Last month– as it does every May– the Department of Education released its Needs Methodology for the coming FAFSA. The Higher Education Act of 1965 requires that the Income Protection Allowance, Adjusted Net Worth of a Business or Farm, the Education Savings and Asset Protection Allowance, and the Assessment Schedules and Rates be updated annually for inflation. Continue reading What to Expect in the 2020-2021 FAFSA
Community colleges are often promoted as a great way for students to start on the path to a four-year degree: they’re lower cost than four-year colleges and it’s more likely the student can live at home to save additional money. However, a recent study showed that while 81% of students entering community colleges aspired to a bachelor’s degree, only 14% actually earn one within six years of starting at a community college. In fact, only 1/3 of community college students in the study’s cohort even transferred to a four-year institution. Continue reading Community College as a Pathway to a Four-Year Degree
Here is a great article by Ron Lieber in the New York Times highlighting things every graduating senior should do, many of which would benefit from some coaching from the adults in their lives. And now I’m off to graduation!
One of the bigger frustrations about 529 plans that I hear from parents is their reliance on investments to fund college. In the early accumulation years, parents don’t like the seemingly large allocations to fixed income that many plans have. As college nears, parents’ fears tend to group around two risk factors: market risk, whereby you might lose some or all of your savings in a poorly-timed market downturn; and inflation risk, where a conservative investment allocation means your savings are losing purchasing power due to inflation. Continue reading Late-Stage College Savings Strategies