12 of 12 people found the following review helpful:
5.0 out of 5 stars
A must-read for anyone who is planning to contribute to their child's college costs, regardless of income level., April 30, 2010
This review is from: Pay for College Without Sacrificing Your Retirement: A Guide to Your Financial Future (Paperback)
This book changed my approach to paying for college. We have been faithfully putting money into our children's college funds and funding our retirement, but this book really opened my eyes to the big picture by asking two important questions, "How close to retirement age will you be when your last child graduates? And when he or she does graduate, how financially ready will you be for retirement?"
This is not a last-minute, quick fix for scrounging up money when your child is a senior. But for those late in the game (a child in high school), it does do an excellent job of explaining how financial aid works, why you should fill out the application for aid even you're sure you won't get any, and what to do with your assets (and when) to increase the possibility that you will get aid. It also gives advice on working with colleges to see if your child can get a better aid package than the one he or she was initially awarded.
I also really liked the fact that the book isn't just about getting financial aid. Just because you don't qualify for federal aid doesn't mean that paying for college is easy. The author does a nice job giving examples of strategies for a variety of income levels. We won't qualify for need-based aid, but I learned that there is more I can do in terms of our savings and investments to help pay for college.
The book also isn't just about the money. I appreciated the discussion on the importance of selecting the right college, not just sending my child to what she thinks is her dream college. I have changed my mind about the importance of the college visit prior to making a decision. I didn't do this when I chose a college, but will now think of that as an investment rather than an optional, possibly unnecessary expense.
Overall, this book gave me a much greater appreciation for the interconnectedness of my two most important financial goals in life and very useful strategies for working toward fulfilling both. I think they should hand this book out at the doctor's office along with "What to Expect When You're Expecting." We have done a decent job with our finances over the years but I wish I had had this epiphany back when my first child was a baby. I have highlighted passages in this book, which I never do, and will keep it close by until my last child orders her collegiate cap and gown.
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15 of 16 people found the following review helpful:
5.0 out of 5 stars
Excellent book, August 5, 2008
This review is from: Pay for College Without Sacrificing Your Retirement: A Guide to Your Financial Future (Paperback)
I read this book both as a CPA who has many clients ask me about financial aid and as a father of 2 children. In both regards, this book was excellent. The author starts with a wise premise, that your retirement and putting your kids through college are linked together and any money paid to your child's college is money that you won't have in retirement. The book then strikes a great balance between overview and detail so that you can get the information you would need in your situation without sacrificing thoroughness. The tone is easy to read. There are sufficient examples and highlights of important points. And, the book seems very comprehensive, so after reading it, I felt I knew enough to intelligently begin to rework my savings for my children's education.
I will unhesitatingly recommend this book to clients and colleagues. In fact, I plan to purchase multiple copies to have on hand for my clients, many of whom have the same questions that I had and which the book answered.
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8 of 10 people found the following review helpful:
5.0 out of 5 stars
Financial Aid Officer perspective on Tim Higgin's paying for college..., October 4, 2010
This review is from: Pay for College Without Sacrificing Your Retirement: A Guide to Your Financial Future (Paperback)
It has been reported that student loan dept has now surpassed credit card debt. After spending ten years as a Financial Aid Officer, this is no surprise to me. In my opinion this country is going to have round two of the sub-prime mortgage crisis with the pending student loan default decade. It's already starting. Tim is right on the mark with his book "Pay for College Without Sacrificing Your Retirement" If you believe that consumer debt is just debt but student loan debt is an investment, be careful. It is so important to know your financial limits when sending your student to a college. Yes, education is an investment, but it can be a bad investment if you set yourself and your child up to a life of payments that never seem to go away, or they do not have the earning power to meet these payments and still have discretionary spending money at the end of the day. This mistake parallels the mistakes of our society which has us all so indebted due to immediate gratification tendencies for years and years to come. I want to go THERE, I want to go NOW.
Tim paints pictures of wonderful options of various types of college choices, with the benefit of saving money that can accumulate in investments rather than in retirement depletion because of "payments". Why not go to a lesser school when you are unsure of your major? If you are going to college to "live the college experience out of state", why not stay with friends who are away when you are on break? Hey, when it's all over (and it goes by fast) you'll probably owe much less money and be saving for your home instead! More than likely, they'll be living home again and need to come visit you! Use your "leverage" as Tim suggests. Don't limit yourself to an early decision school or just open yourself up to I'll take the first package I get deal...unless this is the only thing you want in life. There are a lot of great award packages out there. Tim's gives examples of schools who award up to 82% need-aid. On the other hand, Columbia does not award merit-aid. They are all different. The EFC is the same though,...everywhere. You need to do your homework!
The choices for borrowing are changing too. Private loan companies are looking very closely at applicants now, and interest rates can be very high. They look for strong cosigners. Students getting these private loans in their own name now is pretty much history. Parent's with stretched credit are having trouble too! Saving money and learning investment strategies, lowering the EFC...these are the goals that must be set for college planners in this changing financial aid environment. Tim's book is your guide.
As an FA, I have seen relationships between parents and students strained due to over borrowing. Because little aid is available in federal stafford loans, the government offers the parent Plus loan to parents used to cover the balance after merit-aid, gift-aid and need-based aid. I have seen parents borrow Plus loans at 7.9% (hey, don't forget the 2.5% origination fee) and make agreements with their student to defer the loan(that's a new option and pretty scary!) and take over the payments when they graduate. Oh, did we talk about the fact not all students graduate? Student loans still go into repayment 6 months after they leave school...even if they did not graduate. The loan will always be in the parent's name, and cannot be consolidated with other "student loans".
I met with a young attorney the other day that knew I was an FA. He is a working attorney with a wife who was recently laid off. His student loans are now in forbearance because of his inability to pay, (which means they are temporarily on hold from payments but the interest is accruing). He told me he had so many young lawyer friends in the same situation; with tons of student debt from law school that even these entry level attorneys cannot afford to pay!
Tim is wise and prudent in his advice to the college bound family..I know what an EFC means from a perspective of how much aid to award, but it is too late in the process to lower that number unless what is called "professional judgment" is done. FAs are allowed to use this judgment, but only in well documented cases. It is the exception to the rule. Tim knows how to get that much anticipated number(the EFC) to a number that can save thousands of dollars. I agree with Tim, get that number and then look at schools.
If I sounded negative regarding student loan funding...I am still glad we have it. It is there for those who have the need for it or really want it. Choose wisely, think clearly, and follow the principals of what Tim is trying to teach you, or at least the ones that you can. People go to college even at my old age! If you do it right the first time around, you will benefit, your college student will benefit and your other kids will benefit too. You may even see your kids appreciate education more...as it only gets more enticing the older you get and maybe you can afford to continue on!
Thanks Tim! I appreciated the education in your book and I don't have a loan on it!
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