One family with two young children ages 6 and 9 had 301 months remaining on their 30 year mortgage. Using the MMA system they are now on schedule to be free and clear of all debt in 8.8 years or 105.6 months. They will free up over $21,000 a year to pay for college and increase their retirement savings.
This was accomplished without refinancing, with little or no change in their household budget and without increasing their minimum required monthly mortgage payment.
Do you want to know if you qualify for a system like this? Send an e-mail to homersweeney@yahoo.com. Qualification process takes about 15 minutes.
Homer Sweeney
Wednesday, January 30, 2008
Income Tax Help
The CPA firm of Darvis and Petersen have saved families thousands of dollars in taxes because they are experts in college related tax deductions. Rick Darvis is frequently quoted in the Wall Street Journal and other national publications and recently served as a consultant for the new Microsoft program on how to pay for college.
Here's how the program works:
- You complete a three page questionnaire and provide the firm with a copy of your most recent 1040.
- The company will run a tax opportunity report for you and explain it to you. Cost is $195.
- You can either then take the tax ideas to your current CPA or switch to Darvis and Petersen.
For additional information contact Casey Petersen at (406) 765-2030 or e-mail him at cpcpa@nemontel.net.
Homer Sweeney
Here's how the program works:
- You complete a three page questionnaire and provide the firm with a copy of your most recent 1040.
- The company will run a tax opportunity report for you and explain it to you. Cost is $195.
- You can either then take the tax ideas to your current CPA or switch to Darvis and Petersen.
For additional information contact Casey Petersen at (406) 765-2030 or e-mail him at cpcpa@nemontel.net.
Homer Sweeney
Monday, January 28, 2008
FAFSA: Selected for Verification
If your report has been selected for verification, page one of the SAR will have a message that states, "you will be asked by your school(s) to provide copies of certain financial documents." This means that you will be expected to provide supporting documentation for the information on your FAFSA such as signed copies of your 1040, W-2 and 1099 forms. Instructions on the SAR explain how to do this.
Verification is a process to confirm information you provided on the FAFSA. The US Department of Education selects some FAFSAs for verification. Others are selected by schools due to discrepancies in their data.
These are the main reasons for being selected:
- You were chosen randomly
- The FAFSA you submitted was incomplete
- Your FAFSA contains estimated information
- The data you provided on the FAFSA is inconsistent.
Verification ensures that the information students and parents report is accurate. Verification prevents ineligible students from receiving aid by reporting false information and ensures that eligible students receive all the aid for which they are qualified.
The sooner you verify your information, the sooner you'll be able to receive financial aid if you're eligible.
SallieMae
Verification is a process to confirm information you provided on the FAFSA. The US Department of Education selects some FAFSAs for verification. Others are selected by schools due to discrepancies in their data.
These are the main reasons for being selected:
- You were chosen randomly
- The FAFSA you submitted was incomplete
- Your FAFSA contains estimated information
- The data you provided on the FAFSA is inconsistent.
Verification ensures that the information students and parents report is accurate. Verification prevents ineligible students from receiving aid by reporting false information and ensures that eligible students receive all the aid for which they are qualified.
The sooner you verify your information, the sooner you'll be able to receive financial aid if you're eligible.
SallieMae
Reviewing Your Student Aid Report (SAR)
Your SAR summarizes the data from your FAFSA and indicates your official Expected Family Contribution (EFC).
You'll receive one of the following within a few day (if you filed your FAFSA electronically) two to four weeks (if you mailed a paper FAFSA).
- Student Aid Report (SAR) if you applied using the paper FAFSA and did not provide a valid e-mail address or
- SAR Information Acknowledgment, if you applied using FAFSA on the WEB but did not provide a valid e-mail address or
- An e-mail with a secure line to access your SAR online, if you provided a valid e-mail address when you applied.
After receiving your SAR, carefully check it for mistakes. Compare the information listed on the SAR to a copy of your FAFSA, since the EFC listed on your SAR will determine the amount of aid you are eligible to receive.
If you believe your information is incorrect, you can fix any mistakes by writing the correct answers on the Information Review Form that is on the back of the SAR. When the Information Review Form is complete, you can:
- Contact your financial aid office to see if the school can send the corrections electronically, or
- Mail the form to the address designated on the SAR.
To make your SAR available to more schools for free follow the directions on the SAR.
SallieMae
You'll receive one of the following within a few day (if you filed your FAFSA electronically) two to four weeks (if you mailed a paper FAFSA).
- Student Aid Report (SAR) if you applied using the paper FAFSA and did not provide a valid e-mail address or
- SAR Information Acknowledgment, if you applied using FAFSA on the WEB but did not provide a valid e-mail address or
- An e-mail with a secure line to access your SAR online, if you provided a valid e-mail address when you applied.
After receiving your SAR, carefully check it for mistakes. Compare the information listed on the SAR to a copy of your FAFSA, since the EFC listed on your SAR will determine the amount of aid you are eligible to receive.
If you believe your information is incorrect, you can fix any mistakes by writing the correct answers on the Information Review Form that is on the back of the SAR. When the Information Review Form is complete, you can:
- Contact your financial aid office to see if the school can send the corrections electronically, or
- Mail the form to the address designated on the SAR.
To make your SAR available to more schools for free follow the directions on the SAR.
SallieMae
Who Gives National Merit Scholarships?
A relatively few of the 8,262 National Merit Scholar finalists from the class of 2007 will receive scholarships offered by the National Merit Corporation and other sponsoring corporations. The vast majority of scholarships are awarded by participating universities. The schools with highest number of finalist enrolled are listed below. The number shown in parenthesis ( ) indicates how many of these national merit scholarships were paid by the universities.
The top five universities with most enrollees for the 2007-08 school year:
Harvard University 285 (0)
University of Texas at Austin 283 (232)
Northwestern University 249 (186)
University of Southern California 231 (195)
Washington University of St. Louis 204 (154)
Other California universities enrolling more than twenty finalists:
Stanford University 164 (0)
Harvey Mudd College 68 (52)
University of California, Berkeley 60 (0)
Cal Tech 36 (0)
UCLA 28 (0)
Ten additional universities awarding National Merit Scholarships:
University of Chicago 196 (156)
University of Oklahoma 175 (137)
Texas A & M at College Station 173 (134)
Vanderbilt University 172 (116)
University of Florida 168 (132)
North Carolina at Chapel Hill 166 (127)
New York University 159 (137)
Rice University 159 (95)
Arizona State University 150 (127)
The Ohio State University 118 (93)
Figures provided by National Merit Scholarship Corporation
The top five universities with most enrollees for the 2007-08 school year:
Harvard University 285 (0)
University of Texas at Austin 283 (232)
Northwestern University 249 (186)
University of Southern California 231 (195)
Washington University of St. Louis 204 (154)
Other California universities enrolling more than twenty finalists:
Stanford University 164 (0)
Harvey Mudd College 68 (52)
University of California, Berkeley 60 (0)
Cal Tech 36 (0)
UCLA 28 (0)
Ten additional universities awarding National Merit Scholarships:
University of Chicago 196 (156)
University of Oklahoma 175 (137)
Texas A & M at College Station 173 (134)
Vanderbilt University 172 (116)
University of Florida 168 (132)
North Carolina at Chapel Hill 166 (127)
New York University 159 (137)
Rice University 159 (95)
Arizona State University 150 (127)
The Ohio State University 118 (93)
Figures provided by National Merit Scholarship Corporation
Increased Grants Equals More Competition
College endowments keep growing at the rate of 17% - 30% a year while tuition continues to increase. This has angered Congress. Many elite colleges with large endowments of over $1 billion have responded by increasing their financial aid offerings to include more grants and less loans. Yale recently said undergraduates whose families earn between $60,000 and $120,000 will typically pay between 1% and 10% of their income to attend. Dartmouth College announced that it would eliminate tuition for students from families with income less than $75,000, a rather small concession when compared to other recently announced grant increases. Will these changes satisfy Congress? Private foundations are required by law to spend 5% minimum annual payout whereas colleges are typically spending a little over 4%. Congress wants these colleges to reduce their hoarding and to spend a least 5% of their endowments to assist current students.
For some families these grant increases will make elite schools more affordable. They will cost less then many public colleges and almost all privates. The results will be more qualified applicants added to an already very talented pool. Princeton rejects more than 90 per cent of their applicants, Stanford 89.7%. Harvard turned down 1,100 students who scored a perfect 800 on the math portion of the SAT while Yale reported rejecting several students who scored a 2400 on the SAT.
Homer Sweeney
For some families these grant increases will make elite schools more affordable. They will cost less then many public colleges and almost all privates. The results will be more qualified applicants added to an already very talented pool. Princeton rejects more than 90 per cent of their applicants, Stanford 89.7%. Harvard turned down 1,100 students who scored a perfect 800 on the math portion of the SAT while Yale reported rejecting several students who scored a 2400 on the SAT.
Homer Sweeney
Monday, January 14, 2008
Changes for 2008
The College Plan has been in business since 1992. During these 16 years we've changed focus as the need presented itself always looking for new ways to better serve our clients. In the beginning we concentrated on admissions and financial aid forms. As college costs became a greater issue we counseled parents and students on how to keep cost down with good planning and to graduate in four years.
In the late 90's we developed strategies and worked with parents on how best to pay for college. Mortgage rates dropped which allowed many families to refinance in order to obtain funds for college. Rates increased and new strategies were needed.
Recently we discovered a new plan that utilizes bank strategies which have been around for decades. It allows qualified home owners to potentially pay off their mortgages in 1/3 to 1/2 regular time with little or no change to their day to day spending habits and without increasing their minimum regular monthly mortgage payments or refinancing.
It came as no surprise that every homeowner was a potential client because we could show them how they could save thousands if not hundreds of thousands of dollars in interest. We thought about eliminating college planing but we quickly learned that this new revolutionary plan was the best way to save for college and a very efficient and cost savings way to pay off college and current debt in order to be better prepared financially for retirement.
This site is titled nocollegeloans@blogsport.com for a reason. With this new plan the goal of our planning is not to have any college loans. It will serve as our main channel of communications. You will be notified by e-mail once or twice month when new information is available on the site. The College Planning News and the TuitionRx website have been eliminated because of costs and philosophical differences.
If you need assistance have questions or wish to be dropped from our list e-mail me at homersweeney@yahoo.com.
Homer Sweeney
In the late 90's we developed strategies and worked with parents on how best to pay for college. Mortgage rates dropped which allowed many families to refinance in order to obtain funds for college. Rates increased and new strategies were needed.
Recently we discovered a new plan that utilizes bank strategies which have been around for decades. It allows qualified home owners to potentially pay off their mortgages in 1/3 to 1/2 regular time with little or no change to their day to day spending habits and without increasing their minimum regular monthly mortgage payments or refinancing.
It came as no surprise that every homeowner was a potential client because we could show them how they could save thousands if not hundreds of thousands of dollars in interest. We thought about eliminating college planing but we quickly learned that this new revolutionary plan was the best way to save for college and a very efficient and cost savings way to pay off college and current debt in order to be better prepared financially for retirement.
This site is titled nocollegeloans@blogsport.com for a reason. With this new plan the goal of our planning is not to have any college loans. It will serve as our main channel of communications. You will be notified by e-mail once or twice month when new information is available on the site. The College Planning News and the TuitionRx website have been eliminated because of costs and philosophical differences.
If you need assistance have questions or wish to be dropped from our list e-mail me at homersweeney@yahoo.com.
Homer Sweeney
Home Equity . . . Appeal It and Repeal It!
Many private colleges are starting to give breaks to homeowners by using more generous financial aid calculations that is expected to reduce the expected contributions for families whose homes have appreciated. Unlike past aid efforts, which mainly helped financially needed students, the latest moves also stand to benefit more affluent families.
Some universities in the past have counted the market value of the home up to 2.4 times the family income. Other schools have been counting home equity and cap that at 1.2 times income. Stanford University said it would begin capping the amount of home equity assessed in the calculation of a parental contribution to 1.5 times the family income.
Harvard University announced recently that they would not count home equity in their formula. It's about time! Home equity probably never should have been counted in the first place at this Ivy League school or any other college in the country.
A family owns their home with a value of over $800,000 free and clear. The equity can be used to sell and buy another home or it can be very helpful during retirement if one decides to take a reverse mortgage. However, using home equity to pay for college is very expensive.
Home equity is not the same as having a savings account with a bank. You can't go to the bank and say I have $800,000 in equity please give me $150,000. To use equity one must borrow from the bank. A family takes out a $150,000 30 year 6% mortgage with monthly payments of $899.33 to cover the cost of college. Over the course of the loan they would pay $173,757 in interest making the total cost of $323,757 more then double the original amount.
Instead of holding the property for thirty years the family decides to sell after ten years. They would still owe $125,529 on their $150,000 loan after making $107,920 in payments. During the past decade very small equity growth like the $24,471 in this situation has gone relatively unnoticed because of triple digit appreciation. This is not the case today. Home values have dropped. Real estate prices could remain stagnant for some time to come.
If you are taxed by a college because you have a large amount of home equity you would have a strong case to appeal using similar evidence as provided above and asking how they can justify it today.
Some universities in the past have counted the market value of the home up to 2.4 times the family income. Other schools have been counting home equity and cap that at 1.2 times income. Stanford University said it would begin capping the amount of home equity assessed in the calculation of a parental contribution to 1.5 times the family income.
Harvard University announced recently that they would not count home equity in their formula. It's about time! Home equity probably never should have been counted in the first place at this Ivy League school or any other college in the country.
A family owns their home with a value of over $800,000 free and clear. The equity can be used to sell and buy another home or it can be very helpful during retirement if one decides to take a reverse mortgage. However, using home equity to pay for college is very expensive.
Home equity is not the same as having a savings account with a bank. You can't go to the bank and say I have $800,000 in equity please give me $150,000. To use equity one must borrow from the bank. A family takes out a $150,000 30 year 6% mortgage with monthly payments of $899.33 to cover the cost of college. Over the course of the loan they would pay $173,757 in interest making the total cost of $323,757 more then double the original amount.
Instead of holding the property for thirty years the family decides to sell after ten years. They would still owe $125,529 on their $150,000 loan after making $107,920 in payments. During the past decade very small equity growth like the $24,471 in this situation has gone relatively unnoticed because of triple digit appreciation. This is not the case today. Home values have dropped. Real estate prices could remain stagnant for some time to come.
If you are taxed by a college because you have a large amount of home equity you would have a strong case to appeal using similar evidence as provided above and asking how they can justify it today.
Are 529 Plans Counted On The FAFSA?
A 529 Plan owned by the student will not be included as an asset on the FAFSA for the 2008-09 school year. Beginning in 2009-2010, student owned 529s will be assessed at the parent's asset rate. 529s owned by the parent with the student as the beneficiary are currently treated as a parent asset and will continue to be.
Contributed by the NICCP
Contributed by the NICCP
Wednesday, January 9, 2008
Financial Aid --- More Grants and Less Loans
Harvard University recently announced that it will eliminate student loans and ask families with salaries between $120,000 and $180,000 to pay no more then 10 percent of their income and charge its neediest student nothing. That's the good news!
The bad news is that competition for admissions will be even tougher. Many qualified students who did not apply in the past because of the high cost will now apply since many will be able to attend the Ivy League school for less then a U.C.
Duke University also said it would reduce loans for students with family incomes up to $100,000 and cap loans on wealthier ones. Swarthmore College said they would replace loans with grants for all students. Yale will announce its new financial aid plan later this month. Furthermore the "The College Planning News" reports that California private colleges, such as Cal Tech, Pomona and California Lutheran University will begin matching the college tuition for students who were also admitted to California public universities.
Fresno State University will reinstate women's swimming and diving teams and add a new sport of Women's Lacrosse for the 2008-09 school year which will provide a few more athletic scholarships.
Homer Sweeney
The bad news is that competition for admissions will be even tougher. Many qualified students who did not apply in the past because of the high cost will now apply since many will be able to attend the Ivy League school for less then a U.C.
Duke University also said it would reduce loans for students with family incomes up to $100,000 and cap loans on wealthier ones. Swarthmore College said they would replace loans with grants for all students. Yale will announce its new financial aid plan later this month. Furthermore the "The College Planning News" reports that California private colleges, such as Cal Tech, Pomona and California Lutheran University will begin matching the college tuition for students who were also admitted to California public universities.
Fresno State University will reinstate women's swimming and diving teams and add a new sport of Women's Lacrosse for the 2008-09 school year which will provide a few more athletic scholarships.
Homer Sweeney
Monday, January 7, 2008
Some Financial Aid Basics
EVERYONE SHOULD APPLY
No matter your financial situation, you should always apply for financial aid. Nearly every U.S. citizen is eligible for some form of financial aid including, subsidized-interest federal student loans, regardless of income. Additionally, all families should file for federal financial aid because some colleges and universities will not consider a student for institutional aid unless a federal application form is on file.
ATTENDING AN EXPENSIVE SCHOOL
Attending an expensive school might actually mean that a family will qualify for more aid than if the student attended a lower-cost institution. That is why it is important to choose a college based on academic interest and ability, and not on finances.
TYPES OF FINANCIAL AID
There are two basic types of financial aid; gift aid and self-help aid. Gift aid includes grants, which are determined by your financial need and scholarships, which are usually based on academic performance. For graduate students, there are fellowships, which are based on merit. Self-help aid includes subsidized interest loans, which must be repaid, and government work-study programs.
GETTING STARTED
The first step in getting financial aid is to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA will help determine the amount of federal aid for which you may be eligible. You can find out more about the FAFSA, as well as download or fill out the form online at www.fafsa.ed.gov. Note that eligibility for the federal Parent Loan for Undergraduate Students (PLUS) loan program is not determined with this application.
TWO OR MORE IN COLLEGE
The federal assessment of aid eligibility is based on an "expected family contribution"--- the amount of money that parents are expected to shell out, based on their financial picture. That expected outlay stays the same no matter how many kids you have in college at the same time. So if you have two or more children attending college, your expected contribution is split among them. You are likely to qualify for more aid when you have multiple children in college at once.
Complied by NICCP
No matter your financial situation, you should always apply for financial aid. Nearly every U.S. citizen is eligible for some form of financial aid including, subsidized-interest federal student loans, regardless of income. Additionally, all families should file for federal financial aid because some colleges and universities will not consider a student for institutional aid unless a federal application form is on file.
ATTENDING AN EXPENSIVE SCHOOL
Attending an expensive school might actually mean that a family will qualify for more aid than if the student attended a lower-cost institution. That is why it is important to choose a college based on academic interest and ability, and not on finances.
TYPES OF FINANCIAL AID
There are two basic types of financial aid; gift aid and self-help aid. Gift aid includes grants, which are determined by your financial need and scholarships, which are usually based on academic performance. For graduate students, there are fellowships, which are based on merit. Self-help aid includes subsidized interest loans, which must be repaid, and government work-study programs.
GETTING STARTED
The first step in getting financial aid is to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA will help determine the amount of federal aid for which you may be eligible. You can find out more about the FAFSA, as well as download or fill out the form online at www.fafsa.ed.gov. Note that eligibility for the federal Parent Loan for Undergraduate Students (PLUS) loan program is not determined with this application.
TWO OR MORE IN COLLEGE
The federal assessment of aid eligibility is based on an "expected family contribution"--- the amount of money that parents are expected to shell out, based on their financial picture. That expected outlay stays the same no matter how many kids you have in college at the same time. So if you have two or more children attending college, your expected contribution is split among them. You are likely to qualify for more aid when you have multiple children in college at once.
Complied by NICCP
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