It’s Not Too Late to Make Your College Plans

Jonathan Hughes: [00:00:00] Hello everyone and welcome to the MEFA Podcast. My name is Jonathan Hughes.

Julie Shields-Rutyna: And I'm Julie Shields-Rutyna.

Jonathan Hughes: And we have a great show for you for a couple of reasons. The first one is the one that you just heard, which is that Julie is back doing the show with us this week. Welcome back, Julie. I know it's been too long.

Julie Shields-Rutyna: Thank you, Jonathan. Yep. It's happy to be back.

Jonathan Hughes: And a couple of the other reasons it's great. We're going to do a mailbag question at the end of the show, which we also have not done for many weeks. But we're also going to be talking about something that is timely. We're going to be talking about a webinar that Julie hosted, by this point it's the end of May, but it's still timely. So let's talk about that, Julie. What was it?

Julie Shields-Rutyna: Yeah, sure. It was called College Options for This Fall. And on that webinar, we hosted some [00:01:00] higher education experts in Massachusetts we had Iris Godes from Framingham State University. Jillian Glaze from Bunker Hill Community College, Robert Dais, who runs the Gear Up program in Massachusetts, Monica Blondin from Assumption University, and Dr. Clantha McCurdy from the Massachusetts Office of Student Financial Assistance.

Jonathan Hughes: It's a strong lineup there, Julie. So what was the webinar all about?

Julie Shields-Rutyna: Yeah, so this webinar, it was for students who have just graduated. as seniors, graduated high school, but for one reason or another, do not have a plan yet for the fall.

So that means maybe they haven't applied to college. They haven't applied for financial aid. They're not sure what to do. And maybe they think they're too late. And we wanted to really make sure they know they're not too late. There's a lot [00:02:00] they can do this summer and still have time to make many plans.

Jonathan Hughes: There's a little bit more urgency this year, right? So what makes it different this year?

Julie Shields-Rutyna: Yeah we always want students to know that they have, they're able to make plans through the summer. I think sometimes there's a timetable, and typically students are on that timetable, and They think they're late if they miss it, but this year, that timetable was really thrown out the window because the FAFSA rollout, which is, the FAFSA form is the form that, students apply for to apply for financial aid.

That was greatly delayed and had a lot of problems this year. So because of that, it was delayed three months. There were errors when students started to fill it out when the form was finally available. And, It is just finally being cleaned up now, and it's not even [00:03:00] perfect, but it's many of the front end issues have been resolved, and but that, what that means is that delayed the whole process, and Colleges are being more flexible with deadlines.

They're looking at admissions applications now, financial aid applications, still this late in the year. And so that's just really good for students to know. Hopefully we can put the link to the webinar in the show notes. And but a lot of the webinar was about Massachusetts State two year and four year as well as state based aid. We also had someone from a private university there from Assumption but yeah, let me Let's start with Iris, from Framingham State.

Jonathan Hughes: What did Iris have to say?

Julie Shields-Rutyna: Yeah, so Framingham State is a four year public college, and she led off with the very blunt message, we still have room, we're not full and so students are usually asked to deposit And make a [00:04:00] decision to attend Framingham State by May 1st.

But because the FAFSA was so disruptive, the deadline has been extended to June 1st. And even that is flexible. So Framingham State is still accepting deposits. So it's just not too late to be admitted. to receive financial aid. In fact she even mentioned at the time of the webinar, there was even some housing available. Those possibilities can really exist.

Jonathan Hughes: What about applications?

Julie Shields-Rutyna: Yes, she said we are still admitting students. And we have room in our classes and, we have room if you want to. Have room and board at school, or if you want to commute either way, please know that these opportunities still exist.

Jonathan Hughes: Is there financial aid still available?

Julie Shields-Rutyna: It is, and that might be some of the best news of all. They still have financial aid, which is the case for many of the state colleges and universities. Some students can qualify for merit based scholarships, just by applying. [00:05:00] applying through admissions.

And then for need based aid, the public colleges and universities in Massachusetts really have there's some good eligibility for financial aid these days. And there is there are more dollars to go around. So yes, financial aid is still available.

Jonathan Hughes: And how did they need to file a FAFSA?

Julie Shields-Rutyna: Yes, absolutely. And so they should really, that should really be the first step. Obviously they can apply for admission, but applying for financial aid through the FAFSA is the ticket, the way that then a financial aid offer can be made to you.

Jonathan Hughes: But, FAFSA delays are part of the reason why this population, perhaps of students, haven't done this yet. But you said earlier that shouldn't be an issue?

Julie Shields-Rutyna: Many of the errors have been fixed. Many. Today, it's easier to file the FAFSA. You'll have less of a chance of running into a problem than you would have a couple of months ago. [00:06:00] However, things aren't perfect yet. So students could still run into problems, but we also want to get the point across that there is assistance and there's help for students who need it to get that done.

Jonathan Hughes: So let's talk about where people can go if they're still experiencing difficulty filing the FAFSA.

Julie Shields-Rutyna: Yeah, one thing is, and I know that school is about to close for most people, but if you have a day or two left of school, you could still contact your school counselor. They're still willing to help you.

But then once school ends, that might be harder to do. So a couple of things you could do is you could go to, a local YMCA boys and girls club in Springfield. There's an organization called Springfield Promise. Mass Ed Co is another organization we work with and especially MIFA. So MIFA is willing to help.

And we connect with another [00:07:00] organization called FAFSA Day Massachusetts that's going to have events all the way through August where students can go online on a zoom meeting and get paired up with an expert to complete the FAFSA. So there is a lot of help and students can take advantage of that all summer long.

Jonathan Hughes: Yeah, and speaking of free help, let's talk about what Jillian Glaze from Bunker Hill Community College had to say about the help that they can offer students.

Julie Shields-Rutyna: Yeah, so she just said that anyone who's even thinking of going to a community college, you're not even late. August is the big month for community colleges.

She gave some very concrete ideas of how you can apply, enroll, get your FAFSA done. All that in a one day visit at a community college. And so she said, here's a list of things that you could bring to a community college and get it all done at once. So you can bring a photo ID. transcript, [00:08:00] GED that will help you get placed in the proper classes as well.

And bring your health insurance card or information and possibly your 2022 tax information. If you're under the age of 24, you probably want to bring that. that for your parents as well. And then community colleges have a lot of staff available, usually have a computer lab to help students complete that FAFSA, complete admissions, get it all done in, as she said, one day, there, I guess there are a few other things she mentioned to some students have taken dual enrollment courses or college level courses.

And so bring any information about that too. Because they can get credit for those when going to a community college. And if a student has served in the military, bring those service transcripts as well.

Jonathan Hughes: Yeah, I was really surprised and really impressed when I heard about all the support that is available for students at community colleges. You can just go in one fell swoop and [00:09:00] get everything done. Come in with admissions acceptance, financial aid, and everything all said in one day. I think that's really great. What about the private colleges?

Julie Shields-Rutyna: Yeah, as I mentioned, we had Monica Blondin from Assumption University with us, and she said that Assumption is still accepting students to apply not only for admission, but for financial aid.

So they are just not holding those applications. Deadlines as solid this year. They're really flexible. So if a student has an interest in attending a private college, the best thing to do is to reach out to that college and ask about how to go through the process of applying. And again, get that FAFSA done so that you can apply for financial aid.

Jonathan Hughes: Let's finish strong with what Dr. Clantha McCurdy had to say.

Julie Shields-Rutyna: Yeah. So she really, again, try to encourage students to complete that FAFSA, because that is the ticket [00:10:00] to file that. And again, the state's deadlines have been extended too, and even the priority deadline of July 1st is just that, a priority deadline.

So students, get your FAFSA done, and there is, some money tied to a priority deadline, and there's other money that isn't even tied to that. So get that FAFSA done to make sure that you're applying for all of the state aid. I will also mention that that through the new tuition equity laws some undocumented students are also able to apply for state aid.

And since they can't file the FAFSA, they will do that through a form called the MASFA. And so that is available too. So students should do that. to make sure that they are applying for state aid. Now, the other thing that Clantha talked about on that webinar was that MassGrant is provided to about 3, 000 students who demonstrate high need.

But there's also something called MassGrant [00:11:00] Plus, and that expands that program significantly. And it really covers tuition, fees, and possibly books for many students who attend full and part time. And that expansion is for low income students for sure, but it really also can be a significant help for middle income students.

So even families whose income ranges up to 100, 000 can be eligible for some of that Mass Grant. So Massachusetts has more money than we have had in decades. And so it's important that students know that.

Jonathan Hughes: Can you talk a little bit more about some of the other programs that are new this year?

Julie Shields-Rutyna: Yeah, there's this great program called Mass Reconnect, and we actually highlighted that in episode number 60, and that is free community college for students who are age 25 or over and don't have a bachelor's degree.

Anyone over 25 who doesn't have a [00:12:00] bachelor's degree can enroll in community college for free. So that's very important news.

Jonathan Hughes: All right, Julie. As you said, we will post a link to the full webinar in the show notes. So people can go and check that out if they want to do that. After all that, Julie, do you have a mailbag question in you?

Julie Shields-Rutyna: Absolutely. Go for it.

Jonathan Hughes: Okay it's been a long time since I've given the spiel, but I should let everybody know that these mailbag questions are questions that have come into us over the past few weeks and answered by our college planning team. If you have any questions, you can email us at collegeplanning@mefa.org.

org. Where you can call us at 800 449 MEFA and you can also reach us over social media on Facebook that's @MEFAMA, on X at @MEFATweets and on Instagram it's @MEFA_MA now I've been after all that I have to go back on everything that I just said and let you know that this question didn't actually come in through those channels.

It came in through a conversation that I had with [00:13:00] a couple parents of a young child and they were asking questions about the 529 plans And they had a question, as many people have recently, about the expansion of 529 plans and the ability to roll 529 funds over to a Roth IRA for a student. Julie, I wonder if you could talk about that- about that new possibility, what it is, and what are some of the caveats involved there?

Julie Shields-Rutyna: Yes, that is such a good question, and I've been receiving that question a lot lately as well.

Jonathan Hughes: Okay, and just in case anybody isn't clear can you give a brief description of what a Roth IRA is?

Julie Shields-Rutyna: Yes a Roth IRA is an individual retirement account and how it's different from a regular IRA is a regular IRA money is put in Before taxes have been taken out, so pre taxes.

And then when you [00:14:00] take the money out in retirement, then you pay your taxes on it at that point. But with a Roth IRA, your taxes are taken out up front. And then the money is put in the Roth IRA. When you at some point take those assets out of that account, you don't pay taxes because you already have.

Jonathan Hughes: Okay, good to know. Good to know.

Julie Shields-Rutyna: We always talk about 529 plans being great because the usage is so flexible. If it doesn't get used for one student, it can be used for another, can be saved for graduate school, all these, all this flexibility and this newest act. So the secure 2.0 act of 2022. Provides now that you may transfer assets from your 529 account to a Roth IRA that's established for the designated beneficiary of a 529 account under the following conditions. So there are some conditions, but but still that's a great, that's a great option.

Jonathan Hughes: Yeah, what are the conditions?

Julie Shields-Rutyna: The conditions [00:15:00] are the account must be maintained for the designated beneficiary for at least 15 years. So that is a long time. And then the transfer amount must come from contributions made to the 529 account at least five years prior to the 529 to Roth IRA transfer date.

Jonathan Hughes: Yeah.

Julie Shields-Rutyna: And then third, the Roth IRA must be established in the name of the designated beneficiary of the 529 account. That's important to know. And the amount transferred to a Roth IRA is limited to the annual Roth IRA contribution. Limit and the aggregate amount that can be transferred cannot exceed 35,000 per individual.

Jonathan Hughes: All right. Thank you, Julie. One more time. If you have any questions, you can email us at collegeplanning@mefa.org.

You can call us at 800-449-MEFA. Our Facebook is @MEFAMA, X at @MEFATweets and Instagram @MEFA_MA, and [00:16:00] just to remind you, we have a bench of college guidance experts waiting to answer your question. And Julie, that has been the show. Thank you so much.

Julie Shields-Rutyna: Oh, you're welcome, and thank you, Jon.

Jonathan Hughes: Yeah, it's good to have you back. And folks, if you liked what you heard today and you want to know more from us on planning, saving, and paying for college and career readiness, then follow the show, and you can do that wherever you find your podcasts. And please remember to review us it helps us to keep doing what we're doing, and getting this show out to folks like you.

I'd like to thank Shaun Connolly, our producer. I'd like to thank AJ Yee, Lauren Danz, and Lisa Rooney for their assistance in getting the show posted so you can hear it. Once again, my name is Jonathan Hughes, and this has been The MEFA Podcast. [00:17:00] Thanks.