FOR IMMEDIATE RELEASE

For further information, contact:
Gwyn Leone, 954.389.4917


Weston, FL – It’s more difficult than ever for families of college-bound students to borrow money for college at affordable rates, thanks to the spread of the credit crisis to the student lending arena. Meanwhile, college costs increase at a staggering clip of 6-8% per year. Two college planning insiders, Andrew Lockwood, J.D. and Peter “College Pete” Ratzan, M.B.A., founders of CollegePlanningAdvice.com in Weston, say that they can show smart parents how to weather the storm and send their children to their dream colleges at an affordable “price.”

“Student lenders are biting the dust every week, and the remaining ones are either discontinuing their student lending programs completely or jacking their rates and fees to predatory levels,” said Lockwood, a nationally-known, controversial expert on college cost-reduction strategies, columnist, author and radio personality. “The crying shame is that many high achieving students won’t be able to afford the colleges they worked their butts off to get into, because their parents didn’t do their homework by planning for college. The best time to start this stuff is sophomore year of high school, but most parents tend to blow this off until it’s too late.”

“More and more parents with Florida Pre-paid savings or counting on Bright Futures have been shocked that their deserving sons and daughters are getting rejected from the state universities here in Florida, thanks to budget cuts and enrollment freezes,” said Ratzan, a leading college admissions expert, author, former high school teacher and radio host. “Parents at public and even private high schools never hear from their guidance counselors, teachers or other advisors that they need to consider out-of-state colleges because of affordability. The surprising fact is that the most highly-selective schools are usually the ones with the greatest financial aid resources and can cost less out of pocket than a community college!” said Ratzan.

Lockwood and Ratzan’s emergency teleseminar will reveal how to reduce or flat-out eliminate the reliance on loans to pay for college; how to determine whether a school will be affordable, regardless of its “sticker” price; and inside admissions secrets of how to get into and pay for the most elite, prestigious and generous colleges. The free teleseminar will be held on Tuesday, May 6th, 7:15 pm and is open to 1,997 registrants at HiddenCollegeMoney.com/emergency.

To book “College Pete” and Andy for an entertaining and informative interview on this critically important topic, please contact Gwyn Leone, 954.389.4917 or gwyn@collegeplanningadvice.com.

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Bio

Andrew Lockwood, JD has practiced financial planning for more than eight years and is a nationally-known expert on college planning. He writes a monthly college planning column for a local magazine and co-hosts The College Planning Power Hour radio show. He co-authored The ‘Never Pay Retail’ College Financial Aid Maximization System with Peter “College Pete” Ratzan (below). Andy sits on the Advisory Board of the West Regional Family YMCA, and served on the board of VirtualAcademics.com, an online distance learning company. While practicing law, Andy served as in-house counsel to a publicly traded financial services firm and broker-dealer in South Florida. Before to moving to South Florida in 1999, Andy slaved away for three years at a mid-town Manhattan law firm. Andy graduated with a BA in Government from Wesleyan University (where he played basketball) and earned his Juris Doctorate from St. Johns University (where he would not have qualified as equipment manager for the basketball team). Andy lives in Weston, Florida with his wife Pearl and their four children.

Peter “College Pete” Ratzan, MBA is a leading expert on college admissions and planning. He co-authored The ‘Never Pay Retail’ College Financial Aid Maximization System, regularly publishes columns on college admissions, makes occasional television appearances and co-hosts The College Planning Power Hour. Peter taught social studies and coached boys basketball at Ransom Everglades School in Miami, FL. He earned a BA in International Relations from Tufts University, an MA (International Affairs) and MBA from George Washington University and spent several years in government relations and business development, specializing in overseas private investment strategies and telecommunications in Washington, DC and Florida. Peter has resided in South Florida for more than 30 years and he, his wife Jill and their two children live in Weston, Florida.

College Pete and Andy co-founded College Planning Specialists of Florida. They can be heard each Sunday morning from 10:00 – 11:00 am on the College Planning Power Hour radio show, 1400 WFTL Sports - ESPN, (online at collegeplanningradio.com).


Q & A


1.Q: What is the best way to make college more affordable?

A: The easiest, most accessible avenue for educational funds is the federal financial aid system. Over $137 billion will be awarded in financial aid during the 2008-09 academic year, according to the College Board. Private scholarships represent only 1-2% of this amount, so the most logical path remains the federal route. Students apply via the FAFSA (Free Application for Federal Student Aid).

2.Q: Who should apply for financial aid?

A: All families, regardless of income, should apply for financial aid. With college costs soaring to about $17,000 per year for a Florida state school and $50,000 per year for a private school, even families earning six figure salaries can qualify for substantial amounts of aid. Families will not qualify for any aid if they do not apply.

3.Q: Is it true that a private, elite college cost less than a public university?

A: Because of their endowments, private colleges and universities tend to have more money to award for financial aid, and they often meet a greater percentage of a family’s need. Private schools that have larger endowments will often meet this need with grants and scholarships instead of loans. Also, students tend to finish private schools in 4 years whereas the average for public schools is 5 years or more. Families should consider private school as an option even if the “sticker price” is significantly higher.

4.Q: When should students and their parents start preparing for college?

A: The optimal time to start preparing is when the student is in 10th grade. By 11th grade the family is in emergency planning mode, and by 12th grade it is too late to deploy many of the cost-saving strategies to maximize financial aid eligibility. Students should start researching colleges as early as 10th grade to get a sense of which schools offer the programs they might be interested in. This will also give parents the opportunity to research the cost of attendance at those schools as well as the degree of financial aid generosity.


5.Q: How do schools determine who is eligible for financial aid?

A: Schools use a simple formula to determine eligibility for financial aid:
Cost of Attendance – Expected Family Contribution = Financial Need
Cost of Attendance (COA) includes tuition, room/board, books, fees, transport costs, and any other expenses.
Expected Family Contribution (EFC) is the dollar amount that a family can pay for one child for one academic year. This amount is calculated using a complex formula created by the US Department of Education. Students complete the FAFSA to learn their EFC.
Financial Need is what the school looks at to determine how much financial aid to award. Some schools meet 100% of need, others only 30% or even less.

6.Q: What about families with Florida Prepaid? Don’t they have college costs covered?

A: Florida Prepaid is the most popular prepaid college plan in the country, with over 2.9 million participants. Most families with Florida Prepaid have purchased the tuition-only plan, so families still need to pay for books (about $1,000) room and board (about $9,000) and other expenses (about $5,000). In the 2008-09 school year, FL Prepaid will pay $86 per credit hour under the tuition-only plan. This amounts to only $2,580 per year for a student taking 15 credits each term. That would still leave the family with about $14,000 to pay for one year of college.

7.Q: What is Bright Futures, and is this helping Florida students afford college?
A: Bright Futures is the state lottery-funded scholarship program. Students can qualify for 75% tuition and fees scholarship by earning a minimum SAT score of 970 and a weighted GPA of 3.0. A full tuition and fees scholarship can be earned with a 1270 SAT and 3.5 weighted GPA. These awards must be earned each year the student is in college. Bright Futures has assisted thousands of families in paying for college, but one consequence of the program has been to increase demand for Florida schools which has raised the admissions standards. The result is that many students who can qualify for a Bright Futures scholarship cannot earn admissions into a state university.

8.Q: Why is it harder to get accepted into a Florida school these days?

A: Florida Prepaid and Bright Futures have increased demand on Florida’s higher education, in effect crowding out the system as top candidates remain in-state. Florida’s state budget woes have also impacted higher education, requiring state universities to restrict or reduce freshman enrollment for the 2008-09 year. Also, Florida schools have become more popular nationally as out-of-state students are increasingly attracted to schools like UF and FSU.

9.Q: Shouldn’t families apply for private scholarships?

A: Families should investigate all options to alleviate the financial burden of a college education. Private scholarships represent only 1-2% of the $137 billion awarded in financial aid. The best, easiest way to find money for college remains the federal financial aid system and the FAFSA.

10.Q: What about average students? Can they become eligible for financial aid?

A: Families often think that since their student is not a straight A student they will not qualify for aid. Schools determine how much to award based on financial need, not merit. So parents of “average” students should not hesitate in applying for financial aid.

Peter Ratzan, M.B.A. and Andrew Lockwood, J.D.
Mortgage Consultant
College Planning Specialists of Florida
954-659-1234 ext.201
http://www.collegeplanningadvice.com/