Table of Contents
Introduction 1
About This Book 1
Foolish Assumptions 2
Icons Used in This Book 3
Beyond This Book 4
Where to Go from Here 4
Part 1 Understanding Paying for College 5
Chapter 1 Confronting High College Prices and the Modern Job Market 7
Confronting the High Prices of Higher Education 8
A brief historical overview of colleges and who completes it 9
Don't college grads make more money? 12
Mushrooming student debt and its underlying causes 15
Looking at How College Pricing Works 16
How colleges see you 16
Saving now and later 17
Somebody give me some money! 17
Employment Reality and What Students Say They Want from College 17
What students actually do in college 18
Hiring and jobs 19
Looking at How the Higher Education Landscape is Changing 20
College enrollment is declining 21
Some colleges are failing and closing 21
Colleges are under pressure to contain their prices 23
Lower cost and faster alternatives to colleges are growing 23
Bottom line is good for you, the college and higher education consumer 24
Chapter 2 Financial Planning Steps When Your Kids are Young 25
Kids Are Costly! Getting Your Finances in Order 26
Building the pillars of personal finance 26
Developing and hitting savings goals 27
Finding Saving Methods Given How College Financial Aid Works 28
What financial aid penalizes 28
Recognizing that financial aid rules change 29
Spending on Your Kids without Breaking the Bank 29
Setting limits, guidelines, and goals with your spouse 30
Setting limits with your kids 30
Keeping Spending in Line: Using Youth Sports as an Example 31
Focusing on the lifelong benefits of sports 31
Being mindful of expenses and set budgets 31
Being aware of the agendas of "professional" (also known as paid) coaches 32
Realizing good parents can make good coaches 33
Letting kids simply play - the value of pick-up games 33
Considering the opportunity cost of sports' time and expenses 35
Being wary of the winning addiction 35
Completing the Personal Finance Olympics of Childrearing 36
Chapter 3 Exposing Your Kids to Work, Finances, and the "Real World" 39
Laying the Foundation for Raising Money-Smart Kids in the Early Years 40
Educating when shopping 40
Taking your kid to work 41
Dealing with What Kids Are Exposed To 41
Looking at the effects of advertising 42
Understanding habit development and setting limits 44
Developing the Work-Money Connection 46
Regarding allowances and chores 46
Encouraging work outside your home as they get older 48
Teaching Your Kids About More Real-World Money Topics 50
Being mindful of your statements and attitudes about money 50
Don't buy them a car! 50
Introducing the right and wrong ways to use credit and debit cards 53
Talking to kids about investing 53
Part 2 Finding Acceptance 55
Chapter 4 Making the Most of Your Kid's Academic and Outside Experiences 57
Understanding the Value of Academic Success (Good Grades) 58
Jumping Through Hoops: Marketing of High School Students 63
Quality over quantity 63
'Focusing on interests and passions 64
Helping your teenagers forge their own academic path 66
Playing sports 67
Getting work experience 68
Volunteering 69
Chapter 5 Guiding Your Child 71
Agreeing to a Process for Making Decisions 72
Conducting the Right Research 73
Working with and Hiring "Experts" 74
Interacting with teachers 74
Employing tutors 74
Utilizing school/guidance counselors 75
Working with a college planning service 76
Hiring financial advisors 78
Getting assistance with financial aid forms 78
Dealing with Mental Health Issues 79
Part 3 Confronting College Costs: Traditional Colleges and Alternatives 83
Chapter 6 Seeing How Traditional Colleges Decide What to Charge You 85
Taking All Your (Financial) Clothes OFF! 86
Understanding commonly requested information 87
Coming to terms with supplemental information requests 88
Valuing Wanting One Another 89
Checking on Realities for Recruited Athletes 90
Looking at the probability of competing in college athletics 91
Deciding on the likelihood of competing in professional sports 91
Figuring out how college athletic scholarships work 93
Chapter 7 Surveying the Range of College Options 97
Considering Four-Year Colleges 97
Understanding a liberal arts education and alternatives 98
Creating your own business education 101
Evaluating the career placement prospects at different colleges 102
Using college rankings and ratings for finding the right match 103
Understanding the political climate on college campuses 105
Deciding if traditional four-year college is the right choice 107
Learning and Serving in the Military 108
Benefits and required commitments 108
Why it's not for most teenagers/young adults 109
Admissions process and requirements 109
Considering Community Colleges 110
Taking a Year Post-High School to Work or Volunteer 111
Working for a living (temporarily) 112
Volunteering/travel programs overseas 112
Taking a post-grad year at a boarding/prep school 113
Is College Necessary or the Best Option for Your Children? 114
Chapter 8 The Best College Alternatives to Consider 115
Looking at Last-Mile Programs 116
Staying at boot camps 116
Considering college minimal viable products (MVPs) 118
Appealing to apprenticeships 119
Joining staffing firms 120
Getting Oriented with Online Programs 120
Finding Out about Vocational/Trade Schools 122
Final Thoughts on Alternatives to Traditional Colleges 125
College cooperative educational experiences 125
Where to go for more information on alternatives to college 126
Part 4 Getting the Best Education at the Best Price 127
Chapter 9 Financial Steps You Should Take While Your Kids Grow Up 129
Determining a College Financial Aid Package 130
Figuring the expected family contribution 130
Understanding the financial aid package components 131
Looking into Long-Term Saving and Investing Strategies 132
Financial aid treatment of retirement accounts 132
Financial aid treatment of money in the kids' names 133
529 state-sponsored college savings plans 134
Coverdell education savings accounts 137
Investing strategies and vehicles 137
Strategizing to Pay for Educational Expenses 138
Estimating college costs 138
Setting realistic savings goals 139
Determining Later-Year Savings Tactics 140
Chapter 10 Filling Out the Common Financial Aid Forms to Your Best Advantage 143
Determining Whether to Apply for Financial Aid 144
Should your family apply for financial aid? 144
Using the "net price calculator" to estimate costs 146
Knowing if financial aid harms your chances for admission 146
Meeting deadlines 147
Taking an Overview of Financial Aid Forms 148
Filling Out the FAFSA® Form: Free Application for Federal Student Aid 149
Completing the FAFSA® form online versus on paper 149
Sending your FAFSA® form to more than the "allowed" number of colleges 150
Understanding and dealing with a Federal Student Aid (FSA) ID 151
Student is applying for aid 151
Selective service registration 152
Interested in work-study consideration? 152
Federal income tax return questions 152
Income earned from work 153
Value of your assets 153
Number of college students in household 154
Getting on Board with the CSS Profile Form 155
Parent details 155
Current and future year income 156
Household information 156
Parent assets 156
Parent expenses 157
Checking Off School-Specific Forms 159
Chapter 11 Tricks and Tips for Finding Scholarships and Borrowing Money 171
Gaining Grants and Scholarships 172
College and university grants and scholarships 172
Federal and state government grants 172
"Outside" grants and scholarships 173
Looking at larger award sources first 173
Enlisting scholarship search websites 174
Searching for small dollars locally 175
Borrowing for College 175
Tapping assets versus borrowing 176
Borrowing against your home equity and other assets 176
Borrowing against cash value life insurance balances 177
Using federal government loan programs 177
Chapter 12 Reviewing Financial Aid Offers and AppealingThem 179
Getting Word on College Acceptances and Doing More Research 180
Open house/Acceptance day 180
Overnight visits 181
Talk to more people! 181
(Really) review the course catalog and majors 182
Taking a Long, Hard Look at the Bottom-Line Price 182
Asking for a better price 183
Reviewing the admission and financial aid offers 184
Part 5 The Part of Tens 187
Chapter 13 (Almost) Ten Education Tax Breaks and Rules You Should Know About 189
Contributing to Retirement Accounts 190
Checking to See if You Qualify for the Saver's Tax Credit 190
Understanding the Tax Benefits of 529 Plans 191
Considering Coverdell Education Savings Accounts (ESAs) 191
Utilizing the American Opportunity Tax Credit 192
Taking Advantage of the Lifetime Learning Credit 192
Understanding the Retirement Account Withdrawal Penalty Waiver 193
Finishing on Time without High Income Earning Years 193
Taking the Student Loan interest Deduction 194
Chapter 14 Ten Tips for Getting Your College Degree Quicker 195
Communicating Is Key 195
Keeping All Your Options Open 196
Planning Ahead Financially 196
Picking Colleges with High Graduation Rates 197
Selecting Colleges that Offer Your Desired Courses and Majors 197
Choosing Schools with Affordable Housing 197
Getting College Credit in High School 198
Making Use of Advisors and Deans 198
Having Students Work during College 199
Avoiding Stopping School to Work 199
Chapter 15 Ten Important Money Management Steps for Young Adults 201
Getting Financially Fit, Now! 202
Adapting and Adjusting Along the Way 202
Cancelling Consumer Credit 203
Reviewing Your Budget and Spending Plans 203
Striving to Regularly Save and Invest 204
Ensuring that You're Properly Insured 205
Continuing Your Education 205
Always Being Prepared for a Job Change 205
Evaluating the Total Cost of Relocating 206
Ensuring Compatibility when Picking a Partner 206
Chapter 16 Ten Things to Know About Student Loans 207
Keeping Track of Your Loans 207
Understanding What Cosigners Means for Responsibility 208
Knowing the Loan Terms 208
Using the Auto-Pay Feature to Save Money 211
Understanding Loan Forgiveness Conditions 212
Knowing Your Federal Loan Repayment Options 212
Cautiously Considering Refinance Possibilities 214
Asking for Relief 215
Making Use of the Student Loan Interest Deduction 217
Pausing Your Loans with a Return to Higher Education 217
Index 219
