Financial aid guide for students and parents

‘Half knowledge is dangerous’ is a very apt saying as decisions made on basis of little knowledge may have serious consequences. This thought is easily applicable in various, in fact all spheres of life. But what is even more dangerous than half knowledge is keeping myths. From relationships to college funding, there are plenty of myths that people believe to be true. It prevents people from doing something they really want, for example myths related to college funding prevent them from attending college and pursuing their dream career. Most common myths of college funding and the truth behind them are –

• I cannot afford my ‘dream’ college and I cannot do anything about it–

A common mistake made by people is that they go on the face value of high ‘sticker price’ of college and decide that they cannot afford it. But ‘sticker price’ is not the value one has to pay; it is calculated on the basis of EFC. EFC is Expected Family Contribution that is calculated on basis of one’s family size, assets and income. The schools create a financial aid package depending on the person’s financial situation and a person has to pay only what is expected as per EFC. Doesn’t your ‘dream’ college sound affordable now? Never leave a college because of its high ‘sticker price’.

• Financial aid is only for extremely poor or unexceptionally talented students.

There are numerous options of financial aids like grants and scholarships which are not repayable and loans which are repayable. Apart from need-based and merit based financial aid, there are different aids available from state government, federal government, university, college, parents employer etc. It is important to explore all possible options and you will be surprised to find what they have to offer.

• Financial aid cannot be negotiated.

Though calculations of financial aid are mostly formula driven, it is still possible to approach the financial aid officers for a reassessment in case there is a change in your financial situation. If they feel that you have a compelling case, they have the power to help you get more funding.

• We earn too much and do not need to fill form for financial aid.

No matter how much you are earning, it is advantageous to fill an application for financial aid for three basic reasons. Firstly, even if you have money and you qualify for a grant/aid, it will help ease your cash flows. Secondly, if your financial situation changes and turns worse during college, you will not be eligible to apply for aid without the application forms. Finally, if you are selected for a merit-based scholarship, many colleges cannot release scholarship funds if the student has not filed the forms.

• There is no need to worry about paying for college fees until the student gets accepted in a college.

Mostly, financial aid is provided on first come, first serve basis. So, if you wait long enough to get acceptance from some college, you may not get enough aid as students usually start their search for aids quite early.

The rising college fees have made it important to bust these myths of college funding to ensure that more students are provided financial assistance. Education is expensive, but it can be made affordable by following right information regarding college funding.