Friday, December 18, 2009
Financial Aid Friday- Test Your FInancial Aid Knowledge!
There is so much information out there about financial aid, it's hard to know what's true and what isn't. Follow this link http://www.educationplanner.org/finaid/falitquest.asp?sponsor=2859 to take a Financial Aid Literacy Quiz from EducationPlanner.org. It's a great place to start researching financial aid. Enjoy!
Friday, December 11, 2009
Financial Aid Friday
From CollegeBoard.com:
Financial Aid Myths
Don't Believe Everything You Hear
Literally billions of dollars in financial aid is available to those who need help paying for college. Yet lots of misinformation clouds the facts about what type of aid is available and who is eligible. Here are some myths dispelled for parents confronting the process of securing financial aid for their college-bound child.
College Is Just Too Expensive for Our Family
Despite the media hype about rising college prices, a college education is more affordable than most people think, especially when you consider college graduates earn an average of $800,000 more over their careers than high-school graduates. The average yearly tuition and fees at a four-year public institution in 2009-10 is just $7,020. There are some expensive schools, but high tuition is not a requirement for a good education.
There's Not a Lot of Financial Aid Available
In fact, more than $168 billion of student financial aid is available. Most students receive some form of aid. Less of this aid now comes in the form of grants, however; most aid is awarded through low-interest loans or institutional and other grants. Parents should consider carefully the financing packages offered to their child by each college to determine which makes the most financial sense.
My Income Is Too High to Qualify for Aid
Aid is intended to make a college education available for students from many different financial situations. College financial aid administrators often take into account not only income, but also other family members in college, medical expenses, and other factors. Aid is awarded to many families with incomes they thought would disqualify them.
We Saved for College, So We Won't Qualify for Aid
Saving for college is always a good idea. Since most financial aid comes in the form of loans, the aid you are likely to receive will need to be repaid. Tucking away money could mean you have fewer loans to repay, and it won't mean you're not eligible for aid if you need it. A family's share of college costs is calculated based mostly on income, not assets such as savings.
My Child Isn't a Straight A Student, So We Won't Get Aid
It's true that many scholarships reward merit, but the vast majority of federal aid is based on financial need and does not even consider grades.
If We Apply for a Loan, We Have to Take It
Families are not obligated to accept a low-interest loan if it is awarded to them. "In my opinion, everybody should apply for financial aid," says Shirley Ort, director of scholarships and student aid at the University of North Carolina, Chapel Hill. "Student loans are at all-time low interest rates." She recommends applying and comparing the loan awards with other debt instruments and assets to determine the best financial deal.
Working Will Hurt My Child's Academic Success
Students who attempt to juggle full-time work and full-time studies do struggle. But research shows that students who work a moderate amount often do better academically. Securing an on-campus job related to career goals is a good way for your child to help pay college costs, get experience, and create new ties with the university.
My Child Should Live at Home to Cut Costs
It's wise to study every avenue for reducing college costs, but having a child live at home may not be the best way. Be sure to consider commuting and parking costs when you do this calculation. Having a child live on campus may create more opportunities for work and other benefits.
Private Colleges Are Out of Reach for My Family
Experts recommend deferring cost considerations until late in the college-selection process. Most important is finding a school that meets your child's academic, career, and personal needs. In fact, you might have a better chance of receiving aid from a private school. Private colleges often offer more financial aid to attract students from every income level. Higher college expenses also mean a better chance of demonstrating financial need.
Millions of Dollars in Scholarships Go Unused Every Year
Professional scholarship search services often tout this statistic. In fact, most unclaimed money is slated for a few eligible candidates, such as employees of a specific corporation or members of a certain organization. Most financial aid comes from the federal government, though it is also a good idea to research nonfederal sources of aid.
We'll Have to Sell Our House to Pay for College
Home value is not considered in calculations for federal financial aid. Colleges may take home equity into account when determining eligibility for their institutional grant funds, but income is a far greater factor in this determination. No college will expect your parents to sell their house to pay for your education.
We Can Negotiate a Better Deal
Many colleges will be sensitive to a family's specific financial situation, especially if certain nondiscretionary costs, such as unusually high medical bills, have been overlooked. But most colleges adhere to specific financial aid-award guidelines and will not adjust an award for a family that feels it got a better deal at another school. "We won't bargain, but we want to make sure we know the family's full financial picture," says Ort.
Financial Aid Myths
Don't Believe Everything You Hear
Literally billions of dollars in financial aid is available to those who need help paying for college. Yet lots of misinformation clouds the facts about what type of aid is available and who is eligible. Here are some myths dispelled for parents confronting the process of securing financial aid for their college-bound child.
College Is Just Too Expensive for Our Family
Despite the media hype about rising college prices, a college education is more affordable than most people think, especially when you consider college graduates earn an average of $800,000 more over their careers than high-school graduates. The average yearly tuition and fees at a four-year public institution in 2009-10 is just $7,020. There are some expensive schools, but high tuition is not a requirement for a good education.
There's Not a Lot of Financial Aid Available
In fact, more than $168 billion of student financial aid is available. Most students receive some form of aid. Less of this aid now comes in the form of grants, however; most aid is awarded through low-interest loans or institutional and other grants. Parents should consider carefully the financing packages offered to their child by each college to determine which makes the most financial sense.
My Income Is Too High to Qualify for Aid
Aid is intended to make a college education available for students from many different financial situations. College financial aid administrators often take into account not only income, but also other family members in college, medical expenses, and other factors. Aid is awarded to many families with incomes they thought would disqualify them.
We Saved for College, So We Won't Qualify for Aid
Saving for college is always a good idea. Since most financial aid comes in the form of loans, the aid you are likely to receive will need to be repaid. Tucking away money could mean you have fewer loans to repay, and it won't mean you're not eligible for aid if you need it. A family's share of college costs is calculated based mostly on income, not assets such as savings.
My Child Isn't a Straight A Student, So We Won't Get Aid
It's true that many scholarships reward merit, but the vast majority of federal aid is based on financial need and does not even consider grades.
If We Apply for a Loan, We Have to Take It
Families are not obligated to accept a low-interest loan if it is awarded to them. "In my opinion, everybody should apply for financial aid," says Shirley Ort, director of scholarships and student aid at the University of North Carolina, Chapel Hill. "Student loans are at all-time low interest rates." She recommends applying and comparing the loan awards with other debt instruments and assets to determine the best financial deal.
Working Will Hurt My Child's Academic Success
Students who attempt to juggle full-time work and full-time studies do struggle. But research shows that students who work a moderate amount often do better academically. Securing an on-campus job related to career goals is a good way for your child to help pay college costs, get experience, and create new ties with the university.
My Child Should Live at Home to Cut Costs
It's wise to study every avenue for reducing college costs, but having a child live at home may not be the best way. Be sure to consider commuting and parking costs when you do this calculation. Having a child live on campus may create more opportunities for work and other benefits.
Private Colleges Are Out of Reach for My Family
Experts recommend deferring cost considerations until late in the college-selection process. Most important is finding a school that meets your child's academic, career, and personal needs. In fact, you might have a better chance of receiving aid from a private school. Private colleges often offer more financial aid to attract students from every income level. Higher college expenses also mean a better chance of demonstrating financial need.
Millions of Dollars in Scholarships Go Unused Every Year
Professional scholarship search services often tout this statistic. In fact, most unclaimed money is slated for a few eligible candidates, such as employees of a specific corporation or members of a certain organization. Most financial aid comes from the federal government, though it is also a good idea to research nonfederal sources of aid.
We'll Have to Sell Our House to Pay for College
Home value is not considered in calculations for federal financial aid. Colleges may take home equity into account when determining eligibility for their institutional grant funds, but income is a far greater factor in this determination. No college will expect your parents to sell their house to pay for your education.
We Can Negotiate a Better Deal
Many colleges will be sensitive to a family's specific financial situation, especially if certain nondiscretionary costs, such as unusually high medical bills, have been overlooked. But most colleges adhere to specific financial aid-award guidelines and will not adjust an award for a family that feels it got a better deal at another school. "We won't bargain, but we want to make sure we know the family's full financial picture," says Ort.
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