Obama's New Financial Aid Timeline A "Win-Lose" For All! Says College Financial Planning Expert.
HACKENSACK, N.J., Sept. 21, 2015 /PRNewswire/ -- President Obama's new financial aid deadline has one College Financial Expert excited but also concerned.
Michael Gaer, a College Financial Planning expert since 1998 says that for the majority this is a great move. However, for some, it will have negative repercussions.
Having an earlier timeline will benefit everyone as the pressure to make a decision in the short amount of time previously afforded was suffocating. Some families will be negatively affected as this now amounts to what is a 2-year look back period.
- Imagine that your family has been saving for college for several years. You have been fortunate enough that your investment has grown over time. Now you need to sell to pay for college, however, because you did not plan for the "distribution phase" your capital gains reduces the amount of financial aid you were eligible for.
- Having an earlier timeline affords the family more time to make a better, more informed decision about which college is best for the student.
- It is unclear whether the CSS Profile, an additional financial aid form administered by the College Board, will follow suit by using this "prior-prior" time frame
- It is also unclear whether the FAFSA or individual schools will require updated financial information as a lot can change financially, good and bad, in 2 years. This alone can undue all the benefits mentioned previously.
- Having an earlier time frame is beneficial but proper planning is always the most important factor in college planning.
This only skims the surface as to what is the biggest change in financial aid timeline in over 17 years Michael has been involved.
Gaer Financial Group, Inc. is one of the country's top college advisors in the areas of: College Financial Planning, Financial Aid Planning, Tax Planning for College, as well as advising families for the most cost effective way to pay college expenses. The organization was founded in 1998 on the premise of making a college education affordable for all families. Since its inception Michael Gaer has helped over a thousand families pay for college and has filled out several thousand FAFSA's.
SOURCE Gaer Financial Group, Inc.
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