College Costs, Admissions Interviews, and the PSAT: Our 5 Most Read Stories of 2014

We've had a truly great year with all of you. Thank you for inviting us to be a part of your family's college planning journey. We are excited for the year ahead.

Before saying goodbye to 2014, let's take a look back at this year's biggest stories. From tips for acing the admissions interview to some startling statistics on college grads, these were our most read stories of 2014 ...

1) 71% of Recent College Grads Still Receiving Financial Help From Parents

New research suggests, once again, that many parents across the country are not getting their money's worth when it comes to sending their kids to college ...

2) Does the PSAT Matter?

We know the PSAT often gets overlooked or misunderstood, and we don’t want you to make that mistake ...

3) College Costs and Financial Aid

How does a family pay for a college expense that is equal to and in many cases greater than the mortgage on their home? ...

4) 8 Steps to Acing the College Admissions Interview

A good interview can make the difference between getting accepted or rejected by your top school ...

5) What Do You Believe?

At Ensphere, we believe in many things ...

With 2015 around the corner, we're also excited to share more details about our upcoming webinar events.

Beginning in January, families who can't make our in-person workshops can now attend a free webinar instead, from the comfort of their own home. Registration is easy, so let your friends know!

Our first webinars are coming up on January 20th and 21st. Registrants will get a free copy of our College Planning Timeline.

As always, thank you for helping us help other families. We know the college planning process is such an important time in families' lives, and we are grateful to have the opportunity to make a difference.

Happy New Year!

Erin, Director of Student Services

Happy Holidays!!

Happy Holidays from Ensphere!

 

To celebrate, here's a festive video starring your favorite college planning team ...

 

 

We're also pleased to congratulate our seniors, who have begun receiving college acceptances. It's an excellent list so far:

 

Allegheny College
Auburn University
Baldwin Wallace University
Canisius College
California University of Pennsylvania
Case Western Reserve University
Chatham University
Clarion University
Cleveland State University
Duquesne University
East Carolina University
Edinboro University of Pennsylvania
Embry-Riddle Aeronautical University
Fairmont State University
Gannon University
Indiana University of Pennsylvania
John Carroll University
Kent State University
Mansfield University
Marymount Manhattan College
Mercyhurst University
Ohio University
Pennsylvania State University
Purdue University
Robert Morris University
Rutgers University
Saint Francis University
Saint Vincent College
Slippery Rock University
Susquehanna University
Thiel College
University of Alabama at Birmingham
University of Mississippi
University of North Carolina at Wilmington
University of Oklahoma
University of Pittsburgh
University of Rochester
University of Tennessee

Villanova University
Washington & Jefferson College
Waynesburg University
West Virginia University
Westminster College
Youngstown State University

 

... and many more to come!

 

From all of us at Ensphere, have a wonderful holiday season.

 

Mike Giffin, President

As promised ...

Here it is, as promised ... a picture of the team modeling our "awesome" Ensphere t-shirts.

Wish you could look this awesome? You can!

Through the end of 2014, we'll send you a t-shirt of your own for each family you refer our way. Simply click here to provide an email address so that your friends, family, and neighbors can receive our weekly blog posts. Click "Submit," and your t-shirt will arrive shortly in the mail!

Again, thank you to each and every one of you for helping us help more families accomplish their college planning goals. We believe our services can benefit every family who has students headed to a four-year college.

It's been a great year. Our seniors are now getting college acceptance letters. Juniors are taking the SAT/ACT and gearing up for the busy season ahead. Thank you to everyone for helping us make 2014 a good one.

On that note, we have some exciting news ...

You spoke and we listened. For some families, it is difficult to come out to an evening workshop in person.

To make it easier for those families to begin the college planning process, we'll be offering our workshop as a webinar, "Clearing Up the Myths of College Planning: Your Personal, Eye-Opening Journey to the Truth." Interested families can take the first step from the comfort of their own homes.

The webinar kicks off in January. Start telling your friends! More details to come.

Mike Giffin, President

Thank YOU.

Last week, we shared with you some of our beliefs at Ensphere. Today, we'd like to share some of your beliefs and say thank you to everyone for joining us on this journey.
_________________________________________________________________________________ 

Dear Ensphere,

I believe Erin's comprehensive reviews of student's essays are one of the most helpful services we have received. I also believe Chris' patience, with regard to my never ending questions regarding the CSS Profile, is equally invaluable!

Thank you Ensphere,
Patty
_________________________________________________________________________________ 

Dear Erin,

On behalf of myself and my children, I wanted to express my appreciation for the orientation you gave us the other evening on Ensphere's services.

All three of us talked all the way home and throughout dinner on lucky we all feel to have you and Ensphere in our corner. I'm not sure in my entire business career I've ever walked away from a meeting thinking the person I had just met was more rightly matched to their occupation than I did after meeting you!

We all look forward to working with you and the rest of Mike's team as we go on this journey together.

We are all very happy we're making our journey with you by our side.

With Kindest Regards,

Tracy
_________________________________________________________________________________ 

Mike and Erin are really top-notch professionals who know the business of college planning like no other. Do yourself a favor and talk with Mike about your options. We cannot be more happy with their services and professionalism and the assurance of knowing that our children will be guided in the best way possible to happy and successful collegiate experiences that will translate into rewarding careers in the end. We have no doubt regarding this.

- Jim
_________________________________________________________________________________ 

To all of you, we say THANK YOU for giving us the opportunity to help you achieve your college planning goals. We believe every family should have access to a regional College Planning/Funding firm that helps students find the career of a lifetime, identify the right-fit college or university, finish four years of school in four years, and develop a tax-efficient plan to finance college, without ruining the family budget or destroying your retirement plans. Thank you for allowing us be a part of this important step in your lives.

To continue our services it is important, to our current cost structure, to have introductions to new families who have students headed to college.

From now until the end of the year, we'll send you one of our - as Rena would say - "awesome" Ensphere t-shirts for each referral you provide.

Stay tuned next week to see the Ensphere team modeling our "awesome" t-shirts!

Mike Giffin, President

P.S. In the meantime, a fun peek at us getting into the holiday spirit at our annual bowling outing ...

What do you believe?

At Ensphere, we believe in many things. We believe in Santa! Erin believes in eating chocolate cake for breakfast. I believe in intense one-way conversations with my dog.

Here's what else we believe ...

I believe, by successfully partnering with parents of college bound students, we can greatly enhance their education experience without burdening the family with unnecessary financial risk. - Mike 

 

I believe college shouldn't be a scary thing that happens to you; families deserve to have the help they need 

to take control of the process and make the best decision for the whole family. - Erin

 

I believe we can significantly increase the chances that a family can send their student to the school of their dreams while decreasing both the educational and financial burden on that family. - Chris 

 

 I believe that the financial burden that comes with college does not have to 

cripple a family or even affect retirement. - Jeremy

 

 I believe every student deserves the opportunity to earn a degree, 

regardless of their financial situation. - Rena 

That's what we believe, now what do you believe? We'd love to hear from you.

Mike Giffin, President

Is College Worth Today's High Prices?

Let me start out by explaining that, emotionally, this question might have wildly different answers. What we are discussing in this publication is more about ROI, or return on investment. It is also an answer that very well may have a variety of answers, depending on how you were taught to do the calculation.

Here are a few examples.

Last week, I was sitting at the counter in one of my favorite diners having breakfast, when a gentleman said, “I paid cash for my oldest granddaughter’s college education.” I asked what she was now doing with her education. He told me she is a physical therapist in the Chicago area. She is making about $65,000 a year. When I asked how much he paid for her education, he proudly said, “One hundred eighty-six thousand dollars for her 6-year degree.”

The next example was a former employee of ours, who said a few years ago that her daughter went to a local college for 5 years, and the cost was over $124,000 in total. The daughter had obtained a teaching degree and a certificate to teach in Pennsylvania. She didn’t find work locally and ultimately moved south. She now earns about $36,500 a year.

In each of these cases, one needs to look at how the costs were financed. What if all or a large part of the college costs were in the form of a Parent PLUS loan? What if the student borrowed all or most of the money? The answers would be anywhere from a great deal higher, to, the student would not earn enough to pay back the loan without significant help and might have to interrupt her 4-year education for a 5-6 year time period to complete her degree.

Most parents don’t understand that students cannot, in today’s high-price world, borrow enough on their own to finance their education without some form of co-signer. We have also learned that a large number of parents don’t understand that once they obtain a Parent PLUS loan for their student, the loan cannot be transferred to the student. Articles have been written about how a student can refinance their student loans after they finish college. This is more difficult than it appears, because the student doesn’t have an established loan repayment history or even a reasonable FICO score.

Don’t go down the path of, “We’re going to borrow the money or my student can pay for their own college education; after all, I paid for my own college education,” without consulting a professional with experience in all aspects of this intensely complex endeavor.

Mike Giffin, President

8 Steps to Acing the College Admissions Interview

The personal interview is an often misunderstood part of the college admissions process. A good interview, however, can make the difference between getting accepted or rejected by your top school. Typically, interviews take place during the student’s senior year. As with every other piece of the college planning process, it’s important to be prepared!

Does every school require interviews? No. Many of the more competitive private schools will require (or “strongly recommend”) that students participate in admissions interviews, either on campus or with alumni if you live out of state. This means, if you skip the interview, you most likely will not be accepted. At some schools, the interview is optional—which means you should still elect to participate for the best chance of admission. Other schools, however, do not offer interviews at all. Every school will be slightly different. It’s important to research the schools you’re interested in ahead of time so you understand their policies and requirements.

Read on for some steps you can take for a successful interviewing experience.

1. Do Your Research.

Visit the college’s website before your interview. Make sure to read about the program of study that you’re interested in. Think about what makes this school special. You should be prepared to tell your interviewer why this school is the right fit for you.

2. Schedule In Advance.

For some schools, you will need to submit an interview request before a certain deadline. Other schools will contact you by phone or email—after you have completed your application—to invite you to interview. Either way, it is a good idea to schedule your interview for the earliest date possible. The sooner you interview, the greater the chance that your interview will be given careful consideration in the decision-making process. Remember, after the interview, your interviewer needs time to write a formal summary and submit it to the school. If you put off the meeting, you run the risk of interviewing too late in the game to really influence the admissions decision.

What if you're invited to interview on a day that's not ideal for your schedule? Make it work! Declining an invitation to interview, canceling at the last minute, or even asking to reschedule can signal to the school that you're not really interested. There's a good chance your "yes" will turn into a "no."

3. Dress Neatly.

While you need not show up in formal attire, it is a good idea to wear clothing that is neat and clean. Many schools recommend “business casual” attire for interviews.

4. Practice.

Sit down with a family member or friend, and practice! For many high school students, the college admissions interview is one of their first experiences with this type of conversation. Don’t memorize a script, but practice answering some of the basic questions you can expect to encounter. Be prepared to talk about why you’re interested in attending this particular college, why you’ve chosen your desired major and career path, and how you spend your time outside of school. Practicing ahead of time will help you to calm your nerves and come across more naturally in your interview.

5. Prepare Questions.

Don’t be taken by surprise when your interviewer says, “Do you have any questions for me?” The worst thing you can do is to have zero questions for the interviewer. In fact, it’s a great idea to prepare school-specific questions in advance. You should be ready with questions that are specific to the school you’re interviewing for, whether those questions relate to academics or campus life. This is another reason why it’s important to do your research beforehand. Asking the right questions shows that you’ve put some thought into this particular college.

6. Be Positive.

Try to phrase your responses as positively as possible. Interviewers are looking for enthusiasm and personality. Avoid taking a negative, bitter, or bored tone during the interview. Positivity includes body language! Sit up straight, make eye contact, and smile.

7. Relax.

Take a deep breath, and be yourself! The interviewer is not expecting you to use big vocabulary words or have the “perfect” answer to every question. It’s okay to take your time when answering questions. Interviewers are looking for thoughtful responses that reflect who you are outside of grades and test scores. The best interviews are conversational and authentic.

8. Say Thank You.

After your interview, it’s a great idea to send a handwritten thank you card to your interviewer. Thank the interviewer for taking the time to meet with you, and reference something that you talked about in your conversation to show that you were paying attention. These days, it’s becoming less common for students to send thank you cards after their interviews, so you will impress your interviewer by going the extra distance.

Mike Giffin, President

Financial Aid Season Is Upon Us: Five Keys to Success

For many high school seniors, financial aid season is upon us, and families of younger students can start preparing by knowing what's ahead. What can your family do to ensure that you stay on top of deadlines, submit all the right information, and get as much financial aid as possible? Follow these five steps to put you and your student on the right path.

1. Make A Timeline

When it comes down to the admissions and financial aid process, nothing is as important as deadlines. Make a timeline that includes every school your student is applying to, along with all of the admission due dates, financial aid requirements, and follow-up schedule.  This will guarantee that you miss no deadlines, submit all of the correct forms, and make sure that the school has received all of the information that they have asked for from your family.

For Ensphere families, we will guide you through each step of this process. Our financial aid software lists all of your deadlines and requirements in one place.

2. Know What the College is Asking For

Many colleges, especially when considering early decision applicants, will ask for additional information that your family may not have had to submit with the CSS PROFILE or FAFSA forms. For instance, Cornell has asked for a copy of the parents’ 2013 tax return for all Early Decision applicants. It is important to check each college’s website along with our financial aid software to see if your schools have any additional requirements. Again, if you miss a deadline, it could be the other person who submitted their tax returns on time that gets accepted, leaving you on the outside looking in.

3. Don’t Be Afraid to Ask Questions

If you aren’t sure whether the financial aid office needs something, ASK! Applying to eight or more schools can get crazy and confusing.  Different schools ask for different kinds of documents and data. If you aren’t sure what the school needs, it is better to be safe than sorry. A 30-second phone call is all it takes to ensure that the correct documents are being sent to the financial aid office.

4. Negotiate, Negotiate, Negotiate

There is a reason we tell students to apply to over 8 schools, and it isn’t just to guarantee you are accepted to at least one. It’s all about matching the student to the school that wants him or her the most, and using that financial aid package to increase your leverage against other schools. One school may give a lower offer than expected, but if you have a better offer from another school, you may use that to try and raise the offer from the low-offer school.

5. Hire a Group of Professionals

Hiring a professional who works with high school and college-aged students every day about the financial aid process will pay dividends. Whether it be to help you maintain your timeline of financial aid forms, to answer questions about income or assets a college is asking for, or to help assess different financial aid offers. True college planning firms have the knowledge and experience to maximize your family's opportunities for receiving financial aid.

Chris, College Planning Specialist

College Costs and Financial Aid

Many of our clients are in the midst of applying to colleges. They are also dealing with the reality of a four-year college education costing six figures. How does a family pay for a college expense that is equal to and in many cases greater than the mortgage on their home? What can you do to reduce the cost of college?

Let’s explore what you need to do and think about as you and your student go down this path:

THE “RIGHT FIT”

One of the most important decisions contributing to college cost is choosing the right school for your student; i.e., finding the school that matches your student’s need in terms of areas of study, selectivity, public vs. private, location, campus “culture”, etc. These are more important than cost. Why? Because matching your student’s needs with the college that really wants your student leads to success and lower costs. A student who is attending the right school will finish college in 4 years; not 4 ½, 5, or 6 years. The average time to get a degree today is approaching 6 years. Do the math. That can cost you an additional $20,000 to $60,000!

MAJORS AND COURSE OFFERINGS

Many students choose colleges based on where family members attended, what their high school counselors are pushing, and where their friends are going. Not a sound basis for making a choice that may cost $100,000+. Believe it or not, many students choose a college based on amenities such as dorm rooms and bathrooms! What’s really important here? Does the college offer what you are interested in studying? Don’t know what the student is interested in? Seek help! Do research! Explore!

PUBLIC VS. PRIVATE

Most families look at colleges’ “sticker” price and immediately rule out the higher-priced private school. But look deeper. Most private schools give more financial aid to the right student. And a large percentage of the aid is in free scholarships and grants. If your student has above average scholastic credentials, be sure to apply to a good sample of private schools. One of our families thought that the only choice for their twins was a state school with a price tag of $30,000 or less. We recommended that the girls explore Dickinson in Carlisle, PA with a “sticker” of $60,000 plus. Guess what? Dickinson came in at $5,000 less a year than Pitt per student!

SELECTIVITY

If you have an above average student, consider choosing schools where they will be in the top 25% of applicants instead of the high-profile schools where every student is the cream of the crop. Colleges sometimes called “sub-Ivies”, such as Bucknell, and smaller private schools, such as Allegheny College, know who their competition is and know that they will have to “pay up” to get that excellent student. Colleges want to show great statistics in terms of graduation rates and job placements, therefore, they are willing to pay to get the student who will excel.

HOW DO I FIND THAT “RIGHT FIT”

Students need to apply to at least 10 schools with a good balance between private and public. Why? You need at least 10 because you don’t know which school is looking for your child’s profile. Every year, the game changes. Colleges adjust what they are looking for in new students based on a variety of factors. Did they meet their enrollment goals last year? How well did their endowment funds do? Do their student demographics need adjustment? Is the college promoting a new program and willing to “pay” to attract students? We know that enrollments are declining. The number of graduating high school seniors peaked in the last three years. That means there are fewer students applying to colleges. Colleges will need to compete to find their ideal student match.

FINANCIAL AID OFFERS

Your applications are done. Now comes the time to apply for that financial aid. First, know the deadlines and apply early. There is usually a finite amount of scholarships and grants, and the early bird catches the worm. For most colleges, your application automatically puts your student in the running for scholarships. So, get those college applications submitted in early fall. Do not wait until the final due date. For certain courses of study, such as music, engineering, health care professions, there may be separate applications for specialized scholarships and honors colleges, and there may be an audition required, such as for music. Secondly, understand what forms are needed to apply for financial aid. All schools use the FAFSA to determine aid from the federal government programs.  Approximately 500 colleges use additional financial aid forms such as CSS/Profile and their own private forms. Thirdly, understand the forms! Every piece of information collected is there for a reason. Also, understand the definition of each piece of information. For example, what does the form mean by “retirement” accounts? Why do colleges ask for the parents’ highest completed level of education? What is a student asset and why is that important? And there are many more “pitfalls,” so do your homework.

KNOWING THE TYPES OF FINANCIAL AID

Yes, student loans are financial aid! So when you are reviewing that financial aid package, know which aid is free and which aid you need to pay back. Work study is also financial aid.

NEGOTIATE

How do you know that the financial aid offer that you received is a fair offer? You don’t, unless you know what the college has done in the past. More colleges are “holding back” on their offers. In other words, they are willing to pay more if you ask and if you are able to provide a valid reason for more aid. So, do your homework.

LOANS

When all else fails, many families need to borrow money to fund college. And this is where it all begins to fall apart. Most student and parent loans are deferred and cumulative. Deferred means that you don’t have to pay until the student is finished with college, and cumulative means that you have new loans every year stacked on top of what you already borrowed. How many parents and students actually sit down and calculate what all of these loans are going to cost, what will the payment be when college is finished and for how long? Not many. Let us ask you, how many of you would buy a house and not know what your monthly mortgage payment will be? Heads up! Your college loans will approach the size of a mortgage and usually with a shorter time to pay! And guess what? In most cases, you can’t declare bankruptcy on student loans. Recent college graduates are putting their lives on hold because of student debt. They are not buying houses, they are not getting married, and they are not having children. Many students live with their parents. Many parents must delay retirement to pay their share of college costs, or worse, sell their home and other assets to pay off debt. So, buyer beware. Understand what you are getting into before you and your student sign on the dotted line.

Ensphere College Planning Services

Strategic Thinkers vs. Non-Strategic Thinkers: Telling One From the Other

If you were interviewing potential College Planning/Funding clients, do you think you could tell the difference? Which ones were aware they were facing an incredibly huge emotional and financial dilemma, were also willing to listen to carefully crafted written advice from industry leaders, with tons of experience, credentials, business savvy—and which ones were not?

There are many ways to do this, and this blog will help you determine who is and who isn’t a Strategic Thinker. Next, you will see two characteristics of the Strategic and the Non-Strategic Thinker. I have kept both of these bullet points on my computer for years. They have helped me determine where to put our firm’s best efforts and who to avoid like the plague. This may seem a little harsh, but over the years using this method has saved us time, money and heartache. I have rarely been disappointed with the process.  

Let’s take a look at what I call the Strategic indicators. This list contains markers for those prospective clients who will achieve incredible success, be fun to work with and accomplish most of their family’s goals. Next, look at the second group: those families who will always second guess your advice, be the smartest ones in the room, and will ultimately blame you and your firm for their errors and missteps.

As you review this chart, think of some of your friends and fellow workers who embody these traits. I bet you can see their reactions to great advice. They will be continually skeptical, even if they are paying for the guidance. A few of these bullets really speak volumes of a person’s ability to think strategically.



After thousands of family interviews, it takes only about 10 minutes of talking with the first prospective client member to find out if he/she is Strategic. How they view themselves, how they treat others, how they manage their family assignments, and how they will follow a successful dynamic College Planning/Funding Plan.

The big takeaway here after years of publishing this conceptual theory is that the Strategic Thinking family will be and is much more emotionally and financially successful than the Non-Strategic Thinking family. The Non-Strategic Thinking family will grumble continually and make the same mistakes over and over again. They will bad-mouth excellent advice, have no alternative plan and eventually tell no one the real financial mess they have created.   

As with most theories, by definition, none of us are 100% in one camp or the other. However, understanding what works and what doesn’t can often at least send us in the right direction.

And one final word of advice from somebody who knew a thing or two about Strategic Thinking and leadership:

“Continuous effort, not strength or intelligence, is the key to unlocking our potential.” - Winston Churchill

Mike Giffin, President

Don't Wait Too Long to Take the SAT and ACT!

Our families of juniors say that high schools are advising students to wait until the spring to take the SAT/ACT for the first time. We say, don’t wait!

Plan to take the tests for the first time in the fall or winter. Give yourself enough time to study and retake the tests if needed. In fact, we encourage students to begin studying as sophomores. Many merit scholarships are dependent upon SAT/ACT scores, and the right kind of preparation can make a huge difference for you and your family.

So why are schools telling students to wait? These are some of the common misconceptions we’ve come across.

“You haven’t learned the math concepts yet.”

False! Most students have learned the main concepts they need by 9th grade. The majority of math problems on the tests require knowledge of simple algebra, percentages, ratios, basic linear equations, and properties of triangles and circles.

The SAT even provides students with a list of formulas at the start of every math section. So, if you can’t remember how to find the area of a triangle, you can simply turn to the first page!

The ACT is a bit more advanced because it will include a small number of questions requiring very basic trigonometry. But even if you’re not familiar with SOH-CAH-TOA, four questions (out of 60) won’t have a significant impact on your score.

If you’re having trouble with the math problems on the test, that’s simply because most of the math problems are worded in a tricky way. Once you decipher what a question is looking for, you’re meant to be able to solve it in less than 60 seconds. You don’t even need a fancy graphing calculator!

“Wait until you get your PSAT scores back.”

I hear this one all the time! Many students don’t even think about studying for the SAT/ACT until they see how they do on the PSAT. That’s a big mistake.

Typically, students don’t get their PSAT scores back until the middle of December. At that point, they’re looking at taking the SAT/ACT for the first time in the spring. That’s not a lot of time to start studying, take the test, wait for scores to come out, and then retake the test if needed.

If you wait until you have your PSAT scores, you are limiting your options. Remember, the tests are offered only a handful of times throughout the year, so planning ahead is key!

“You have time … college applications aren’t due until the fall of senior year.”

What’s wrong with this line of thinking? Let’s pretend I’ve registered to take the SAT for the first time in March of my junior year. I won’t see my scores until April. If I’m not happy with my scores, I now have very little time to prepare for retaking the test.

At this point, most students realize they have AP tests, college visits, prom, finals, and other end-of-the-year events coming up. It’s a very busy time of the year! Students can either cram in another test in June or wait until October to try to raise their scores.

Why is it not ideal to wait until October? Early applications are due in October/November, and students now have one chance to raise their scores to get into the colleges of their dreams.

Don’t let misconceptions about the test hold you back. Imagine how much better this scenario would be if I had first taken the test in the fall of the previous year, leaving myself ample time to study and raise my scores.

Remember …

Take advantage of our free SAT/ACT resources! Access your Method Test Prep account by logging in to your Career Cruising profile. When you click on “My Plan,” you’ll see a link on the left side that says, “Go to Method Test Prep.” There are 20 weeks of ACT lessons and another 20 weeks of SAT lessons, plus other resources. Best of luck studying!

Erin, Director of Student Services

Are Your Family Documents Safe in Your "Vault?"

Safety deposit box? Filing cabinet in your office with a simple key? A spare drawer in your kitchen? It seems as though everybody has their “vault” to store their very private, yet essential documents. Are your documents organized and easily accessible when you need to look up a statement balance or make sure your will is up to date?

If we were able to show you a tool that could keep all of these documents organized, easily accessible (even from your mobile device), and secure at all times, wouldn’t you be interested? Having a place where all of these important family documents can be stored is just as essential to having a financial plan. Read through a couple examples and relate it to your life. Think about where your documents are stored and if they’re safe and secure.

As I said earlier, most documents are stored somewhere not-so-safe. A drawer in a filing cabinet in your basement isn’t so safe if an event such as a fire were to tragically happen. This is where a secure, online website can become an advantage. Rather than be scrambling around to find a copy of your birth certificate you “think” you made 3 years ago, it would be easier to go to the “cloud” because you are certain that there is a copy in there.

What about your living will and power of attorneys? Should a medical emergency come up, trying to find these documents will be the last of your worries, and going to the attorney’s office to get a copy will not be necessary anymore. Medical and legal documents may be the first information to come to mind when thinking about keeping your documents safe, but what about valued family items, such as photos, appraisals of family jewelry, and those “secret” family recipes.

If you’ve been looking for a way to securely store this type of information so that your family has one less worry when the time comes to access these important documents, let us know. We can help you ensure that backups are safe, secure, and easily accessible when the time comes.

Chris, College Planning Specialist

Does the PSAT Matter?

October is PSAT month! Sophomores and juniors across the country are signing up to take the PSAT at their local high schools.

We know the PSAT often gets overlooked or misunderstood, and we don’t want you to make that mistake. Here’s everything you need to know about the PSAT.

Why take the PSAT?

If you’re a junior, the PSAT is the qualifying test for National Merit Scholarship Corporation scholarships. Students who score in the top 3% on the PSAT become eligible to receive National Merit Scholarships, corporate-sponsored merit scholarship awards, and college-sponsored merit scholarship awards.

If you’re a sophomore, the PSAT serves as a practice run for the next year’s PSAT, SAT, and even ACT. For many students, this will be your first time taking a college entrance exam. It’s a good opportunity to get a feel for this kind of test and start identifying areas for improvement.

What’s on the PSAT?

There’s a lot of overlap in content between the PSAT, SAT, and ACT. Like the SAT, the PSAT covers three subject areas: reading, math, and writing. However, the PSAT is a shorter test, at just over 2 hours of testing time. One nice thing is that there’s no essay section on the PSAT. The writing portion consists only of multiple-choice questions.

What does my score mean?

Students can earn up to an 80 on each subject area of the PSAT, for a total of 240. To translate your PSAT score to the SAT scoring scale, simply add a zero to the end of your score! For example, a math score of 58 on the PSAT is comparable to a 580 on the SAT.

With that said, the PSAT provides only an estimate of how you might score on the SAT. Keep in mind that the SAT is longer and a bit more difficult than the PSAT, so many students score higher on the PSAT than they do when taking the SAT for the first time. Your PSAT score is only a starting point that helps you identify which topics you need to study.

How can I prepare?

Use our free SAT resources! Access your Method Test Prep account by logging in to your Career Cruising profile. When you click on “My Plan,” you’ll see a link on the left side that says, “Go to Method Test Prep.” PSAT questions look just like SAT questions, so it’s a good idea to get familiar with them before taking the test!

Erin, Director of Student Services

71% of Recent College Grads Still Receiving Financial Help From Parents

New research suggests, once again, that many parents across the country are not getting their money's worth when it comes to sending their kids to college.

When Professors Richard Arum from New York University and Josipa Roksa from the University of Virginia surveyed the Class of 2009, they found some distressing results.

Take a look at these numbers from the class of ‘09:

- 71% were still receiving financial help from their parents, two years after graduating.

- 24% were living back home.

- 23% were unemployed or underemployed.

- Only 47% of grads in the labor market had full-time jobs paying $40,000 or more a year.

If there isn’t a clear goal in mind when sending children to college, why are families spending $20,000+ per year? This is setting up the “family corporation” to fail. Why go to college for 4+ years just to graduate and work the same job they did during their summers in high school?

The reality is that many students are embarking on their college journeys without doing the proper planning. Students are applying to schools somewhat aimlessly, not knowing which ones are truly the right fit for their career goals.

These are just some of the reasons why we at Ensphere put an emphasis on career identification and college choice. The right kind of planning can go a long way toward setting up your student for success after graduation. Take the time to find the career path that best fits your student's skills, interests, and goals, and let us help you make the right college decision for your family. It could make the difference of your student becoming one of the statistics shown above.

Students with a clear understanding of what their future plans entail and where they are headed are in the 47%. Our evaluations and assessments make this happen.

Remember, college is not simply a four-year choice; it's a forty-year choice.

Chris Horan, College Planning Specialist

Should I take the SAT or the ACT?

The SAT or the ACT? It’s actually a trick question!

Instead of taking either the SAT or the ACT, students should be taking both the SAT and the ACT.

As the ACT continues to rise in popularity, more and more students are registering for both tests. It’s a great idea! Most colleges accept both SAT and ACT scores, so it’s in your best interest to take both tests and submit your higher scores.

There’s no downside to taking both tests at least once. Some students will score similarly on both tests. Some students, however, will score noticeably higher on one or the other. While the SAT and ACT are very similar in content, they provide different testing experiences. Many students will find that one of the tests is better suited to their individual strengths. By taking both tests, you have the opportunity to see which test better shows off your strengths.

So what’s the difference between the tests? One key difference is that the SAT is broken up into more sections. On the ACT, you’ll tackle the 75 grammar questions all at once, 60 math questions all at once, and so on. The SAT breaks up each subject area into three smaller sections. Some students like the smaller chunks of questions on the SAT. Others prefer the ACT because they want to get the math questions out of the way earlier. You won’t know what works better for you until you try both!

The other major difference has to do with timing. Although both tests last roughly 4 hours (including breaks), the testing experience is not the same. ACT questions will be simpler and more straightforward, but students are given very little time to work through each question. Many students find it difficult to get to every question on the ACT. You’ll see more “trick” questions on the SAT, but you’re given more time per question to work through them. Again, depending on your test-taking style, you may find that one test is simply a better fit for you.

Sophomores, this year is a great time to begin reviewing our free SAT/ACT resources on Career Cruising. Juniors should plan to take the tests for the first time in the fall or winter, so that you can retake the SAT or ACT in the spring if needed. Seniors, if you need to retake the tests one more time, make sure to register now!

Register for the ACT here.

Register for the SAT here.

Best of luck studying!

Erin, Director of Student Services

Demand a College Cash-Flow Plan

As I interview most, actually all, of our clients and prospective clients, I am amazed that their current financial advisors do not provide them with a financial plan. It does not make sense that advisors do not do at least a College Cash-Flow Analysis. Maybe it’s because they don’t know where to start, how to calculate the cost of college, how to incorporate risk management into their investment recommendations, what effect taxes will have on a college cash-flow plan, or how the plan will affect your retirement plans.

Do they actually know where a client’s SAFE money should fit into the client’s overall portfolio? Are the current advisors schooled or educated in proper risk management? Is the plan prepared for an extended flat or down market? Is the portfolio all in mutual funds, individual stocks and bonds?

It is also hard to figure out WHY the client doesn’t demand a College Cash-Flow Plan, identifying how much college will cost, how paying for college will affect our family financial plan, and how it will affect our retirement plans. What will happen to my financial plan in a protracted, flat, or down market? Have we made plans for an extended disability of the breadwinner or winners, and what happens in the event of an untimely death? Are we secure with adequate savings in case one or both breadwinners lose their jobs? Are we overcommitting to retirement plans and not putting enough into our emergency funds?

One vastly underrated consideration is, “What will my tax bracket be in retirement? Do I really want to cut back in my retirement years?” After all, what successful client is in a lower tax bracket in retirement?

For most of you, if you read this blog, you will not demand the resolutions to your family’s college cash-flow, financial and retirement plans that a family head should. Don’t wimp out; we can help you put together a real sustainable, operational, family financial plan.

What are you waiting for?

More family financial considerations to follow. Keep an open mind. 

Mike Giffin, President

Educational Planning + Financial Planning = College Planning

Families that work with us normally have a good idea of what keeps them up at night when it comes to sending their children to college. For some families, it may be the grades and standardized test scores. Some parents are scared they will have to borrow $100,000 to give just one of their children an education. Some parents worry that their children don't know enough about the world to choose what they want to do with their lives.

These worries sometimes lead families to ask whether we can provide à la carte services for only one or two components of the college planning process. But at Ensphere, we don't believe in choosing between educational planning OR financial planning. Successful college planning involves educational planning AND financial planning. The two go hand in hand when a family defines a well thought-out plan for sending their children to college. 

When we define the "family corporation" at Ensphere, we think of the family as a tripod: if one leg fails, it all falls down. The first leg of the tripod is the student's. What can the student do to maximize his or her chances of getting into the best college that fits his or her needs and provides the best shot at a successful future? The second leg is the parents' leg, part of the financial side of the process. The third leg is both the parents' and students' responsibility: how are we going to pay for college?

1) The student's responsibility is to study hard, receive the best grades possible in high school, and prepare for standardized tests such as the SAT and ACT. Although parents can encourage their children to strive for the best, it is ultimately up to the student to decide whether he or she wants to put in the effort to get the results needed. Picking a career path that will direct the student toward the correct college major at the right school is the pinnacle of the educational planning side.

2) Many parents are under informed about the financial process that their family will go through when sending their children to college. They may not understand why the FAFSA is asking them certain questions, and they don't realize that filling out just one question wrong can significantly reduce their chance at financial aid. Parents need to know how their income and assets drive the amount that colleges expect to come out of their pockets each year. Telling their children that they must pay 100% of the cost of college may not be fair when the parents' income is ultimately determining the cost. 

3) The third leg, how are we going to pay for this, is a combination of the first two. Every family has a philosophy on the best way for the college bill to get paid. There isn't necessarily a right or wrong philosophy because every family is different. But this is really where the educational planning and financial planning come together. All the hard work that students put into their grades and standardized test scores will determine the schools that will accept them and the merit scholarships they will be offered. The work the parents have done to understand the financial aid process and how their wealth will affect the price of college will determine the college the family can responsibly afford. The ultimate "right-fit" school will be the school that offers the student the best chance at a successful college and work-force career, and the school that offers the best financial package to fit their family's needs. College isn't a four-year choice, it's a forty-year choice.

Educational planning and financial planning for college isn't a matter of one or the other. They go hand in hand to ensure the family has a rock-solid plan in place to send their children to the right college without blowing up their retirement plan. You can't lose weight without eating healthy AND working out, you can't get to a new area without a road map AND a vehicle, and you can't successfully send your children to college without an educational plan AND a funding plan.

Chris Horan, College Planning Specialist

Parents Struggling with Student Loan Debt

In early August, I ran across a very sad excerpt on the Fox News website and it got me thinking about our Ensphere clients. This article talked about a California couple who cosigned about $100,000 in student loan debt for their daughter, Lisa. Lisa, who was 27 years old and had three children of her own, died unexpectedly from liver disease.

Lisa was making payments on her student loans until her death. Unfortunately, the parents soon discovered that as cosigner, they were responsible for repayment of the student loan debt, as they would be in any other loan situation as cosigners. Lisa’s father states that the debt payments exceed $2,000 a month and has destroyed his credit. One of the loans was forgiven by the creditor, and some lenders have lowered the interest rate.

What can you learn from this tragic scenario? Let’s take a closer look at the facts: 

1) Buyer beware! There are many private student loan programs available in the marketplace. Almost every major bank and credit card company offers student loans which will allow you to defer loan payments until the student graduates. However, each program will treat cosigners and the death of a student differently. Some lenders will forgive the debt if the student dies, and some do not. Some lenders will remove the cosigners from the loan if the loan payments are paid on time by the student after 24 to 36 months, and some lenders do not. 

2) Understand what you are getting yourself into! Parents and students do not fully understand what the loan payments will be after college. Remember, you are borrowing money every semester for at least eight semesters. Payments are usually deferred until the student graduates; however, interest is being charged and added to the loan during the time the student is in college. If you’re not keeping track of what you’re borrowing and how much it costs, you can easily end up with $100,000 to $200,000 in debt after a four-year college education. The payment terms are usually 120 to 180 months. Do the math. The payment will easily be in excess of $1,000 to $2,000 a month! Ask yourself, what will your student have to earn after taxes to be able to handle a four figure loan payment? 

3) Understand how the interest rate is calculated. Some loan rates are variable, and some are fixed for the life of the loan. Some loans charge fees in addition to interest. You need to understand how interest is calculated and how often the variable rate changes. Fixed interest rates are usually higher than variable rates. Interest rates are currently at a historical 30-year low. Where do you think interest rates will be four years from now? If you choose a variable rate, understand how high and how fast interest rates have to increase before the loan will cost you more than the fixed rate option.  

4) Are there alternatives to cosigning student loans? Parents usually have a better credit rating and have access to less expensive credit. If you have equity in your home, you may be able to refinance your mortgage or get a home equity line of credit. Interest rates are usually significantly lower than student loan rates with longer terms to pay back the debt making payments more manageable. Also, for most people, the mortgage interest is tax deductible. Student loan interest deductions have more restrictive limits and phase out with income. If you have cash value in your life insurance policies, you may be able to borrow from your policies at more favorable interest rates. Most life insurance loans also let you decide if and when you want to pay the loan back. 

5) Protect your assets and credit! Consider a life insurance policy on your student that will cover any medical, debt, or other outstanding expenses that will need to be paid in the event of an untimely death. I know that most people do not even want to consider the thought that their child may die before them. But bad things happen to good people every day. Parents can own the policy and make payments on behalf of the student. When the student is of age and has the means to handle the payments, ownership can be transferred to the student. Many insurance companies have programs that allow the student to increase their coverage during the term of the policy without proof of insurability. So, you are protecting their insurability in the event that health problems occur in later years. 

6) And above all, accept responsibility. It is not the government’s job, the college’s job, or the tax payer’s job to pay for college or bail out students and parents who get in over their heads. Every individual should plan ahead and educate themselves about the college funding process and the tools that are available to help pay for college expenses. Know what your payments and borrowing costs will be for your student’s education before you and your student commit to any loan. Determine how much you will borrow and how much the student will borrow for the next four years. 

We can help!


The Ensphere Team

Here's the link to the news story!

Lessons from Greg Norman and Robin Williams: Don't Build Your Financial World on a Dream

This past week has caused me to reflect upon the vastly different ways the seemingly very wealthy, at the top of their game, handle financial stress and difficult decisions. About ten years ago, Greg Norman, a professional golfer who changed the course of worldwide professional golf, was in the throes of an extremely expensive divorce and had to make some hard financial decisions. How would he handle a $100 million dollar divorce? Greg, a seasoned financial veteran with a team of financial advisors, decided he would sell his dream yacht “Aussie Rules”, an initial investment of over $70 million. This decision would help finance his divorce, rumored to be $100 million +, so he could settle his commitment and get on with his life. The boat was a 5-year exercise in love, coming from a man who spends his swashbuckling life enjoying the fruits of the ocean, but he knew toys could be replaced.

On the other side of the coin, Robin Williams, a man of similar age, maybe slightly past his prime but certainly with marketable skills, faced financial stress of his own. Robin purchased a very expensive second home in Napa Valley, rumored to cost $35 million. Robin faced similar expensive divorces, costing many millions, but chose to keep his dream home. The financial team he employed, but didn’t listen to, had it correct. His celebrity very well could have been used to sell his dream home in Napa, but the lack of financial need or stubbornness delayed the sale. This financial tragedy might have been avoided, but we will never know.

My take from these tales is simple: if you build your financial future on a toy, a huge first or second home, or the insane stock market, beware of the risk you are taking with you and your family’s financial future. Great financial plans are built on a solid foundation first, and then it may be prudent to invest in risky financial plays in real estate or the stock market.

If you want to see what a prudent financial pyramid looks like, send me or Erin a quick email, and we will forward a realistic, solid, well grounded look at a diagram that has worked for centuries. Good financial choices are a learned art form. We can help.

Mike Giffin, President

SAT Subject Tests

Registration for the October 11th SAT and SAT Subject Tests is only a month away!

Many of you have been asking about Subject Tests: what they are, how many you should take, and which colleges require them.

The SAT Subject Tests are hour-long, multiple-choice tests that assess your knowledge in particular subject areas. On a single testing date, you can sit for one, two, or three tests. Each test is structured differently, so it’s important to look at practice questions before showing up for the test. As a starting point, you can download a free practice booklet from the College Board website.

Some colleges will ask for one, two, or three Subject Test scores as part of the admissions process. Other colleges may let you choose between submitting Subject Test scores and AP Exam scores. And many colleges do not require Subject Test scores at all! Make sure to look at schools’ admissions requirements in advance so that you have enough time to plan accordingly.

The good news is, with the SAT’s Score Choice option, you can select which Subject Test scores you’d like to send to colleges. If you sit for three tests and a school asks for only one or two scores, you can send just your best ones.

Typically, schools will let you choose which Subject Tests you want to take, unless they state otherwise. You can sit for the tests that best suit your strengths!

Here’s a list of the Subject Tests offered:
- Literature
- U. S. History
- World History
- Math Level 1
- Math Level 2
- Biology
- Chemistry
- Physics
- Various foreign language tests (French, Spanish, Latin, etc.)

You are not able to sit for both the SAT and SAT Subject Tests on the same testing date, so plan ahead! We recommend taking the SAT before you take any Subject Tests.

If you're planning to take the SAT or SAT Subject Tests on October 11th, remember to register by September 12th.

Happy studying!

Erin, Director of Student Services

College Essay Recap

July was a fun month for us here at Ensphere!

College application season got off to a great start for our seniors, most of whom attended one of our college essay workshops. We had an excellent turnout of students and parents on Saturday, 7/26 at the Upper St. Clair Rec Center. We enjoyed helping you brainstorm, analyze the structure of an effective essay, and talk about your reactions to sample essays. We hope you got some good ideas flowing!

Remember, the college application essay is one of the most important factors in colleges’ admissions decisions. The essay is your opportunity to show admissions officers who you are beyond grades and SAT/ACT scores. It’s also a factor you have 100% control over—which is why it’s one of our favorite parts of the application process! Now is the best time to devote yourself to working on your essays and making sure they sound like you.

As you sit down to start your essays, give yourself plenty of time to brainstorm and free write. Spend a few days simply writing as much as you can. Explore the topics that you’re passionate about, and give yourself the time to write about several different ideas, memories, people in your life, and other topics that excite you.

Once you have a good amount of material to work with, you can begin looking for stories within the rough material you’ve written. Ask yourself, “What story can I tell about this idea?” You want to tell your story cohesively, with a beginning, middle, and end. Refer to your notes on the structure of a successful essay for examples!

If you get stuck, remember your purpose: to show the reader who you are and what you are passionate about. You can be passionate about almost anything! Basically, tell us something about yourself that we wouldn’t know from your transcript, test scores, or resume.

Over the next couple of months, as you finish your essays, you can send them to us for feedback and editing. We’ll review up to three essays for Ensphere clients. Just make sure to send them to us at least two weeks before you need them back.

Have fun writing! We can’t wait to see your essays.

Erin, Director of Student Services

529 Plans: Best Bet?

I wanted to kick off my part of our new blog series with a topic that seems to get a lot of hype; however, nobody ever talks about the drawbacks. Section 529’s can be a great vehicle to accumulate money for your children, grandchildren, nieces or nephews, in the right economic environment. There are many benefits to 529 plans, but depending on your risk tolerance and whether you want your contributed money to be guaranteed for your children’s college, they may not be all they’re cracked up to be.

Must be used for education

When contributing to a 529 plan, many families think, “If I contribute to a 529 plan, it’ll force these funds to be used for my children’s college education.” But what happens to the family who pours so much money into their 529 that they have too much for college? Or the family whose son decides to join the military at the age of 18? If they want to keep that money, they must use it on another child or pay the 10% penalty fee on top of the income taxes. Yes, overfunding a 529 plan is rare, but it does happen. Funds in a 529 plan must be used for qualified educational expenses. Anything else will be charged with the penalty fee and income tax.

Market Risk

Funds added to a 529 are subject to market risk, much like a 401 (k) or IRA. What happened to the families who were ready to send their children to college in the market crash of 2008? Many saw the value of their 529 plans decrease by 30%. This led to increased borrowing and higher student loan debt for students in college at this time. Part of the draw to 529 plans is the fact that they are tax deferred and withdrawn tax free if they are used for qualified educational expenses. The power of compounding can be on your side if it is held long enough. However, for many people who want the money to be there when their children are ready for college, sometimes it is not. A funding plan should be in place, not just a 529 with money thrown at it hoping for the best.

Financial Aid Reduction

A 529 plan is considered the asset of a parent and assumed that it will be used for education. Therefore, when the parents’ incomes and assets are assessed, the 529 plans are thrown in with checking accounts, brokerage accounts, and other non-qualified money. These 529 plans are assessed at 5.65% and then added to the expected family contribution (EFC) each year. So a family who has $50,000 in a 529 plan for their daughter will receive $2,825 LESS per year in financial aid. 

Parents and grandparents wanting to save for college should weigh all savings options before choosing the one that suits them the best. While there are certainly some advantages to investing in a 529 plan, especially if you are bullish on the market, they certainly have their downfalls. Counting on a 529 plan as your main source of funding could highly disappoint you when your child approaches his or her first year of college.

Chris Horan, College Planning Specialist