to the individual colleges. It's my opinion that it's a pretty prescribed process although most schools will talk to you about your individual situation. I've never believed these services offer a whole lot of added benefit.

For merit based aid, this is a whole different ballgame. Each school has their own process and I've never figured out just how they do it. I seriously doubt that any of these "services" will be much help. You really won't know if your daughter will get merit aid until she applies. If she is a good student, shows a lot of interest in the school and is a good fit for the school, you may be surprised at the level of interest that the school shows in having her attend. At least for private schools, they really do want to attract good students, and they will work with you to help with merit aid. You really don't need a "service" to help with this.

Gary

 

[Matthew]

Our high school councellors always said "Be careful about paying for scholarships". There are a couple of scholarship search sites out there (can't remember them right now) that are free and legitimate. You can check in your high school office if you have questions, they've seen it all.

I have one in college and another starting in the fall. Since your daughter is a jr, you can save a lot of money by taking qualifying classses at a juco, or as a dual enrollment student next year in HS. You'll get the juco prices, and can count those classes as college credit. Make sure to verify the classes will count, though.

 

[AggieMike88]

I would caution the OP not sign up for this service. It smells as bad as the United First Financial Money Merge software/system. And you could likely wind up spending $3000-4000 for something you and your daughter could accomplish yourselves for less than the costs of a few book purchases and some stamps.

Whenever I have a question regarding big dollars, I always turn to one of my favorite financial counselors, Dave Ramsey. Because of his conservative, "tortoise always wins", and "I've seen just about every consumer scam out there" approach, his information is always worth looking at, and following.

A search on his website for "Scholarships" turned up this page, and the following two quotes are the top two results. I would encourage reading these two and the rest of the search results.

Also, it's a free call into Dave's Radio show. And he always welcomes questions like this that don't come up that often.

From the Dave Ramsey Website:

How do I find scholarships and grants?

Dave suggests getting one or all of these books to help find financial support for college:

The Scholarship Book by Daniel Cassidy
Free Money from Colleges and Universities by Laurie Blum
Winning Scholarships for College by Marianne Ragins​

You might also approach your church. If you're a student that has been active within the church, you may be eligible for some assistance. Also, depending on your field of study, you may be able to find a business to sponsor an internship. Dave says, "I worked two campus jobs and a work-study program to pay my way through college. I also worked with 'gazelle intensity' during the summers." Try some of these unique ideas to increase those gifts and grants.

This article should be helpful for everyone who is reading this thread and is wondering how to save money for college.

How to Send Your Kid to College Without a Loan
from daveramsey.com on 27 Mar 2008

Even though a college degree doesn't guarantee anyone a job or success, it can still be a great foundation for a successful career. But in order to send your kid to college, don't make the mistake of getting college loans.

Going into debt for college is a huge mistake, and a student loan will stay with your kid for years— so long, in fact, that the loan will become a family pet!

I want you and your family to be debt free, so here are three proven ways to send your child to college without going into debt:

1. Open an Educational Savings Account.
   An Educational Savings Account (ESA) grows tax-free when used for higher education. You should fund the ESA in a growth-stock mutual fund. Right now, you can only invest up to $2,000 per year, per child, if your household income is under $200,000 per year.
   
   How helpful can an ESA be? I'll show you. If you start investing just $166.67 per month ($2,000/year) from your child's birth to age 18 through an ESA averaging 12%, you would have $126,000 tax-free. That's great for most schools with inflation factored in!
   
   
2. Start a 529 Plan.
   If your income rules you out of opening an ESA or you need to save more than an ESA allows, you may want to look into a 529 plan. 529s are state-school plans, but most allow you to use the money at any college. (That means you can save in New Hampshire's 529 plan and go to college in Kansas.)
   
   There are many 529 plans out there but the best type is a flexible 529. Flexible 529s give you more control of your money by allowing you to move your investment around periodically. This is the only type of 529 that I recommend.
   
   
3. Get Creative!
   My favorite methods of paying for school, other than savings, are grants and scholarships, most of which go unused. Scholarships are very useful if you're getting a late start at saving. You can buy software programs that list hundreds of thousands of available scholarships. One of my listeners, Denise, bought one of these programs, applied for 1,000 scholarships, and got accepted by 30. Doesn't sound like much, but those 30 scholarships paid her $38,000 for college!
   
   You can also look into companies that have work-study programs. These programs pay for tuition based on one's employment with the company. UPS has a work-study program and so do many other companies. Of course there is also the option of serving in the military or National Guard, which will also pay for your tuition.

If you commit yourself to do at least one of the plans listed above, you can send your kid to college without taking on any debt. Most people know how to go about looking for scholarships by having their child talk with a high school guidance counselor, but very few people know how to start an ESA or a 529 plan.

To find out how to get started, contact an investment professional I recommend. The person you'll be connected with will be able to show you all the ins and outs of these plans and help you or a loved one get started preparing for a debt-free college career.

To learn more about paying for college, check out Financial Peace University. In the class, Dave teaches a whole lesson about the necessary steps to take to prepare for college funding.

 

[AggieMike88]

And I would also encourage your daughter to start reading The Total Money Makeover, and look into the "Generation Change" program, both available on Dave's website.

Our high schools aren't doing hardly anything to equip our young adults with the knowledge and skills necessary to win with money. Review page 8 of this PDF file (the other info is good and worth looking at too) and you and your daughter can quickly see that if she starts correctly thinking about money and savings TODAY, it is very very easy for her to be a multi-millionaire without having to invest huge sums of her takehome pay.

I would also recommend the "48 Days" book by Dan Miller. This information will help her determine what career she is passionate about so she can select a line of study from the start and stay with it. Versus switching majors in mid streem and wind up spending 5 or 6 years there on Dad's college dime.

 

[TangoWhiskey]

I smell rotten fish.

http://www.finaid.org/scholarships/protecting.phtml

Are they willing to provide you with the names and phone numbers of other families with students currently enrolled at the schools you're looking at, who have benefited from their services in excess of fees paid?

If not, even if they say it's because of privacy concerns, I'd walk.

 

[fgcason]

As far as need-based aid, this is largely based on the FAFSA form and the information you provide to the individual colleges. It's my opinion that it's a pretty prescribed process although most schools will talk to you about your individual situation. I've never believed these services offer a whole lot of added benefit.

Just a little side note about the FAFSA form: It's online and it's free. The community college I work at makes a very big point to everyone applying to use the correct website address on the paper they hand you at the financial aid office. There are several non .gov fafsa form sites (also listed as fasfa for typo's) that offer services to make filling out the fafsa forms easier and faster with online or phone assistance. They apparently take the same exact information you put on the real fasfa form plus payment information then submit it on your behalf to the real fasfa site. It's kind of a unofficial tollbooth on a free road kind of thing.

 

[Dave Siciliano]

Lance: What's this about being unemployed? I knew you weren't working for your previous firm., but thought you had consulting work to keep you going.

Best,

Dave

 

[bbchien]

That's just stupid.

I represent the oldest Ivy League in North America, locally.
What you do is get multiple Ivy acceptances, and then in April you BARGAIN.

Guess what? It works.