Category Archives: financial aid

financial aid, Wednesdays parent

Wednesday’s Parent: “We Won’t Qualify for Financial Aid”

 

fafsaIf I had a dollar for every time parents said this to me, I would be rich. Surprisingly, most parents believe this fallacy. Believing this, they don’t complete the FAFSA and miss out on all kinds of aid. Just because they were misinformed and unaware of how financial aid works.

Why should you complete the FAFSA?

College is expensive and it’s a chance for you to grab yourself a piece of the financial aid pie.

Why should you complete it by February 1st?

The early bird gets the worm when it comes to financial aid. If you want your piece of the pie, you have to be the first in line. Once financial aid packages are disbursed, the money is gone and that means your student’s financial aid package will be composed of student loans only. If your form is filed and completed once the decision for admission is made it puts your student in a good position to receive some of those funds.

What can the FAFSA do for you and your college-bound teen?

There could be federal, state and college funds available. If you don’t complete the FAFSA, you won’t be able to get any of them. Even if your family income is high and you might not qualify for federal aid in the form of grants, your student might be eligible for state scholarships and merit-aid awards from the college. Additionally, any federally subsidized loans, including parent loans, require you to complete the FAFSA.

What should you do if you haven’t filed your taxes before FAFSA filing?

It’s simple. Use last year’s tax figures and update once you file. Don’t wait to file the FAFSA until after you file your taxes.

Why do some people tell you that you won’t qualify for financial aid?

The easy answer is they are misinformed. Remember there are all kinds of financial aid. While not everyone will qualify for federal grants, most students receive some form of financial aid. If you don’t apply your student will not be one of them.

Read Wendy’s post: 4 Strings Attached to Free Financial Aid

____________________

This month Wendy and I will host Twitter chat #CampusChat at 9pm ET/6pm PT on Wednesday, January 21. Our guest will be financial aid expert Jodi Okun. She is the founder of College Financial Aid Advisors, an About.com Expert, Paying for College, and the @Discover Student Loans Brand Ambassador. Jodi has worked for over 10 years in the financial aid industry and helped thousands of families navigate the financial aid process. Don’t miss a chance to get her tips and ask questions.

Read Wednesday’s Parent Night on #CampusChat for some simple instructions to join a Twitter chat.

Wednesday’s Parent will give twice the info and double the blog posts on critical parenting issues by clicking on the link at the end of the article from parentingforcollege to pocsmom.com and vice versa.

FAFSA, financial aid

Everything You Need to Know About the FAFSA

 

 

fafsa

Do you have questions about the FAFSA? or financial aid? Have you looked at the form and find some of the instructions complicated or ambiguous? You’re not alone. If you have a senior headed to college in the fall or you just want to be prepared for your future college bound teen, you should join tonight’s #CollegeCash chat. I’ll be the guest and @JodiOkun and I should be able to answer all your questions.

What: #CollegeCash

When: (Tonight) Thursday 8PM ET

Where: Twitter using #CollegeCash hashtag

Who: Host @JokiOkun and guest @SuzanneShaffer

Don’t forget to follow both of us on Twitter. If you’ve never attended a Twitter chat, here are some simple instructions.

How to Take Part in a Twitter Chat

See you there!

 

FAFSA, financial aid, parenting

FAFSA Tips, Reminders, and Mistakes to Avoid

 

fafsaIt’s FAFSA time. “Yuck”, as one parent said. “Dreading, dreading, dreading” from another. “It’s my least favorite time of year (other than income taxes)”, said another. I get it. Nobody likes filling out federal forms, especially when money is on the line. And with the FAFSA, money is on the line.

Today I am sharing some of the best FAFSA advice I’ve found online. If you have a college bound teen, this information will be invaluable. Don’t just skim it, however; you need to read every last word. Not knowing can mean the difference between receiving aid and receiving a big fat zero. Trust me, I have learned from experience and listened to so many parents that neglected to do the research before completing the form.

Avoid These FAFSA Mistakes

My first piece of advice comes from Lynn O’Shaughnessy of The College Solution blog. Her advice is spot on and goes into great detail about some key points regarding marital status, household size, and reporting assets. It’s an easy to understand guide for parents and breaks the government lingo down into simple language.

Read more . . .

10 Tips to Prepare for the FAFSA

I wrote this article for TeenLife.com giving parents tips on what they need before completing the FAFSA. You want to be the first in line for financial aid. Students who complete the government form early are more likely to receive funds set aside by the colleges for financial aid. If you don’t complete the FAFSA, you won’t receive any aid. Everyone should file the FAFSA, even if you think you won’t qualify for federal aid.

Read more . . .

False FAFSA Assumptions

Jodi Okun of College Financial Aid Advisors wrote this piece for AboutMoney.com. One of the most common statements I hear from parents is, “I’m not going to file because we won’t qualify for financial aid”. Jodi points out the huge mistake in making this assumption and others.

Read more . . .

7 Legal Ways to Squeeze More Money Out of the FAFSA

It makes perfect sense, just with your taxes, that you should receive what is owed you. With the FAFSA, this affects your student’s financial aid award. Kim Clark of Time.com/Money shares her best advice on how to complete the form properly to ensure you get the most financial aid.

Read more . . .

Do me a favor and pass this information along to other parents. The more you know, the more you will maximize your financial aid. And…sharing is caring!

academics, admissions, college guidance, financial aid, parenting

Mom-Approved Tips: Insist Your Student Graduate in 4 Years or Less

 

Did you know that at most public universities, only 19 percent of full-time students earn a bachelor’s degree in four years? Even at state flagship universities — selective, research-intensive institutions — only 36 percent of full-time students complete their bachelor’s degree on time.

Nationwide, only 50 of more than 580 public four-year institutions graduate a majority of their full-time students on time. Some of the causes of slow student progress are inability to register for required courses, credits lost in transfer and remediation sequences that do not work. Studying abroad can also contribute to added time and credits lost when abroad. According to a recent report from CompleteCollege.org some students take too few credits per semester to finish on time. The problem is even worse at community colleges, where 5 percent of full-time students earned an associate degree within two years, and 15.9 percent earned a one- to two-year certificate on time.

graduate in 4 yearsWhat is lost when a student doesn’t graduate in 4 years?

MONEY! My good friend, and college counselor, Paul Hemphill of Planning for College put it into perspective recently. (See chart to the right). It’s not just the cost of the education that your student loses, but the earning potential over the additional year or years. Nothing speaks louder than cold, hard numbers.

What can parents do to ensure on-time graduation?

It’s not a difficult task, although the numbers might speak otherwise. Taking control of the process and making a plan will go a long way in ensuring on-time graduation

Show your student the numbers—Nothing speaks louder than showing your student a loss of thousands of dollars in earning potential if they don’t graduate on time.

Help them plan their major and degree plan, ensuring it can be done in 4 years—Help them plan, ask questions of their advisors, and have solid discussions about their career and/or major.

Encourage AP testing and dual-credit courses—With AP testing and dual-credit courses, a student can enter college with multiple credits out of the way. The cost of these tests and courses pales in comparison to the cost of a college credit and extra money paid if they don’t graduate on time. It’s conceivable that with the right planning, a student can graduate in less than 4 years.

Attend community college for the basics during the summer before college—Not only will your student get some courses out of the way at a cheaper rate, they will enter college with credits under their belt.

Use some tough love—Explain the importance of graduating on time and explain that you will support them for 4 years only. After that, the cost is on them. Nothing motivates a teen more than realizing they will have to pay for college themselves.

Below is a neat little graphic (courtesy of Paul Hemphill) breaking it down for you.

graduate in 4 years

financial aid, websites

Edvisors: Demystifying Financial Aid

EdvisorsEdvisors

Get any two parents of college-bound teens together and the topic of financial aid is likely to come up. Every parent dreams of their son or daughter getting a free ride to college. It happens, but it takes some real determination and planning.

Mark Kantrowitz, the founder of FinAid, left that nationally recognized website last year to create a new online resource at Edvisors.com for parents and students to help them learn how to pay for college.

Topics covered

Here are some of the topics that you’ll find by spending time on Edvisors:

  • Student Aid Secrets for Increasing Eligibility
  • Eligibility Requirements for Financial Aid
  • Federal College Grants
  • How To Choose a Student Loan
  • Finding and Applying for Scholarships
  • Paying Back Parent and Student Federal Loans
  • Military Student Aid

Free Guide to Filing the FAFSA

On the Edvisors’ website, you can also download a free copy of  Filing the FAFSA:  The Edvisors Guide to Completing the Free Application for Federal Student Aid 2014-2015 Edition.

To download Filing the FAFSA you will have to provide information that will put you on Edvisors’ newsletter list, but you can always opt out if you prefer. As an alternative, you can also buy the 249-page paperback version on Amazon.

Education Tax Benefits

There is a section of the website that contains an excellent and informative explanation of federal education tax benefits. The section describes each tax benefit, and teaches you which are the optimal education tax benefits for your family:  Picking the Best Mix of Education Tax Credits and Benefits.

Asking for help

The site gives you an opportunity to post your financial aid questions in a section of the website entitled, Ask the Edvisors. You can also view previously asked questions and the answers provided by the site’s founder Mark Kantrowitz.

Spend some time navigating the site and discover valuable information regarding paying for your student’s college education.

financial aid, websites

How to Determine the True Cost of College

 

Parents and students are always looking for ways to determine the cost of college. It’s even more important as costs keep rising and with increasing student debt loads, families need more help than ever when making a college decision and determining the true cost of college.

Enter CostofLearning.com

determine the true cost of collegeWith CostofLearning.com, a user simply selects one or more colleges and a chart appears showing Expected Family Contribution on one axis and the net cost on the other. The free service requires no inputting of personal financial information or registration.

Jimmy Becker, CostofLearning.com CEO, says “We have developed the first universal net price calculator that allows families to compare college pricing in a way they have never been able to before. With CostofLearning.com, what used to be a slow, financially intrusive, and confusing process, is now fast, clear and simple. Most importantly, families get transparency into net pricing.”

How does it work?

CostofLearning.com aggregates multiple data sources and uses proprietary data analysis and modeling to ensure accurate results. Until now, these data sources have never been combined in such a visual and easy-to-use format.

true cost of college“CostofLearning.com’s universal net price calculator reveals facts about schools that users may find surprising,” Rachel Okin, M. Ed, Founder of Okin College Match, and a college admission consultant. “Depending on a family’s financial status and state of residency, sometimes the college that a student expects to be the least expensive turns out not to be and vice versa.  The CostofLearning.com web app is a great tool to help families realize there are colleges they may not have thought they could afford that they actually can. I recommend it as part of the college search process.”

In addition, users can adjust for out-of-state vs. in-state tuitions as well as find more in-depth information such as endowment size, admissions statistics, test scores, graduation rates and more.

financial aid, mom approved tips, parenting

Mom-Approved Tips: What Are Your Priorities?

 

prioritiesEvery day parents complain about the high cost of college and the fact that even though they have saved, it’s not going to be enough to cover present day costs. When the kids enter high school, most parents begin to panic. The time has slipped away from them and they are faced with some difficult decisions. The thought of disappointing their kids seems unfathomable and the thought of telling their family and friends that they can’t afford to send their kids to college is even worse.

Consequently, we exhibit behavior that has devastating consequences for us and for our kids:

  • We make unwise decisions related to student loans
  • We neglect to tell our kids “no” when a college is beyond our ability to pay
  • We don’t include our kids in the financial aspects of the decision in the beginning

I read a post by Lynn O’Shaughnessy on The College Solution blog entitled “We are Done Paying for College”— it made me stop and think: what are our priorities as parents? Lynn and her husband began planning when their kids were little. They scrimped and saved and prepared for the day when they would go to college. It required sacrifice and commitment. But they did it and can say that their kids graduated without any student loan debt. You owe it to yourself to read her post, even if your kids are already in high school. It’s a definite wakeup call for all parents of college-bound teens.

Step back and evaluate

What are your priorities? Is college important enough for you to make some sacrifices? This means financial sacrifices and sacrifices of your time.

Make a plan and stick to it

If paying for college means driving an older model car for a few years, do it. If you need to supplement your education savings by taking on a second job and insisting your kids work during high school, make it work. If your family has to forgo some vacations, a new home, or a eating out often, it’s worth the sacrifice. But whatever you decide, make a plan and stick to it.

Be creative and think outside the box

There are so many creative ways to attain a college degree. Your kid isn’t bound to the typical four-year University or attending four consecutive years in a row. It’s also not necessarily essential that they attend college right out of high school. Do whatever it takes to attain the degree without debt and causing the family financial hardship.

It doesn’t matter where you are in the college prep process. You should evaluate your priorities and ask yourself some tough questions. It may sting in the beginning but once you’ve examined your options, you’ll sleep easier and so will your kids.

financial aid, how to

How to Decipher the Financial Aid Award Letter

 

financial aidAs the offers of admission arrive, the financial aid award letters will follow. If you’re a novice to the award letters, as most first time college parents are, they can be confusing and vague. Added to the confusion is that every award letter is different, making it hard to easily compare them side by side.

Thankfully, there are tools available and information to help you look at these letters for what they are: the college’s pitch for your student to accept their offer of admission. You are in control of this process and you hold the cards. It’s your decision to accept or reject their offer based on the amount of aid they are willing to give your student. Money, in this situation, is everything.

If a college wants your student to attend, they will back it up with money. No money, means their offer is probably based on filling a quota and them expecting you will decline to attend. And you should. Who wants to attend a college that doesn’t place value in your student?

But before you accept, reject, or negotiate with the college, you need to understand the award letter and its components.

Want to know more? Read an article I wrote for TeenLife:

How to Break Down the Financial Aid Award Letter

 

 

financial aid, infographics

A Financial Aid Flowchart

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Financial aid can be confusing for parents and students. From scholarships, to loans, to 529 funding, it can be an overwhelming process.

Student financial aid comes in all shapes and sizes – and one size doesn’t fit all when it comes to paying for college. With many different student loans to choose from, finding the optimal path to college funding can be tricky. eStudent Loans created this graphic to help those who need more than just scholarships and grants to fund their education and fund it in a way that will help save you money.

So, if you’re one of the thousands of students that are not sure where to start, relax. Simply use their financial aid flowchart to help you explore nearly every possible option available to help you cover the costs of earning your college degree. At the same time, they also show you the order in which you should pursue each funding source.

Financial Aid Flowchart: A Guide for Students Paying for College by eStudentLoan

Financial Aid Flowchart: A Guide for Students Paying for College from eStudentLoan

Download the interactive Financial Aid Flowchart

admissions, financial aid, Zinch posts

College Decisions To-Do List

 

college decisions
-photo courtesy of Zinch

For seniors, the New Year brings those long-awaited college decisions: deferred, accepted, rejected, and wait listed. One knowledgeable college counselor once told me, “I don’t like to call these letters of acceptance. I use the term—offers of admission.”

As a parent, I like that distinction. This alternative wording makes it easier to stomach those not-so-pleasant responses and help your college-bound teen work through the gamut of emotions that come when decisions arrive.

Your student may be the one receiving these communications from the colleges, but you feel every emotion they do from failure to excitement and everything in between. But unless you understand what each term means, it’s hard to know how to help your student (and yourself) with appropriate responses and proper action.

When the letters from the colleges (or online notifications) arrive, your student will receive one of four responses: deferred, wait-listed, rejected (declined admission) or accepted (offered admission). Once you understand these terms, you can determine what your response should be and how you need to take action.

Read more from Zinch: You’ve Heard from the Colleges–Now What?