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:
- 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.
- Go Visit Your Top 2–3 Schools After Acceptance: More often than not, you will receive a letter or email offering more $$$$ after your visit.
- Do NOT Accept Their First Offer: Just like buying a pre-own car, DO NOT pay “sticker” price! Many schools have BILLIONS in their ENDOWMENT FUNDS just waiting for you to extract the cash!
- Apply to the Competitors of Your Top Choices: Admissions officers know where you are applying. They will give more $$$$ just to not let their competition win.
- 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”.
- 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!
