Do You Let The IRS Do Your Income Taxes?

Taking a passive approach to student financial aid is tantamount to doing the same! Because we procrastinate, because we’re too busy, because we’re just not sure how to get started, so many parents simply fill out the financial aid forms and let the system take its course. They feel helpless and truly believe that it’s pointless to ask for assistance.

The fact of the matter is, the majority of, parents won’t have to bear the entire financial burden. Even more important, retirement savings should not go by the wayside to fund college investment plans. We can’t predict what the future will hold, but based on today’s tax and financial aid laws we can do a pretty good job of calculating how much assistance parents can expect by projecting income increases, asset growth and cost of education hikes. Using the current needs assessment formula, we can predict the student’s Expected Family Contribution (EFC--that powerful number that drives the financial aid train). More often than not, resulting investment figures are much more palatable. Parents can invest a realistic amount and feel they are making a difference.

It is important to note that tax strategies and financial aid strategies can conflict. Parents need to consult with a financial professional who is versed in both financial aid and tax principles before making critical financial decisions, such as opening an Uniform Gift to Minors (UGMA) account for their child.

But while parents are busy socking away their extra dollars, their investment must also include their time.

Colleges and Universities today are looking for students who bring value to the school. Whether it be through academics, sports, leadership, or the arts, it is important that parents encourage their students not only to excel academically, but also participate in outside activities. The "whole person" concept is alive and well. Admissions and financial aid officers consider every aspect of a student’s high school career and look favorably on scholastic improvement, demonstrated desire and drive.

Here’s something else to think about--statistics predict that between now and the year 2005 22 percent of college graduates will wind up in jobs not requiring a degree. How’s that for a waste of time, effort and parents money.

Part of the planning process is to ensure that students have been exposed to a wide enough range of activities and career possibilities, so when the time comes, they are better prepared to make career and major curriculum decisions. Parents can’t afford to let their children make decisions about their future in a vacuum. Let’s not chose to be an emergency room doctor because we like the television show ER.

Campus Financial can provide you a road map to follow to make sure you maximize both educational opportunities as well as financial assistance.

GET THE FACTS ON THE FINANCIAL AID SYSTEM BEFORE YOU APPLY!

Campus Financial has the answers!