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Christian Press would like to welcome Dr. Randy Shepard as a regular writer to ChristianPress.com. He brings great knowledge to college funding and we are sure our readers will find great usefulness from his information.

When it comes to the college funding process, there are many simple mistakes that parents and students can make costing them thousands of dollars in lost aid or unnecessary expenses. Here are a few of the most common ones:

1) Choosing A College Based On The Sticker Price.

Most parents encourage their students to shop colleges based on a certain price tag. It sounds reasonable, but college costs are actually based on several internal factors which can dramatically change the out-of-pocket expenses required to attend the institution. Did you know that it’s actually possible to attend a private college cheaper than a state school?  Some of these factors include: -  Percentage of Need they historically meet.

-  Percentage of Gift Aid they historically are able to offer.

-  Percentage of Self Help Aid that is also historically met.

-  Your student’s ACT/SAT scores, GPA, and class rank.

-  And how well the colleges are financial endowed through their alumni association.

When Megan couldn’t choose between Missouri State University ($16,000 per year) and Drury University ($28,000 per year), the award letter helped her make a decision. When she realized her out of pocket expenses at Missouri State was going to be approximately $10,000 per year, while Drury’s out-of-pocket costs were just under $3,500, the choice was simple.

2) Thinking You Make Too Much Money.

There are two big problems here.

First, it’s possible to earn over $100,000 per year in income and still qualify for need-based financial assistance?  Most high-income earning parents simply resolve themselves to believing they could never qualify for aid. However, by utilizing some strategies that are favorable to the college funding process, a high-income earning family can receive some government assistance, and in some cases, a fairly substantial amount.

Secondly, families who make too much money are often told not to fill out the FAFSA (Free Application For Federal Student Aid). However, high-income earning parents can qualify for low-interest government loans. These loans, like the Stafford Loan, are low interest and they can be deferred until 6 months after the student graduates – a much better option than a home equity loan or a conventional loan. When they choose to skip out on filling out the FAFSA, they lose that option.

3) Not Planning Early Enough

The most opportune year to start college planning is during your student’s junior year of high school.  Your student needs plenty of time to process some very important questions such as:  “Which careers are best suited for my personality and skills?  Which college is best suited for me? And, how much college debt can I afford or am willing to take on?”

Another reason is for the parent. The availability for financial aid and scholarships are based on your prior year’s tax return. In other words, if your student is attending in the Fall of 2009, you will be asked to provide information based on your 2008 tax return. If you’re wanting to maximize your opportunities to receive the most money possible, you’ll need to do some early financial, tax, and asset planning, BEFORE you fill out the FAFSA.

4) Filing The FAFSA Every Year

Every year is a new year in college funding. Even if you qualified for need-based aid the first year of college, you must re-apply every year. I can’t tell you how much money has been lost due to the fact that both parents and students simply failed to fill out the FAFSA for every new year of college classes.

5) Putting Financial Assets In The Wrong Place

Assets can place a big role in college funding. If you want to boost your chances of qualifying for financial aid, you’ll want to consider taking the following steps:

- Don’t hold assets in your child’s name. FAFSA applies 20% of a student’s assets towards the students EFC. Only 5.4% of the parents assets are counted.

- If your child already has assets, you might consider using those assets to purchase much needed items before filling out the FAFSA, for example: Use the money to buy a reliable college car or some necessary equipment (computer, clothes, etc).

Learning how the college funding process works and what the integration between income and assets can help or hurt your chances for college financial assistance, can literally save you thousands of dollars on the overall cost of a 4-year education.

Dr. Randy Shepard is a college funding specialist who has successfully helped hundreds of families save thousands of dollars on college. He has an earned Ph.D. in Counseling at Louisiana Baptist University and resides in Kansas City.  You may visit his blog at savemoneyoncollege.blogspot.com. His E-book and personal services are available by calling him at 816.739.9894 or Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .