Mashable's latest #BizChats Twitter chat shared tips on how people can pay their way through college.
[seealso slug="afford-college-bizchats"]
Several college finance experts shared key insights on the most effective ways to prep for paying for college without breaking the bank, including: Jodi Okun, college financial aid advisor; Kim Clark, financial journalist and expert on paying for college; Joseph Hurley, author of The Best Way to Save for College; and Troy Onink, college planning consultant and CEO of Stratagee.com.
Over the course of an hour, @MashBusiness covered an array of questions ranging from the most effective ways families can cut down on college costs to the best resources families can turn to for financial aid.
Check out highlights from the chat in the Storify, below:
[View the story "BizChats: How to Financially Prepare for College " on Storify]BizChats: How to Financially Prepare for College Mashable hosted a #BizChats Twitter chat to share key insights on the best ways to pay for college. Storified by Mashable· Wed, Apr 08 2015 21:01:46
There are many students who have trudged through their four-year high school journey and will soon be on the fast track to college, which many people refer to as 'the best four years of their lives.' However, in order to experience the glitz and glam of collegiate life, you have to make sure you can afford it first!
@mashbusiness and several financial aid experts participated in a #BizChats Twitter chat to discuss the most effective ways to save money for college. Welcome to our #BizChats Twitter chat! Today we'll be discussing how to financially prepare for college. Please introduce yourselves!Mashable BusinessA warm welcome to our career experts: @JodiOkun, @529guru, @money_college, and @TroyOnink! #BizChatsMashable Business#BizChat’s tip: Be sure to number your answers according to the question you're answering. (ie., Q1.-->A1., Q2. --> A2., Q3. --> A3.)Mashable BusinessQuestion 1:Q1. What are the most effective ways families can cut down on the overall cost of college? #BizChatsMashable BusinessA1 You might think that going to a lower meal plan would produce some savings #BizChats Question 2:Q2. What are the best resources families can turn to for financial aid? #BizChatsMashable BusinessA2 Youth organizations, nonprofit community based programs, private foundations #BizChatsJodi OkunA2. 1) Your own budget. 2) Fed aid at http://t.co/hyqeNK9I0r. 3) Your state aid agency 4) Maybe the grandparents. #BizChatsJoseph HurleyA2: The website for Federal Student Aid has a pretty good collection of helpful resources! http://t.co/lWX8y1ZaJP #bizchatsLeslie H. Tayne, EsqA2 My all time fav site is http://t.co/MDs2hpfGsL #BizChatsJodi Okun@mashbusiness A2: I would say government funding would be a good place to start. I would avoid banks. Last resort for me. #bizchatsWayne ChanA2: Also check with your state's education department to see what databases they have. Often underutilized resource. #BizchatsYolanda NormanA2: Families could also look into speaking with the school's financial aid office directly- a little obvious but it could help! #bizchatsLeslie H. Tayne, EsqA2 Checkout @BigFuture – for stats and tips #BizChatsJodi OkunA2) Many parents don't realize that some $ is freed up when kid moves to campus. Food, car insurance bills drop. #bizchatMONEY on CollegeA2: Trusted sources. http://t.co/PGQWW8V2SS, http://t.co/RsrFUxDx0B, https://t.co/6jseLO1jqg, http://t.co/z0TtWqXRE8, @JodiOkunTroy OninkA2: Your own monthly budget and finding a side hustle. There are also grant sources if you apply before they get grabbed up. #BizChatsDebbi KingA2: 7 assets that can affect your financial aid eligibility - http://t.co/OmoA65cin0 #BizChatssaving4collegeA2: You can also look to your employer. A few companies offer college financial aid programs. @Starbucks comes to mind. #bizchatsLeslie H. Tayne, EsqA2: Beyond tuition, social enterprises like @UChic offer scholarships to help cover out-of-classroom expenses/experiences #BizChatsMegan SeversA2 State governments, #FAFSA workshops leave no stone unturned #BizChatsJodi Okuna2: I've talked to a lot of sources who say you should treat scholarship apps like a full-time job — the payout is worth it. #bizchatsChristine DiGangiA2: Ask people who successfully paid for college w/ scholarships, grants, etc. for advice (esp. alums of the college desired). #BizChatsIsa AdneyQuestion 3:Q3. What questions should families be asking financial aid advisors? #BizChatsMashable BusinessA3: What happens if my financial circumstances change during the time my child is in school? #bizchatsLeslie H. Tayne, EsqA3 Parents and students can ask if there is additional financial aid available #BizChatsJodi OkunA3 What will happen if the financial circumstances change during the term? #bizchatsJade PhillipsA3) Ask a few factual questions to test advisors. How do savings affect aid? Don't trust anybody who says any # more than 5.64%/yr #bizchatMONEY on CollegeA3 Check to see how many years are in the students program of study and how long it will take to graduate 4 or 5 ? #BizChatsJodi Okun@mashbusiness A3: And how to best plan and cope with what financial options are avalible to deal with the costs. #bizchatsWayne ChanA3: Make sure you're aware of any and all requirements to keep your financial aid. Could be GPA or major related. #bizchatsLeslie H. Tayne, EsqA3 Families need to make sure they understand their award letter grants, scholarships and loans. #BizChatsJodi OkunA3: What's your school's graduation rate, and what does my course load need to be to graduate in (only pay for) 4 years? #bizchatsChristine DiGangiA3: Make sure whether what you are receiving needs to be paid back or not. You don't want any surprises. #bizchatsDebbi KingA3) I'd ask anyone claiming to be a financial aid expert if they sell life insurance & get commissions. That's a big warning sign. #bizchatMONEY on CollegeA3) There are a lot of newbie, uninformed or even misinformed people claiming to be financial aid consultants today. Be careful! #bizchatMONEY on CollegeA3) There are a few situations where life ins can help ur financial aid situation but they are v. rare. http://t.co/gqmut1KATz #bizchatMONEY on CollegeA3: Are the grants good for all four years if I maintain a certain GPA? #bizchatsTroy OninkA3: Students who don't have parents to help should not be afraid to ask fin aid officers every Q they can think of. Find mentors. #BizChatsIsa AdneyA3: Most important is to know which financial aid forms are required by each college&how your family's finances look on each form.#bizchatsTroy Oninka3: what flexibility does the school offer, like off-campus living or part-time jobs, to help reduce attendance costs? #bizchatsChristine DiGangiQuestion 4:Q4. How can students effectively cut down on costs while in college? #BizChatsMashable BusinessA4 One way to cut costs in college? Student discounts! #BizChats #collegecash http://t.co/dG2xikFlttJodi OkunA4: Pick up a side-hustle that's in line with your hobbies or, better yet, your major! #bizchatsLeslie H. Tayne, EsqA4 Set budgets and stick to them - you've got to learn to be disciplined! It's all a part of the learning curve #bizchatsJade Phillips@mashbusiness A4: Also, take public transit, don't drive. Insurance and gas is very costly especially having insurance as student #bizchatsWayne ChanA4 If you have health insurance through your parents, you can waive the health insurance offered by the school! #BizChatsJodi Okun@mashbusiness I saved $100s of dollars by using @Chegg to rent college textbooks. Being an RA in school waived my fees for room & board.Tracey Edouard A4: Working part-time is always an option! Whether it's on or off campus, a little part-time job can help cover some basic costs. #bizchatsLeslie H. Tayne, EsqA4: Be mindful of pricey meal plans & tempting coffee kiosks. Enjoy, but be smart. #BizChatsIsa Adneya4: get a bike for campus transport. it's way cheaper than public transit and driving. it's also sometimes faster. plus, exercise. #bizchatsChristine DiGangiA4 When you've finished with books for a term/year, sell them. If you don't need them - someone else will #bizchatsJade Phillips@JodiOkun it's huge, but hard. I struggled with not being able to do spring break trips when everyone else could (or financed it) #bizchatsChristine DiGangiA4: Research officer positions on campus (e.g. SGA) that pay stipends & get involved! Fun & beneficial way to make $ in #college. #BizChatsIsa AdneyA4: Look into focus group programs. An easy and relatively quick way to pick up a little extra cash! #bizchatsLeslie H. Tayne, EsqQ4: Look into brand ambassador programs. Some offer cash, but also valuable life/work experience that puts you a cut above #BizChatsMegan SeversA4: Also get to know people behind desks on your campus. They often know the best on-campus job opportunities. #BizChatsIsa AdneyCommunity colleges -- spend the first one to two years there before transfer to a major university #bizchats A4Lois Martin #121A4 Maximize your student discounts! Always ask and take advantage of these cost-saving opportunities. #BizChatsJodi OkunA4: Learn to be frugal. Discover what things are worth paying a premium for and which things are ripe for savings! #bizchatsLeslie H. Tayne, EsqA4: Here's what college kids waste money on. http://t.co/FfkmC7vieW #bizchatsTroy OninkQuestion 5:Q5. What tools can families take advantage of while preparing to pay for college? #BizChatsMashable BusinessA5 Take advantage of tools that will help you prepare for the cost of college #BizChats #CollegeCash http://t.co/Xgk4f1otoAJodi OkunA5: http://t.co/PGQWW8V2SS, http://t.co/CzFvEdCGGZ, https://t.co/6jseLO1jqg, http://t.co/z0TtWqXRE8 #bizchatsTroy Onink@mashbusiness a5) If you are a small business owner, become very familiar with the FAFSA rules 're: income. (momof4incollege) #bizchatsTamLovdalA5 Check out my all-time favorite tool about the ROI of a college degree: http://t.co/RALo7kZSkB #BizChatsJodi OkunA5 - Six calculators to help you save for college - http://t.co/OSzDxrCUTR #BizChatssaving4collegeA5. A #529 college savings plan for tax-free savings. #BizChatsJoseph HurleyA5) the best tools for families planning for #college expenses, in my view, are the new college net price calculators #bizchatMONEY on CollegeA5 Teach them the value of money while they're young! Good habits now will pay off later #bizchatsJade PhillipsA5)While some colleges (such as NYU) have nearly useless NPCs, the best let u run tests to see impact of higher test scores, grades #bizchatMONEY on CollegeA5: Frankly, an experienced financial advisor specializing in college funding is your best tool. #bizchatsTroy OninkA5: Follow @FAFSA and read their resource pages and documents. Meet with your counselor. #BizChats https://t.co/IMIubWaKxmYolanda NormanA5 Use a Net Price Calculator! This tool will give your family a more accurate picture of what to expect. #BizChatsJodi OkunQuestion 6:Q6. What are the biggest mistakes to avoid when financially preparing for college? #BizChatsMashable BusinessA6: Waiting to save. The longer you have that money in an account, the more interest you could accrue! #bizchatsLeslie H. Tayne, Esqa6: waiting until the student is applying to college to figure out the whole "paying for it" thing. #bizchatsChristine DiGangiA6: Spikes in income of any type will kill chances of financial aid. #bizchatsTroy OninkA6. To students: Act as though you will be paying for college yourself. Don't assume your parents can cover some or all costs. #BizchatsAlyssa McDermotta6: "too much debt" has many definitions, but many people say needing private loans, parent loans = too much debt. it depends. #bizchatsChristine DiGangiA6: Pass-through business tax structures pass all income through to personal return and income is weighed 9 x more than assets. #bizchatsTroy OninkA6: Not considering all your options. Community College can save you a TON of money if you go there first and then transfer. #bizchatsLeslie H. Tayne, EsqA6: That option is especially helpful for students who aren't 100% sure what they want to major in yet. #bizchatsLeslie H. Tayne, EsqTurning to private funding sources without first exploring federal/public aid and loans #bizchats A6Lois Martin #121A6 Too often the optics of a big name institution overshadow the cost and investment.
@mashbusiness #BizchatsRoberto Blakea6: if you're already past the point of saving sufficiently, taking on too much debt to cover your costs won't be worth it. #bizchatsChristine DiGangiA6: Not doing your research which leads to unexpected expenses. Know all the costs before making your decisions. #BizChatsDebbi Kinga6: you have to be willing to reconsider your school choices if you won't be able to pay for your "dream school." #bizchatsChristine DiGangiA6) The biggest mistakes in preparing for #college include: 1) assuming your kid will get an athletic scholarship. Only 1-2% do. #bizchatMONEY on Collegea6) #college planning mistake #2: Not doing realistic budgeting. u might have to tell kid can't return 4 yr 2 b/c u've run out of $ #bizchatMONEY on CollegeAssuming your child is not eligible for scholarships #bizchats A6Lois Martin #121A6. 1) Procrastination. 2) Listening to your neighbors boast about financial aid. #BizChatsJoseph HurleyA6: Not comparing your expected salary out of school to your monthly student loan payment. #bizchatsLeslie H. Tayne, EsqA6 Don’t assume you make too much to qualify for financial aid everyone should apply #BizchatsJodi OkunA6: Four Ways To Blow Your Kids Chances of College Aid http://t.co/iRCX9bcGLf #bizchatsTroy Oninka6: taking a "we'll figure it out" attitude — sure, you might figure out how to pay if you didn't plan well, but you might not. #bizchatsChristine DiGangiA6: Overextending yourself. You need to be able to recognize when that loan amount is too much. #bizchatsLeslie H. Tayne, EsqA6 Tapping your IRA to pay for college could kill financial aid chances #BizChatsJoseph HurleyA6 Overestimating the job market, the value of a degree and the ROI of it.
@mashbusiness #BizchatsRoberto BlakeQuestion 7:Q7. What final tips do you have for preparing for college financially? #BizChatsMashable Businessa7: treat college like an investment. involve students in the financial ins-and-outs as much as possible. they need to get it. #bizchatsChristine DiGangiSave for kids' college but never at the expense of your own retirement and future family financial stability. #bizchats A7Lois Martin #121A7 Don’t wait until senior year to start thinking about financial aid. Start the conversation early! #BizChatsJodi OkunA7: Estimate aid eligibility based on income years before college, then save in strategic accounts to maximize aid eligibility. #bizchatsTroy Oninka7) Students who work abt 10 hrs/week on campus get better grades than those who don't work. So kids can/shd earn $2,500/yr w/ part-time jobMONEY on CollegeA7 Communicate with the financial aid office they are there to help you. I promise #BizChatsJodi OkunA7. Start saving now with a #529 plan even if you can only afford $25/month. #BizChatsJoseph HurleyA7 Start trying to leverage #passiveincome while in college and get a jump on your loans.
@mashbusiness #BizchatsRoberto BlakeA7: Save. Save. Save. The less you have to cover with a loan the better off you'll be! #bizchatsLeslie H. Tayne, Esqa7: don't be afraid to ask ALL the money questions of any resource you have. you need to know what you're getting into. #bizchatsChristine DiGangiA7: Remember, college aid eligibility is all about YOUR family's financial situation. Advice has to be specific to YOU. #bizchatsTroy OninkA7 Have the money talk with students so everyone is on the same page – financial fit is key ! #BizChatsJodi OkunA7 Ignore the optics of living at home if it makes more financial sense during or after college.
@mashbusiness #BizchatsRoberto BlakeApply to colleges in your price point --> check out direct billed costs #bizchatsJodi OkunA7: Figure out the best possible plan for paying with cash & grants where possible. You don't know what the future will bring. #BizchatsDebbi KingA7 Pay attention to deadlines ← Admission and financial aid #BizChatsJodi OkunA7: Never stop looking for ways to save. New scholarships, new ways to be frugal, new ways to make money. #bizchatsLeslie H. Tayne, EsqBegins at birth! Academics and so much more can mean scholarships and opportunity. Instill that when they're young! #bizchats A7Lois Martin #121Closing Comments:Thank you so much @mashbusiness @Mashable great info today and tips for all #bizchatsJodi Okun@JodiOkun @mashbusiness @529guru @Money_College @TroyOnink Awesome all! #bizchatsLois Martin #121@mashbusiness Great conversation. Thanks for the opportunity! Have a great week! #BizChatsDebbi King@mashbusiness @JodiOkun @529guru @money_college @TroyOnink I really enjoyed this chat. Always good to have that discussion. #bizchatsWayne ChanGreat chat @mashbusiness! Well done. #BizChats :)Isa AdneyGreat questions and answers today! Enjoyed the #Bizchatssaving4college