Why Did UC Create the Blue and Gold Plan?
The University of California aims to help middle class students in a similar way to the UC Berkeley Middle Class Action Plan. According to the UC admissions fact sheet, “the university already offers a robust financial aid program and enrolls more low-income students (more than a third of all undergraduates) than any other top research university.” However, university President Mark Yudof hopes the Blue and Gold plan will encourage even more low-income students to apply.

Who is Eligible?
To be eligible for the Blue and Gold Opportunity Plan, a student must qualify for financial aid and be a California resident whose family earns less than $80,000 gross income per year. Under the plan, a student’s entire tuition and fees are covered. However, qualified students must be in their first four years of attendance (or, first two for transfer students). If a student qualifies, further financial aid is available to cover room and board and other expenses such as books and transportation. To estimate your financial aid eligibility, the university offers an online estimator.

What does UC Require of Applicants?
The first step for any federal financial aid is for a student to complete his or her free application for federal student aid (FAFSA). The Blue and Gold Opportunity Plan also requires the Cal Grant GPA Verification to be submitted by the March 2 deadline of the year the student plans to attend UC indicating the campus where the student would like the information to be sent.

It’s that simple. All qualifying students who apply will receive benefits automatically on the Blue and Gold Plan. If you are interested in getting all the facts and making the college planning process more smooth for your family, give us a call today. Westface College Planning offers college planning services in addition to financial analysis, planning and advice for families and small businesses.

Photo Credit: roger4336

What is the Middle Class Access Plan?
The Plan offers financial aid to middle-class families by capping tuition costs at no more than 15% of the parent’s income for qualifying students. Middle class is defined as a family whose gross annual income is between $80,000 and $140,000. The typical adjusted net worth of a qualifying family needs to be about $200,000.00 or less. Many parents will be asked to contribute even less than the maximum 15% of their total income. The awards are set to begin the 2012-13 academic year and expect to help more than 6,000 families.

Who Qualifies for the MCAP?
Although the Middle Class Access Plan is currently for UC Berkeley resident students only, some private institutions do provide this type of aid as well. As the first of its kind for a school of Berkeley’s size and stature, however, this plan is truly revolutionary. International students, who are expected to have personal funds for their entire education, are not eligible for federal, state, or institutional aid at UC Berkeley. As with many financial aid programs students are required to complete a FAFSA (free application for federal student aid) prior to being considered. The final say comes from the Financial Aid and Scholarships Office. They consider all factors (about a family’s ability to pay) before determining the contribution required. More information and answers to frequently asked questions can be found on the UC Berkeley website.

At Westface College Planning, we’ll help you figure out the best plan of action for your education. Even if you aren’t sure the Middle Class Access Plan will be right for you, we’ll look at all your options to be sure. Give us a call today.

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Greetings!

Happy May! Most seniors have picked their college by now – Congratulations!

There’s still a lot for them to do to prepare, though! Have you taught them how to manage their money? In this month’s Senior Scoop, I offer advice for teaching your teenager how to create and stick to a college budget.

The college planning process is full of difficult questions and potentially expensive pitfalls. If your student is a junior, now is the time to develop a clear college funding plan which will help direct parents and students in their application choices this fall.

If you haven’t been to one of my College Funding workshops yet, don’t miss out! My last public workshop before the summer break is coming up May 8, so mark your calendar! Visit www.westfacecollegeplanning.com to register and to read helpful articles, financial aid tips & tricks and more.

Whether your student is already in college, is a senior in high school or just starting their elementary school years, planning for college can never start too early. Give me a call at 650-587-1517 to schedule a complimentary private consultation to take the first step on the path to creating a clear college funding plan.

All the best,
Beatrice Schultz
Westface College Planning
College Funding Specialist

Featured Find: Most student loans unaffected by upcoming increase in rates

You know an issue has reached critical mass when it’s the topic of late-night comedian Jimmy Fallon’s “Slow Jam the News” segment, and none other than President Obama shows up to help.

The subject of the slow jam? On July 1, the interest rate for some new federal student loans is scheduled to increase to 6.8% from 3.4%. President Obama wants to extend the lower rate for another year. Republicans in Congress say they support the extension, but disagree with the president’s plan to pay for it.

Many graduates are struggling with unaffordable loan payments, so any suggestion that loans will become more expensive is worrisome to a lot of college students. But a lot of information that has been circulated about the pending rate increase is misleading, if not downright wrong, says Kalman Chany, author of Paying for College Without Going Broke.

If you have student loans, or plan to borrow, read the rest of this article here to find out what you need to know.

Upcoming College Funding Workshops: Seating may be limited – Register to ensure your spot!

Did you know most families qualify for more financial aid than they ever thought possible? Our 1-hour College Funding Workshops provide steps you can take right now to assure you don’t overpay for college, that you clearly understand the process and how to maximize your aid qualification!

We hope to see you at one of these upcoming workshops:

• College Funding Workshop: Tuesday, May 8, 2012 from 6:30-7:30 pm in the Community Room at Redwood Shores Library, 399 Marine Parkway, Redwood City
• College Funding Workshop: Thursday, September 6, 2012 from 6:30-7:30 pm at the Pacific Athletic Club, 200 Redwood Shores Parkway, Redwood Shores

Parents and students are welcome! Please visit our workshops page to register.

Senior Scoop: Steps for Students & Parents to Prepare for College

Creating a budget for college is a smart way to track what your costs will be, as well as how and when you plan to pay for school. You may already keep a monthly budget for other expenses. However, it’s important to create a budget for college as well. But where do you start?

1. Calculate Expected Costs. Make a list of all set (e.g. rent) and variable (e.g. entertainment) expenses and estimate what you think the average monthly costs will be. If possible, include an emergency fund.
2. Create a Monthly Budget. Using a budget worksheet will help. If you need to, consider ways to lower college costs. Then determine what to include when creating a budget for college expenses.

Read more on our blog.

Advice & Insight: Connect With Us For The Latest News

Are you following Westface College Planning online? Here are just a few things you missed:

What financial aid assumptions are you making? Understanding financial aid awards can help you make a sound decision for the years to come: http://bit.ly/Ijozj9.

Still looking for creative ways to pay for college? Here are 7 ways to consider. Be sure to contact me if you’d like more! http://bit.ly/HWXweN.

Follow us on Facebook or connect with me on LinkedIn so you don’t miss any additional updates!

About Westface College Planning
At Westface College Planning, we are committed to helping parents through the process of making the right financial choices for their college bound students.

If you are a typical parent with college bound students, you’re probably overwhelmed by all the research necessary to help your sons and daughters make the right choices and prevent overpaying for their education.

You are not alone!

Our information packed one-hour workshops will help you:

• Understand the true cost of college and how to afford it.
• Learn the specific steps to take immediately to maximize financial aid.
• Receive valuable information on scholarships and gift aid qualification.
• Gain awareness on how to accurately compare the true cost of schools, public vs. private.
• Develop best practices for school selection, and more!

More information at westfacecollegeplanning.com.

Whether currently a student, or planning to attend college in the future, this information will be important for you and your family. Staying a few moves ahead by learning about these requirements and obligations now can save you time and hassle when you are ready to begin your college courses.

Selective Service Registration Requirements
The U.S. government still requires men between the ages of 18 and 25 to register with the Selective Service System (SSS) in case conscription (aka “the draft”) is resumed. You will not be able to register until you are at least 18 years old. If you are required to participate in Selective Service Registration, one must do so before receiving Federal student aid. Currently, as it relates to Federal financial aid requirements for your Free Application for Federal Student Aid (FAFSA), that would include all male citizens and eligible male immigrant non-citizens. The SSS has a convenient online registration form, which can also be accessed via the FAFSA website.

Consequences for Failure to Register
If you are hoping to receive any Federal funding, you should keep in mind that failure to complete Selective Service Registration will prevent a male student from being eligible. Even if you don’t need additional funding for school at this time, it’s still important to register. There are several states that require Selective Service Registration before providing financial aid and/ or attendance at public colleges and universities. This may include Federal student loan and grant programs, including Pell Grants, Federal Work Study, and Stafford Loans. Additional information can be found on the SSS website in the registration information section (also 34 CFR 668.37).

Feel free to give us a call for guidance about Selective Service Registration and planning for your college education. We offer a free, no obligation consultation. So, take the first step toward planning your future and contact us today to learn more.

Photo Credit: Official U.S. Navy Imagery

You know an issue has reached critical mass when it’s the topic of late-night comedian Jimmy Fallon’s “Slow Jam the News” segment, and none other than President Obama shows up to help.

The subject of the slow jam? On July 1, the interest rate for some new federal student loans is scheduled to increase to 6.8% from 3.4%. President Obama wants to extend the lower rate for another year. Republicans in Congress say they support the extension, but disagree with the president’s plan to pay for it.

Many graduates are struggling with unaffordable loan payments, so any suggestion that loans will become more expensive is worrisome to a lot of college students. But a lot of information that has been circulated about the pending rate increase is misleading, if not downright wrong, says Kalman Chany, author of Paying for College Without Going Broke. If you have student loans, or plan to borrow, here’s what you need to know:

• The increase would only affect interest rates for subsidized Stafford loans for undergrad students issued after July 1, 2012. Interest rates for existing loans won’t change.

About a third of undergraduate students have subsidized Stafford loans, which are awarded based on economic need. The College Cost Reduction and Access Act of 2007 gradually reduced the rates for subsidized loans for undergraduate students from 6.8% to 3.4% through 2012-13.

The rates are fixed for the life of the loan. For example, the rate for subsidized Stafford loans issued for academic year 2010-11 is 4.5%. That rate won’t change on July 1, no matter what happens in Congress.

An interest-rate rate increase for subsidized Stafford loans would affect more than 7 million undergraduate students, according to the Department of Education. The administration estimates that doubling loan rates would increase their interest costs by more than $5,000 over the life of the loan.

That estimate is based on a borrower with $23,000 in subsidized Stafford loans, the maximum allowed for undergraduate dependent students. A borrower with an $11,329 loan would pay an extra $2,265 in interest, or about $22 a month, based on a 10-year repayment term, according to FinAid.org.

• Rates for unsubsidized Stafford loans won’t change. The College Cost Reduction and Access Act didn’t affect rates for unsubsidized Stafford loans, which are available to all full-time college students, regardless of financial need. Unsubsidized Stafford loans issued since July 1, 2006, have a fixed rate of 6.8%. Likewise, rates for subsidized loans for graduate and professional students will remain at 6.8%.

• Even if rates rise on July 1, subsidized Stafford loans are generally less costly than private student loans.

Some private lenders are advertising student loan rates as low as 3%, which makes them look like an attractive alternative to Stafford loans with a 6.8% rate. But private loan rates are usually variable, which means they could shoot higher if overall rates rise. And to get the lowest rates, most borrowers will need a co-signer, which puts that individual — usually a parent — on the hook for payments if the borrower falls behind.

If you qualify for a subsidized Stafford loan, the government will pay the interest on the loan while you’re in school, Chany says. Interest on private student loans and unsubsidized Stafford loans accrues while you’re in school. If you don’t make interest payments — and some private lenders require that you do — the interest is capitalized and added to your loan balance.

In addition, both subsidized and unsubsidized federal student loans offer repayment options that typically aren’t available to borrowers with private loans. If you lose your job, for example, you automatically qualify for deferral of loan payments for up to three years.

Borrowers who can’t afford their monthly payments may be eligible for the income-based repayment program, which reduces payments based on discretionary income. After 25 years of qualifying payments, the balance of the loan will be forgiven. The federal government also offers loan forgiveness programs for borrowers who pursue careers in public service.

Some private lenders provide forbearance or interest-only payments for borrowers who are experiencing hard times, but that’s voluntary.

Photo Credit: stevendepolo

1. Pick a School. Determine which school you plan to attend and when you hope to start.
2. Calculate Expected Costs. Make a list of all set (e.g. rent) and variable (e.g. entertainment) expenses and estimate what you think the average monthly costs will be. If possible, include an emergency fund.
3. Create a Monthly Budget. Using a budget worksheet will help. If you need to, consider ways to lower college costs. Then determine what to include when creating a budget for college expenses.
4. Determine Fund Sources. Money for school can come from any number of places. Be sure to explore all your options (parents’ savings, parent income, student income, grants, scholarships, other sources).
5. Calculate What to Borrow. Add up all your expenses and subtract them from your available funds and projected monthly income. This will give you the maximum amount that will need to be borrowed.

Once you are done creating a budget for college, the real challenge is sticking to it. Limit your use of credit cards to emergencies and planned expenses. Track your spending closely and be wary of peer pressure. Part of the experience of college is to prepare you for real life. Forming good habits with money now will help you in the future.

Remember, you are not alone! At Westface College Planning, we’ll help you prepare so you can have the most positive college experience possible.

Photo Credit: Tax Credits

1. For most students, college will be their first time living on their own and taking care of their own meals. It’s easy to go overboard on eating out, so establish firm limits on non-food plan spending.
2. Credit card debt is another thing that can spiral out of control, especially if you have a student that “had to have” that logo sweatshirt or brand new stadium blanket from the campus bookstore. Consider using a debit card instead, and set a monthly budget for incidental expenses.
3. When possible, buy used – textbooks, dorm furniture, even electronics like laptops can be found for a fraction of the price if you buy them used instead of new.
4. Consider post-graduation service to offset a portion of your college expenses. Programs like ROTC, Peace Corps and Teach for America offer scholarships, loan deferment, education awards or even partial cancellation of college loans.
5. You don’t have to be an athlete or a math whiz to qualify for a scholarship – there are many scholarships available that you might not know about. Try a free online scholarship search at Fastweb to get started.
6. Many students have time for a part-time job. Look for work-study opportunities on campus, or seek out a paid internship in your field of study to earn money and give your resume a boost at the same time.
7. Look for discounts wherever you shop and dine out. Many businesses offer student discounts but don’t advertise them. It’s worth asking, especially for big ticket items like travel and electronics.

A little planning goes a long way when it comes to dealing with college costs. Contact us for more guidance about college planning.

Photo credit: Bohman

1. Have your circumstances changed? If there are extenuating circumstances (like family medical bills or a recent layoff) that the financial aid office should know about, it would be reasonable to file an appeal. Be prepared to offer documentation.
2. Expenses that were brought on by choice, like a vacation or a new car, are not going to sway the financial aid office in your favor, so don’t bother filing an appeal based on those kinds of financial circumstances.
3. Don’t try to negotiate with the financial aid office. They try to be as thorough as possible and it is fair to present new information such as a more generous offer from another school, but there are no guarantees.
4. If you do choose to appeal, file it as soon as possible, before all of the available award dollars have been spent.
5. Ask the financial aid office for advice. It’s a good idea to call for an appointment to speak to someone in the office. They may be able to recommend other avenues to pursue for help financing your college education.

Piecing together the puzzle of college aid can be a challenging experience, but we can help. Contact us for guidance throughout the financial aid process.

Photo courtesy of s_falkow

Greetings!

Happy April! Now’s the time for seniors to start making decisions about which school to attend. What factors should they consider? Keep reading for some helpful advice from USNews.

For those of you with students in high school, you don’t want to miss out on the extremely valuable and timely information in my College Funding Workshops. My next one is April 12 at the Pacific Athletic Club, so mark your calendar! Visit www.westfacecollegeplanning.com to register and to read helpful articles, financial aid tips & tricks and more.

The college planning process is full of difficult questions and potentially expensive pitfalls. Whether your student is already in college, is a senior in high school or just starting their elementary school years, planning for college can never start too early. Give me a call at 650-587-1517 to schedule a complimentary private consultation to take the first step on the path to creating a clear college funding plan.

All the best,
Beatrice Schultz
Westface College Planning
College Funding Specialist

Featured Find: Saving for Tuition vs. Retirement: Which is More Important?

After watching their retirement funds get pummeled by the financial crisis at the same time the cost of college tuition continues to rise, many parents are faced with a difficult choice: contributing towards their children’s education or funding their retirement.

According to a recent study conducted by Allianz Life Insurance, one in four people are reducing or cutting off contributions toward their children’s college education. The study also reported that 25% of U.S. households are contributing less toward their children’s college education or have stopped altogether, while 44% of respondents have not started saving at all. Only 15% have cut back their spending on other things to keep saving/paying for their children’s college educations.

Jim Briggs, co-founder of ReducingCollegeCosts.com explains that families saving for college face a different reality than they did before 2008.

“Most families that we deal with are now taking a really hard look at the cost of educating their children and trying to get that down to the lowest common denominator,” he says. “But when you get right down to it, given a finite amount of assets and income, it’s how do you take what the family has and maximize their return on those for both retirement and education.”

So what’s more important, parents’ retirement or childrens’ college? The answer, according to most experts, is retirement.

Read more on our blog.

Upcoming College Funding Workshops: Seating may be limited – Register to ensure your spot!

Did you know most families qualify for more financial aid than they ever thought possible? Our 1-hour College Funding Workshops provide steps you can take right now to assure you don’t overpay for college, that you clearly understand the process and how to maximize your aid qualification!

We hope to see you at one of these upcoming workshops:

• College Funding Workshop: Thursday, April 12, 2012 from 6:30-7:30 pm at the Pacific Athletic Club, 200 Redwood Shores Parkway, Redwood Shores
• College Funding Workshop: Wednesday, April 18, 2012 from 6:30-7:30 pm in the College & Career Center, Room D9, at Woodside High School, 199 Churchill Avenue, Woodside
• College Funding Workshop: Tuesday, May 8, 2012 from 6:30-7:30 pm in the Community Room at Redwood Shores Library, 399 Marine Parkway, Redwood City

Parents and students are welcome! Please visit our workshops page to register.

Nifty News: An Investment in the Future

We’re excited to announce that Westface College Planning is a sponsor of the Redwood City Education Foundation’s Benefit for a Brighter Future 2012! As we’re committed to helping parents through the process of making the right financial choices for their college bound students, we see great value in helping students be better learners and keeping them engaged in school – two important benefits of music education.

Read more on our blog.

Senior Scoop: Steps for Students & Parents to Prepare for College

April is crunch time for families in the college selection process. The admissions decisions are in and, with one month remaining before the May 1 reply date, students are now turning their attention to the final choice of a college. It’s an exciting-and nerve-wracking-time to be sure, especially for families trying to reconcile cost and affordability against limited means.

As you compare financial aid award letters, it is important that you get to the bottom line “out-of-pocket” expenses for each. Unfortunately, the award letters don’t always spell that out for you. The following are important factors to consider in making sure you are comparing “apples to apples.”

1. Identify the total cost of attendance for each institution: This will include tuition and room and board, as well as books/supplies, activity fees, lab fees, and possible transportation expenses. You may need to consult the school’s website for a complete list, as very few award letters provide a complete documentation.
2. Add all of the grants and scholarships listed on the award letter together: These funds comprise the “gift” aid you are receiving-money you don’t have to repay. The sources of these funds may include state and federal governments as well as the institution itself.
3. Subtract the total amount of “gift” aid from the total cost of attendance: This will help determine the total out-of-pocket expense for your family.
4. Look for the “self-help” portion: In most cases, institutions will offer a standard “self-help” component to the financial aid award that includes a guaranteed student loan (Stafford) of $3,500 and a campus work-study opportunity worth up to $1,500. Note that the amount of the loan eligibility will increase for each of the following years. Additional loans authorized for the student or the parents (PLUS loans) may be offered in place of “gift” aid.
5. Keep an eye out for “gapping”: It is not uncommon for the total amount of financial aid offered, both “gift” and “self help,” to come up short of making up the difference between the Expected Family Contribution and the total cost of attendance. This practice, known as “gapping,” is employed by institutions that choose not to meet the full need of the student with financial aid. In such cases, the student is left to his/her own devices to find the remaining funds.

In the final analysis, you need to be entirely comfortable with your ability to manage the cost of attending a college before you submit an enrollment deposit. If you have concerns, it is best to direct them to the financial aid offices of the colleges in question. Most financial aid offices will entertain appeals when new documentation can be provided.

Read more on our blog.

Advice & Insight: Connect With Us For The Latest News

Are you following Westface College Planning online? Here are just a few things you missed:

Harvard is now cheaper than Cal State?? Middle-income California students can actually save thousands of dollars by picking a school like Harvard, Princeton and Yale due to several contributing factors: http://bit.ly/zROBWy.

As you research your potential school, remember to look at how many and how quickly students graduate. The Chronicle of Higher Education can help you find out: http://bit.ly/xa9ZyC.

Follow us on Facebook or connect with me on LinkedIn so you don’t miss any additional updates!

About Westface College Planning
At Westface College Planning, we are committed to helping parents through the process of making the right financial choices for their college bound students.

If you are a typical parent with college bound students, you’re probably overwhelmed by all the research necessary to help your sons and daughters make the right choices and prevent overpaying for their education.

You are not alone!

Our information packed one-hour workshops will help you:

• Understand the true cost of college and how to afford it.
• Learn the specific steps to take immediately to maximize financial aid.
• Receive valuable information on scholarships and gift aid qualification.
• Gain awareness on how to accurately compare the true cost of schools, public vs. private.
• Develop best practices for school selection, and more!

More information at westfacecollegeplanning.com.

The truth is, student loans don’t come in a “one size fits all” package, but with due diligence you can find a loan that will suit your needs. Many students don’t realize that they qualify for federal loans and end up with expensive private loans instead. It’s worth asking questions to make sure you’re not missing out on assistance you qualify for.

Still, don’t assume that federal loans are always the best choice. Federal loan interest rates are likely to increase in the coming months, and in fact some could double by fall 2012. Federal legislation aimed at freezing the interest hike has stalled in Congress, and next steps are uncertain.

Keep in mind that the choice of loan will be different for every family, so come talk to us at Westface College Planning to figure out what’s best for your family.

Photo credit: jferzoco