It’s a new year and while most seniors have made their college decisions, the process is just beginning to heat up for juniors. Even sophomores begin the transition from acclimation to high school to their ultimate post high school plans. If you have kids of any age, you’ve probably figured out by now that college planning is a much longer, more stressful, and more complicated family process than what any of us who graduated from college a couple/few decades ago ever dreamt it would be.
Here are a few things to think about as we enter this new year, wherever you may be in the college process:
1. Engage your kids in college conversations. I’m not talking about where they want to go to school or even what they want to major in, but rather why do they want to go to college in the first place? What’s important to them in choosing a school? What do they think they might like to do as a job/profession after college? For most, college is merely a four or five year step that helps guide them for the next 40 years, so it only makes sense to have dialogue that helps make this connection for your kids.
2. Plan some road trips. Many kids today, even younger ones, have ideas of where they want to go to college. However these thoughts may be based on things such as favorite college sports teams, where friends or family have gone, or other similar reasons that may not be the best reasons to select a college. Nothing can beat setting foot on the campuses themselves. In my opinion you cannot start this process too early. It’s the feel, the smell, the look that goes with the class sizes, placement rates, quality of programs etc. that you want to consider. Doing this early and often will help your son or daughter really begin to help them define what it is that they are looking for in a college.
3. Find out your EFC. January is the month for seniors to complete the Free Application for Federal Student Aid (FAFSA), which is the form that every family must complete in order to qualify for federal and state financial aid. One of the factors that determines aid is the Expected Family Contribution (EFC), which is the amount of money that a family must pay each year before qualifying for any financial assistance. So that you are not caught off guard by this number and so that you have ample time to possibly improve your family’s EFC, you should get an estimate of your number as early as possible in this process. Many online sites will provide you an easy opportunity to do so.
4. Begin to assemble your team. This one may have you scratching your head, but if you stop to think about it, it just makes sense. College is a major expense, six figures in many cases, and if done properly, helps define what your children will do to make a living – really important and really expensive stuff! Why on earth wouldn’t you hire experts to help? Your team can and should consist of a financial professional, a tax professional, a guidance counselor, a college planner, and a college test prep expert. Some families will have all of these people while others maybe just a couple. It begins by talking with each to see if they can provide you with knowledge and expertise that will help you through this process. There are many steps to the college journey; these are just a few to get you started. The sooner you start, the better off you will be. What better time than the start of the New Year!
We are in the business of helping families through the major life transition of sending their children to college. For many, it will be the most expensive time of their lives and, if not handled properly, could cost them their retirement. If you or someone you know needs the help and guidance of a trained financial professional, don’t hesitate to contact your local College Planning Relief® Licensee. Remember, you shouldn’t have to choose between your child’s college and your retirement.
