The college pre-approval™ process
College Pre-Approval™ is an important step in comprehensive college planning. Through College Pre-Approval™, families can determine how much money is available for college, how much in student loans might be needed, and the maximum in student loans a student might get. With this information, families can make informed college decisions.
In College Pre-Approval™, five different sources of funding are examined. These include:
- Money parents have saved for college, along with other assets, and the amount they could contribute on a monthly basis
- Loans parents might get directly to pay for their child’s education
- Money a student has saved and money they could earn by working during college
- Student loans
- Money from other sources
These items are examined, along with the maximum amount a student should get in student loans. This amount, as a rule of thumb, should not be more than the student’s expected first-year salary after graduation. College Pre-Approval™ helps families understand their current college funding situation. It can serve as a guide for making other decisions.
