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PAYING FOR COLLEGE
Apealing The Award
review the and compare financial aid packages and relative merits of the schools that have said yes. You can go back to one or more of them to try and improve the package, unless you are comfortable with the package provided to you and can afford it. |
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HOW ARE YOU ASSESSED?
Merit-Based Aid
Merit-based financial aid is awarded on the basis of personal achievements or individual characteristics of the recipients rather than on the basis of their financial need. It usually comes in the form of scholarships or grants. Keep in mind that not everybody who gets one is a genius. For example, some schools, particularly schools that are trying to maintain or increase their enrollment, may award scholarships to students with grades or test scores that are less than phenomenal.
Need-Based Aid
Eligibility for need-based financial aid programs is determined by one of two "need-analysis" formulas that seek to measure a family's financial strength and ability to pay for school expenses.
- Federal Methodology: A need-analysis procedure developed by Congress that's used to calculate Family Contribution (FC).
- Institutional Methodology: An alternate method of need-analysis used by individual colleges to calculate a Family Contribution (FC) to determine eligibility for institutional and non-federal aid.
Federal Methodology, a formula that is specified by law, takes into account many variables, including expenses over which a family has no discretion, such as taxes, employment expenses, and basic needs. There's also an allowance for your retirement savings that increases as you get older (in recognition that more of your assets should be available to you as you near retirement age).
Once your family's assets and income are tallied, these allowances are subtracted off of the top, leaving an amount over which your family theoretically has discretion. Your family can use these resources to buy a car, home furnishings, a boat, whatever. Or, they could be saved for a rainy day. The members of the U.S. Congress believe that the primary responsibility for paying for education is with the parents and students themselves, to the extent that they are able. That means that at least a portion of your savings and income should go toward paying educational expenses.
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REAL COST OF COLLEGE
When evaluating college costs, the first numbers people usually turn to be tuition, room, and board. While the tuition figures listed in most financial aid guides are fairly accurate, the average room and board figures can sometimes be off. Also, there are many expenses that aren't always discussed and that you might not consider.
Direct Costs
Direct costs are those expenses that generally are paid to the college and are specifically education-related.
Tuition
Tuition is fairly simple to understand; it's the amount the college requires to attend class. At some colleges, there's a flat tuition amount regardless of how many credit hours are taken. At others, the amount depends on the number of credit hours. The first thing you'll want to do when adding up the total cost is put down the exact tuition amount. If the school bases the amount on number of credit hours, assume 15 hours per term.
Fees
There are some fees required of all students and some that may have to be paid simply because of the major your child chooses. For example, science majors may have to pay a refundable lab breakage deposit of $50 to $100 per lab course. Assume that you'll get none of this amount refunded, since even the most careful student breaks a beaker occasionally. Some colleges may also have an optional student services fee, depending upon whether you choose to participate in certain activities.
Books and Supplies
Here again, this figure will vary according to the major. For example, science books can be extraordinarily expensive ($75 or more for some), and there could be ten or more books required for one English literature course. In addition, there may be lab workbooks, photocopied articles, and study guides that don't always get figured in. While the financial aid office usually provides an average annual amount, this figure is apt to be low. Estimate between $500 and $700 per year.
Indirect Costs
Although somewhat of a misnomer, indirect costs include all other costs of attending college.
Room
This expense is dependent on whether you live in a dorm, off-campus apartment, group house, relative's home, etc. The dorm costs may also vary depending on whether the room is a single, double, triple, or quad bedroom. You won't know the actual amount until after you've been assigned a spot. For calculating purposes, use the average figure the college provides. Unfortunately, many colleges lump room and board charges together, which can be misleading, but the cost of dorm rooms or rent usually can be calculated accurately. The range is typically between $3,000 and $4,500 a year.
Board
If you live on campus, you may have options as to meal plans. Some schools require that all meals be eaten meal in the school-dining center. Others offer variable meal plans, where you sign up for any number of meals per week. What's best? You may not need three meals a day, seven days a week. So if you can, choose the plan that meets your needs. Remember, the schools' estimated board cost will include only meal plans, not snacks, socializing, or splurges.
Transportation and Travel
This expense includes both the cost of commuting back and forth from the local residence to classes and the cost of getting to and from home during vacations and breaks. For a student living on campus, the transportation or commuting amount is probably zero, unless you have a car. If a car is involved, there are parking fees, insurance payments, and gas, oil, and maintenance costs.
The other transportation amount, referred to here as "travel," has to do with going between your home and the college. Every family will have a different amount, depending on whether the college is clear across the country or next door, whether you come home once, twice, or a dozen times, and whether the distance can be driven or not. We can't provide you with averages, but we will say that there are ways to make this figure lower, such as student discounts, public transportation, and ride-shares.
Personal Expenses
These expenses include incidental expenditures such as laundry and entertainment. Medical and Dental Expenses
You will probably be able to remain on your parents' health insurance plan while a student, even when living away from home. So, your family can assume health expenses will be similar to those of recent years. Don't discount a few extra expenses, though.
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WHAT TO KNOW ABOUT FREE MONEY FOR COLLEGE- SCHOLARSHIP
To some students and parents, the word "scholarship" is just another one of those confusing college terms: student loans, FAFSA, tuition and fees, EFC, grants, and work-study. Little do they realize that knowing more about the scholarship process could save them thousands of dollars when trying to cover the cost of their education.
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What are scholarships?
Scholarships come in a variety of forms, but are generally considered to be "free money" for college. Unlike loans, scholarships do not have to be repaid to the scholarship provider. Some scholarships are awarded directly to the student in the form of a check, while other scholarships are written out to the student's college or university. Several different types of providers issue scholarships: clubs and organizations, charitable foundations, businesses, schools, universities, government agencies, and others.
Who can get scholarships?
It is a common misconception that scholarships are only for straight-A students. In reality, there are all types of scholarships for all types of students, including those with less than perfect academic records. Some scholarships are for athletes; others are for students planning to study in particular fields; and others for community service. Some scholarship providers just want to reward students for living in a certain city or state! Students also mistakenly believe that only college-bound high school seniors can apply for awards. Scholarships are available for all levels of college study, from freshman undergrads to graduate and PhD students.
How do students find scholarships?
Finding scholarships can be a very time-consuming process, but not if students use a reputable and accurate scholarship search service on the Internet. There are several online resources for finding scholarships for college. Students can also ask their high school guidance counselors about any local or state awards that they qualify for. Students should contact the financial aid office at the college or university they plan to attend to learn if they qualify for any awards provided by the school.
When should students look for scholarships?
Scholarship application deadlines vary greatly. There are thousands of scholarship programs with spring and summer deadlines, and thousands more with fall and winter deadlines. The key is to never stop searching for new scholarship leads, even after beginning the freshman year in college. A good rule of thumb is to continue searching for scholarships for the duration of the college career.
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FINDING SCHOLARSHIP ON THE INTERNET
So now, you are ready to tackle that daunting task of finding scholarships to pay for college. And you want to use the Internet to expedite the search process. But there are so many scholarship search services out there - which ones should you use? How do you know what qualities and features to look for in a scholarship search service? Should you use a fee-based service or a free one? And how do you avoid getting scammed while looking for awards? Use the following guide to determine what to look for and to assist you in finding the service that will best fit your scholarship search needs.
Profile Matches Are Key:
First and foremost, find a scholarship search service that has sophisticated matching technology. A good scholarship search service will match the personal information you provide to them with scholarships that you are eligible to apply for. This will minimize the time you spend browsing through lists of awards, and will give you more time to actually work on the application process itself. Beware of simple keyword search services or services that only ask a few questions about your background. Many such services will return hundreds of scholarships for you to wade through, wasting valuable time that you simply don't have. Look for services with easy-to-use, thorough profile pages that generate results closely matched to your profile.
Up-to-Date Scholarship Information:
Secondly, find a scholarship search service that provides accurate and up-to-date scholarship information. Reading requirements for scholarship programs from two years ago will not help you at all; in fact, using outdated information will simply slow your progress in actually securing scholarship funding for college. Remember, you need to find a service that offers scholarship information for the current academic year. Don't waste your time on websites with out-dated contact lists, broken application links, and discontinued programs.
The Privacy Policy:
Do not become part of a spamming list! When you fill out a profile with a scholarship search service, the service collects and stores your very personal information; such collecting of profile information is necessary for accurate scholarship matching. Make sure you read the privacy policy for any service you use so you know what happens to that personal information once you enter it into the website. Some websites actually make money by selling your information to third parties that want to advertise to you. Be very careful about giving out your personal information to companies without credible, clearly stated privacy policies - the last thing you need is an email inbox full of spam and a mailbox full of unwanted solicitations.
An Easy Process:
Make sure the service is set up to save you time. If you take the time to fill out the profile, make sure the information is saved so you don't have to start from scratch each time you want to look for more scholarships. Also, make sure there is a way to edit and update your profile, in case you change your major or improve your test scores or change your mind about the college or university you want to attend. Search services with such customer-oriented features will save you time and frustration in the search process, and that's what you should be aiming for - saving time, avoiding scams, and finding money to pay for college!
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FINANCIAL AID FREQUENTLY ASKED QUESTIONS
What's the difference between "need blind" and "need aware" admission policies? Under a need blind policy, a student's ability to pay is not factored into the admission decision. If a school is "need aware," financial need is considered when making admissions decisions. Still, even under a need aware policy, financial need may not enter the picture if a candidate is extremely strong.
Will I hurt my child's chances for admission if I apply for financial aid?
In an ideal world, all colleges would be need blind, considering a student's academic and personal qualities and achievements, but not her ability to pay. Regrettably, many schools do factor in a family's ability to pay for college in their admission decisions; however, by not applying for aid, you may be cutting off any possible chances for assistance.
If I don't apply for aid for my child's first year of college, will I be able to apply for aid later on?
This is a tricky question; some colleges have policies stating that if you don't apply in year one, you cannot apply in subsequent years. You'll need to check with each individual college to learn their financial aid application policy.
What if our financial circumstances change?
Parents worry about paying for their children's education f they expect to retire during their college years, if they become unemployed, etc. But colleges are not completely insensitive to difficult personal circumstances. Don't hesitate to let the school know of your change in financial status.
I think that our income is too high. Should I apply for aid anyway?
This too is a tricky question. Even at most "need aware" colleges, simply applying may not impact an admissions decision unless the family is deemed eligible for aid. Nevertheless, if a student indicates that he is applying for aid, his application may go into one pile rather than another, a practice that many admissions officers deny.
Will I have to deplete my savings to pay for college?
Of course not. Colleges do not want to make families destitute. However, a college education is an investment, and an expensive one at that, and they expect students' families to contribute.
If my child receives an "outside" scholarship, will that affect the amount of aid we will be eligible to receive?
Some schools have policies that allow students to keep a portion of outside scholarship aid and not have it count toward institutional aid; again, check with each schools' financial aid office for specifics.
Should I sign up with a service that promises to find scholarships for my child?
Watch out: There are plenty of scam artists who make grand promises to families seeking money for school. Our advice is that with the exception of the CSS PROFILE form, parents should never have to pay anything to find out if they are eligible for aid. Of course, this is different form hiring a bona fide financial aid consultant who can assist in preparation of financial aid documents.
Will consulting with the financial aid officer at a college impact my child's chances of admission?
Don't hesitate to contact financial aid officers or counselors. They are usually very approachable. They are also open to negotiation if their school's financial aid package differs significantly from that of other colleges. An offer will never be withdrawn simply because you asked for more aid.
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WINNING THE SCHOLARSHIP AWARD!
Searching for and finding scholarships is only the first half of the process. You still need to apply for each scholarship you are trying to win. Applying for scholarships can be time consuming and takes dedication and motivation. But the thousands of dollars you could receive make the effort worthwhile. Below are some hints to help you apply for and win scholarships.
Be proactive.
No one is going to track you down to give you a scholarship; you need to do the legwork yourself. So when you find awards with eligibility criteria that you can meet, contact the provider and request a scholarship application packet. Whether you have to request the application via email, phone or by sending in a self-addressed stamped envelope, do it. There's just no other way to get the ball rolling than to be proactive and assertive in requesting information for yourself.
Be timely.
Almost all scholarship providers set deadlines, and you MUST adhere to them. Make sure you have all materials submitted before the deadline. If the scholarship deadline is approaching and you have not yet even received the application packet that you requested four weeks earlier, follow-up with the provider and request the application packet again. You do not want to miss a deadline, as most scholarship providers do not consider late applicants.
Be organized.
- Good organization skills can really pay off! Keep your applications in order by deadline dates
- Give yourself plenty of time to complete them and send them before deadline dates.
- Keep letters of recommendations and transcripts on-hand to avoid requesting for new ones, it possible file them with folders labeled with deadline dates, mailing addresses and phone numbers to the scholarship providers.
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Be persistent.
The scholarship search process doesn't just happen overnight. You must be diligent about looking for new scholarships to apply for. Plan to spend several hours each month reviewing the scholarship programs with deadlines approaching, preparing application packets, and getting the applications in the mail on time. And then the cycle should begin again - finding scholarships, sending away for application information, and applying in an organized, timely manner.
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1. Apply for aid before being accepted.
Inquire about the required financial aid forms when requesting admissions applications, and start the financial aid process six to nine months before you plan to enter school. Create a checklist of when all applications and forms are due.
2. Pick up the FAFSA.
Pick up a copy of the Federal Application for Free Student Aid (FAFSA) form from your high school guidance office or any college admissions office. Complete and submit the FAFSA to the federal processor as soon as possible after January 1 of the year you will be attending school. An online version of the FAFSA, called the FAFSA on the Web, is available through the Department of Education.
3. Find out if you need to complete the CSS PROFILE.
If you are considering applying to a private college or university, find out if the school requires the PROFILE, a new customized application for institutional aid made available by The College Scholarship Service
4. Investigate scholarships and grants.
The best way to receive an outside scholarship is to research your options. Spend a day at the library or on the Internet and investigate free resources; don't pay money to scholarship search services. Develop a powerful resume that emphasizes your strengths and abilities. Compile and submit necessary applications as soon as possible.
5. Receive and review the Student Aid Report (SAR).
Approximately three to four weeks after submitting the FAFSA, you will receive an acknowledgment letter from the federal processor called the Student Aid Report (SAR). Review the SAR to ensure all information is accurate. If necessary, submit corrections.
6. Find out what you're expected to contribute.
The most important element of both the SAR and the CSS PROFILE acknowledgment letter will be the Expected Family Contribution (EFC). The EFC is the out-of-pocket expense that you and/or your family is expected to contribute to your education.
7. Review your award letters.
Beginning in April, you should receive an award letter from the financial aid office of each college to which you have been accepted. The award letter states the type and amount of financial aid you will receive. Review your award letters to make sure they reflect accurate information.
8. Consider negotiating for a better award.
Your financial aid award will be a combination of grants, scholarships, work-study programs, state grants, and low-interest loans. If the package from a particular school is disappointing, it is possible at this time to contact the financial aid office and try to negotiate a better award, especially if you receive a better package from another school. Use this better financial aid award as a bargaining tool.
9. Apply for loans.
You and your family may decide to seek additional funds by applying for a federal Parent Loan for Undergraduate Students (PLUS), a Federal Stafford Loan, or a privately insured supplemental loan. |
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