Updating aid for reap ap client
Hyperbole abounds on the websites of groups soliciting insurance agents and financial planners to join their forces and sell a combination of policies and advice to anxious parents: “Astounding results! That’s mighty attractive to parents disappointed in 529 returns and frustrated by colleges’ miserly aid packages.Yet a four-month investigation by MONEY has found that, in reality, the people most likely to profit from this strategy are the planners themselves — most of them insurance agents with flimsy college-planning credentials and, often, little understanding of financial aid.His son ended up getting ,000 in annual scholarships to the University of San Diego, a private school.Safdari stands by his comment that certain assets can reduce need-based aid up to 12%, although when asked, he could not provide any examples.
Rick Darvis, head of the National Institute of Certified College Planners, the oldest group, says it is up to individual members to worry about obeying state laws.
She adds that sharp increases in college costs, combined with the tough economy, make parents especially vulnerable to hard-sell tactics: “More financial pressure and more anxiety create more opportunity for scammers to take advantage.” Understand this: Not every college financial planner is just out to sell you insurance, and some of those who recommend a policy may genuinely have your interests at heart.
Many also provide other valuable services, such as assistance picking colleges for your child and applying for aid.
College funding specialist Ron English of Greenville, S.
C., last year’s top-selling general agent for MTL, an insurer that is targeting the college market, says he advises wealthy parents to move assets into life insurance because “bringing your EFC down from 0,000 to 0,000 [over four years] …