Best Tips for College Financial Aid
Tips on college financial aid.
The big picture: Prior to World War II , a college education was a luxury available primarily to the children of the privileged. Less than 10% of high school graduates applied to college. Today, a college education is a cultural, social and economic necessity. The numbers don’t lie; the income, over his/her lifetime, of a college graduate is twice that of a high school graduate. Access to this career path is supported by numerous state and federal programs, much of it available to students from families who cannot afford to pay all college expenses out-of-pocket.
Make no mistake, a college education is not cheap. For many families it is the greatest single expense they will encounter and for families who own their home it is the largest expense other than home ownership.
But prices vary widely and the college marketplace cries out for savvy consumers. Think about how you buy a car; a balancing act between “want” and “need” and what you can afford ends with a judgment as to what segment of the automobile marketplace to pursue. Selecting a group of colleges to which to apply should be no different.
Making the financial aid application process work to your benefit is not easy.
A tip: Fill out the FAFSA (Free Application for Federal Student Aid. Go to www.fafsa.ed.gov or 1-800-433-3243) and submit it early (October 1st is the earliest FAFSA will be accepted). The FAFSA gains you access to state and federal government support for college students AND most private and college scholarship programs require it.
Each college you indicate on the FAFSA will receive the Student Aid Report (you will receive a copy, too) on which an estimate is made of what your family can afford for one year of your college education.
A caution: The college “marketplace”, a sellers’ market, has created a confused and complicated process. Colleges encourage this “ignore the sticker price” thinking but under prodding from the federal government each is now required to post a net price calculator on its website to assist savvy consumers.
There is roughly $185 billion (source: THE COLLEGE BOARD, “Trends in Student Aid 2012”) available each year from all sources to help students pay for college. More than 50% of that is available to families without regard to annual income.
Hard to follow? You bet. Worth getting details? Correct again. What to do? Be an educated consumer.
In fact, value is there for the savvy consumer who knows where to look.
Examples of value you will find in the college search include:
co-op programs (examples: Drexel in Philadelphia and Northeastern in Boston) where valuable paid internships in the discipline of your college major area are a requirement.Income to help with expenses and practical ‘on-the-job’ experience at the same time! What is not to like?
five college consortiums (examples: the Five Colleges in Amherst, Mass and the Claremont Colleges in California) in which a student enrolled at one college may take courses at any of the other colleges, each with its own distinct strengths.
PG or “Gap” year programs for the student who may get little out of the college experience right now. Whether it be another year of high school in a different setting (“PG” ) or an intense and maturing work experience (‘Gap”) the evidence is clear that students who defer college for a year get more out of college once he/she does enroll.
colleges for whom the SATs or ACTs are optional. More than 25% of four year colleges are “test optional.”
non-traditional college settings for those of us who learn in at a different pace.
service academies or ROTC programs where part/all of expenses are paid for by the US taxpayer.
plenty of sources of cost reduction once on campus: most colleges forgive the room & board charge for dorm RAs. (resident assistants).
Want some college “shopping “tips? When you visit a campus, work hard to find out the following:
Non-negotiable:
graduation rate within 4 years? within 6 years?
job placement by major? for the previous year’s senior class?
average student loan debt at graduation?
Nice to know and you’ll find it out soon enough once you enroll:
who teaches freshman courses, full professors? TAs?
% of grades that are A or B?
Be an educated consumer. If you view a college education as an investment, why approach the college search any other way?