It’s in there (well, here.) A 10,000 foot overview- from my earlier YouTube channel efforts! Now, that’s a big enchilada…
20. Manage Your ResourcesA basic overview on financial resources to pay for college.
19. Ways to Pay- a PrimerInstead of playing 'Whack-a-Mole' we lay the groundwork by defining concepts in terms of internal expenses, taxations, assessment and types of products.
You'll need these to help reduce the overall costs of college!
18. Ways to Pay- IntroThe FAFSA need-based formula will leave the majority of us nonetheless needing lots more money. Remember its definition of 'need-based' is for those with income of less than ~$50,000 and very few assets. It fills a need in this category by providing some grant money... while being a source of loans for others.
But what about families with dual income earners, modest means and several capable kids? College costs can easily dwarf an existing mortgage amount... and more.
This series of 'Ways to Pay' videos will lay the ground work of strategies that can reduce costs and expenses within the realm of paying (or financing) college educations.
17. How to Stash CashMany parents of college-bound children may be concerned with the treatment of a 'windfall' due to inheritance, property sale or prudent saving. With 'asset protection allowances' being relatively meager in both the Federal and Institutional Methodologies, it may be worthwhile to examine the +/- of where some may have 'stashed' their cash.
This video gives an overview of several options that may help preserve assets by tapping into increased eligibility for true financial aid such as grants and scholarships.
Every case may be different; there are many variables which may lead to many solutions. However, there appears to be one verified strategy that is not currently assessed, reversible, liquid and effective... whose details are reserved for my clients!
16. You May (Unfortunately) Be Specialpdf download: https://www.patreon.com/file?h=7166929&i=654522
Life happens- job changes, periods of unemployment, unusual medical expense, etc. And yet you still need to send your children to college.
All is not ‘lost’ as each school’s financial aid administrator (FAA) has the capability of changing your FAFSA’s data elements for ‘Special Cases’ in what is called ‘Professional Judgment.’
Think of the FAFSA as a data collection tool that takes a defined year’s tax return and assets as of the date the FAFSA is completed. Much can happen between this and when the child goes to his/her first class. For example, using a 2015 tax return for tuition payments beginning in 2017 is great in times of continuous employment… but not likely to represent the actual current situation.
15. More Dirt on the DRTThe FAFSA can now extract the student’s and parent’s data from their 1040s via the ‘Data Retrieval Tool’ (DRT). This make things ‘convenient’ but may decrease your eligibility for financial aid. The DRT apparently does not have built-in logic to detect excludable IRA rollover amounts and many other transactions common to financial planning.
All is not lost as edits are possible on the FAFSA… which triggers a ‘flag’ for the Financial Aid Administrator at the school to request ‘verification.’ Simply bring in your financial documents and verified corrections can be made… providing you with the correct eligibility for Federal need-based financial aid.
Talk to your financial planner if you have questions!
14. 1,099 (approx) Reasons to be InvolvedAutomation is convenient but may be costly. The ‘Data Retrieval Tool’ used within the FAFSA to import your tax returns does a great job… indiscriminate, but great!
When you receive a 1099-R from any company due to a rollover, transfer, 1035 exchange or whatever, make SURE that its amount is NOT included in your EFC calculation. There are methods to verify that it should not belong and how to remove it.
The Financial Aid Administrator at each college has the authority (and capacity) to correct the data elements in a completed FAFSA to correct errors. Their system can then recalculate your ‘corrected’ EFC for Federal need-based financial aid eligibility.
13. An Inadvertent (mis)Use of an AnnuityHey- these things are like water balloons. 'Ya squeeze one end and who knows what may pop (burst) out of the other end?
In this video we look at the most rudimentary (aka short-sighted) use of a non-qualified annuity to lower an EFC. This well-worn ‘strategy’ does (by formula) increase eligibility for need-based Federal financial aid by removing an asset from the EFC calculation.
Just be aware that creating an annuity that subsequently may need to be used to pay for college in the short-term will change its disbursements to 'income'… and likely being more costly. We look at what happens when you try to get water out of this balloon.
Hey (part deux)- on the upside, after all the college years, we're all likely to be broke anyway...
12. Low Hanging FruitObservations of what others have done... for your consideration and research. Tax incentives, possible product cost structures and school data/selection techniques are introduced.
11. Skid Marks- The Rubber Has Hit the RoadPut your brakes on- even though we all need more money to send our kid(s) to college, the Federal need-based methodology is for those of exceptional need. For example, the Federal grants (Pell- $5,815 (max) and FSEOG- $4,000) generally are for those families with less than $50,000 of income... and will hardly cover the entire tuition, room & board bill.
Be prepared to be offered loans for both undergraduate and graduate schools of study thereby compounding the already high cost of college.
Merit aid is often a much deeper (and richer) pool in which to participate. 'Ya gotta be active and competitive.
10. The Good, The Bad and The Uhgly** https://www.patreon.com/FAFSATutoring -for all pdf downloads
The 3 components of and EFC are added... and it reinforces what we already know- that college is expensive. We discuss need 'met' and its evil twin need 'unmet.'
9. Mo' Skinny on Mo' Assets -Student's-** https://www.patreon.com/FAFSATutoring -for all pdf downloads
Each student's assets do not receive such a 'good' treatment as the parents.' There is no exclusion (amount subtracted/allowed) and the assessment rate is 20%. This is the common element that increases an EFC.
8. Student Income- Allowances and Result** https://www.patreon.com/FAFSATutoring -for all pdf downloads
The 2017-2018 EFC methodology allows for $6,420 (approx) to be earned by the DEPENDENT student before it decreases your need-based eligibility.
The printable pdf's used in this series can be scarfed from https://www.patreon.com/fafsatutoring. We will be posting there and will be asking for contributions to support these activities!
7. Student's Income** https://www.patreon.com/FAFSATutoring -for all pdf downloads
Student's income, similar to that of the parents' income(s), is really cash flow received... so be careful with payments from the grandparents!
6. The Halfway Point - Parental Contribution Component** https://www.patreon.com/FAFSATutoring -for all pdf downloads
We complete the parents' component of an Expected family Contribution. It gets complex but remains possible with only a 4-function calculator.
5. The 'Skinny' on Assets** https://www.patreon.com/FAFSATutoring -for all pdf downloads
After a family's 'Available Income' is determined, the income component of 'counted' assets is determined... and is called 'Contribution from Assets.'
4. Allowances Against Parental Incomes** https://www.patreon.com/FAFSATutoring -for all pdf downloads
After having determined a family's "Total Income," we now look at the allowances that are subtracted to net the "Available Income."
This is the amount that will be used in determining a major component of a family's "Expected Family Contribution."
Remarks include a BFD (Big FAFSA Deal) for the the menial "Income Protection Allowance" and a WTF (What's This FAFSA?) for the FAFSA being geared for a student to complete and submit!
3. Trigger- Parent's Finances (Income)** https://www.patreon.com/FAFSATutoring -for all pdf downloads
When do the financial data of the student's parents need to be entered on a FAFSA? There is a list of questions that if all of them are answered 'no' then the parent's financial data are required.
Also, the term 'Income' is expanded to consider cash flow into the household; regardless if it appears on a tax return or not.
We begin the internal calculation of an EFC by using a worksheet provided by the US Dept. of Ed.
2. Lift & SeparateLet's begin examining the FAFSA by separating the form from its instructions.
A short description of the 3 formulae (and their no-asset subsets) that may be applied to our specific situation... and the existence of the 'special circumstance' automatic 'Zero EFC.'
If you haven't already, lift the form from this dropbox site:
1. Punctilious MorselsJust some basic information about the FAFSA and 2 useful acronyms.
0. Preface 2017-2018 FAFSA FAFSATwice as much info... twice as much fun.
A few introductory comments. Download your instructional PAPER FAFSA via this link: