Anthony Limon, HB Editor

Welcome to Hispanic Business LiveChat. We would like to welcome our guest Brian C. Greenberg, Certified Public Accountant and College Planning Specialist, taking your questions on how to plan for your children's education.

What is the median income to ask for college scholarships? We make a decent living, with 3 kids in private college and a mortagage. Still, I would appreciate any help for tuition for my HS senior. I am afraid that we may not qualify, what do I need to do??

Brian Greenberg

Just came back from Maui. Paradise lost.:) I will let you in on a big secret, private colleges will discount tuition regardless of need. Consult a college planner familiar with this.

With the 529 tax benefits scheduled to end in 2010 is it worth investing in one if you have a very young child now?

Brian Greenberg

Yes, it is expected to be continued.

My family's income is 55,000, annually. We have less then perfect credit and do NOT own real estate. What is the best way to help my 4.0 grade avg. Hispanic son pay for tuition? He is a sophomore , getting great grades, but I am afraid financially I cant pay for his college schooling. Help!

Brian Greenberg

Start with the financial aid office and ask about appealing your financial aid award. Special circumstances will result in more aid. Also ask about PLUS loans.

We have one son in college right now and my daughter will be starting college in Fall 2006. What is the maximum income we can have and still be approved for financial aid?

Brian Greenberg

As I said to MAui, HI aid can be offered regardless of income. Financial aid based upon need is determined by the cost of attending less the expected family contribution (EFC). Understanding how to minimize the EFC will result in higher aid award.

I am trying to return to college but do not know where to look for grants and funding to help pay for the schooling. Can you help me find these resources? Thank you! Mitchell

Brian Greenberg

Start with the school you wish to attend. As for private scholarships they represent nationally only 3% of all funding for college.

How can we get financial aid/scholarship money to help cover the $40,000 annual tuition costs for the private liberal arts universities? My son is a college senior who is exploring some very excellent private schools but I can’t afford it unless he can get some financial aid (not loans!). What are his chances of being competitive enough to receive substantial financial aide or scholarship money from a private college/university? Do we have any negotiating room? Your comments and advice much appreciated. Many thanks.

Brian Greenberg

Yes, there is negotiating room. It is dependent on how well he did academically in school and on the SATs. I have helped many students leverage one award letter from one school against another in order to obtain additional aid. College is a business, its' just like shoping for a car. You just need to learn how to play the game or contact a college planner.

What alternatives are available to hispanics in the middle bracket (40,000 to 60,000)? Too much income for federal too little for the actual education cost. And What alternatives are available for the undocumented ?

Brian Greenberg

Depends where you go to school. Colleges practice social engineering, meaning they want a diverse campus. Going to a school with less minorities will enhance you obtaining more grants from school.

I am Puerto Rican, married to an Italian. Therefore, my children have a very Italian sounding last name. Will they still qualify for scholarships geared to Hispanic children? Is any proof necessary to prove they are 1/2 Hispanic?

Brian Greenberg

You are a minority and should indicate that on the applications.

My wife who is permanently disabled receives funds from her trust for her care and support. The trust was established by a court ordered medical settlement for that purpose. I nor my wife control the assets or distribution of the trust. This is the only money the family is currently receiving from the trust or as income. The trust has dividend and capital gains which exceed the distribution and are realized on our joint return. My question is: 1-what moneys if any are used for the purpose of calculating scholarships or the Pell Grant? 2-where can I find information on this issue?

Brian Greenberg

Colleges look at adjusted gross income from your tax return. However, you should look to appeal and ask for more aid due to the source of the gains.

My 16 year old niece is a junior in High School (Honors program). She lost her mom two years ago to breast cancer and is currently receiving SSI. However, SSI will end when she turns 18. She wants to go to NYU and we are trying to figure out how we will pay for her college education if she does not receive a scholarship (which we hope she will). Any information you can provide will be greatly appreciated. Thanks!

Brian Greenberg

NYU is the most expensive school in the country! It is highly competitive and thus not prone to giving money. She may wind up being saddled with enormous loans when she graduates. I do not know your financial situation, but one should always target at six schools in varying degrees of difficulty in order to give yourself options.

I am a CPA but graduated from a Mexican University. I would like to validate my degree in the US by attending the University of Nebraska in Lincoln. Do I qualify for any of the programs offered? Are there any specific institutions I could contact to for help? Thank you.

Brian Greenberg

There are no special programs, but you may want to contact the CPA state society as well as the school to inquire about special programs they might have.

How should I "not" pay for college for my children? What should I avoid?

Brian Greenberg

Let the child take out money in their name. However, many loans begin repayment while the child is in college.

I make too much to get financial aid and I make too little to stay afloat with regular expenses. What is your suggestion for my situation?

Brian Greenberg

If possible, look to travel farther from home to less popular schools. These are ones where the acceptance rate is low. That means while many are accepted few actually go there.

Are there any books you can recommend to students who would like to attend college, but can't pay for it?

Brian Greenberg

For those in a tight bind, the two year community college followed by two years at the state school is the least expensive way to go. In New Jersey, Rutgers takes students this way and they walk away with a quality degree.

Is it true that if you own a house, the kids can't qualify for financial aid?

Brian Greenberg

Untrue. It is only the elite schools who look at the equity in your house as a source to pay for college. So, don't borrow money unnecesarily against your home.

My son has already targeted a school to attend in Texas (top 1 %)but he is being solicited by schools outside Texas because of his academic record and school participation. We cannot afford out of state school tuition as compared to in state Texas tuition. How should we best focus our time and efforts with regards to soliciting financial assistance since we cannot prepare essays and complete applications for all colleges that want him to consider attending their school?

Brian Greenberg

Of those schools contacting your son, find those most likely to offer aid and apply to them. Don't look at the sticker price, they may discount tuition to the point where it is comparable to a state school. At that point you're getting a private quality education for public costs.

Should we sell our company stock to finance our son's first year of college?

Brian Greenberg

You're financial situation should be reviewed by a CPA to determine the least costly way to fund college. If you have large gains in the stock, then in essence you're cost of borrowing to pay could approach 20% (tax impact). I would look at other alternatives first.

Should I pay in cash or borrow?

Brian Greenberg

That depends, if you pay cash today will you have money for your retirement tomorrow. You can't borrow to retire. You should consult a financial planner - college funding is really retirement planning.

I am a widow with a daughter still in college and I find myself in a very different financial situation after my husband's death. It is most important for my daughter to be able to get her Degree, as she hopes to go to law school. But, I worry about finding the funding to be able to continue sending her to a college without getting into some heavy debt, especially with "out of state" costs, if this happens. What can we do now to plan ahead for this? Thank you. Erlinda S. Gonzales

Brian Greenberg

Your financial situation has changed. You should look into appealing the award letter as a result of the change in your circumstances.

Our income is less than $200,000. Our oldest attends our local state college and now our middle child is interested in applying out of state. How do we go about investigating scholarship sources for him or should we wait to see where he is accepted first? I see that you have already responded that private colleges offer financial packages. Is there a strategy to filling out the application to maximize the scholarship package? Need to mention that his SAT scores are average range and only now is he applying himself.

Brian Greenberg

Average SATs hurt your son's competitiveness. Rather than searching for scholarships, I would focus on schools who would offer more aid. In your situation, that would mean looking west of PA.

Mr. Greenberg, thank you for taking the time to educate us a little. Can you give us some specific sources (other than going directly to colleges and doing general internet searches) we can go to to learn more about college funding? I am a single mom of a 16 year-old High School junior and I'm looking for all the help I can get to fund my daughter's college education. Thank you.

Brian Greenberg

Not to promote, but I have a free bi-monthly newsletter and access to my website, www.tuitionrx.com that provides many sources of information to get started.

What is the best way to find a college planner? Never heard of them before, what should we look for to find a good one?

Brian Greenberg

A good college planner should insight into the financial aid process, understand tax laws and how to structure investments to minimize the college funding obligation. Having a discipline in only one of these areas is not enough as they all have a play in the best direction to pursue. That is why parents are overwhelmed today. It is a maze and complex and that is why a trained planner is very valuable. The savings can be in the thousands.

My family and I are from Florida, but we just sent my oldest daughter to West Virginia to finish her senior year with friends. Do different states offer different college assistance packages? Will my daughter graduating from WV prevent her from gaining access to aid in Florida?

Brian Greenberg

Each school has their own package. I mentioned earlier that private colleges discount. That is because many are sitting on enormous endowments. Tulane U in New Orleans is known for discounting (even prior to the flood) to notherners. Part of the reason is they have $750million endowment fund.

What is the "membership code" required to register into your site, tuitionrx.com?

Brian Greenberg

555122 also make your password "college123".

What parental assets are counted as part of the expected family contribution?

Brian Greenberg

All non-retirement assets, collectibles are hard to value. For the elite schools, they include retirement and home equity.

what are the requirements if your child lives with you in order to apply for loans as an independent.

Brian Greenberg

In the old days, when college cost a lot less being declared independent was much easier. Today, it is far more difficult for obvious reasons. Each school has their criteria for being independent, but in essence they truly have to be.

How would one go about determining if a university will discount tuition?

Brian Greenberg

Look at their percentage of meeting financial need. If the number is 85% and over that's a good sign. Less means that even if you are eligible for aid they still won't give you money.

What resources are available for students that are both academically strong and undocumented?

Brian Greenberg

What do you mean by undocumented?

My son is on his second year of college, and we have student loans -which can add up pretty quick. How exactly does "Not paying for college" work? Where do we start? What do we need to do?

Brian Greenberg

What you needed to do was do some cash flow planning before he entered college. Is this the least expensive college choice given your financial situation?

There is SO much information on the web regarding scholarships, how can you know whether or not the organization is legitimate? Is there another source to verify the information? If your child is in sports, how can s/he get an athletic scholarship? How can you get a scout to attend an event?

Brian Greenberg

If your child is in sports, you have to promote and contact colleges if you hope for any success. Send videos, follow up with phone calls after you have determined that school would be a good fit.

Both my wife and I work professionally. We have one daughter already in college and a son who is a senior in HS and looking forward to becoming an engineer in the future. In filling out the required FAFSA, I noticed that income sources are required to be listed but no requirement for debts (outgoing money). It seems somewhat unfair, if not, an unbalanced way to determine the Expected Family Contribution (EFC). With no debts offsetting the income, it would appear that all of the income is available for contribution (which is not the case for us!). How does one minimize the EFC to make it easier to be eligible for aid?

Brian Greenberg

Minimizing EFC is done by shifting income and assets to the child. But this only is recommended if there is not financial offered. Otherwise, a good tax strategy becomes terrible college aid planning. Schools grab a higher percentage of income and assets from the student than from the parent. With a second child entering college your prospects for aid increase. Be careful about filing out the FAFSA yourself. The inputting is easy, but it is the strategy that is difficult. Improperly valuing an asset could result in lost aid in the thousands.

How expensive are college planners? How do I tell if one is reputable?

Brian Greenberg

By the way good financial planners are free. If they're good then the savings they generate for you far exceed the cost of their advice.

It appears that most of the scholarships for Hispanics are based on financial need. What are the best opportunities available for working (middle) class Hispanic Americans?

Brian Greenberg

Look to schools with a low Hispanic population.

What's the best way to search for financial aid for graduate school?

Brian Greenberg

It's a lot tougher, this is where sound tax planning via the parents is the better way to go.

Back to my previous question. In order for me to appeal, I would like to review any material which speaks to financial aid eligibility given my unique circumstance. Such as, FAFSA, Pell, etc. Do you have any references?

Brian Greenberg

Appeal is recommended because the facts dictate it. On the surface you don't qualify for more, but the underlying circumstances dictate that more than a computer should review your case.

I am a middle class working Puerto Rican with one daughter in college and another to begin next year - aside from scholarships, are there other sources to mitigate the tuition and boarding costs? thanks - Joe

Brian Greenberg

Having two children in college increases your chances for aid. Ultimately it is the college that will determine how much money they will give you. That is where leveraging and seeking out schools that discount are invaluable.

Where should young hispanics, such as myself, start when trying to find help in paying for college?

Brian Greenberg

Begin with the financial aid office and inquire into PLUS loans and other sources for loans. Private or bank loans usually charge more and as in everything review the rate and repayment terms thoroughly.

Does the military offer any opportunities in terms of education or tuition assistance? Any details on how it works?

Brian Greenberg

Don't they offer some sort of GI bill. I would contact the school and the military directly.

Where can I find more information on scholorships, grants, and/or loans for returning students?

Brian Greenberg

It is more difficult to get grants given your situation. It would be best to price shop based upon tuition.

My child is in the 10th grade with a GPA of 4.00 and she is very interested in studying medicine in the US. What is the best way we can find out about scholarships and/or sponsorships with universities in USA??? Is it possible get several scholarships??? Once we receive scholarships and universities accept her as student, how we should proceed??? Thanks.......

Brian Greenberg

Having a top student will definitely help reduce the cost of college. Your efforts would be better spent finding colleges who would discount rather than chasing scholarships. You also need guidance in how to leverage one award against another. Colleges will match or increase their aid.

Anthony Limon, HB Editor

This concludes our Hispanic Business LiveChat. A big thanks to our guest Brian C. Greenberg, Certified Public Accountant and College Planning Specialist. For more information on how to pay for your child's college education please contact Brian@greenbergcpa.com or visit tuitionrx.com to sign up for a free bimonthly college newsletter.