College Financial Aid Information For Students And Parents
Figuring out the best way to pay for college can seem stressful, but your family doesn’t have to be overwhelmed by the varied choices to cover soaring college expenses.
Many families realize that they will need to apply for financial aid to pay for their child’s college education. Others don’t even realize that they might be eligible for financial aid programs.
Financial aid is a subject that most of us are inclined to put in the “I’ll think about it tomorrow” file. But every parent who has just finished helping a son or daughter through the college application/financial aid process says the same thing: “I wish I’d thought about all this earlier!” Here’s some basic information to start those wheels turning.
What kinds of financial aid are available?
Financial aid is usually given in the form of loans, grants, scholarships and work study. Nearly two-thirds of all financial aid is granted in the form of loans which must be paid back by either the parents or the student. Some of these loans have very low interest rates, but families should think hard about the total debt burden that they will face when the student finishes college.
What’s involved in applying for financial aid?
Parents should also be aware that in order to apply for financial aid for their child, they will need to have filed their federal income tax for the preceding year. Talk to your child’s guidance counselor or a financial aid consultant well in advance to make sure that you know just what forms you will need to turn in.
What should we do to maximize our chances of receiving financial aid?
Making sure that you meet deadlines is essential. Private colleges award financial aid on a first come, first served basis. Submitting forms after the deadline greatly decreases the student’s chances of receiving financial aid. It’s also essential that parents complete the forms as carefully and as accurately as they can. Howard Modell, president of In Tuition College Aid and Scholarship Services, says that up to 90 percent of the financial aid forms that colleges receive contain mistakes. If a form is returned for that reason, the family gets bumped to the back of the line.
To really maximize the chances of receiving financial aid, families need to start thinking about college costs long before it is time to apply. If your family is saving money for future college expenses, is the account in the parents’ or child’s name(s)? Although saving money in the child’s name reduces the family’s tax burden, it may greatly decrease a student’s chances of receiving financial aid.
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