The 5 Biggest Mistakes in College Planning

-- -- -- -- -- -- Good morning to you. Various plus today nice beautiful day could get back cooler overnight to its gonna be in the eighties every day this week. The -- fiber show brought to buy now or capital funding corporation your future financed. Welcomes a real live summer we are and it made -- Are joining us now is chip which rock. We are talking about getting ready for college about student loan debt and what people do incorrectly. In terms of planning for and paying for college chip. Which rock co-founder of college prep mastery good morning chip -- WRKO. You -- but we're currently -- -- tell us what your mission is here. Well you know after seeing student loan debt get cute just over a trillion dollar October. After the probably this. Or taking advantage of the schools were really prepared to try and avoid that from happening it's much easier to avoid it from happening that it is -- adaptors are there. So there are things you -- it do that are better forget preparing for paying for college then just last minute panic. There -- as comical actually fundamental at a certain high school -- our guidance counselor stream within his school. And -- the number one declared major for students going up ecologists undecided. There comprehensive programs out there that students can take advantage to really dig into their intellect interest as passionate and have a court the -- planned out before they go to college. Colleges become a stupid place right people like you say people go off. They send their kids off if you if you're the parent sending it off and spending fifteen or twenty or thirty or 40000 dollars a year. And you don't know what you're sending them off too but if they go away and you have a big beaming smile on your face despite the financial pain because you feel like that this is a wonderful turning point in their lives and then they -- to these fancy places that don't really teach them much. And they they spend two or three or four or five years try to figure what they want a big. That's exactly right -- 45 years but it the national average now five point six years. It's forty degree that it a year and a half between call situation a -- cinco is uncertain and the 125000. Dollars to the public. University. You parents -- -- parents actually pick up the tab for their kids to go an extra year and a half to school. Well that very issue fairly prevalent but. So many times the one where the other at the parents get buried up in the more debt or we're here really same thing I guess but we can't get stuck with that they carry that for the next forty plus years. So what are parents need to know. About how to plan for paying for school or anything else about school site like your idea that there are programs you know into Rihanna kid focused on what they wanna do. What are these programs by the way. And how did they get some what does it take to get a kid. Feeling some sense of clarity. About who he is -- what he wants to study for. Well you know they're just comprehensive aptitude test -- he's he's got a very very comprehensive test that we think it is. This far superior to want to -- leakage -- business school you know -- for the business and girl sort of administration well the world so much greater. And then you know what you have a comprehensive care in the direction you know. They'll actor Alec surge come in second on on. On the mistake should go to this school that has our favorite high school or college team or a quarter -- you know graduate from but it may not -- all of the major that you look at the. All right so if you if you have one message you wanna get through the skulls of parents planning for college what would you tell them. Know what you're gonna go or don't go. Let's make sure that the power the best delivers a career that that -- wants to go when you and then make sure that that college. It's gonna cost you the very least people -- school sticker price and all sorts of things that don't even really influence on the road -- Is there I don't know -- no wait wait a sec what he's saying about sticker price vs actual cost. Yeah well that's a great point. Everybody looks to the sticker price and think that's what they paper college but after the financially forms which will apparently don't even have a clue -- gonna. Pan out there before they start picking colleges -- -- your expected family contribution as the starting up a consequential public you're expected to and that's where as a benchmark starts and that's what. -- cost does that matter which school which you coaches and it's a matter how much does that school. You know contribute toward offsetting the remaining costs. Really identify I'm gonna call you bottom line might like to go to Harvard elect when he Google public order are. And that is because Harvard has -- a big endowment and all kinds of I would yes. Outside of the school funding options for you know there might be a where do you say from Iowa. Or so there there might be on a -- from Iowa has a special fund set up. To give it's it too gifted to kids from Iowa wanna go to Harvard. Well Harvard and -- which is so huge. That they make up the shortfall. And post your public -- can't afford to other countries and as an example on nothing but -- -- and. It's a great example because there are a lot of schools this sticker price really doesn't mean much for college and that's what everybody talks about. That's really all the talk about it and because of that lack of awareness just like not being prepared a major or which college than it what are the repercussions what are the -- that -- putting on the financial aid form. Ultimately. Future -- in the car and push school -- -- people getting hurt. Paper collagen by 29 -- education are all that spoke -- against Hewitt increases how much you -- the paper. We're like well I would step throat polled say well you -- know. The impact of what did you do it yeah not a it's -- Rhetorically chip which rocket co-founder of college prep. Mastery day here at W are you good morning -- you. As good morning. I'm putting your kids through college right now Gundy. The whole expected gonna make our -- bank. By eight I was advised you. Encouraged much debt as spot ball in other words to lower my job. I expected -- I'd be -- Added. It's it's -- to -- Because he holds fast to orbit it's -- driven. Jerry you're happy you of your mortgage your outfit though and it did incur a lot of debt. Then that will allow a year at a lower contribution. And a college -- look at it more. See you -- -- about the bottom line that's build the way you are low already ESP. I've heard that one way to do it I did not -- that I'd like they're they're another way to do. What is the -- first announced yet. It is expected family contribution to read a comment about result income based -- -- and the income income and asset base. So you know a lot of times break record org and well. Equity in your home on the on the free on the federal application. Does not count as an -- against you. So much. Really not what I would encourage somebody who take a look at consider doing unless they're gonna go to a -- universe is that look at your equity the other people look at it is 40 -- -- say for college. -- -- 529 education higher rate -- accounts. The -- all at the you have to look at. But doesn't look back on the federal -- you can have a after sitting in the account today. And the neat -- wanted to get hammered and expected from the contribution blew them into another that tomorrow and then file the form. Next week and it does not. Look back. And there in those funds those funds can be moved around without penalty. But the parents -- they are. But certainly your -- is threatened on the search look -- but. I was talking about. Somebody got the brokerage account that money market savings account CD and on the fire 49 point you have a look at -- playing individually but. That attend the cost of -- that the penalty of moving the money the far left are left. -- on the traditional. College that you're gonna have like increasing your expected -- the huge so you know that's another -- knowing your -- are going to. Are going to impact out and then what you can view. And some Africa might get settled in like you know what it's not -- what we -- -- after -- -- that -- All these other I -- I could rearrange my assets that are. And then they don't count against. Right so it's complicated Trevor you're NW RQ with chip would rock from the college prep mastery service I Trevor. Yeah I I they question for you like me for my son in the water and I'll cheer my son will be going in three years. And Michael I think it's a White House's feet off the -- point. So. But I never sample by 29 because I know that they candidate against you and actually worked out forming. So. I don't know what I can do that I've won the projections online where what they can't get our income level only about 140 year. -- longer and it. It why. It's anything active duty writing -- Well turn -- thanks to the question. -- -- Indicated that individually but you know oddly enough. And equity and -- -- is not a and how much strategy for most people. We're focused on what we call the middle class gap that's it you're out there it is so -- -- is exactly where you all. We figure out what it into the multiple Wall -- is that the other ball but it just. And -- that category but that you really qualifier for the lease so. You know want to identify. People voted in real life. How all of the other. -- and things that are available within the schools -- -- -- so I wouldn't I would encourage you what we do predict it would lay out. 810 college is that one you may wanna coach or you may be better. And it would lay it out side by side if you would what are those tools on our review the most eight what you get -- -- things. But you know how it usually what people take a look at it got a little -- -- the -- -- there's no way it is -- we're gonna go political. It's okay they're getting our kids are getting seduced by who's got the best field house and things like that -- ran over the real high impact. Between two schools might be homage to get their carrying after they're out of school -- your NW RQ with chip good morning John. Good morning I was just down struggle on that I think 21 more once once again for us to. Will play around and if you say minding your try to be responsible person that you get penalized and are conducted financially. They have a good if you plan to move in -- your assets that you get rewarded for it just. It seems to be the way things are in this country to act. Correctly and you act prudently get penalized if you play games this you don't -- money to get rewarded. Chain. Is that fair chipped -- fair assessment of what you what you're saying here. Well yeah it is -- -- got to remember. Who ordered created the or protect all the under the Department of Education. It toppled president aware that that routine you know so it -- reform -- complex. That's 40% of the people to fill up about support to rock. They -- -- -- that leaving money on the table that -- leaving money on the table is the government gives outlet student loans eight and required them to pay more. -- is a grown so it is so John is correct that if you wanna succeed. In the college financing system you've got to be manipulative. And have a consultant or some kind of advisor which is I guess what you do chip to I help you through the process. Absolutely. Financial reform. It's a suicide mission trying to do those players -- department that you. You know you're sitting at the -- department of education and encourage you to do so that make it talk about all you don't need professional help. They're more complex than ever factor. -- sell all its you know it's such a shame the whole thing -- -- double American chip where Barack is here from the college prep mastery. Hi Maureen. I -- I agree with your last caller I has been higher self employed we've worked very art -- children are -- child are out there. Amber we say in any state since money lately don't stop. Born every single year and we absolutely zero because -- where cart and they are money. Really disappointed. So you -- about yourself Porsche before. Your kid's got two colleges chuck what do you want what can you say it chipped to Bahrain. What the vertical or you're gonna get -- -- well. It isn't visit in -- right probably in back Japanese -- I would I would. -- leisure to think -- I would almost. That -- again is that. Just because of the fundamental of awareness because it's so complex people realize the impact of the air is they put on the financially for. It's very duplicated. The people to put down after true retreat and sustained increases. Yes and who -- you can't it's very manipulative and it really -- -- people come here or have no money on you know it was not. -- -- but in my and I married. We break it could be Hanley and we are penalized to the maximum we org of course we would probably get both financially I think it's totally on air. Might want China don't -- into here and I really hope I learned out. -- -- The program that the rest of Americans think. I thought I they -- gonna say you hope you're divorced by the time your last kid -- I. -- -- People out but thanks -- So -- chip it's a this is it's good that we're having this conversation because we we talk and talk radio we talk about big government all the time what a mess it is. And why you want government operating close do you not back out of Washington. Where dame to have bureaucrats who make up rules so this. The future of our. Right. Medical system for example. What we're hearing the complaints about the could this just to fund college. There plug and -- the whole thing if this book that just gotten. Out of control shall. You know they think you know it -- Is that it's a right to block the college which confirm what -- you know it's a good move computer -- -- you gotta know before you go you gotta be prepared when you go even. Hit it high school if you get an idea that you look at veterinary -- You can pick. Who -- hate site will re think what if you're gonna go into but he loves science. You can start taking an eight PE classes and different here -- little rules for. All right so that would satisfy some credits and then you would be maybe. Short near your time and -- -- Sally good morning your are here with chip where Barack high salad. I'm a little bit you know you're very lucky to have crooks -- it has -- -- Yes so we certainly do sound. He -- is number one in and was struck. I have a question. I have 52 when he in plans my Korean children. They are and I'd be older but it's in their name until they're eighteen. Will that be held against them until Wednesday -- applying for college. Sure well. All our coroner plans. -- going to be written for the predators serial of the so you know the current situation now you're you're right it all the you know if your breath lost starting shoes you know -- by 29 plan. Maybe you're gonna picture of the full -- And than tax benefit to doing the five point nine quiet. Are really a favorable things that you're gonna pay for the whole. The income is such that there are gonna qualify for any age but maybe five -- nine point isn't such a bad thing but. It is just an effort orbit have to try and you know do a good thing you're gonna cost a little money in there and apparently -- -- income. You're such that they may qualify for eight you could end up -- Chip where Iraq we appreciated college prep master out of people find you online. That college prep master dot com -- take an eighteen years evolved quite. Let's put it on the line. -- you appreciated it very interesting conversation we learned some stuff here today thank you chip where Barack. Yeah thank you very very very coming up we'll talk.