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Paying for College can be Easier than You Think
Reecy Aretsy
The current concern for middle income families with a college or college-bound student is how to handle the cost of their 4-year college education. "Every day, the media, blogs, round table discussions and the like focus on the best loan to handle the debt load. While this is certainly sound advice, most families are totally in the dark about how to play the financial aid game," so says, Reecy Aresty, author of the critically acclaimed, How To Pay For College Without Going Broke.
Aresty, a 29 year veteran of financial aid trench warfare, stated, "Families first need to qualify for maximum financial aid before they seek out loans, and it's still not too late to do income planning and
asset repositioning."
For school year 2008-2009, most of the Ivy League schools and numerous elite private colleges totally revised their financial aid formulas. Students from low income families will basically get a free ride from these schools, but for families whose incomes exceed $60,000, loans seem the only way out.
"Paying the bill is a last resort, and there are several months left before the fall term," he said. "What's missing from the equation is how to first qualify for maximum financial aid in order to tap into the vast resources of the private sector, the colleges, the states, and the federal government," he explained.
Aresty's book contains 38 income planning strategies that are legal, time-tested, and guaranteed to work. "While each of these will not apply to every situation," Aresty said, "most families will be able to take advantage of many techniques. Implementing just one will lower their expected family contribution (EFC - the minimum the federal government determines a family will pay for college)," he said and offered the following advice:
• Since students have no asset protection allowance and each year lose 20 cents for every dollar
they have, they should cash in savings bonds and reduce savings account balances to less than
$100.
• For UGMA or UTMA accounts Aresty recommends:
1. Gifting (if over 18);
2. A 529 Savings Plan;
3. A Coverdell ESA; or
4. Repositioning into financial vehicles excluded from the calculations
• Students have an income protection allowance of $3,080 and must be aware that for every
additional dollar earned, they lose 50 cents in financial aid.
• Parents need to know how much their asset protection allowance is to avoid losing 5.64%/yr for
every dollar over it. They should consider:
1. Gifting;
2. Setting up a small business, or
3. Repositioning into financial vehicles excluded from the calculations
• Many divorced or separated parents will be able to benefit from of Aresty's ambiguous non-
custodial parent strategy™ and cut the cost of college by as much as 90%.
About Reecy Aresty: Reecy is a noted financial advisor, critically-acclaimed author and lecturer with nationwide media credits. He is the creator of The College Information Network™, which includes TheHighSchoolBlog, TheCollegeBlog, PaylessForCollege, TheWayToCollege and presents free seminars coast to coast. For nearly three decades, his successes in admissions and financial aid trench warfare have made it possible for thousands of families to send their kids to the college of their choice for less than they ever imagined. His innovative appeals have turned unappealing award letters into millions of dollars of additional financial aid.
Reecy Aretsy
The current concern for middle income families with a college or college-bound student is how to handle the cost of their 4-year college education. "Every day, the media, blogs, round table discussions and the like focus on the best loan to handle the debt load. While this is certainly sound advice, most families are totally in the dark about how to play the financial aid game," so says, Reecy Aresty, author of the critically acclaimed, How To Pay For College Without Going Broke.
Aresty, a 29 year veteran of financial aid trench warfare, stated, "Families first need to qualify for maximum financial aid before they seek out loans, and it's still not too late to do income planning and
asset repositioning."
For school year 2008-2009, most of the Ivy League schools and numerous elite private colleges totally revised their financial aid formulas. Students from low income families will basically get a free ride from these schools, but for families whose incomes exceed $60,000, loans seem the only way out.
"Paying the bill is a last resort, and there are several months left before the fall term," he said. "What's missing from the equation is how to first qualify for maximum financial aid in order to tap into the vast resources of the private sector, the colleges, the states, and the federal government," he explained.
Aresty's book contains 38 income planning strategies that are legal, time-tested, and guaranteed to work. "While each of these will not apply to every situation," Aresty said, "most families will be able to take advantage of many techniques. Implementing just one will lower their expected family contribution (EFC - the minimum the federal government determines a family will pay for college)," he said and offered the following advice:
• Since students have no asset protection allowance and each year lose 20 cents for every dollar
they have, they should cash in savings bonds and reduce savings account balances to less than
$100.
• For UGMA or UTMA accounts Aresty recommends:
1. Gifting (if over 18);
2. A 529 Savings Plan;
3. A Coverdell ESA; or
4. Repositioning into financial vehicles excluded from the calculations
• Students have an income protection allowance of $3,080 and must be aware that for every
additional dollar earned, they lose 50 cents in financial aid.
• Parents need to know how much their asset protection allowance is to avoid losing 5.64%/yr for
every dollar over it. They should consider:
1. Gifting;
2. Setting up a small business, or
3. Repositioning into financial vehicles excluded from the calculations
• Many divorced or separated parents will be able to benefit from of Aresty's ambiguous non-
custodial parent strategy™ and cut the cost of college by as much as 90%.
About Reecy Aresty: Reecy is a noted financial advisor, critically-acclaimed author and lecturer with nationwide media credits. He is the creator of The College Information Network™, which includes TheHighSchoolBlog, TheCollegeBlog, PaylessForCollege, TheWayToCollege and presents free seminars coast to coast. For nearly three decades, his successes in admissions and financial aid trench warfare have made it possible for thousands of families to send their kids to the college of their choice for less than they ever imagined. His innovative appeals have turned unappealing award letters into millions of dollars of additional financial aid.
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