how to pay for college

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Applying For Financial Aid

Appying For Financial Aid2If your son or daughter is going to college, then you already know that you should apply for financial aid if you want to be considered for need-based aid, grants and loans. What you may not know is that there are two different financial aid applications.

First, let’s talk about the application everyone needs to fill out.

The FAFSA is the Free Application for Federal Student Aid. It’s the application that is required by every college in order to consider and then award financial aid to your son or daughter. The FAFSA is free and while it will take some time to fill out, if you organize yourself ahead of time it will be much easier.

The FAFSA is a smart form which you will find very helpful. Based on the information you enter, the FAFSA customizes the questions so that you only need to answer questions that pertain to your individual situation.

While everyone needs to fill out the FAFSA, based on colleges you are applying to, some of you may need to also fill out the CSS Profile.

The Profile is only required by a couple hundred private schools in addition to some scholarship programs. Unlike the FAFSA, the Profile is not free. It will cost you $16 to register and then an additional $9 per school for each school to which you send the form. The Profile also takes longer to complete and digs deeper into your financial picture.

To help yourself out with both the FAFSA and the CSS Profile, some of the information you will want to gather before you get started include:

  • Student and parents’ social security numbers
  • Student and parents’ driver’s license numbers
  • Statements for checking and savings accounts
  • Copies of last year’s tax return and W-2’s
  • Statements for any 529 accounts
  • Statements for any investment accounts
  • Current mortgage statement (Profile only)

Keep in mind that while current seniors are just filling out the FAFSA now (it went live on January 1st while the CSS Profile became available on October 1st) next year’s seniors will be able to fill out both the FAFSA and the CSS Profile starting in October.

This is a welcome change to the FAFSA as it will allow you to file financial aid applications using real numbers rather than estimates. Currently, you apply for financial aid using estimations for income and assets based on prior year information. With this new timeline, you will now use prior-prior year information – there will be no more guessing.

For those of you are very much depending on financial aid to help make a decision on where your son or daughter will be able to go to college, having this information in the fall of their senior year rather than waiting until the late spring, when they only have so many weeks left before the May 1st deadline is going to be very helpful.

There’s a lot to like about that.

If you would like some assistance with your college search or financial aid process, contact me today for a free 60-minute consultation.

Here’s what other families like yours are saying about how Dobler College Consulting made a difference for them.

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Eric Jan 08, 2016 , , , , , , , , , , , , No Comments
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What is Financial Aid?

What is Financial AidFinancial aid is money that students and their parents can receive to help pay for college costs.

Aid is categorized in four ways:

Need-Based: For students and families who demonstrate a high level of need based on information provided on the FAFSA. Need-based aid can be awarded in the form of grants (federal and state), work study, low-interest loans (and often interest-deferred while enrolled) and the Parent Plus Loan.

Non-Need-Based: For students and families who qualify for private scholarships and grants outside of the FAFSA.

Merit-Based: For students who have excelled academically both with their GPA and standardized test scores.

Self-Help: Another way to categorize loans which students and families may choose to take out.

In my opinion, all students, regardless of their family’s financial situation should apply for financial aid. Why? Because it’s the only way to qualify for a federal loan. So even in a situation where a family has a high EFC (expected family contribution) and won’t qualify for any need-based aid, they can qualify for a student loan. Taking out a federally-backed loan like this with a low interest rate is a great way for a student to not only have some skin in the game but it will also help them establish some credit.

Additionally, a vast majority of students receive some form of financial aid. At private schools, where the cost of attendance can easily exceed $60,000, most students receive something as a higher cost makes it easier to demonstrate financial need.

Because this process gets complicated, it’s important to do your homework and stay on top of dates. Proper research into what a college may award, completing an EFC calculator to gain a thorough understanding of your ability to pay and running the numbers to know what potential student loan payments may look like will go a long way to helping you be more confident in the decisions you will be faced with.

If you would like some assistance with your college search, contact me today for a free 60-minute consultation.

Here’s what other families like yours are saying about how Dobler College Consulting made a difference for them.

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Eric Nov 23, 2015 , , , , , , , , , , No Comments
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Starting Your College Search? Here’s Why You Should Know Your EFC

Starting Your College Search. Here's Why You Should Know Your EFCIf you’re like most families, when it comes to finding colleges that will fit, cost is going to be a significant factor. Looking at price tags of $30,000 to $60,000 or more a year for college is overwhelming if not downright scary.

What’s even scarier is that most people don’t even know how much of that price tag a college will expect them to pay.

Sure, they have an idea of what they can afford to pay, but when it comes down to how much money a family will have to contribute towards college costs, and their true financial aid eligibility, most people are in the dark.

Parents of freshmen, sophomores and juniors, I’m talking to you. Go figure out your EFC.

EFC stands for expected family contribution. It is the amount of money you will be expected to contribute towards one year of college costs. While it won’t paint the entire picture for you, it will serve as a starting point before you venture into how generous a school is with their aid. You won’t know your official EFC until after you’ve completed the Free Application for Federal Student Aid (FAFSA) but knowing a rough estimate of your EFC now will help you plan your college search more strategically.

For example, let’s say your EFC is $25,000. If you are looking at a college where the cost of attendance is $45,000 you can immediately see that you could  be hoping to receive $20,000 in aid. Conversely, if the college’s cost of attendance is $20,000, you shouldn’t be expecting anything.

In the case of the former, $20,000 is a big difference to make up. The next step is to understand just how generous a school is and if they are going to help you out. By looking at how much of your need a college will meet, you can then do the math and determine how much you should be expecting, if anything. Staying with this example, a school who meets 50% of your need would have $10,000 in aid for you while a college who meets 75% of your need would have $15,000 in aid. How much of your need a college meets varies from college to college so look closely at the numbers so you know what to expect.

Outside of your ability to pay, some colleges also factor in how competitive you are as an applicant when they determine how much aid to award you. The stronger you are as an applicant, the more desirable you are to the college and, therefore, the more likely you are to receive aid.

So, do yourself a favor and obtain your estimated EFC now. Write it down, understand it and use it when you are researching schools and want to know what a school is going to cost you.

If you would like some assistance with your college search, contact me today for a free 60-minute consultation.

Here’s what other families like yours are saying about how Dobler College Consulting made a difference for them.

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Eric Oct 02, 2015 , , , , , , , , , , , , No Comments
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Need Blind Versus Need Aware and Why You Should Know the Difference

Muhlenberg College

Muhlenberg College

If you’re like most families, you’re concerned with how much four years of college is going to cost you. My boys are two and six years old, and I worry about it already. And while so much of the college search is focused on working through the differences between colleges to find that “right school”, all too often one major difference is overlooked.

That difference is whether a school is need blind or need aware.

Need blind schools don’t consider an applicant’s financial need when making admissions decisions, but many are not able to meet applicants’ full need with their financial aid packages without adding work study (which rarely helps a family pay for college) and unrealistic loan options. Highly selective colleges like Yale and Harvard belong to a very small group of schools who are completely need blind and who meet full need. Due to massive endowments, they have unlimited financial aid budgets. If a student is admitted to these colleges they will have 100% of their financial need met.

Need aware schools do consider finances in their admissions decisions, but this control can give colleges the ability to meet full need for all accepted applicants. They must manage an annual financial aid budget that has limitations but by paying honoring these limitations, the colleges are trying to make sure that the student can actually attend. While some students would say a need aware policy is unfair and that decisions should not be made due to financial constraints, the reality is that there is only so much money to go around.

Some schools are a combination of both and while neither approach is perfect, you absolutely need to understand how their application review operates. Earlier this month I was visiting colleges in eastern Pennsylvania and several of them indicated that they are need blind until they get to the last 15-20% of their decisions. At that point, an applicant who has a greater ability to pay would get the nod over a student who was going to need significant financial aid in order to attend.

So how can a family best assess its options? Ask the right questions, of course.

When you visit a college or talk to admission counselors at high school visits or college fairs, ask them if they are need blind or need aware. Let them explain how they review applications so that you can fully understand how your ability to pay may affect your college applications.  You may be disappointed by what you hear, especially if you feel your family’s financial situation may affect your chances at a need aware college, but without knowing how a college will treat you, you run the risk of greater disappointment when the financial aid award doesn’t come close to making the school affordable.

In the college search and application process, information is everything.

If you would like some assistance with your college search, contact me today for a free 60-minute consultation.

Here’s what other families like yours are saying about how Dobler College Consulting made a difference for them.

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Eric May 04, 2015 , , , , , , , , , , , , , No Comments
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Making The Most Of Your Scholarship Search

Making the most of your scholarship search

 

With the frenzy of college application deadlines finally starting to wind down, it’s time for high school seniors to turn their attention to private scholarships. While the majority of scholarship money will come directly from colleges in the form of merit scholarships, there is a lot to be said for spending some time searching for private scholarships.

And while you might be burnt out from your college application process, here are some ideas on how you can make the most of your scholarship search.

 

Searching for scholarships is like a part-time job. It’s not a one and done deal. The more you search and the more you apply, the more likely you are to win something.

Beware of scams. It should never cost you more than a postage stamp to apply for a scholarship. Also NEVER give out your social security number or bank information.

Start your search locally and be prepared to do the work that other students won’t. Check out scholarship opportunities through employers, your church, local organizations, your bank or credit union, the town library and, most importantly, your high school’s college counseling office.

Search smarter, not harder. To narrow down internet search results, trying searching more specifically such as “accounting scholarships 2014 2015.”

Your major matters. If you know what you want to major in, you should start looking for scholarships through professional organizations and associations affiliated with your field. For example, here’s a list of scholarships offered through the National Society of Professional Engineers (NSPE) for students majoring in engineering.

Make good use of social media. The ScholarshipExperts.com Pinterest board has over 1,300 scholarships!

Look for scholarships with essay requirements. Then, apply the same rules for college application essays: Grab the reader’s attention in the first two sentences and tell a story. If your essay bores you, it will most definitely bore the scholarship selection committee person who has to read it.

At the end of the day, scholarship searching is a time-consuming process. Pace yourself and stay positive.

If you would like some assistance with your college search, contact me today for a free 60-minute consultation.

Here’s what other families like yours are saying about how Dobler College Consulting made a difference for them.

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Eric Jan 13, 2015 , , , , , , , , No Comments