I’m like the doctor; I get panic calls all hours of the day or night. Can you help my loved one?

It’s that time of year when I get the panic calls from parents.  They’ll say, “Hey, I heard you’re the college guy who can get my kid scholarships!”, or “My son/daughter has just been accepted at so and so college and we are looking for more scholarships!”

I acknowledge that they are correct, I am that guy, but . . .  only if they had seen me in their student’s junior year BEFORE they decided to apply for colleges.  Typically, by the time the panic call comes in, they have no shot at getting scholarships, grants or financial aid.

I just got one those calls the other day.  Dad’s in a panic.  I get him calmed down to go through the numbers. He goes on to tell me the cost of the college is $48,500. The financial aid offer from the college was as follows; $16,400 in grants and scholarships, $3,500 in a Stafford loan (subsidized), Perkins loan, and a parent loan for $25,600.

If you look at the financial aid package more closely you will see that the aid percentages were 44% scholarships and 66% loans. Even more shocking is the fact that the family earns around $91,648 after taxes. So the college is asking this family to pay 28% of their take home pay. How many of you have 28% extra in take home pay these days to pay for college?  The good news is that I worked out a plan that can make this doable for them. The bad news is that the student’s sister may not get her fair share when she goes to college. The parents are going to have to make some very tough financial decisions when the younger daughter decides where she will attend college.

You won’t like what I have to say next which is this.  The situation presented here is the family’s fault. This is a classic case of not having a college plan in place that makes sense for both daughters. I find this tragic. When you start to prepare your children for college, begin by looking at colleges that make sense not only for their academics but also can fit into the family budget for each and every one of them.  Many times this will be a 10-year plan, or more, by the time you get all your kids through college.

Make a plan, stand by the plan and make it work for all your kids.  Each of them deserves the best.