Education Funding Specialists, INC
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Success Story 2

The first student is in college and we are running out of money.

The Family: The family currently has one student in college with a senior graduating in June.
The issue: The current college student had chosen their college without much thought to the financial impact to the family. The parents, not wanting to saddle their children with college debt, settled on a down payment to the college and a 10 month payment plan to the college ($2,000 monthly). The cash flow to pay for college is a stretch and now they are stressed about how to pay for a second college education. They see going through accumulated assets, reducing retirement contributions and using all discretionary cash flow. The impact on the family lifestyle will be immense.

The Process: The parents attended one of our classes held at a local library (this is a recurring theme). During the class, we discussed a few of the strategic methods that can be used to pay for college. The parents knew first hand that the most expensive way to pay for college is from cash flow. It is the taxes they are required to pay that makes the cash flow method so harmful to lifestyle. We went through the student positioning process with the second student to begin to identify colleges that are both an academic and financiall fit for the second student. The process will lead the second student to a group of schools that meet his needs and will lead to a career path. In addition, we revamped their college funding strategy to be a great deal less burdensome to their lifestyle.
The outcome: The parents were able to implement a college funding strategy consisting of strategic uses of their home equity (never spending it), IRA, deferred college loans and a little bit out of pocket. The peace of mind that they had a plan to follow and a known outcome of paying for college without going broke. The ability to pay for two college educations without hoisting huge debts to the kids was a major win for this family. Prior to speaking with us, they were convinced that the kids would be taking out huge loans or the second student would have to set his sights on a less expensive group of colleges. The parents now understand that it college is not a savings issue but rather a cash flow issue.

The outcome: The parents were able to implement a college funding strategy consisting of strategic uses of their home equity (never spending it), IRA, deferred college loans and a little bit out of pocket. The peace of mind that they had a plan to follow and a known outcome of paying for college without going broke. The ability to pay for two college educations without hoisting huge debts to the kids was a major win for this family. Prior to speaking with us, they were convinced that the kids would be taking out huge loans or the second student would have to set his sights on a less expensive group of colleges. The parents now understand that it college is not a savings issue but rather a cash flow issue.