The Funding Process
Before ever getting to this moment, we strongly encourage parents and their students to discuss the various key elements of the college funding process early on to temper expectations and eliminate “surprises” come award letter time.
Parents of a high school student, can begin this conversation during the summer of their junior year and revisit it again 6 months later (or throughout the year if necessary) to ensure that you are all on the same page.
The issue will become: How are you as a family going to cash flow the out of pocket costs upfront for college? Additionally, it will be important to have a comprehensive plan for the entire family in order to ensure you are allocating resources properly and to avoid overspending, especially with more than one student planning to attend college.
Ask yourselves the following questions before sitting down with your student:
If there is a gap, is there a way to create cash flow to close the gap?
Look for current expenditures that will go away once the students are in college
Other current savings that can be diverted to college during the college years
If there is still a gap, borrowing will be needed – what borrowing makes the most sense for me?