Do you remember when your child was born and someone suggested starting a college fund for your little angel? Then life and bills get in the way, and suddenly that child is 17 and wants to go to college. It’s not your fault, but that doesn’t make it any less stressful. Education can be the first step toward understanding the landscape and demystifying those huge Cost of Attendance numbers that might be causing you to break out into a cold sweat at night.
Here are 10 tips to understanding how families with limited resources for college can make it work for their child:
Determine your EFC (Effective Family Contribution). Schools use a formula (set by law) to determine what your family can reasonably be expected to pay based on income and assets. Some schools provide EFC calculators on their website. Otherwise, just google it, answer the questions and you’ll get a quick approximation of what you can expect to pay annually.
- Understand FAFSA (the Free Application for Federal Student Aid).
TIP: FAFSA is not a scholarship application, but rather an application that gets sent to colleges that allows them to assess your financial need and qualification for scholarship. There are no income limits for filling out FAFSA - Don’t discount out-of-state colleges because they’re too expensive.
TIP: Almost every private college or university offers scholarship to offset the “sticker cost” of tuition. In fact, the average student receives close to $14,000 per year from these institutions, which is about double the scholarship typically given by state schools. - Apply to schools that are best-suited to your financial situation. While this may seem obvious, there is much more to this than meets the eye and your college advisor can help families understand which schools are better than others at helping them meet their financial need.
TIP: Especially for families with limited financial means and assets, there are many schools in the United States that will meet 100 percent of financial need if your student can gain admission. For example, if your student gets into Stanford and your EFC is zero, your child will go to school for free! - Fill out FAFSA early! The U.S. Department of Education provides more than $46 Billion annually in financial aid—make sure to get your fair share.
TIP: FAFSA opens on October 1 and there is a finite amount of federal aid available. We’re not saying it needs to be submitted by October 2, but December 1 is a safe deadline that will ensure that your student receives every penny of federal aid that he or she is eligible for. - Once your applications are submitted, turn your attention to private scholarships. Over the past 20 years, private college scholarships have grown from just over $3 Billion to more than $7.4 Billion annually.
TIP: These private scholarships aren’t going to find you—you need to find them. The more you apply for, the greater your chances of receiving “free” money to offset your educational burden. Many of these scholarships go unclaimed, so don’t be afraid to apply for some of the more obscure ones (as long as you meet all of their qualification criteria). - Make sure your student has “skin in the game” with work-study.
TIP: For families that qualify, work-study is a great way for students to contribute to lessening the burden of paying for college. Talk to the admissions offices of schools you’re considering and find out what they can offer. - If the financial package offered by your top school isn’t enough, don’t give up!
TIP: Colleges and universities need students as much as the students need them. There is no risk in contacting the admissions office and explaining your situation. There’s no guarantee, but many schools will sweeten the pot by increasing their offer in order to secure your student in their next incoming class. - If your financial situation changes significantly from the previous tax year (which is used by FAFSA), schools will take circumstances such as divorce, loss of income, or a death in the family into consideration.
TIP: Families who are going through the trauma of one of the aforementioned situations, which can dramatically affect their ability to pay for college, can request a financial aid appeal in order to reduce their EFC or gain additional scholarship and/or federal aid. - When all else fails, private college loans can bridge the gap.
TIP: We strongly recommend that families only borrow the minimum needed to pay for college, even if more is offered. These loans need to be repaid, with interest, so spend the money wisely.
CCC has a certified financial planner on staff and can help families navigate a very complicated system to find the best financial fit for your student. For more information, contact us at (888) 211-7545 or e-mail us at info@conciergecollegesolutions.com
