There has to be a better way!



For over 20 years as a college admissions, financial aid, and Student Services administrator, plus receiving my doctorate in Higher Education Administration, I was part of a system that led families to increase their debt load and often sacrifice retirement in order to pay for college. This has led to a national student loan financial crisis according to many experts, borrowers, and financial indicators. This crisis continues with many families STILL falling into this trap by taking out more loans to pay for college and families sacrificing retirement to pay for a college degree.

Is this sustainable?

NO.

Can I do something about it?

YES!

Yet colleges, universities, states have done nothing but put out the same out-dated message to pay for college:

…get good grades
…apply for scholarships
…talk to your high school college counselor
…fill out the FAFSA
…look for federal, state, local aid.
…then hope for the best.

This message is the 8-track tape (useful but out-dated) of financial education. Look where it has led us!?!

This message led to my yearly conversation with families entering college that often went like this…

Family: “Dr. Vazquez, how do we cover the cost of college without taking on Parent loans?”
Marcelo: “Let me see if I can get you more scholarships to pay for the difference between what your financial package covers and what it doesn’t.”

This uncovered college cost would often range between $10,000 to $50,000. When I came back with with either some additional scholarship money or not, there would still be an uncovered college cost balance. This lead to a follow-up conversation that forced families into four difficult questions…

Do we pay for the remaining college cost with…

  1.  Our retirement funds?
  2.  Equity from our home?
  3.  Savings from our business?
  4.  Take out Parent PLUS loans?

We were only talking about funding the FIRST YEAR! What about the remaining 2-3 YEARS!!!

At the same time, every 2-3 years I met 1-2 families who used a strategy that helped them pay for most or all of the uncovered college cost with tax-free cash access at no-penalty to the family.  This same tax-free cash access strategy also supported a family’s strategy for building an emergency cash fund available in less than a week and supported tax-free retirement goals. What’s even more interesting, the starting point for this strategy is listed in THE SAME government document every student uses to qualify for government aid to pay for college…the FAFSA (Free Application for Federal Student Aid) form.

This FAFSA form showed a not-often-taught pathway to

  ⁃  maximize state and federal aid.
  ⁃  be strategic with financial tools to generate tax-free (like a Roth IRA) cash value, penalty free before retirement, to help pay for college costs
  ⁃  at the same time, be strategic with strengthening a tax-free retirement.

I wanted to pass this information onto families but it’s hard to when the only families I can talk to are the ones who need the money in one month. Not the families who had more time (years) to use these financial strategies.

FirstGradeFinancialAid came as my platform to be a better and MORE RESPONSIBLE resource for families. Instead of helping families taking on more debt, I can now take my 20+ years of insider information for the benefit of families! I can help families be more strategic about paying for college AND supporting a tax-free retirement.

This all starts with a free financial education seminar. Education first, NEVER SELLING. This aligns with one of my personal values of service to my community. Our nation as a whole is not very good when it comes to financial education (thenationsreportcard.org). Families and professionals can’t know what they don’t know.

A fish doesn’t know it’s water until it jumps out. Many don’t know proper financial education until they see it. Many families don’t know that “the compounding financial magic” doesn’t work unless you start early.

From explaining how to take on more debt to now empowering families with financial education and strategy to support a family’s graduation towards financial strength and freedom.

The numbers never lie. When do you want to start?