Quetzal Mama's 2014 Top 10 Tips for College Bound Students!

By Quetzal Mama • December 4, 2013

Quetzal Mama’s 2014

“Top 10 Tips”

for College-Bound Students!

Minimize College Expenses &

Maximize Scholarship Funding

Like many of us, I am not a financial aid whiz. In fact, I cringe each year when it comes time to complete the exhaustive, intimidating, annual Free Application for Federal Student Aid (FAFSA). As a new college student myself – I am beginning doctoral research at UC San Diego next month, I was also required to complete the dreaded FAFSA. As intimidating as this process can be, it is important to understand the FAFSA is merely a snapshot of your financial profile. It represents the end result of your planning and preparation, and contains only factual data – aka “hard numbers.” When I look back at our Estimated Family Contribution “EFC,” it clear several strategies paid off in the long run. In this article, I will talk about these strategies and how you can begin strategizing for a prosperous 2014.

Tip #1: Compare Apples and Oranges

Before you begin your financial preparation, you will need to understand the costs and expenses associated with the type of university your student will attend. For example, our son Carlos attends a University of California campus (Santa Cruz). Undergraduate fees at his campus are currently $15,253.86. On the other hand, our daughter Gabriella attends a private university – Harvard University, where the annual undergraduate costs are estimated at $65,150.00. You can see from this example there is a wide margin in comparing one type of college to another. To get a better picture of your future potential expenses, visit a few websites for the colleges your son/daughter may attend and review the current fees, tuition, and expenses. Once you understand the type of college your student(s) will attend, you can realistically begin your long-term financial planning. Bottom line: Be informed of the actual cost of funding four years of college (including inflation). Know what you’re working with, and be realistic about setting financial goals.

Tip #2: Grades are like Money in the Bank

I am not joking when I say that top grades are similar to a high yielding money market fund. It is a fact that students with high grades, regardless of their financial background, will be the most successful when it comes to gaining admission to selective colleges and securing solid financial aid packages. What are “top grades”? I’m referring to GPAs in the range of 3.5 to 4.0. Although maintaining a high GPA is difficult, it should be a priority for your student. Let me repeat: the students who cash in on most scholarship and admission opportunities are the students with the highest GPAs. This means that sports, music, and other extracurricular activities need to take a back seat if grades begin to falter. The bottom line? Grades are king.

Tip #3: When in Doubt, Fill it Out!

I’m talking about the Free Application for Federal Student Aid or “FAFSA.” Many parents mistakenly believe the FAFSA is reserved for low-income students. Wrong! Every student who wishes to be considered for any type of financial assistance must complete a FAFSA. In addition, the FAFSA is also used in consideration for grants, scholarships, and loans. Case in point: I just completed a FAFSA for myself last month. Why? Although we are not considered low-income, we have three full-time college students in our family. This means that, in theory, our financial obligation to pay for tuition/fees, should be minimized. By completing the FAFSA, I was able to decrease my contribution. Bottom line: when in doubt, fill it out.

Tip #4: Don’t Blend Personal Savings with College Savings

We almost made a very costly mistake when we began planning for our children’s college expenses. When our children were very young, we utilized ScholarShare – a 529 College Savings Plan for our college savings. This was a proper plan until two things happened. First, we went from a two-income to a single-income family when I became a “stay at home” mom for seven years. We did not change our portfolio, and continued to invest the same amounts. This resulted in a decrease in discretionary income and personal savings. Second, when the financial markets crashed in late 2008, we learned that our 529 account was not FDIC insured. We quickly pulled out our funds and placed them into a traditional savings account. We learned from this experience that 100% of the funds in the Plan would have been earmarked for tuition/expenses, regardless of our personal savings balance. The bottom line: keep your personal savings account separate from your college savings account.

Tip #5: Community Service – Cha-Ching!

Don’t get me wrong – I believe one of the greatest gifts we can give is our service to others. In fact, I’ve built my Quetzal Mama network on this premise. I’m certainly not suggesting we exploit volunteerism as a tool to advance our financial standing. However, through the years, I’ve also come to realize the critical significance Community Service plays in landing scholarships and enhancing the college application profile. To put this into perspective, approximately 90% of the scholarships that come across my desk ask about community service. In fact, most scholarship applications contain at least one prompt that specifically addresses service. I recommend students complete at least 400 hours of community service by the end of their junior year. In this way, when they submit their college applications in the fall of their senior year, they can demonstrate their spirit of volunteerism. The perk: the cumulative experiences gained through volunteerism are excellent speaking points for many of the college application essay prompts. Bottom line: students should appreciate the value and spirit of volunteerism, and also appreciate how this activity has a beneficial monetary outcome.

Tip #6: Develop Your Own Crowd Funding Platform

Did you know fall 2014 college application fees range anywhere from $50 to $95? That’s right – currently a CSU application is $55, a UC campus is $70, and Stanford University is $95. Now, compound this with my recommendation that students apply to a minimum of 15 campuses. You can see how quickly this amount will increase. When our own students were applying to colleges, they submitted close to 40 applications total. Yep, do the math. Let’s also keep in mind the expense for a reputable SAT or ACT preparation program can be upwards of $1,000 per student. Who has this type of cash available? Not to worry – we’ve got a strategy. Think about Quinceañeras, birthdays, Christmas, and other events. Rather than asking for gift cards, students should ask for cash gifts instead. Relatives and friends tend to be more generous when they understand their gift will help support your student’s college goals. If you or your students have a large social network, why not use this valuable medium to generate funds for application fees or an SAT/ACT preparation program? The site www.gofundme.com is a wonderful resource for this very purpose! In fact, they have a specialty niche of helping students raise funds for many education related events and expenses. Bottom line: Don’t wait until fall of your student’s senior year. Start your financial planning now using some type of crowd funding platform.

Tip #7: Prepare for “Full Ride” Programs

Did you know there are several programs in the US that provide a “full ride” for gifted scholars? Most of these programs require only two criteria: low-income and high performing. Although the odds of obtaining such an award are limited due to national scale and competitiveness, they are not impossible to win. In fact, I know more than a few students who have won these full ride programs. If you are unfamiliar with these programs, you might want to Google these names: Questbridge, Dell Scholars, Coca Cola Scholars, and Gates Millennium. The key to your student’s realistic candidacy for these programs is early preparation. Visit the site, read successful student bios, and begin planning your student’s academic and extracurricular strategy. Remember, these successful students did not begin their planning in their senior year – they strategized their Freshman through Junior years to maximize their competitiveness. Bottom line: If you’ve got a hard working, high performing, low-income student, make sure s/he is prepared to compete for these wonderful full-ride programs!

Tip #8: Don’t Discount the PSAT

Unfortunately, many students and parents believe the PSAT exam is just a “practice” test, of no significance. Others believe it is expensive, or they are uninformed where to register. However, missing this exam could cost your child a full ride. For Latino students, the PSAT may be a potential pathway to cover college tuition, housing, and other items. If your child scores well on this exam and has a high GPA, s/he may be given the distinction of “National Hispanic Scholar” (NHS). Each year approximately 5,000 of the highest-scoring Latino students in the U.S. who take the PSAT in their junior year and meet certain criteria will earn this distinction. Several universities offer a full scholarship for the NHS distinction. Qualifying criteria varies year-to-year and by state, and can be found on www.collegeboard.org. Subscribing universities will purchase the annual list of students who meet NHS criteria. If your child does well enough on this exam, and meets the GPA criteria, universities will likely begin recruiting them. Many NHS participating universities will waive the college application fee and essay requirement for students who meet this distinction. I’ve known some universities to throw in free round-trip air travel for a campus visit and a free laptop! There are many competitive universities that offer full scholarships, housing, meals, or a stipend for a NHS. Visit the financial aid page of the college(s) your student is considering to determine whether they offer financial incentives for the NHS distinction. Bottom line: Understand the financial rewards of the PSAT so your student does not miss out on a great opportunity.

Tip #9: Gear Up for the Scholarship “Peak”

With the exception of some highly competitive, national scholarships, most scholarship applications open in February and close in April. Once you are aware of this cycle, there are many strategies you can employ to place your student in a solid position to win many scholarships. For example, purchase dozens of sealed, official transcripts just after official first semester grades have been recorded. Obtain these prior to the long winter break if possible. Next, begin working with community members, supervisors, teachers, and counselors, to obtain quality Letters of Recommendation. These letters may be generically dated, “Winter 2014” and addressed “To Whom it May Concern.” Finally, prepare a professional resume. All three of these components – Official Transcripts, Letters of Recommendation, and a Resume, may be completed in advance and regardless of the type of scholarship program. The last two components are the “wild cards” and include the respective application and essay prompts. Bottom line: Obtain generic application items in December, work on essays in January and February, and submit scholarships before April.

Tip #10: Beware of Belly Buttons!

There is a silly saying about seeking advice and opinions: “They are like belly buttons, everyone has one, and mostly they are useless.” I like to refer to this quote when my students tell me about how well meaning people – be it teachers, relatives, or other folks, have strong opinions regarding what they "feel" is a good college essay or a solid application strategy. Rather than debating the merit of the person’s advice, I ask the student this question: If you or a family member requires brain surgery, who would you seek to perform this delicate operation? Naturally, they say they will say a qualified Neurosurgeon. Of course, that makes sense. Now, although the college admissions process is certainly not brain surgery, it is indeed a high-stakes, once-in-a-lifetime, “make it or break it,” competitive process. Therefore, it stands to reason that a student should seek expert advice from someone whose full-time profession is focused exclusively on college admissions. A qualified Admissions Consultant will advise students based on knowledge, research, empirical evidence, and statistical proof. Our business depends on our knowledge and success – so we advise students based on what we know works (and help them avoid what doesn't work). Bottom line: Don’t leave it to chance, luck, or a “hunch.” Help your student become positioned for selective admission and competitive scholarships by seeking the expertise of an admissions consultant!

If you enjoyed these Top 10 Tips, “Like” the Quetzal Mama Facebook page!

www.facebook.com/quetzalmama

You will receive daily feeds regarding college admissions deadlines, scholarships,

internships, and other valuable information. Tell a friend!

Happy Holidays y Feliz Año Nuevo

―Quetzal Mama