Knowledge Bound: The RSC Blog
Visit the Knowledge Bound Blog regularly for news analysis, editorials and facts about education and financial aid.
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If someone walked up to you on the street and asked you to spend $100,000 on a purchase and told you that you couldn’t have accurate financial advice, you’d say no. Who spends that kind of money without proper guidance?
The same goes for other expensive purchases, like a home. You get advice from a realtor and a banker. People even seek financial help for smaller purchases like cars, vacations and medical procedures.
So why are they so reluctant to do it for college, an expense that often exceeds $100,000?
Difficulties in Getting Good Financial Aid Advice
· Families have some savings. Families often hesitate to seek outside professional advice because they have some savings, maybe a bank account, a 529 Plan or other typical plan. Unfortunately, that’s not usually enough. Roughly 69% of families have some money set aside for college, but those savings only meet 18% of college expenses.
· Families count on scholarships. Parents often hope, pray, or believe their child will get a scholarship. He or she has done well in school or is an active in the community. As common as this belief is, it’s just a myth. Such scholarships rarely happen, and when they do, they rarely benefit the student.
· Their student has a guidance counselor. Parents believe their student is getting financial aid advice from their guidance counselor, when the truth is, most counselors are not trained to handle such counseling. They stick to the basics, but aren’t likely to delve into family finances or financial aid options, and they’re certainly not about to fill out the forms for you or appeal poor financial aid offers.
· They speak with the college financial aid office. Parents and students talk with the people providing their financial aid, but that doesn’t mean they’ve built a strong case to get a better financial aid package. Colleges rarely admit to mistakes and they’re not about to teach you ways to improve your financial aid.
The Impact of Bad Financial Aid Advice
Bad – or no – financial advice can lead families into debt for decades, paying off student loans and recovering money pulled from their savings and retirement accounts. They’ve taken out second mortgages and private loans that cost them a fortune. Without proper guidance, families create problems for themselves for years to come.
College officials admit the current system can’t go on, and yet it’s the system we’re in. It’s no wonder many pundits compare the college system to the housing bubble. Yet even in a down real estate market, some people made money, and they did it because they got expert advice.
Getting Expert Financial Aid Help
Getting financial aid help from a professional is one of the big keys to get a great offer from a college. RSC’s program and staff have helped tens of thousands of people improve their financial aid situation by helping them build a plan early. They’ve also filled out their forms, conducted appeals for more money and reviewed their options.
Families who join the RSC program get financial aid guidebooks, tutorials and a list of top financial aid colleges that will reward their student’s efforts. They also get great financial aid, so that they don’t end up spending $100,000 on something they could have gotten for less.
Get advice from a college prep and financial aid expert. It could make all the difference to your future plans.
Call 800-898-4636 to find out how our program can help you today, or, if you’re ready to enroll, sign up here!
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