This week there were two Financial Aid related events taking place at ElRo. On Tuesday, I presented an assembly to the senior class (their last college assembly ever!) to explain the basics of the financial aid process. Then, last night, Anthony Becker returned to our school to explain to parents and guardians how to fill out the FAFSA form (completed in January of the student's senior year).
Here are some highlights from both presentations:
-- Financial Aid consideration is like a big conveyer belt - you want to get on as soon as you are able and you want to stay on by completing the forms correctly and on time. The early bird gets the $$$.
-- For any student looking to get any sort of financial aid (including both merit aid and need based aid) they will need to complete the FAFSA in January of their senior year. Then, some schools also require the CSS Profile in order for the school to get a more accurate glimpse of your family financial status. Neither form actually gives dollars - both are just a tool used by financial aid offices to determine your family's estimated family contribution (EFC). Then, each college can use their own algorithm to create a personalized financial aid package for you.
-- WAY too many people enter the college process expecting for aid to cover the entire cost of college. Don't hold your breath. Just like any other $20,000 to $200,000, purchase most families are going to HAVE to change their lifestyle in order to accommodate that type of spending in their budget. Loans are going to be a reality for most families. The key is making sure those loans are minimized as much as possible ($5,000 a year in loans? Pretty reasonable. $25,000 a year in loans? Avoid, start over, pick a different school, you will regret it.)
-- The FAFSA should be completed in January using income totals from the last pay stub of the year and estimates from the family taxes the year before. Don't wait to submit the FAFSA for the first time until your taxes are complete. Submit in January, then amend and resubmit later in the year when the taxes are prepared.
-- Different schools are going to offer different packages - and your EFC may or may not be a number you feel your family can actually afford. That is why having a wide range of schools on the list is essential so you can compare the costs and weigh the pros and cons before picking a school.
-- When in doubt, read the directions. ALWAYS double check your FAFSA answers and don't rush. The FAFSA can feel overwhelming, but most questions are pretty straightforward (ie - they tell you what line number to look at on your taxes). Don't let yourself feel pressured. Have all your paperwork in front of you and never guess on things like social security number or legal name - that will bump you off the conveyor belt - a big no-no. Questions? Use resources like the FAFSA help line or the college's financial aid website and office staff to understand the process and forms.
-- If the parents of the student are divorced, the household where the student lives the most is what goes on the FAFSA (including any step parents and their income if the parent is remarried). The CSS Profile goes one step further and asks for the non-custodial parent's household income information, so in that case both parents information will be required. Even if family relationships are strained, this is not the time to dig in your heels. Come together for the sake of the financial aid package and be cooperative and cordial. It will pay off - literally - in that it will keep the child's financial aid application 'on the conveyor belt.'
Anthony is a Certified Financial Planner. While the FAFSA is free to file (always use www.fafsa.gov NEVER .com) some families benefit from working with a financial planner to adjust their assets in order to qualify for the most legal amount of aid. These appointments are best had BEFORE the child is a senior. But, sometimes adjustments can me made though even as late as December of the senior year - so if you think your family needs help and can afford to work with a professional (rates for the meeting run between $250 and $300 for a meeting) it is worth it to make an appointment. Anthony's number, should you want to schedule an appointment, is 914 722 1777 - or feel free to speak with your own financial planner. The families that usually benefit most are those in the middle income range, who make too much to qualify for much need based assistance but still have a household income that prevents them from paying for a private school tuition out of pocket. A financial planner probably won't make tuition free, but it might knock off a few thousand a year, which adds up over time.
The good news? Most families do NOT pay the sticker price for college and way more qualify for aid than think they will (including those with 6 figure incomes). Don't let a price tag be the factor that removes a school from your list. Having a wide variety of selectivity ranges and cost ranges as a part of the college list will be the best way to make sure that you have the most options to choose from.
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