I really didn’t understand the “Planning for College” process even after stumbling through it with my oldest child.  Even though I’ve been in the financial services industry for 22 years, I was astonished that most of the planning I had done for my own family wasn’t working out the way that I had hoped.  In fact, after researching information from the Department of Education and various colleges and universities, I concluded that I was doing the opposite of what I should be doing.  And, if I didn’t follow a different plan, by the time I paid for my second child’s college expenses my retirement wasn’t going to be what I had dreamed.

Here’s what I found out:  There are strategies that virtually any parent can use to comfortably pay for college without going broke in the process.  These strategies are counter-intuitive to all those traditional financial planning concepts we have all heard or seen.  Otherwise, all parents would be using this information and paying for college wouldn’t be that big a deal.  It’s not “Rocket Science,” but with some “Proper Guidance” most parents can avoid mistakes that end up costing them real money.

The majority of high school parents count on their school’s guidance counselors to steer their child in the right direction.  Although not a bad option, is it enough?  Most high school guidance counselors are already dealing with the normal emotional issues of a diverse group of teenagers, along with other serious issues such drug or alcohol abuse. Many simply don't have the time to be college planning advisors, as well.

Because college-bound students and their parents are so overwhelmed by the process of finding the right college to attend, they've increasingly asked high school guidance counselors to provide help. The national organization of guidance counselors suggests a ratio of 250 students per guidance counselor in a high school setting. That ratio is far from an ideal situation, but where I live (the Western suburbs of Chicago) it is even worse. Looking at various websites of schools in our area, you'll see that guidance counselors often have responsibility for 400 students or more!

Many parents assume their child would never meet the criteria for financial aid.   Financial aid comes in many forms and failing to at least try to qualify for it is a huge mistake made by numerous parents of college bound students.

One of the many myths we hear is that parents believe their income is too high. Granted, a high level of income will not help you qualify for a large sum of free financial aid, but you need to understand that income is only part of the equation. The overall formula used by the Department of Education is complex and confusing. Do not let a high level of income deter you from attempting to qualify.