Hosted by: Jessie Peck Martin, MEd, founder of Elevated Admissions, and Rhonda Lathrop, CFP™, Merrill Lynch

Meeting Summary: 

Quick recap

The meeting focused on financing college and the college admissions process, with Jessie Martin and Rhonda Lathrop discussing strategies for managing college costs. They explained the differences between need-based and merit-based aid, highlighted the importance of financial fit when selecting schools, and addressed the "doughnut hole" phenomenon where families with incomes between $125,000 and $300,000 may not qualify for need-based aid. The presenters shared a case study of a student named Adriana whose college list was adjusted to better align with her family's financial capabilities, and Rhonda provided insights on alternative funding methods beyond traditional loans. The session concluded with information about a new Admissions Roadmap package offering weekly text messages and two one-on-one sessions with Jessie, along with access to online resources and a personalized Grad Better Merit Insights account.

Summary

College Admissions and Financing Insights

Jessie Martin, an independent educational consultant, and Rhonda Lathrop, a financial advisor, hosted a webinar to discuss the college admissions process and financing. They addressed common feelings associated with college admissions, such as stress, confusion, and overwhelming, and introduced themselves and their professional backgrounds. The webinar aimed to provide insights into financing college and debunk myths surrounding the process. They planned to share truths about the changing landscape of finances in admissions and were preparing to start their presentation.

College Financing Strategies and Insights

Lathrop, a wealth management advisor with Merrill Lynch, shared insights on financing college, emphasizing the importance of understanding students' educational goals and financial needs. Jessie introduced the event's purpose, highlighting the support for the Stratton Community Foundation and the focus on equipping families with tools to manage college finances effectively. The discussion included a case study, explored hidden costs in college financing, and addressed the "doughnut hole" income range where families may not qualify for need-based aid, emphasizing the need for financial planning. Participants were encouraged to ask questions and engage in the conversation to address fears and anxieties about financing college.

College Aid Types and Requirements

Jessie and Rhonda discussed the differences between need-based and merit-based aid for college funding. They explained that need-based aid is federally mandated and based on family income, while merit-based aid is awarded based on student achievement. Rhonda highlighted the importance of filling out the FAFSA and CSS Profile forms, noting that CSS Profile is a more detailed questionnaire that considers factors like college savings and gifts from relatives. Jessie mentioned recent changes to federal loans, including a new cap of $20,000 per year and $65,000 lifetime for Parent PLUS loans. They emphasized that loans should be a last resort and advised putting loans in the student's name rather than the parent's.

College Financial Aid Strategies

Jessie and Lathrop discussed college financial aid, focusing on merit aid and the importance of understanding financial aid packages, including grants that do not need to be repaid. They emphasized building a balanced college list, targeting schools with higher admissions rates for better merit aid opportunities, and avoiding excessive debt. Lathrop shared strategies for funding college, such as using 529 plans, stock options, and other creative financial approaches. Jessie introduced a new affordable package, the Admissions Roadmap, to help families navigate the college application process. Participants asked questions about savings accounts, loan options, and negotiating financial aid packages, which Jessie and Lathrop addressed. The session concluded with a reminder that families should consider the long-term financial implications of student and parent loans.