Financial Aid for college

The article below in the New York Times (How to Get More College Financial Aid By THE ASSOCIATED PRESS Published: April 6, 2010) and others have gotten me thinking about paying for colleges. I am not a financial aid expert, but I fill out forms for 3 students of my own every year, so I have some real-world experience. Here are some tips I have learned along the way:

Plan Ahead
The first point is the one mentioned by every financial advisor I have ever met: The sooner you start planning for college, the better. Even a small 529 is better than nothing. You don't want to leave it all to the last minute and hope for a huge financial aid package! That is like assuming that your child will become a baseball all-star because he likes little league. Too much of a gamble for my liking!

On the other hand, if your child does well academically, and has a good "quantitative mix" there is a good chance that some college will be interested enough to throw money your way. Don't assume that private schools are out of the question, just because you don't have $50K to throw around. I know plenty of families (mine included) where they have paid more for a sibling at a public university than a sibling at a private school because of scholarships and grants.

So the second "plan ahead" is to take the time to fill out those endless forms (FAFSA and CSS Profile) even if you don't think you will get much. You will also need to get your taxes done in a timely fashion. Early is better, because the sooner you are done, the sooner you can be considered.

Timing is particularly important for state financial awards. Where we live, the DC-TAG (Tuition Assistance Grant) is very important for students applying to public universities. I stand in line every year in late March to have my taxes certified by the Office of Tax and Revenue, and then head to the Office of the State Superintendent of Education (OSSE) to get an award letter. Would I still get that award in May? Probably. But the lines are shorter, the anxiety is less, and every year they warn that they might run out of money.

Don't Make Yourself Crazy
While you are being thorough on the forms, and looking at meritaid.com and fastweb.com and studentaid.com, don't apply for everything that comes your way. The smaller grants can take just as long to apply for (even when they don't require an essay) as the larger awards. I would concentrate on aid that your child is particularly qualified for, especially if it is local. These smaller awards (high school alumni awards, military awards for those with parents and grandparents who served, church or synagogue awards) are not as well known, and are better bets. Look for those if you can. Ask some parents who have older children to see what awards they got.

Don't Be Afraid To Ask
The awards are in, and there is a gap between what you think you can spend, and what the college thinks you can pay. Most colleges offer awards to students that end up going elsewhere. It never hurts to ask for more. The worst they can say is "no."


 How to get more financial aid