College Applications 101: What You Need to Know

Friday, June 8th

If you have a child in High School I'm sure the conversation about college has come up a few times.

As they get closer to graduation the stress of finding the perfect college starts to set in.  You want to make sure your kid is happy with their decision, that it will be a good fit BUT you also don't want to bankrupt the family or set your child on a patch of acquiring HUGE college debt.  So, what should you know when filing out college applications?  Are some college loans better than others? Why a Parents Plus loan is NEVER the best choice.

We'll help you out today as we Cash In with our expert Independent College Admissions Counselor Jodi Rosenshein Atkins


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

In a big world your kid will get a full ride to their dream college and money won't even be an issue and but we're gonna be honest with ourselves and chances are arch it is not gonna get a full ride we're gonna have to sit down and try to figure out the best way to pay for college. Why do you need to know when filling out college applications high in Simi butters this is seven figures all the information that you need. To dominate your finances if you're new to the podcast we'll welcome each week we tap into financially savvy people and we learned from that. What do they know that we should now the bullies to have you walk away with little nuggets of financial knowledge that will give you what better financial future. Thank you to our good friend that's family first credit union for being such a big supporters of the podcast. After helpful educated team in our community that enjoy having you live up financially healthy life. If your kids are still really gone this is perfect start stashing money away now for their college even if that means you're gonna have just give up vacation or you were both shot. The renovations to the house every little federal house. But if your child is in high school overtime in sophomore or junior year and you don't have much saved for that. OK I don't beat yourself up too much about it it is what it is that you try to figure this out together which college loans are better than others. And how do you make college more afford health we cash. We are experts and Jody Rosen China ASEAN an independent college admissions counselor her focus is helping. The like yours identified best fit colleges Jodi thank you so much for being on the podcast I'll thank you it's a pleasure to be here. Do we miss the boat I'm did a lot of students already commit to colleges. So the first thing I wanna say. Is that students who may have not finished application process or and decided to apply it on the later side late bloomers. On that there are about 500 schools in the United States across the United States and schools that you will have heard out. It's still have beds that had scholarships and it seats in their classrooms so students were graduating this month who may not have gotten their plans in order. Still have the opportunity to go in September. Aren't that's gets in now. Now we knew navigate through this process it is overwhelming. So. For the students that are there crow late bloomers are maybe if you're kid is approaching that you know sophomore or junior. It's hard you you're in the middle of it in here you have your child. Their heart. It's that I can be ecstatic of a college in they're not thinking and the financial side of it but now is the parent is like gold. Everybody ought to be thinking about the finances and when I talk to families about best that college choices. The sit factors are academic. Financial. Social. And cultural. And the best fit that you can achieve in all four of those Arenas is going to be the place where each student is most likely to succeed. One of the things that I tell him all the time is there you can borrow money you can borrow. People borrow at their retirement funds and people take up us. You can take out lots and lots of money kids say all just RO. Now pay act well. There's a rule of thumb that I advice families about are going okay and that is. Go on the government website that the Labor Department. And find out what the average. First year annual salary news for a position you might be interest. And in that first one year's salary. You should never borrow more. Than net out. So for example if you're gonna get it job and you suspected enemy and 40000 dollars a year. No student should borrow more than 101000 dollars a year over the four years of college. So that they don't exceed that first years. Why is that the rule of thumb because some economist who's smarter than I. Has discovered that you can pay. Interest and principal. On alone of that amount with deaths now. That's the rule of and saying you're gonna get the job well it yet failed at well making an idea exactly and I I urge people to under estimates and that's Elin going to finance and 80000. Oh. The fresh on and but that's a rule of thumb and it helps kids and get ground because it puts them in the numbers game. I hated them if this is what you're gonna do let's look at what environmental scientists me via on and it's always less than they think it's going to be. But at least your within the ballpark. Of what you as a student borrow. Against what you can make so they can touch the principle is when kids strand in debt it's because. Interest is so high yet and that payments are so high that they never get to pain not the principle. And then made yes they can give up right. Feel defeated are able this is going to be my life for years and years or whatever but even more than men. It impact their ability to my house impact their ability to buy a car. For some kids impact their ability to get married but his people without an hour. Sometimes reticent to marry people with huge amounts that because then you take and a let's break down some of the key things that we should now. As parents and educating our kids about this as you do have to have a black and white very frank. Conversation with that. OK so this is part of the conversation I have with families I work. And that money is like sex. It is really real it's not quite as it. On the well yeah. I didn't I can't bear arms about that being turned on by financing and get a bank money for. Kids money. As a discussion between parents and kids is like sex it is on comfortable. It is different calls and it is important. If you don't have that conversation. There is a chance of somebody putting themselves at significant risk. So when you think about it that way and then you open up the conversation. I'm not saying that every family needs to open the books in disclose everything about their financial status with the student. But utility kid no realistically what you can afford to give them. And work backwards from that number okay. The other thing that I urged families to do is not be shocked by sticker price. As you look at these schools and their schools that are topping over 70000. Dollars a year now. For room board tuition and fees it's insane. And again if you're working and it really tight budget let's not look. In on eye and say yes to the dress they always say don't try and address he can't afford nothing else will ever feel that good so don't go out and look at schools. That are so totally out of range their 70000 dollars here in the average award is ten. 60000 dollars is not work for your family and don't go yeah I'm okay I'm howdy you know had you know that that's a place you can afford. And this is where our federal government has done something wonderful. There is on every single college website. A place called the net price calculator at the end PC OK in the net price calculator. Tells you what a family that looks like yours economically with the student who looks like yours academically. Might anticipate. Globally. Pain. When they got and that's pretty accurate. It's a starting OK I tell Phillies appear within ten to 20%. Of your target range with that number and let's proceed no. In this calculator DD factor in how much you had saved how much in the 529 plant all the fat. Yes not in Hawaii and as complicated. Or comprehensive as a staff son or CSS profile which I hope we'll get to talk a little and is out yeah. But it is a quick and dirty look at what can you expect this school that cost. Okay and then you can decide to look at it more in depth or not. Okay so before we get sued don't be scared of that initial price. It lets dive into death fast time in these loans you you refer to parent plus which I do have a friend who fell victim to an added she says. I fell victim to bad because. They kept pushing anatomy and I did no way to know to do right and what parent loves saying noted their child in our own money money I really wanna go okay. So let's start with the facts OK that's it is an acronym for the three. Application for Federal Student Aid got. Notice that the first word in that is. Three it means you don't paid to file a fast and a you don't have to hire someone to fill it out. The web site complicated though it's not that bad and it actually can be filled. There's an auto fill feature that allows you to reference you're less tax okay so. It's a little complicated and nobody likes talking about money right down on the numbers. But it's free. And there is no reason that anybody including Anna no somebody who's is richest Tom Golisano should not fill out a fax. There's no downside. It filling it out. And in fact at some schools. And again I got batted I have four kids who all went to school within four years of each that's a whole different. On the lunch. Break. But we got data price and we are totally ever qualify certain don't sellout apps and say eating get married. So you wanna fill this out there is no downside to filling out the apps. Okay now everybody in her alone it to pay back this money or is this. Staff say is just federal student Nady can you print can be worked study. It can be it it can be anything and the schools velocity is it for institutional. Allocation. On but what that says is this is our generic application. For aid and it gives a school a starting point. Negotiation happens a lot. Obviously you can't say oh you want sixty in my kids were more Nat so walk I wanna pay twenty like it's not like buying a used car. Light you can and this is the starting point. I sit and you fill up the fast okay it's their first thing we should yes everybody should. And you can't do it until October 1 of the students seniors. And he can't Elena. But the important thing to know is that the it changed recently. And so you will be using your 27. Teen. Tax return. Where the class of 29. Prior prior year I'm. In the past east he had like rushed the account with your taxes but as they'd use the prior. When he nineteen would be your 2018 taxes no. This gives you a better picture. The downside to it being prior prior is that people's circumstances change so and 2017 you were fully employed in the and you lost your job. And now it's 2018 in your unemployed but the school is facing an armed and if eaten so that's when you send an appeal you make a phone content financially office. It's no shame in talking to those people there at the it help you they wanna make things work. Given any information they also want to be paid for what they're giving you which isn't he used. So now with this parent plus why is it why did you give me get acquainted to it and I. Friend fell victim quarter coach your parent Iceland's our moms and art take in in the parents. OK so. They count on the parent's credit rating. They are loans that cannot beef or give then. So student loans they're sudden this much more complicated they were going to be able to get into this morning but. There are some. Loans that students take that aren't. Re paid based on your earnings potential or repay based on doing public service are working for not for profit. Those are forgiven parent plus loans can't be forgiven and they typically run at the much higher interest rate than federally. Offered student. So why would the college encourage. The parents to go that route is it more money in their pockets is it easier. The bills have to be paid. It costs this I mean nothing history not even country doing what people wanna say not even if you go to a New York State school not for. And so the bills have to be paid in your kid wants to go there and they want your kid in their seat and you don't have that money well air RO here's a way to bar. In I think it's the least economically. Savvy way to find did you ever entertain an idea. Me personally. I connect now to find another way or signs up to you you just to to get on here. Or you find another way to come up with that portion of them. Apparently they're gonna say here's how you don't have this money so here's how you can get it. You either make it different choice. Arm in terms of the school where we find it differently if windows other different ways that are on the table. But I am so ignorant to all of that's okay which we should week now. It the first prioritize a hit her first wave we should go act is to look for a place where your kid is gonna be in the top 25%. You know why. And the opera there. Our money is spree. Okay let me Kenny get base. There's a bunch of different kinds of financial. Aid pieces in a financially. The first is money that is a gift. Okay gift money. Those are grants those are scholarships that's money that they give you. And then you don't get back OK okay that's merit aid or her. They called a lot of and they typically give every student at something. They don't ever really piece piece failure today. I'm sorry. On. And remember their. At the same with that and my dad and I didn't know I wasn't in this business I didn't know when Regis so passionate about what you do today not what it's a passion about what I did today was that. I had kids to. Base the first ones that went to college for twins and they had a bad match. And there was no longer years in my life in the years that they were this. It okay for which is. Africa so so. What they need passionate was god this is really energizing to try to make this puzzle work moving forward now on the and then it went back to school. I can't account but going back to the fight. Yet though. There are grant there are scholarship monies those are gifts. Packed then there are loans. Loans are. Borrowed and you pay them. There are are. Federally. Guaranteed loans and they are subsidized announcements. Oh yes okay so what does that mean subsidized loans means that the interest and that. Is paid by the government until six months after it okay. And subsidize. Our offered by the government also Italy and Spain and the on those loans begin to accrue interest as soon as he signed paperwork. But you don't pay them back until six month to your paying back with a new Bart Bart 101000 dollars. Your freshman year you're paying interest on that for four years. You borrowed another 101000 dollars. Not to meet him except some 500. On the you're gonna pay interest on that for three it just any conflicts that you're paying that interest gets added to what you so those are on cents. Which one do you prefer. Everybody prefers a subsidized loan okay generally your packages in include companies. Okay. Then there are self help. So self help monies include things like ports that he. You get a job on campus the federal government helps pay your wage which is why this collect off those jobs. On. But you can more and students and more and don't get me wrong I really believe. That student should have some skin in the game when they go to school. Be that self help money beat him loan money. This is not a four year party I can't tell you how many students like. I wanna go to odd gave an island NIC and yes. And and I wanted to warn it's this and I went and sushi for lunch they can't comprehend these type of numbers don't. I have so many heated discussions with other parents nobody can that be can't comprehend. Numbers 50070000. HS they've never seen it they've never had to deal with it before so. The number one thing that you suggest. Is doing met FAA Arafat for everybody sits on us apps and everybody should too. And net price calculator. For the schools that they're considering. And try to stay in your patch yes in if you have to take out alone. Try to make it a subsidized loans first and second choice is an on cents. You wanna keep the borrowing to a minimum you want the borrowing to not exceed one water at the anticipated. Salary. Can he get when he Gdansk. Private vs federal loans although federal loans can have a battery okay. This is a lot to digest already and. He just scratched the surface. Hi how about your kids ready for college so we're gonna have to bring you back in Jody blitz though with the best way to get a hold of you in the meantime my website is Jody are at in dot com. My email address is Jody our act in at Gmail com. OK perfect. And then the next big topic in the next few weeks is going to be would you think the next hot button ends I think the next hot button is how to get started. And what he'd do that college. Old college tour is right guys those are expensive you're gonna have put yourself in a car and potentially travel a great distance to look at the school. You when he used that time and that energy wise okay well as the cost in a lot of students are going into their senior year. Probably starting that process right now exactly okay we'll talk about the next him and we bring you in thank you so much my pleasure thank you see and it's. And wonder who. So began a seven figures my cast and not all Milan sales are created and he ground listen. Elizabeth this is the role model we want our child abuse like Elizabeth 23 years old. And she'd just financially. But end up. We can learn a lot from Elizabeth next week and a seven figures podcast. Thank you for taking time I get busy days to list and if you don't mind sharing it with their friends scrolling down a little bit on iTunes to giving SFR rating and Herbert yeah. Have a great weekend and dominate your finances.