Frequently Asked Questions
If you are like most parents today, you have many concerns about how to finance your children's college education. Some of the more common questions we have heard from our clients are listed below.
- How do I get to College Planning Associates?
Download Directions to College Planning Associates (Adobe PDF, 27K)
- Why do
I need a college financial plan?
It can save you money by improving your financial aid opportunities. Those who plan ahead and thoroughly understand the system reap the most rewards.
- How soon do I need to start
planning?
It is never too early and waiting can cost you. College Planning Associates offers an initial FREE individual consultation to all families. Call us today at (802) 862-2599 or for more information fill out the form on our Contact Us page.
- How can we save for college without
jeopardizing needed financial aid?
CPA explores all technical financial options that apply to you. We assist younger families with establishing a systematic savings plan for future college costs, as well as families who have a child in high school who need a plan to maximize financial aid and to pay for college costs not covered by aid. Our firm has at its disposal, top experts in the legal and tax professions.
- How will Congress' new
tax credits impact upon our family's college planning?
Tax breaks on the 1998 educational horizon were the Child Credit, Hope Scholarship, Lifetime Earning Credit and Educational Savings Account. It should be noted that there are some restrictions on the use of these new tax breaks. Check with us or your tax accountant.
- What are the best ways to save
for college costs knowing that assets are factored into the "Expected
Family Contribution"?
How and where you save does impact upon your aid eligibility. We offer guidance to parents on these options.
- How do my retirement plans
get factored into financial aid eligibility?
The EFC analysis wants to know how much you have contributed to a retirement fund the year before college (aid is based on the previous year's tax return and financial activity). Please note that some colleges ask for the value of the parents' retirement accounts when determining the aid award.
- If I have remarried and am
the custodial parent, whose financial information is necessary on the
aid forms?
Both the custodial parent and his or her new spouse will have to provide financial information on the Federal Application for Student Aid. In addition, the non-custodial parent (and the new spouse, if applicable) may be asked for his or her finances by the colleges.
- Is it necessary for my child
to have selected one particular college before beginning college financial
planning?
It is not necessary to have selected a particular college before beginning college financial planning. Financial Aid eligibility is based on 4 variables: parents' income and assets and the student's income and assets. These variables are used to calculate an "Expected Family Contribution" (EFC) - what you are expected to pay. Your EFC remains the same no matter where you apply. Early planning can have a positive impact on your EFC.
- If my child is 20 years
old and I have not declared him/her on my income taxes for two years,
is my child still considered my "dependent" for financial
aid purposes?
Unless your child is married, has dependents of their own, has been in the Armed Services or is a ward of the state, your child is considered a dependent for financial aid purposes until the age of 24.
- Why are there so many financial
aid forms to fill out?
There isn't enough financial aid to go around and the colleges need the information on the forms to figure out who is most deserving of the available aid. Since a family's financial picture can change from year to year, it will be necessary for you to apply for aid every year.