College Financial Planning Services Offered by PBA

If you have been wondering how you are going to meet the escalating costs of a college education, perhaps it’s time to re-evaluate your current financial position.

The Patrolmen’s Benevolent Association is very pleased to be able to offer its members a free, private consultation with Bob Hamilton, a Financial Tax Planner. This session will provide you with a clear understanding of the financial aid process. More importantly, you will learn what steps you can take to qualify for the largest possible dollar amount available through grants, loans, scholarships, work-study, etc. The appropriate moves, made now, may not only save you thousands of dollars during your child’s college years but may also serve to open the doors to prestigious institutions previously out of your financial reach.

If your annual family income is less than $85,000, you may qualify for substantial college aid. This service is designed to show you how.

By using the same calculations used by college financial aid officers, you will be provided with an accurate determination of the financial aid you can expect from outside sources as well as the amount you will be expected to contribute to the cost of your child’s education. And, if you are the parent of a student in his/her junior or senior year of high school, the time to act is now.

These private sessions are by appointment at the PBA office at 40 Fulton Street. We urge all our members to take advantage of this valuable service by calling 212-233-5531 for an appointment. learn how to get the most for your education dollar.

THE PRINCIPLE
Virtually all colleges subscribe to the principle that no student should be denied the opportunity to attend college because of inability to pay college costs. Generally, aid — in the form of scholarships, grants, loans, and campus employment — is made available to students who cannot pay the full cost of their education.

INPUT — THE FAF
Most colleges and many government aid programs determine eligibility and amounts through the need analysis system of the College Scholarship Service (CSS), an activity of the “College Board.” The CSS uses a Financial Aid Form (FAF) on which the student and the parents provide extensive information about their financial circumstances including incomes, assets, liabilities, taxes, etc.

OUTPUT — THE FAMILY CONTRIBUTION
The CSS processes the FAF data through a complicated formula which determines the family contributions, i.e., the amount the student and his family can afford to pay. This information is submitted to the colleges to which the student has applied. If the family contribution is less than the college “budget” (tuition, books, board, etc.), the college will endeavor to make up the difference with an aid package. Thus, every college has the same theoretical out-of-pocket cost — the family contribution.

THE FORMULA AND PLANNING OPPORTUNITIES
The formula which the CSS uses to determine the family contribution has many similarities to the tax law, not the least of which is the complexity. That complexity, combined with a degree of arbitrariness, creates financial planning opportunities. Just as careful planning of one’s affairs ca legally reduce tax liability, so can careful planning reduce the family contribution and thereby increase the amount of aid for which one qualifies.

THE GOAL
It is not unusual for middle income families who plan ahead to qualify for many thousands of dollars more of aid than they could otherwise expect. In most cases, the steps taken to qualify for and maximize aid are also prudent financial planning measures in their own right.

JUNIOR YEAR OF HIGH SCHOOL
While high school seniors who have not yet submitted their FAF’s can often be helped, the optimal time to plan and take steps is early in the junior year of high school.

No student should be denied the opportunity to attend college.