Financial Aid Basics

Students who did well in their AP exams may be able to complete college in less than four years, thus saving the expenses for one or two semesters.

Often, by the time that students are accepted off the wait list, there is little or no money available for financial aid.

You would have to submit your Alien ID # instead of your social security #. The remaining process is the same as US citizen. You might be asked to submit a copy of your passport to your school.

Title IV funds are determined through the Free Application for Federal Student Aid (FAFSA). Information such as adjusted gross income on your previous year's tax return and household size are key in determining your expected family contribution (EFC). Your EFC is then used to calculate your financial aid. Your financial aid fund limitations are dependent on your dependency status. Dependency status is determined by questions on the FAFSA.

If the step-parent lives with the student, then there income can be considered for need based financial aid. However, if the biological parent living with the student files their income taxes separately from the step-parent, then they could technically complete the FAFSA using only the biological parents tax information. But, if the student is going to a school that also requires the CSS Profile then all parents will be considered, biological or not.

If there is a change in the family's financial circumstances, a student should contact the financial aid office to discuss them and provide documentation.

Students who do not want to consider the military can pay for unmet need with college loans. More drastically, a student can make themselves eligible for more aid by becoming independent. This requires waiting until the student is 24 or is married.

Besides not filling out the Fafsa, families commonly overstate their income and assets by not taking advantage of a few key strategies.

Yes. If a family's financial situation has changed drastically schools will often be open to reevaluating the student's aid package. Additionally, it is possible to negotiate a better aid package if a similar school has offered significantly more aid. Some colleges will match the offer.

There are a few things families can do: 1. Do not have any assets in the students name. 2. Have as little cash on hand as possible. Pay off consumer debt, pre-pay mortgage, contribute to retirement funds, and make major purchases. 3. Reduce income in base year by leaving it in business or taking a leave of absence from job.

Avoid thinking about “maximizing aid” and instead of “minimizing costs,” because not all aid is created equal.  You may know that some aid is gift aid, which is naturally preferable to loans or work. Sometimes grant aid from universities comes with strings attached, like minimum GPA for renewal (or no renewal), or enrollment in a specific major. Most important, figure out how long it takes the average student at each college to graduate. Divide four-year graduation rate by six-year graduation rate.  The higher the number, the greater the chance you’ll graduate in four years, which not only saves you tuition dollars, but also gets you earning your first post-college paycheck faster.

A resource that I like to recommend is www.finaid.org.  It has a glossary that is very "user-friendly" to a novice.  Be careful not to fall prey to scams, as many con artists know that college students and families can be desperate for any type of financial support.  If you decide to consider loan institutions, select those that are reputable and, if necessary, consult the BBB. Don't be modest about researching scholarships.  Many Naviance Family Connection school programs have a scholarship list and scholarship match component with good resources. There's nothing wrong with being assertive and asking the institution about merit and need-based aid, as well as unidentified funds.  I've had many former students assume this advocacy role and get rewarded with support.

One of the biggest mistakes that many college bound families make is to focus solely on the grand total of the award, without carefully considering its individual components. “They gave me the most money,” say many students when asked why they chose a particular institution. But viewing your financial aid package in this way can be deceiving. Instead, think about long-range affordability. Start with the cost of attendance: tuition, room and board, and expenses. Then deduct out any grants, scholarships or work-study awarded – this is gift aid that you don’t have to pay back. The resulting number is what you should really consider your “award.” Finally, calculate the gap between this “award” amount and the amount that your family realistically can afford. Some schools will offer you loans and others will “gap” you (not meet 100% of your EFC). Regardless, you want to mind the gap and keep that number as small as possible, both for your family’s current financial stability, as well as your future debt load.

It is important for your family to determine what you can reasonably afford and make sure you are exploring colleges that fit within those financial parameters. Doing well academically (SAT, ACT and in classes) and being active pre-college will go a very long way toward maximizing your financial aid package. To understand whether you’re getting the best deal, do a side-by-side comparison to see how much each school is offering and what your net cost (what you have to pay in the end) will be. This usually means subtracting the scholarships and grants from the total cost of attendance. If your package is not meeting family expectations, get creative by patching together dollars to make the financial ends meet. You can reach out to local community organizations, honor societies and even search for quirky scholarships around a hobby or special interest. Also connect with current college students at the school you want to attend, because they usually have the best advice based on their experience and what they wish they would have known before they arrived. Never eliminate the dream of education because of lack of financial resources but make sure you don’t get too deep in debt that it will create stress and inhibit your ability to be successful after you graduate.

Each college should provide to you the annual cost of education. This will include “billable expenses” i.e. tuition, room, board and fees and indirect costs such as books, supplies, travel, and personal expenses. Your aid award should list grants and/or scholarships which do not need to be repaid. You will need to subtract your grants/scholarships from the “billable expenses” to determine what your family will be expected to pay to the college. Compare this amount to other awards from like colleges. The goal is to determine what college fits into your academic aspirations and your family's financial goals. Your award may also include student loans and an offer of student employment. Those loan proceeds can be applied to the bill, but they will have to be paid back sometime in the future.