Planning for college can be exciting and stressful. While students are fretting over applications and transcripts, parents are worried about how to pay for it all. College tuition has increased 429% over the last 20 years, making funding a college education one of the biggest expenses in a parent’s life.
One year at a large state school in SC, such as Clemson, will cost around $17,000, while a year at a SC private college, such as Furman, will cost about $45,000. However, if parents know how and where to find financial aid, grants and scholarships, college can become a much more affordable prospect.
According to the College Board, there is over $168 billion available in student aid every year. FAFSA, the Free Application for Federal Student Aid, and CSS/PROFILE are the two types of applications for aid based on financial need. All colleges will require FAFSA but only some will also require PROFILE. It can be confusing for parents to know when to file one or both. Here's a quick breakdown of both applications and a description of how they may benefit you.
First of all, a family’s FAFSA report will qualify them for federally funded grants and aid, such as Pell Grants, work-study scholarships and low interest student loans. A full description and free application is available at FAFSA.ed.gov (link below). There are other sites that offer a FAFSA application and charge a fee to file it. This expense is unnecessary; the official site has a help line and a detailed explanation of each question.
Families must fill out a new FAFSA application in the spring of each year if they want federal financial aid for the next school year. Colleges may require that you file FAFSA earlier than the official June 1st FAFSA deadline so make sure to check the college website for details. Since FAFSA factors in a variety of expenses, the number of college students in the family, even middle income and upper income families may find that their student qualifies for certain grants or aid.
Since FAFSA asks for much of the same information that is found on a tax return, President Obama has proposed that tax returns be used as a family’s financial aid application. No final decision has been made on this proposal yet but it could simplify the process for millions of families.
In addition to FAFSA, families can fill out the CSS/PROFILE application, administered by the College Board at collegeboard.com (link below). PROFILE conducts a financial analysis similar to FAFSA's but the results are used to qualify a student for non-federal funding, whereas FAFSA is only for federal funding. Not all colleges use PROFILE data so it is important to check with a college’s financial aid office to see if they need it.
What if the financial aid package presented by a college still leaves a family with an unrealistic price tag? Financial Aid offices want to know about any special circumstances that affect your ability to fund college. Unemployment, medical expenses and other financial burdens can be factored in to adjust the final bill. Be open and candid with the financial aid officer in order to work out the most financially feasible options.
Financial aid is only one part of the college funding process. If students start early and work hard, they can also earn major scholarships based on academics, sports, community service and leadership. Between aid and scholarships, college can become an affordable option for students from all walks of life. In the end, a student with a college degree can count on earning over $1 million more in his or her lifetime than a student that does not go to college. A student’s best strategy is to start preparing early, work hard in school and leave no stone unturned to get that college degree. It all pays off in the end!
www.collegeboard.com
Elizabeth Hartley is a college admissions and scholarship consultant. Visit her website @ www.CollegeScholarshipPlan.com for a comprehensive and current list of valuable internet resources.
