Planning For College Part 2 - Learn the Secret Rules of the College Funding Game

Are your children headed for college and you're still wondering how to pay for it?  Here's one key aspect in the planning process you've probably not heard about yet:  You need to learn the rules of the college funding game.  They go far beyond "saving up" for it.

Here's what you should know:  Colleges and universities are businesses that need to continually fill desks in order to stay in business. And therein lies an opportunity for you as you go about planning for how to finance your children's college education.

Could you learn about those rules from the other parents at your children's school?  Or maybe from the guidance counselor?  Maybe a book?  Not likely.  All these resources are woefully inadequate.

Most high schools, for example, will provide meetings where basic topics such as FAFSA (Free Application for Federal Student Aid) filings, college selection and tuition counseling are available.  But the fact is that high school faculty, including counselors, are not trained in financial aid planning for individual families.  And what advice they do give will be limited to the run-of-the-mill approach.  This is practically guaranteed to cost you thousands you might not have to pay if you get the right kind of advice.

At this point, you may wonder just how complicated this could possibly be.  The rules for getting through the college funding process are more complicated than the income tax rules. Don't make the mistake of thinking they will be easy to navigate, or that the colleges will help you.

The financial aid rules alone cover over 2,100 pages.  Can you imagine completing a tax form without taking advantages of tax deductions or credits available to you? Doing so would almost certainly cost you more in taxes.  The same holds true when paying for college. If you don't take advantage of "college funding discounts and deductions," you will end up paying a lot more for college than you need to.

Be sure to take a proactive approach when it comes to developing strategies for paying for college.  You need to take into consideration the colleges' rules as well as your personal financial situation. And then you must create a specific plan for your family that takes into account admission strategies, financial aid strategies, as well as tax and other financial strategies.

It really pays to become knowledgeable about this area or to work with someone who can help you with your planning. You will also become familiar with what you should and should not do before applying to colleges and for financial aid. Knowing how to use the rules to your advantage can lower your college bill substantially.