The Insurance Doctor

Category: College Planning

6 Tips for FREE College “Endowment” Money
Over the last several months, college admissions have been in the news because of the “cheating scandal” including some high-profile Hollywood actresses Lori Laughlin (Full House) and Felicity Huffman (Desperate Housewives). In 2019, they were accused of bribing college entrance-exam administrators to allow cheating on the exams and university athletic coaches to designate school applicants as athletic recruits, regardless of athletic ability or experience playing a sport.

Laughlin “allegedly” paid $500,000 so that her 2 daughters would be designated as recruits to the University of Southern California (USC) crew team, though neither girl ever participated in the sport. Laughlin and Huffman were 2 of almost 50 prominent figures (mostly from the financial industry) who were charged in the scandal.

Interviews with more than a dozen low-income students and college advisors suggest the scandal heightened questions about the fairness of the admissions process and shook the confidence of some who hope to beat the long odds of getting into a top school. For example, Harvard and Yale had acceptance rates of 4.7% and 6.3% respectfully in 2019.

These might sound like insurmountable odds; however, there are proven strategies that can increase the odds of both getting into a prestigious university and getting FREE ENDOWMENT MONEY while doing so. There is a certain profile that Universities are looking for.

The well-rounded B student (who participates in sports, student council, fraternities/sororities, etc.) has a better chance of getting FREE MONEY than the straight-A student who studies 24/7. Schools are looking for what is called THE GIVE-BACK GENE! If your student can demonstrate giving back, the school knows the odds are better of that student contributing shortly after their graduation.

Aside from buying a home, college is usually the largest expense a family will occur over their lives. Most Americans have not saved enough for their first student, let alone a 2nd or 3rd, etc.

This fact puts families in a bind! The ripple effects can include; taking out high-interest loans, borrowing money, or stealing from their own retirement plans. The biggest mistake is to have their student ONLY apply to “schools they think they can afford.” Wouldn’t it be great if parents could learn how to extract merit-based ENDOWMENT “FREE MONEY” from the school of their students’ dreams? Keep reading to find out how!

Colleges control roughly 90% of the money that students receive every year. The balance comes mostly from various grants from churches, synagogues, and other charitable organizations, so it is important to concentrate on where the majority of the money comes from.

Let’s first define ENDOWMENT MONEY, best understood by an example. I graduated from Lehigh University many moons ago. Lehigh’s investment office manages a $1.4 Billion “ENDOWMENT FUND”, which is the school’s largest tangible asset. When I graduated and contributed to Lehigh, it was deposited into Lehigh’s “ENDOWMENT FUND,” which is not taxable. The ENDOWMENT serves as a key source of funding for incoming student scholarships and academic programs. Also known as GRANTS, ENDOWMENT money DOES NOT have to be paid back. Usually, there are “strings” and/or requirements attached like maintaining a full course load (minimum amount of credits) and minimum GPA (grade-point-average) to maintain the scholarship. The Government requires that colleges disperse a percentage of their ENDOWMENT FUNDS (about 5%) to maintain their TAX-FREE status.

Follow these 6 TIPS to help you obtain FREE MONEY:
1. Apply to At Least 10 Schools: The most efficient way to do this is through the Common-Application form. The objective is the get into 6 schools, then leverage one school’s offer versus another.
2. Go Visit Your Top 2–3 Schools After Acceptance: More often than not, you will receive a letter or email offering more $$$$ after your visit.
3. Do NOT Accept Their First Offer: Just like buying a pre-own car, DO NOT pay “sticker” price! Many schools have BILLIONS in their ENDOWMENT FUNDS just waiting for you to extract the cash!
4. Apply to the Competitors of Your Top Choices: Admissions officers know where you are applying. They will give more $$$$ just to not let their competition win.
5. Do Volunteering and Community Service: Schools give money to those students who they think will contribute after graduating. They call it “the give back gene”.
6. Consult a Professional for EFC Planning: The EFC (Expected Family Contribution) score will dictate how much FREE MONEY your student will qualify for. For example, if St. John’s tuition is $43,000/year and your EFC is $30,000, it is likely your student will not get more than the $13,000/year gap ($52,000= $13,000 X 4 years). The key is to lower your EFC score, like golf, lower is better. For every $1 your EFC is lowered, you can qualify for $4 of FREE ENDOWMENT MONEY. Parental assets can be repositioned into “EFC Friendly” assets like annuities and cash-value life insurance, which are not includible on the FAFSA (Free Application for Federal Student Aid) form. The FAFSA must be completed every year to determine your EFC and requalify annually for your students’ FREE ENDOWMENT MONEY.
To learn more about these strategies (and/or for a book recommendation) feel free to reach out to me at Rob@InsuranceDoctor.us. STAY SAFE!
September 23, 2020
5 Reasons 529 Plans are a Waste of Time

5 Reasons why 529’s are a waste of time

Unless you are getting other people like grandparents to contribute money to your child’s 529 they are a waste of time for the following reasons:
1. They reduce the amount of endowment “free” money students can qualify for: Ex. With $100,000 in a 529 the first $25,000/year is on you!

2. High fees, charges and broker commissions: Most 529’s have front or back end charges as well as annual fees regardless if it’s making money.

3. Exposure to stock market fluctuations: The market can go down 50% during your student’s high school senior year and the money is gone with no time to recover.

4. Limited fund and investment choices: Most states have only 1 fund family to choose from. If you choose a different fund family odds are you will lose your resident state’s income tax deduction.

5. What happens if your only child gets a scholarship?: All funds withdrawn in this scenario would incur a 10% withdrawal penalty.

There are several other options as to where to stash money and how to pay for college that won’t have market risk or adverse effects on potential scholarship money.

Contact Robert today for a better way to fund your child’s college education

October 15, 2019
5 Tips to Get Free College Endowment Money
Free money? Seems to good to be true but when it comes to funding your child’s education it can be reality. Colleges control over 95% of the money that students receive every year.
1. Apply to at least 10 schools: We have students apply to 10, get into 6 then leverage one school versus another.
2. Go back and visit your top 2-3 schools after acceptance: More often than not you will receive a letter offering more $$ after your second visit.
3. Don’t accept their first offer: Just like buying a pre-own car don’t pay “sticker” price. Schools have billions in their endowment funds just waiting for you to extract it.
4. Apply to the competitors of your top choices: Admissions officers know where you are applying. They will give more $$ just to not let their competition win.
5. Do volunteering and community service: This is one of the most important tips! Schools give money to those students who are most likely to give $$ back after graduating. They call it “the give back gene”.
For more information visit our websitewww.InsuranceDoctor.us and fill in the intake sheet if you want to be contacted for professional advice or college endowment coaching.
February 26, 2019
5 Mistakes to Avoid When Applying for Your Student’s Financial Aid
FAFSA: The Free Application for Federal Student Aid. All students interested in financial aid (free endowment monies) for college will need to complete this form. Usually, the parents/guardians fill it out using their tax return.
1. Don’t include retirement assets on the FAFSA: The FAFSA doesn’t care how much you’ve got in your 401k/IRA/pension. They do ask about cash, savings and checking accounts to name a few items.
2. Don’t wait until your 2017 taxes are done to complete: Use estimated 2016 tax return numbers then adjust them later. This is one of the biggest mistakes as the FAFSA completion holds your place in line for free endowment money when the coffers are full! Complete it before the end of February then adjust it when your 2017 taxes are done. This is especially important if you file a filing extension.
3. Don’t forget to list the colleges: You can include up to 10 colleges your son/daughter has applied to. The federal processors will send the pertinent FAFSA info to the schools. You will need each college’s school code.
4. Don’t inflate your education: If both parents didn’t graduate from college, don’t list “college” as their/your highest education even if you completed a few years. Plenty of schools treat these applicants more favorably if they are considered “first-generation” college students.
5. Don’t assume you won’t qualify for financial aid because your house is too valuable: The FAFSA doesn’t care if you own a house*. They do ask about second homes and real estate investments.
Notes: One cannot receive endowment “free” money without first completing a FAFSA. If you apply to more than 10 schools you can go into FAFSA a week after completing, change some schools and they will receive the FAFSA info.

*Certain schools use the CSS (formula) profile whereby home equity and sibling assets will count against you.

**Contact Robert today for sound advice and strategies for completing the FAFSA and financing your child’s education.
August 15, 2017
SAT vs. ACT Exams: 5 Questions Answered
Although it’s technically still the summer, many high school students (and parents) are feeling anxiety about taking the SAT and/or ACT exams this month. There’s a lot of bad information out there on this topic. Below are answers to 5 popular questions:
1. Should I take the SAT or ACT? We strongly recommend taking both exams multiple times if possible. Most schools accept both and students may decide which scores to send to colleges.
2. Why don’t my college advisors know much about the ACT? The SAT is far more popular in the northeast and California while the ACT rules in middle America. This is the first year the ACT will surpass the SAT in total tests taken.
3. If I had to choose one, why take the ACT? Vocabulary is less important, math counts for about 25% of the score and there is no penalty for a wrong guess.
4. If I had to choose one, why take the SAT? Math accounts for about 33% of the score and there are no science or trigonometry questions.
5. When should I take these exams? We suggest practicing as a freshman and taking the first exams offered as a sophomore to get scores back early, find weak spots and have time to taken them again.
  *Contact Robert today for your free initial consultation*
August 9, 2017
5 Tips How to Get Free “Endowment” Money for College

86% of incoming college students take out student loans. Scary? Try this: the total of all college loans is $1 Trillion dollars…that’s right TRILLION; which is more than all of the credit card debt combined.

Most parents not in the know will steal from retirement to pay tuitions. Those ‘in the know’ understand that 95% of all “free money” comes from the schools themselves. Not scholarships, not loans but endowments from the actual college or university.

Here are 5 Tips most parents will never hear at their child’s College Planning Night:

Tip 1: Volunteer and do community service– schools are more apt to give money to the students that will likely donate back upon graduation. Good deeds ultimately do pay one back.

Tip 2: Apply to 10 or more schools and the competitors of the schools where your students want to go- the competition will drive up the scholarship awards as they see where you apply. If you only apply to one why should they increase their financial endowment when they’re the only game in town?

Tip 3: Don’t accept their initial offer-awards can always be negotiated higher, there are $Billions sitting in college endowment coffers. They won’t be offended and ultimately you and your student will benefit.

Tip 4: Hire a professional– we see parents spending thousands for tutors and SAT prep for students to get into top schools they can’t afford to send them to. While prepping for the SAT is important don’t overlook the importance of professional advise on what will be your largest investment second to the purchase of your home.

Tip 5: Apply to your student’s dream schools not just those you can afford. The answer is always ‘no’ unless you ask. Also some of the more desirable schools may have larger endowment funds possibly giving your student a larger award making them more affordable.

To learn how you can get proven college financial planning advice contact Robert here today.

April 9, 2015
Don’t Kill Your Retirement for your child’s college education

See the Award Letters Here

It’s no secret. Funding your child’s college education can be a frightening endeavor at best. Unfortunately today many parents are forced to decide to steal from their retirement savings or take out a home equity loan to send their child to college. This has a crippling effect on the parent’s retirement and may endanger the chances of the second and third child to go to the best school they can get into.

Here’s the truth. It doesn’t have to be this way. There is a huge difference between student financial aid, loans and grants/endowments (free money). The sad fact is 95% of parents and guidance counselors are chasing after 5% of the money available. Good news. There is a better way. Learn how to extract free money from the schools themselves instead who are often sitting on billions of dollar in endowment funds. Here is one example of recent award letters received by one of the students I was privileged to help who enrolled in our coaching program.

View our latest student’s award letters here.

January 8, 2015
College Endowment Funding

Next to buying a home, the largest investment many families will make is their child’s college education. A college education is very expensive. Even at lower-priced, state-supported colleges, a four year degree can cost in excess of $50,000.

In a recent survey conducted by the American Council on Education it was found that financing their children’s college education is one of the top five concerns facing American parents today. In today’s economy, after paying the family’s bills there’s not much left over for a child’s college education.

This shortfall places parents in the stressful position of having to either plunge into debt by procuring loans or “stealing” from their own retirement which ultimately compounds the problem. I have seen this phenomenon force parents to work through retirement age while also hurting the chances for their second and third student to obtain a quality education as well. Over 50% of all college students are forced to drop out, many due to the lack of funds.

A good alternative strategy is to go after merit-based endowment “free” monies that don’t have to be paid back. Colleges control over 95% of the money that students receive each year. They literally have billions of dollars to attract the students they want. Lehigh University, my alma mater, has over $1 billion in their endowment fund and this figure still places them outside the top 50.

Years ago colleges looked at financial aid as a charitable operation within their institution. Financial aid has now evolved into an important recruiting tool for colleges. Although funding was originally designed to go to those in most need, it actually goes to those who know the most about the process. The more you know about the deadlines, where funding comes from and who is most likely to be awarded it, the more money you will receive.

Unfortunately, this is where most high school guidance offices falter badly. They rarely have the knowledge or expertise to become involved with funding issues or the negotiation and appeals process. Without careful planning and guidance, many families will lose out on tens of thousands of available dollars for their child’s education. For additional information go to www.yourguidanceoffice.com;

There are two profound mistakes I have witnessed over the years that are worth noting. One, is the notion of waiting to submit the FAFSA until after finishing your taxes. Second, is spending time writing essays for small $500 type scholarship competitions.

The FAFSA needs to be completed and submitted by January 1^st of the students’ senior year. Many schools will give you $1,000 per year off for just for filing on time. That’s $4,000 right there. Keep in mind that endowment money is first come first serve so why not get to the front of the line while their coffers are full? Waiting until March or April will also put your student in competition with thousands of others making the same filing mistake. Once your taxes are done simply adjust the FAFSA numbers and re-submit.

For the higher performing students, seeking small essay writing scholarships can be a costly waste of time. In fact, there are schools that will decrease scholarship amounts commensurate to what the student received from other sources. This unwelcome surprise typically occurs after freshman year when it’s time to renew the scholarship.

Your preparation for college will be time well spent. With proper planning, you will be able to gain admission to your dream school and receive the necessary funds to attend!

Call Robert at 917-359-3985 Contact Robert here

November 14, 2013