Beyond the Packing List: How to Prepare Your Child for the Legal and Financial Realities of College

By Cecelia C. Gans

Cece Gans

As college students prepare to head back to campus, families are busy checking off the usual list: tuition, housing, meal plans, books, laptops, transportation, and everything needed for a dorm room or apartment. But there are two areas of college readiness that are easy to overlook: legal preparedness and financial wellness.

For many families, college is the first time a young adult will be managing significant decisions independently. Once a student turns 18, parents no longer automatically have the same ability to access information or step in to assist simply because they are the student's parent. For example, rights under the Family Educational Rights and Privacy Act ("FERPA") generally transfer to the student when the student turns 18 or attends a postsecondary institution.

A few relatively simple steps before the semester begins can help families prepare for the unexpected while also giving students the tools to become more financially independent. These suggestions are especially relevant to students with special needs who, in transitioning to college life, are likely to need parental support or encounter medical challenges.

Four Documents College Students Should Consider

1. Durable Power of Attorney

A Durable Power of Attorney allows a student to designate a trusted person—often a parent or other family member—to assist with financial and legal matters if necessary.

Depending on the authority granted, an agent may be able to help manage bank accounts, address insurance issues, communicate with financial institutions, sign certain documents, or otherwise handle financial affairs if the student cannot do so personally.

The “durable” component is important because the authority can continue even if the student later becomes incapacitated.

2. Advance Medical Directive

An Advance Medical Directive allows a student to name someone they trust to serve as their healthcare agent and make medical decisions on their behalf if they becoms unable to communicate or make those decisions independently.

It can also provide guidance regarding the student's wishes for medical treatment. For a student living hours away from home—or even in another state—having this document in place before an emergency occurs can be particularly valuable.

3. HIPAA Authorization

A HIPAA Authorization addresses access to protected medical information maintained by healthcare providers subject to HIPAA.

Turning 18 changes the role parents may play in their child’s medical care. A properly prepared authorization can permit designated individuals to receive protected health information when appropriate, making it easier for a parent or other trusted person to communicate with medical providers and assist the student.

It is important to recognize that HIPAA and FERPA can overlap in the college setting. Certain student health records maintained by a college or university may be governed by FERPA rather than HIPAA. That is one reason the HIPAA Authorization and FERPA authorization serve different purposes.

4. FERPA Authorization

College students also should consider completing an appropriate FERPA consent or authorization permitting their school to release designated education records to their parents or other trusted individuals.

FERPA generally requires an eligible student’s signed and dated consent before a college or university releases protected education records, subject to certain exceptions. A FERPA authorization can be especially helpful if a family anticipates that a parent may need to assist with academic, administrative, billing, disciplinary, or other school-related issues.

Because colleges and universities often maintain their own FERPA authorization procedures and forms, students should also review the requirements of their particular institution.

Legal Readiness Is Only Part of the Transition

Preparing these documents addresses an important question: Who can help my child if something happens to them at college?

The transition to college life raises another important question: Is the student prepared to manage his or her own finances?

For many students, college is the first time they have had to handle a budget, pay recurring expenses, use a credit card, manage a bank account, borrow money, or make financial decisions without daily parental oversight. The financial habits developed during these years can follow a student long after graduation.

That makes financial literacy an important component of college readiness as well.

Jensen & McComas LLC is pleased to partner with Fulton Bank to provide access to Banzai's financial wellness resources. Our Financial Wellness Center offers practical educational materials designed to help individuals better understand and manage their finances.

The site includes educational articles, calculators, courses, and other resources covering topics relevant to financial wellness, including:

• budgeting and saving;

• borrowing and credit;

• fraud protection;

• taxes;

• housing;

• insurance; and

• investing.

The Financial Wellness Center also includes budgeting and savings calculators and educational materials designed to make financial concepts easier to understand and apply in everyday life. Fulton Bank’s Banzai resources are designed to support financial wellness at every stage of life, with educational content covering both foundational and more advanced financial topics.

A Different Kind of Back-to-School Checklist

Heading to college represents an important transition from dependence to independence. Preparing for that transition should involve more than purchasing textbooks and furnishing a dorm room.

Before students leave for campus, families may want to add a few additional items to the back-to-school checklist:

• Review and execute appropriate legal documents;

• Determine who should be authorized to assist in a medical or financial emergency;

• Review the school's FERPA authorization procedures;

• Make sure important documents are accessible if they are needed; and

• Talk about budgeting, credit, saving, fraud prevention, and other basic financial responsibilities.

A little preparation now can give students greater independence while ensuring that the people they trust are able to assist when needed.

Jensen & McComas LLC works with individuals and families to put thoughtful legal plans in place for every stage of life. If you have questions about preparing these documents before your student leaves for college, our attorneys are available to help.