Financial aid award letters are confusing primarily because colleges like it that way. It’s in a school’s interest to confuse families so they think an award letter is more generous than it really is. This award letter from the University of Arizona illustrates just how misleading these letters can be: Figure 1: Example of an Unclear Financial Aid Award Source: Lynn O’Shaughnessy It’s easy to see how the recipient of this award might have thought that his first year of colleg
It’s not easy to contemplate your own mortality, but a good estate plan can provide for your heirs, protect your assets, and promote family harmony once you’re gone. Estate planning is complex and because it involves facing your own mortality, it can be difficult subject to address. While you most likely have a will, this simple document may not be sufficient to manage your estate and efficiently pass on assets to your heirs. Even if you have an estate plan that you’re confid
Rational investors make better decisions—or so the thinking goes. However, new studies show that rational thought and emotions are both necessary to cut through the details, focus on what’s important, and get on with the decision that needs to be made. The science of economics has long been based on the assumption that people act rationally when making financial decisions. Money and math require cognitive thinking, so it’s presumed that rational thinking is what people use wh
If the thought of paying for college keeps you up at night, you are not alone. Between 2005 and 2016, the cost of an undergraduate education at public colleges and universities increased 34%. And it goes up more each year—by an average rate of 3.1% for a 4-year public university. That's on top of the average annual rate of inflation. Given the steep price and the well-documented financial impact of student loans, it may be worth asking your friends and family to contribute to
One reason to have insurance of any kind is to protect against potentially high out-of-pocket costs associated with events that may or may not happen. From the insurer’s perspective, the lower the likelihood of a dreaded event happening, such as a house fire, the less the insurance will cost. Each payout may be high, but since there won’t be very many of them, insurers can charge lots of people low premiums and still make a profit. Homeowners don’t mind paying on a policy tha
Parents may assume they earn too much to qualify for financial aid.
However, there are a number of strategies that even wealthy families can employ to cut expenses. While it’s no surprise that parents stress about how they’re going to pay for college, you may be shocked at those who are arguably the biggest worriers. Usually, the people who are most proactive in seeking ways to cut college costs are affluent and wealthy parents.
The good news is that simple yet effective st
One of the biggest questions that parents with college-bound children puzzle over, is whether their child has a chance for financial aid. This is more confusing than you might think, because at some schools a family could qualify for need-based aid if they make $200,000 a year, and at another school, the ceiling for aid could be $70,000. The first step that you should take when grappling with this issue is to obtain the Expected Family Contribution (EFC). And you should do th
Summer is the perfect time for rising high school seniors to be writing their college essays, well before the hectic onset of their final year in high school.. When school starts, seniors are going to be overwhelmed with classes, activities and applying to colleges. Taking advantage of free time when it’s available is vital. Depending on the school, the admission essay can be a critical element in determining whether a student will get in or not. Here are some tips for crafti
While working, people generally have employer-sponsored insurance. Some 58% of people in the U.S. today get their health insurance through an employer, either their own, a spouse’s, or a parent’s, if they are under 26. Employers subsidize the premiums, so employees pay far less than the full cost of the insurance. Premiums for family coverage averaged $19,616 in 2018, according to the Kaiser Family Foundation 2018 Employer Health Benefits Survey, but employees paid just 29% o
Where can a couple live for $2500 or less a month, including health care? And still enjoy a mild climate, modern amenities and plenty of English-speaking people? International Living magazine has released its 2019 Annual Global Retirement Index, where in-country correspondents describe and rate the retirement lifestyle of dozens of overseas destinations. The table below shows the top 10 for this year, ranked on a scale of 100. See the original article for in-depth description