January 27, 2012

What if the U.S. Tied Colleges Financial Aid Resources to Affordability

http://thechoice.blogs.nytimes.com/2012/01/27/obama-aid-speech/

January 27, 2012

Grants and Scholarships: Is Your College Stingy With Financial Aid?

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Figuring out how to fund your college education can be overwhelming. If you've already been hunting around, it's clear that there's a massive amount of financial aid information on the web. Knowing where to look and what you should be looking for when you're applying for grants, scholarships, and other need-based financial aid can save you a huge amount of time and frustration.

Murray Miller, CEO of College Resource Center, LLC, wrote an article for StudentAdvisor.com on this topic. I am reproducing it in its entirety because it is an excellent reference guide.

Here are 3 steps for getting started with financial aid research:

1. Determine what percentage of financial need each college on your list has met historically.

All things being roughly equal, wouldn’t you rather attend a more generous school compared to a stingy one? StudentAdvisor's college profile pages offer information on what percentage of financial need has been met based off recent Department of Education data. Select a school from this list of US colleges to get started.

2. Determine how that college meets need.

This is the breakdown between free stuff (grants and scholarships) and self-help (loans/work study). Two colleges could meet the same overall percentage of need, but your financial aid could be vastly different between the two.

3. Pin down the priority deadlines!

Some schools require forms as early as November 1! Others may want you to file by February 15th. Make sure you research deadlines for each college on your list, since a lot of financial aid is first come, first served.

Now, a quick word on how to use the information uncovered in #1 and #2...

The ‘formula’ used by each school to determine your financial aid award is as follows: COA (Cost of Attendance) – EFC (Expected Family Contribution) = Need. Schools award financial aid based on how much need you show. As noted above, once you identify the percentage of need that your college meets, you have a decent handle on what your award will look like. Here is a simplified example:

Assume two colleges with a $50,000 Cost of Attendance and a $25,000 EFC. Your Need is $25,000. If “College A” meets 100% of need, you’ll receive an award of about $25,000 and your cost will be your EFC of $25,000. However, only the most elite, competitive colleges in the country will meet 100% of need. Most do not.

If “College B” only meets 80% of need, you may only receive $20,000 in aid, and you’ll have to pay about $30,000 (this is your EFC + the 20% unmet portion). So your total out of pocket for one year at the second school is $5,000 more than the first school, even though their sticker prices may be the same.

Where to Look for the Answers

How can you find this information? Always check the official websites for each college. Understand that you will have to click around for a while – colleges don’t make this information easy to find. Typically there will be a section of a college website dedicated to the financial aid department. Sometimes this information can be tucked away on an admissions or prospective student section. If you're having trouble finding information on the school website, you can also call the financial aid office. But we warned - you may end up frustrated by the lack of responsiveness, according to most of the parents we work with.

If you're still feeling lost you’d be well-served to consult a qualified college finance specialist. For example, our firm has all of this information at our fingertips and we get a lot of it directly from the colleges and some from the Department of Education. Our Smart Track™ Toolkit website has the tools (many of them for FREE) to help you project what each college will award within a small margin of error, and suggest legal and ethical ways to qualify for more grants and scholarships than you would on your own. No matter whether you seek out expert help or do it yourself, preparation and research can pay off in a big way.

Don’t put it off or you could lose out – on tens of thousands of dollars in financial aid.

If you have any other questions about selecting a college, or the admissions process, feel free to contact me through my website at www.Prep4CollegeNow.com or call me at 760.877.7200. I'd love to answer your questions!

January 4, 2012

10 Financial Aid Forms You Can't Afford to Forget

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Last week's blog discussed the importance of timely completion of the FAFSA. Parents should be diligently completing this form and strictly adhering to the timeline. The form is complicated and there are many websites devoted to helping you. This week's blog is equally important in your search for financial aid. Wendy David-Games , from StudentAdvisor.com, wrote a compelling article about all the financial forms you may need to complete in order to be eligible for the MOST financial aid. The article is reproduced below.

Colleges determine which financial aid applications they require to calculate financial aid awards. There are billions of dollars in financial aid available for college from federal and state governments, college institutional funds, and outside scholarships. Awards are based on applications and colleges determine which forms they require.

Each college has its own set of requirements so be sure to check with the financial aid offices of the schools you're applying to in order to keep track of what applications you need. But don't forget about applying for additional financial aid from your state government or outside scholarships!

Here are 10 financial aid applications you may have to complete:

1. FAFSA (Free Application for Federal Student Aid) - a federal financial aid application form required by all colleges for federal financial aid including grants, loans, and work/study. In addition, some colleges use the FAFSA to award money from its own endowment funds and others require additional forms.

2. State Visit your state's department of education site for information on state-sponsored financial aid programs for state residents.

3. Institutional Contact colleges on your list for additional institutional forms that the school may require before awarding money from its own endowment funds for financial aid.

4. CSS/Financial Aid PROFILE^®is an additional form required by a few hundred colleges before they award money from their own endowment funds. Check with the colleges you're applying to before filling one out to see if it's necessary.

5. CSS Business/Farm Supplement may need to be completed for the CSS Profile if your family owns a business or farm.

6. CSS NonCustodial Profile is an additional form for the CSS Profile that divorced/separated families may need to complete.

7. Outside Scholarships sponsored by businesses, employers, individuals, high schools, fraternal organizations and other private groups have their own application forms to determine award winners.

8. College Scholarships from a schools’ special endowment funds may be awarded in addition to financial aid programs. Some colleges use their admission application for their scholarship programs and others require additional forms.

9. Verification Worksheet is to be completed if a student’s FAFSA was selected for review by the college.

10. Appeal forms - After you get your financial award letter from the school you may realize that the award package falls short of your financial need. Some colleges will have financial aid appeal forms for students seeking a reconsideration of their financial aid awards.

If you have any other questions about selecting a college, or the admissions process, feel free to contact me through my website at www.Prep4collegeNow.com or call me at 760.877.7200. I'd love to answer your questions!

October 18, 2011

36 Questions to Ask on a College Visit

It may seem difficult to determine if a college is a good fit for your student. After you determine if the school answers the question, "Is it comfortable yet challenging?" there are other questions that need to be answered as you narrow down your choices. Dr. Lynn O'Shaughnessy from "The College Solution" wrote an excellent blog on what questions to ask while visiting a college campus. Below is an excerpt from her blog.

One of the best ways to learn more about a college is to visit their campuses. When you are on campus, you should ask lots of questions. Ideally, you should talk to more than just the admission staff. Stop a few students during your stay and ask them what they like and don't like about their school. If possible, talk to a professor or two.

Here are a list of questions I recommend you ask:

Academics

-How much time do students typically spend on homework?

-How much writing and reading are expected?

-What is the average class size of the introductory classes?

-How widely used are teaching assistants on campus?

-What is the average class size of upper-division courses?

Academic Perks

-What opportunities are there for undergraduate research?

-How many students participate in undergraduate research?

-Is there a culminating senior year experience?

-Do you have a learning community or other freshmen experience?

Financial Aid

-What is the average financial aid package?

-What is the typical breakdown of loans versus grants?

-What percentage of financial need does the school typically meet?

-What is the average merit award?

-What percentage of students receive college grants?

-What is the average college debt that students leave with after graduation?

-What type of work study opportunities are there?

Graduation Track Record

-What is your four-year graduation rate?

-What is your five-year graduation rate?

What does it take to graduate in four years?

What percentage of freshmen return for sophomore year?

-What type of tutoring programs do you have on campus?

-How do you provide academic advise to students?

-Do you have a writing center and how do I access it?

-What type of learning disability resources do you have?

Outside Opportunities

-How many students at the college get internships?

-What percentage of students study abroad?

-What type of career services do you have?

Student Life

-What type of dorm choices are there?

-What percentage of students live on campus?

-How long are dorm accommodations guaranteed?

-How many students live on campus?

-Do most students go home on weekends?

-What percentage of the student body belongs to a sorority or fraternity?

-What activities are offered to students?

-What clubs do you have on campus?