Action |
Traditional Financing |
Zero College Debt Program |
Advantage of Zero College Debt |
Student is Accepted at College of Choice |
|
|
|
Apply for Loans & Grants |
4 Years of College |
First Year in a debt position. |
Minimize overall debt after graduation. |
Pay for Housing & Tuition |
4 Years of debt |
First year in debt position. |
Only first year in debt position. |
Purchase home at end of Yr 1. (We are not recommending the purchase in Year 1 because there are too many variables contributing to a student not continuing at that college/ university. This is a personal/ family decision. Certainly, a home can be purchased earlier. Create your business plan and let us know how we can help.) |
|
Purchase min. 3-bedroom home at the end of year 1 and find tenants. Work with one of our REALTOR®s to determine market rents. Payment for university housing is redirected to personal home. Generate rents to pay-as-you-go. We will help determine local market rents to maximize your return. |
Generate rents to pay tuition and personally finance college. Reside in home and eliminate need to pay for on-campus housing. Save money normally an expense, now making an investment that may be recovered upon sale of home. Talk with your CPA to see if you qualify for the 2009 Tax Credit of $8,000. |
Year 2 Apply for In-State Residency status |
No action, in general you do not qualify for In-State residency while living in Campus Housing. Each state has their own rules so we will need to determine rules for your college. |
Work with College counselor to understand requirements and qualify for in-state residency for year 3 & 4, where possible.
|
Qualify for reduced tuition rates in Year 3 & 4. Usually saves about 50% on tuition rates, where differential exists and in states where changing residency status is possible. |
Parent’s Benefit as an investor |
|
When you visit your son or daughter, you can claim this as a business expense to check on your investment. Total deductions up to $25,000 yearly. Check with your CPA. |
Yearly deductions while your child is in college. Preserve your capital and regain initial investment upon sale of home. |
Graduation |
Accumulate all college loans and decide on how to pay them off. |
Many college expenses have been paid from the rents. |
Student has minimized debt to pay off. |
Sell Home |
|
Sell home, recover down payment. |
Profit or loss is determined by market conditions. Even if take a loss on sale of house, still gain significantly by using program the way it is designed. |
Paying off college loans |
May take 10 to 20 years to pay off debt. |
Minimized debt to pay off. |
Each scenario is determined by local market conditions. |
Note for Out-of-State Students |
|
Live in off-campus home owned by another student. |
Establish residency in Year 2 and take advantage of in-state tuition. Reduces financial liability by about 50% where differential exists. We will guide you through the process and assist you in understanding residency requirements. |