Questions to Ask

1.  Do you know who receives the most money for college and why?

2.  Did you know some college funding strategies should be implemented 18 months prior to starting college?

3.  Do you know how much of the total cost of college you (as parents) can afford to pay without sacrificing your retirement dreams?

Thinking like a CFO

Your household is a mini-business.  You have income that comes in, expenses that go out, while seeking a high ROI (return on investment) on your assets.  Fortune 500 companies have CFO's to help them run efficiently.  You need to think and plan as the CFO of your household.  College is too large of an investment/expense to not take a step back and formulate an efficient game plan. 

How you pay for college will impact your retirement.  Remember: you can borrow for college but you cannot borrow for retirement!

The 4 Ways to Pay for College

1.  Savings

2.  Financial Aid

3.  Cash Flow

4.  Loans

1.  Savings gives you options.  Without savings, the means through which you can pay for college is limited.  The key is to save in the "right" places.

2.  Financial aid may be private scholarships, merit-based aid, or need-based aid.  You need to find out which types are available to you and how to get them.

3.  How much free cash flow is left over for you at the end of the month?  This will determine how much of a payment plan you can reasonably commit to.

4.  Once the first three resources are exhausted, you and/or your student must borrow to meet college expenses.  Three important questions to ask before borrowing: 1) How much can you afford to borrow (cash flow), 2) How much are you willing to borrow, and 3) How do you feel about that?  You may be willing to take on a lot of debt. . .or you may not.  Either way, that will help you determine which colleges fall into your price range.

In developing an efficient game plan for college, a family should analyze each of the four resources.  Combine that with a retirement plan, career planning for the student, a good college search, and you will be better prepared than 99% of your peers!