In financial aid, spring is "show me the money" season. College financial aid offices mail their award letters this time every year. If you're the parent of a college-bound student, try to fast forward two or three years to think about when you'll be in these shoes.
For incoming freshmen, the award letters can be the deciding factor in terms of where they end up in college. then, deposits are due by May 1. (For returning upperclassmen, this is the time to see how this year's award stacks up against last years, but I'm going to focus on incoming freshmen in this blog. )
So now is the time to analyze the offers. Be careful, particularly when it comes to "renewability." In other words, if you're awarded a grant or scholarship for your first year of college, understand what it takes (the minimum GPA) to receive that scholarship your sophomore, junior and senior years.
If you're offered loans, pay careful attention to the terms of each loan. Although reading these disclosures are not exactly riveting, it's important to understand exactly how the loan works - the rate, when can it adjust, how much it can adjust, is there any forgiveness or deferral option, etc.
Avoid unpleasant surprises by preparing years ahead of time. The best time to start your college planning is sophomore year of high school! Yes, sophomore year. This way, you'll be happy when you open your letters come spring of your senior year!
We offer free workshops that teach you "How to Pay for College Without Going Broke." Check out our dates/times/locations on our website:
www.CollegePlanningAdvice.com
Friday, April 11, 2008
Wednesday, April 2, 2008
Can you still get into a Florida public university?
"College Pete" forwarded an alarming story to me a few hours ago. Even though both of us are out of town, the story was so important that I wanted to pass it onto you.
It appeared in today's Miami Herald. The header - "Budget cuts lock more out of state universities."
The story profiles some outstanding South Florida's college-bound students who cannot beg, borrow or steal their way into a state college, thanks to budget cuts and enrollment freezes! Kids with excellent grades (top 5% in the class) and leadership positions (class president, yearbook editor) cannot get into to "safety" schools anymore! Another student (3.4 GPA, varsity baseball captain, newspaper editor-in-chief) cannot get into University of South Florida.
The article is posted below.
So if your child is a high school junior or even a 10th grader, don’t wait another second and register for one of our workshops at http://www.collegeplanningadvice.com/wkshpsched.htm.
* The Five Greatest Myths About How the Financial Aid Process REALLY Works;
* Three Critical Questions You Must Ask Each College Before You Even Think About Applying;
* How much money your neighbors ACTUALLY have saved up for college and where you stand; and
* The "dirty little secret" about Florida Pre-paid and Bright futures.
Here's the article.
Top Florida high school students once considered Florida International University a ''safe'' fallback for those rejected by more-elite colleges like the University of Florida. Now that a budget crisis has forced drastic cuts at all 11 state universities, that's no longer the case.
Freshman enrollment is capped at the previous year's level for the first time in recent memory. Admission standards are rising, and many students find themselves squeezed out of a system they had long taken for granted.
Consider high school senior Ashley Casal, 18: class president at Miami Beach Senior High; yearbook editor; community volunteer; likely top 5 percent of her graduating class. Not enough to get her into FIU.
''I was really disappointed,'' Casal said. ``It's been really hard this year. Everybody has been feeling it.''
University-bound high school students like Casal know the routine: Take college-level classes, do your service hours, round out the package with an interesting hobby and a compelling essay. Not long ago, a Florida kid with all of the above and decent test scores could count on getting into a state school.
Not anymore.
''They're doing everything they're being told they need to do,'' said Cindy Woodring, continuing education advisor at Coral Springs High. ``They're either deferred or denied college acceptance.''
Carolyn Roberts, chairwoman of the Florida Board of Governors, said today's high school juniors and seniors will be most affected by the cutbacks.
''Students not only are prevented from attending the universities from which they are qualified to attend, it also means that if they are accepted, they are sitting in classes that are very crowded and dealing with advisors who are overworked,'' Roberts said.
FIU President Modesto ''Mitch'' Maidique said making it harder for Florida students to get into state colleges will hurt the state's ability to compete globally.
''We're taking a step backward,'' Maidique said, ``because if you reduce the number of folks who go into the pipeline, you reduce the number of students exiting the pipeline.''
For today's high school juniors and seniors -- and the school advisors who help them plan their path into higher education -- there are fewer certainties when it comes to getting into a Florida university.
''It's their party,'' said Pam Kirtman, the continuing education advisor at Nova High in Davie. ``They can invite who they want.''
The only sure bet, Kirtman said, is a community college.
For a student who dreamed of growing up to be a Gator or a Seminole, community college can be a tough sell. Still, it's an option advisors more often pitch lately because students who earn an associate's degree from a community college are guaranteed admission to a state university -- though not necessarily the university of their choice -- to finish their four-year degree.
That's a strategy Vanessa Jaramillo, a senior at Beach High, is considering. Denied acceptance at FIU, she is hoping to spend some time at Miami Dade College and then transfer to either FIU or the University of Miami.
''It's definitely been stressful,'' said Jaramillo, an honors student who also serves as class secretary. ``I felt really bad for some kids. They were really having a rough time.''
Enrollment continues to rise at both Miami Dade College and Broward Community College. Both expect capped university enrollments to send even more recent high school graduates their way in the fall.
While community colleges will keep their doors open, they, too, are in a budget crunch. Students are encouraged to register as early as possible to get the classes they need.
BCC spokeswoman Jillian Printz said the college is ``looking very carefully at how we expand sections, how we use space, how we use our facilities to serve enrollment growth.''
Victoria Hernandez, MDC's director of governmental affairs, said the college may not be able to offer enough classes to meet demand.
''At some point, we have to ask: What is the breaking point for Miami Dade College?'' she said. ``As it is, our classes are full.''
Sonja Miller, the College Assistance Program advisor at Miami Norland Senior High, said besides urging students to consider community college, she also is encouraging them to explore colleges and universities in other states. In some instances, the out-of-state alternatives are cheaper than their Florida counterparts, she said.
''There are students who want to stay in Florida but can't,'' she said. ``Our children are literally being forced out of the state.''
Miami Norland scholar-athlete Michael Allen applied to three colleges last semester -- two in-state and one in Washington, D.C.
Allen, who has a 3.4 GPA, is taking three advanced placement classes this year. He's is captain of the varsity baseball team and editor-in-chief of the student newspaper.
But Allen did not get into the University of South Florida. He hadn't heard back from Florida Atlantic University and Howard University, and he plans to apply to Florida A&M University.
''We hear it all the time: The number of applicants is going up, especially in the major schools,'' Allen said.
Although high school seniors are the ones dealing with last-minute decisions and rejection letters, juniors are worrying too.
''It's really hard,'' said Anais Alfonso, 17, of Hollywood. The Nova High junior, who is considering a career in nursing, said she has stopped thinking in terms of where she wants to go. Now, she's looking for schools that will admit her with at least a half scholarship.
Nova High school senior Zachary Rosen, who lives in Miramar and will attend Florida Gulf Coast University in Fort Myers, advised juniors to start their application process as early as possible.
''It could be too late for them,'' said Zachary, 18, pointing out that students need to work on their academics well before junior year. ``I would be talking to the freshmen.''
Kirtman, the Nova High advisor, said she urges parents not to attach their egos to where their kids go to college, and assures kids that there are many places where they can flourish.
''I make it really, really clear to them that their success in life and their happiness as a person isn't hinged on where they go to college,'' she said.
College Pete and I talk about this stuff 4-5 times per month...see, we weren't making it up!!!! Wake up and smell the coffee - stop blowing off your college planning!
http://www.collegeplanningadvice.com/wkshpsched.htm
It appeared in today's Miami Herald. The header - "Budget cuts lock more out of state universities."
The story profiles some outstanding South Florida's college-bound students who cannot beg, borrow or steal their way into a state college, thanks to budget cuts and enrollment freezes! Kids with excellent grades (top 5% in the class) and leadership positions (class president, yearbook editor) cannot get into to "safety" schools anymore! Another student (3.4 GPA, varsity baseball captain, newspaper editor-in-chief) cannot get into University of South Florida.
The article is posted below.
So if your child is a high school junior or even a 10th grader, don’t wait another second and register for one of our workshops at http://www.collegeplanningadvice.com/wkshpsched.htm.
* The Five Greatest Myths About How the Financial Aid Process REALLY Works;
* Three Critical Questions You Must Ask Each College Before You Even Think About Applying;
* How much money your neighbors ACTUALLY have saved up for college and where you stand; and
* The "dirty little secret" about Florida Pre-paid and Bright futures.
Here's the article.
Top Florida high school students once considered Florida International University a ''safe'' fallback for those rejected by more-elite colleges like the University of Florida. Now that a budget crisis has forced drastic cuts at all 11 state universities, that's no longer the case.
Freshman enrollment is capped at the previous year's level for the first time in recent memory. Admission standards are rising, and many students find themselves squeezed out of a system they had long taken for granted.
Consider high school senior Ashley Casal, 18: class president at Miami Beach Senior High; yearbook editor; community volunteer; likely top 5 percent of her graduating class. Not enough to get her into FIU.
''I was really disappointed,'' Casal said. ``It's been really hard this year. Everybody has been feeling it.''
University-bound high school students like Casal know the routine: Take college-level classes, do your service hours, round out the package with an interesting hobby and a compelling essay. Not long ago, a Florida kid with all of the above and decent test scores could count on getting into a state school.
Not anymore.
''They're doing everything they're being told they need to do,'' said Cindy Woodring, continuing education advisor at Coral Springs High. ``They're either deferred or denied college acceptance.''
Carolyn Roberts, chairwoman of the Florida Board of Governors, said today's high school juniors and seniors will be most affected by the cutbacks.
''Students not only are prevented from attending the universities from which they are qualified to attend, it also means that if they are accepted, they are sitting in classes that are very crowded and dealing with advisors who are overworked,'' Roberts said.
FIU President Modesto ''Mitch'' Maidique said making it harder for Florida students to get into state colleges will hurt the state's ability to compete globally.
''We're taking a step backward,'' Maidique said, ``because if you reduce the number of folks who go into the pipeline, you reduce the number of students exiting the pipeline.''
For today's high school juniors and seniors -- and the school advisors who help them plan their path into higher education -- there are fewer certainties when it comes to getting into a Florida university.
''It's their party,'' said Pam Kirtman, the continuing education advisor at Nova High in Davie. ``They can invite who they want.''
The only sure bet, Kirtman said, is a community college.
For a student who dreamed of growing up to be a Gator or a Seminole, community college can be a tough sell. Still, it's an option advisors more often pitch lately because students who earn an associate's degree from a community college are guaranteed admission to a state university -- though not necessarily the university of their choice -- to finish their four-year degree.
That's a strategy Vanessa Jaramillo, a senior at Beach High, is considering. Denied acceptance at FIU, she is hoping to spend some time at Miami Dade College and then transfer to either FIU or the University of Miami.
''It's definitely been stressful,'' said Jaramillo, an honors student who also serves as class secretary. ``I felt really bad for some kids. They were really having a rough time.''
Enrollment continues to rise at both Miami Dade College and Broward Community College. Both expect capped university enrollments to send even more recent high school graduates their way in the fall.
While community colleges will keep their doors open, they, too, are in a budget crunch. Students are encouraged to register as early as possible to get the classes they need.
BCC spokeswoman Jillian Printz said the college is ``looking very carefully at how we expand sections, how we use space, how we use our facilities to serve enrollment growth.''
Victoria Hernandez, MDC's director of governmental affairs, said the college may not be able to offer enough classes to meet demand.
''At some point, we have to ask: What is the breaking point for Miami Dade College?'' she said. ``As it is, our classes are full.''
Sonja Miller, the College Assistance Program advisor at Miami Norland Senior High, said besides urging students to consider community college, she also is encouraging them to explore colleges and universities in other states. In some instances, the out-of-state alternatives are cheaper than their Florida counterparts, she said.
''There are students who want to stay in Florida but can't,'' she said. ``Our children are literally being forced out of the state.''
Miami Norland scholar-athlete Michael Allen applied to three colleges last semester -- two in-state and one in Washington, D.C.
Allen, who has a 3.4 GPA, is taking three advanced placement classes this year. He's is captain of the varsity baseball team and editor-in-chief of the student newspaper.
But Allen did not get into the University of South Florida. He hadn't heard back from Florida Atlantic University and Howard University, and he plans to apply to Florida A&M University.
''We hear it all the time: The number of applicants is going up, especially in the major schools,'' Allen said.
Although high school seniors are the ones dealing with last-minute decisions and rejection letters, juniors are worrying too.
''It's really hard,'' said Anais Alfonso, 17, of Hollywood. The Nova High junior, who is considering a career in nursing, said she has stopped thinking in terms of where she wants to go. Now, she's looking for schools that will admit her with at least a half scholarship.
Nova High school senior Zachary Rosen, who lives in Miramar and will attend Florida Gulf Coast University in Fort Myers, advised juniors to start their application process as early as possible.
''It could be too late for them,'' said Zachary, 18, pointing out that students need to work on their academics well before junior year. ``I would be talking to the freshmen.''
Kirtman, the Nova High advisor, said she urges parents not to attach their egos to where their kids go to college, and assures kids that there are many places where they can flourish.
''I make it really, really clear to them that their success in life and their happiness as a person isn't hinged on where they go to college,'' she said.
College Pete and I talk about this stuff 4-5 times per month...see, we weren't making it up!!!! Wake up and smell the coffee - stop blowing off your college planning!
http://www.collegeplanningadvice.com/wkshpsched.htm
Wednesday, March 26, 2008
The Surprising Way an Acceptance to a Top College Can Shatter Your Student’s Dreams
Here’s an all-too-common scenario for parents of college-bound students this time of year, both here in Broward County, Florida and across the country.
Q: I'm a senior and accepted to Columbia University. I just received my financial aid award but we were offered only a high fee, high rate loan that we can’t afford. Why?
A: Each spring, we receive distress calls from parents, heartbroken by their child’s acceptance into her dream school! The student has performed admirably: achieved high grades in challenging classes; extra-curricular activities; mastered the SAT and submitted college applications well before deadlines.
The good news is acceptance into a top choice college. But elation turns to depression when the financial aid award arrives – five weeks before the school requires a commitment and a scant five months before college starts. In this case, the entire award was a Parent Loan for Undergraduate Students (PLUS) loan.
The family in this example did not understand the Department of Education’s eligibility rules for financial aid. More importantly, they failed to position their finances to maximize their eligibility.
I could tell from the award letter that this family’s Expected Family Contribution (EFC) was too high. The EFC is generated when you fill out your financial aid forms (the FAFSA and the CSS Profile, typically.) This unfortunate “award" is typical for families whose EFC's are higher than the cost of attendance for a highly-selective school. The most frustrating thing was that this situation could have been easily avoided.
How? By planning ahead so that you’re not blind-sided like the family in this example. Calculate your EFC by sophomore or junior year at the latest. This way you can implement a financial plan to pay for every college on your student's list before the applications are even submitted. Although your initial EFC will often be an impossibly high number, do not despair – your EFC is controllable. The lower your EFC, the more aid you’ll receive. Schools like Columbia will fall within your reach.
The other half of the equation is understanding that some schools, particularly private, selective schools, have more money to offer than others. They award differently – some give more grants than loans. Finally, you should be aware that almost all schools reward grants and scholarships on “need,” not based on academic achievement (merit). This is critical information you must have before submitting your applications.
Understand that college financial planning is equally critical as admissions counseling and SAT preparation. After all, what good is it to bust your behind to get into the best college you can, only to learn that you go because you can’t afford it?
Andrew Lockwood, J.D. is co-owner of College Planning Specialists in Weston. His firm offers free workshops on topics such as “5 Myths About Qualifying for Financial Aid” and “The Dirty Little Secret (More Dirty Than Eliot Spitzer’s!) About Florida Pre-Paid Plans and Bright Futures” He hosts the “College Planning Power Hour” radio show Sundays, 10:00-11:00 AM on WFTL Sports, ESPN Radio, 1400 AM (online at http://www.collegeplanningradio.com/). More information is available at http://www.collegeplanningadvice.com/.
Q: I'm a senior and accepted to Columbia University. I just received my financial aid award but we were offered only a high fee, high rate loan that we can’t afford. Why?
A: Each spring, we receive distress calls from parents, heartbroken by their child’s acceptance into her dream school! The student has performed admirably: achieved high grades in challenging classes; extra-curricular activities; mastered the SAT and submitted college applications well before deadlines.
The good news is acceptance into a top choice college. But elation turns to depression when the financial aid award arrives – five weeks before the school requires a commitment and a scant five months before college starts. In this case, the entire award was a Parent Loan for Undergraduate Students (PLUS) loan.
The family in this example did not understand the Department of Education’s eligibility rules for financial aid. More importantly, they failed to position their finances to maximize their eligibility.
I could tell from the award letter that this family’s Expected Family Contribution (EFC) was too high. The EFC is generated when you fill out your financial aid forms (the FAFSA and the CSS Profile, typically.) This unfortunate “award" is typical for families whose EFC's are higher than the cost of attendance for a highly-selective school. The most frustrating thing was that this situation could have been easily avoided.
How? By planning ahead so that you’re not blind-sided like the family in this example. Calculate your EFC by sophomore or junior year at the latest. This way you can implement a financial plan to pay for every college on your student's list before the applications are even submitted. Although your initial EFC will often be an impossibly high number, do not despair – your EFC is controllable. The lower your EFC, the more aid you’ll receive. Schools like Columbia will fall within your reach.
The other half of the equation is understanding that some schools, particularly private, selective schools, have more money to offer than others. They award differently – some give more grants than loans. Finally, you should be aware that almost all schools reward grants and scholarships on “need,” not based on academic achievement (merit). This is critical information you must have before submitting your applications.
Understand that college financial planning is equally critical as admissions counseling and SAT preparation. After all, what good is it to bust your behind to get into the best college you can, only to learn that you go because you can’t afford it?
Andrew Lockwood, J.D. is co-owner of College Planning Specialists in Weston. His firm offers free workshops on topics such as “5 Myths About Qualifying for Financial Aid” and “The Dirty Little Secret (More Dirty Than Eliot Spitzer’s!) About Florida Pre-Paid Plans and Bright Futures” He hosts the “College Planning Power Hour” radio show Sundays, 10:00-11:00 AM on WFTL Sports, ESPN Radio, 1400 AM (online at http://www.collegeplanningradio.com/). More information is available at http://www.collegeplanningadvice.com/.
Saturday, March 15, 2008
The True Cost of College According to Two New Yorkers
Here's an article from two writers with the NY Daily News. Pay attention to the numbers they cite for "other," miscelleneous costs. For Florida costs, these numbers are essentially the same.
After you read the piece and you're still looking for answers about how to pay for college without going broke, I suggest you attend our next free workshop on college planning. Call our office or check our website for information.
***********************************
Saturday, March 15, 2008
What does college really cost?
By George Chin and Alice Murphey
Monday, March 10th 2008, 4:00 AM
You've read the eye-popping numbers about the cost of college: up to $50,000 a year for tuition, students graduating with six-figure debts.
What does college really cost?
The short answer is it depends on three key factors: where you go, how careful you budget and how much financial aid you receive.
The latest annual survey from the College Board, which tracks higher education trends, puts the average cost of a year of private college at $32,307 for 2007-08. But that's the national average for a particular type of college.
These are the more expensive, high-reputation private schools and out-of-state public universities, where you'll have to pay to live in a dorm or off-campus.
There are far less expensive choices, such as the City University of New York's four-year and community colleges, where you'll likely live at home while studying. CUNY's Peter F. Vallone Academic Scholarships can defray the costs further, awarding up to $1,250 to students with at least a B average enrolling from any New York City high school. Students accepted into CUNY's William E. Macaulay Honors College on the Upper West Side get free tuition, a $7,500 academic stipend and a laptop.
Whatever school you choose, remember: When you are figuring out what college will cost, look beyond admissions materials, which may only list tuition, fees, and room and board.
College students do not live by tuition alone. There are textbooks to pay for, not to mention transportation, coffee, phone calls, laundry, etc. It adds up. How much? We estimate a minimum of $4,000 a year. Generally, to calculate your yearly tab if you live at home, add $5,500 to $6,000 to tuition and fees. If you live away at school, tack at least $11,000.
Be sure to read the colleges' financial aid materials or Web sites when breaking down the cost of attendance. Colleges figure those costs when deciding whether to award you financial aid, including not only tuition, fees, and room and board, but allowances for books, supplies, transportation to classes, extracurricular activities and personal costs.
According to the College Board, expect to pay, on average, $921 to $988 for books and supplies; $6,875 to $8,595 for room and board (in a dorm or off campus); $768 to $1,284 for transportation, and $1,311 to $2,138 for miscellaneous expenses - depending on the type of institution.
It's hardly chump change, but you will still need to budget carefully. If you don't want maxed-out credit card bills slapping you during finals, spend smartly.
By now you've probably filed your Free Application for Federal Student Aid and have your estimated family contribution. You have an idea of college costs. Family contribution and cost are the key factors in a college's calculation of aid. The mathematical formula is simple: Cost - estimated family contribution = need.
The college financial aid office's role is to tap into the many forms, programs and sources to help you meet that need. We refer to that process as packaging. It results in a financial aid award letter outlining what you can expect.
In the coming weeks, we'll explain how to evaluate these aid packages to see which realistically match your family's ability to pay for your higher education.
Your Money columnists George Chin and Alice Murphey are the former and current directors of financial aid for the City University of New York. They've each advised students about managing college costs for more than 30 years.In figuring costs, look far beyond tuition and room and board.
*****************************************
Check out our free workshops that give you ideas you can use right away to maximize the financial aid you'll receive - there's more than 130 Billion of Federal Aid available for your college-bound student...learn how to get your fair share! Call our office at 954.659.1234 or visit our website, www.CollegePlanningAdvice.com.
After you read the piece and you're still looking for answers about how to pay for college without going broke, I suggest you attend our next free workshop on college planning. Call our office or check our website for information.
***********************************
Saturday, March 15, 2008
What does college really cost?
By George Chin and Alice Murphey
Monday, March 10th 2008, 4:00 AM
You've read the eye-popping numbers about the cost of college: up to $50,000 a year for tuition, students graduating with six-figure debts.
What does college really cost?
The short answer is it depends on three key factors: where you go, how careful you budget and how much financial aid you receive.
The latest annual survey from the College Board, which tracks higher education trends, puts the average cost of a year of private college at $32,307 for 2007-08. But that's the national average for a particular type of college.
These are the more expensive, high-reputation private schools and out-of-state public universities, where you'll have to pay to live in a dorm or off-campus.
There are far less expensive choices, such as the City University of New York's four-year and community colleges, where you'll likely live at home while studying. CUNY's Peter F. Vallone Academic Scholarships can defray the costs further, awarding up to $1,250 to students with at least a B average enrolling from any New York City high school. Students accepted into CUNY's William E. Macaulay Honors College on the Upper West Side get free tuition, a $7,500 academic stipend and a laptop.
Whatever school you choose, remember: When you are figuring out what college will cost, look beyond admissions materials, which may only list tuition, fees, and room and board.
College students do not live by tuition alone. There are textbooks to pay for, not to mention transportation, coffee, phone calls, laundry, etc. It adds up. How much? We estimate a minimum of $4,000 a year. Generally, to calculate your yearly tab if you live at home, add $5,500 to $6,000 to tuition and fees. If you live away at school, tack at least $11,000.
Be sure to read the colleges' financial aid materials or Web sites when breaking down the cost of attendance. Colleges figure those costs when deciding whether to award you financial aid, including not only tuition, fees, and room and board, but allowances for books, supplies, transportation to classes, extracurricular activities and personal costs.
According to the College Board, expect to pay, on average, $921 to $988 for books and supplies; $6,875 to $8,595 for room and board (in a dorm or off campus); $768 to $1,284 for transportation, and $1,311 to $2,138 for miscellaneous expenses - depending on the type of institution.
It's hardly chump change, but you will still need to budget carefully. If you don't want maxed-out credit card bills slapping you during finals, spend smartly.
By now you've probably filed your Free Application for Federal Student Aid and have your estimated family contribution. You have an idea of college costs. Family contribution and cost are the key factors in a college's calculation of aid. The mathematical formula is simple: Cost - estimated family contribution = need.
The college financial aid office's role is to tap into the many forms, programs and sources to help you meet that need. We refer to that process as packaging. It results in a financial aid award letter outlining what you can expect.
In the coming weeks, we'll explain how to evaluate these aid packages to see which realistically match your family's ability to pay for your higher education.
Your Money columnists George Chin and Alice Murphey are the former and current directors of financial aid for the City University of New York. They've each advised students about managing college costs for more than 30 years.In figuring costs, look far beyond tuition and room and board.
*****************************************
Check out our free workshops that give you ideas you can use right away to maximize the financial aid you'll receive - there's more than 130 Billion of Federal Aid available for your college-bound student...learn how to get your fair share! Call our office at 954.659.1234 or visit our website, www.CollegePlanningAdvice.com.
Thursday, March 13, 2008
Avoiding Unpleasant Surprises During College Financial Aid Award Season
This time of year, college-bound students start receiving financial aid award letters from the schools they have applied to. Here’s a typical question asked of us during our free workshops in “financial aid award season:”
Q. We're confused about our son's financial aid award from (Extremely Competitive) University . Our Expected Family Contribution (EFC) is $15,000, but the cost of college around $44,000. The financial aid office offered us only loans. What happened?
A. Here's how the system works: Most financial aid is based on “Need,” calculated as follows: COA-EFC = Need. (COA stands for cost of attendance: tuition, room, board and other incidentals). So the lower your EFC, the higher your Need. The higher your Need, the more aid you receive. But hang on – there are plently of nuances behind this simple formula.
Less than 3 percent of colleges meet 100 percent of Need. Here in Florida, the range is from 30% to approximately 85% of need. The elite, private schools tend to be the most generous, since they have the largest endowments.
But it’s not just the raw percentage of Need that is important; it’s critical to understand how Need is met – what percentage is “free” aid – grants vs. how much is“self-help” - loans and work-study. This mixture varies tremendously among the schools. Some offer 100% grants - Harvard and other Ivy’s,notably; others 85% free, 15% loans. A good ratio here in Florida is 60% free; 40% loans.
So it’s confusing when considering a private school that meets less than 100% of Need: If the COA is $50,000 and EFC is $20,000 - Need is $30,000 (COA-EFC). Many families mistakenly expect an award of $30,000. But if school meets, on average, only 80% of the Need ($24,000), the remaining 20% or $6,000 is additional money the family must cough up. So this family's "adjusted" EFC becomes $24,000.
I realize that this stuff is hard to understand at first blush. Most likely, you’ve never had this explained to you. That’s why we run free college planning workshops several times per month.
But here’s an important point to take away from this post: it’s critical where you apply to college. Some schools have more attractive financial aid packages than others. That’s why we recommend that you start the planning process in Sophomore year of high school; Junior year at the latest. Start by calculating your EFC, and understand that there are legal, ethical and moral ways to lower that number so you maximize your financial aid award letter. Start your planning early so you’re pleased, not depressed, when you receive your award letters.
Andrew Lockwood, J.D. is co-owner of College Planning Specialists in Weston. He co-hosts “The College Planning Power Hour” each Sunday morning, 10:00-10:00 am, WFTL Sports 1400 AM, ESPN Radio. His firm offers free workshops on topics such as “5 Myths About Qualifying for Financial Aid” and “3 Critical Questions You Must Ask The Financial Aid Office Before You Apply:” More information is available at www.CollegePlanningAdvice.com.
Q. We're confused about our son's financial aid award from (Extremely Competitive) University . Our Expected Family Contribution (EFC) is $15,000, but the cost of college around $44,000. The financial aid office offered us only loans. What happened?
A. Here's how the system works: Most financial aid is based on “Need,” calculated as follows: COA-EFC = Need. (COA stands for cost of attendance: tuition, room, board and other incidentals). So the lower your EFC, the higher your Need. The higher your Need, the more aid you receive. But hang on – there are plently of nuances behind this simple formula.
Less than 3 percent of colleges meet 100 percent of Need. Here in Florida, the range is from 30% to approximately 85% of need. The elite, private schools tend to be the most generous, since they have the largest endowments.
But it’s not just the raw percentage of Need that is important; it’s critical to understand how Need is met – what percentage is “free” aid – grants vs. how much is“self-help” - loans and work-study. This mixture varies tremendously among the schools. Some offer 100% grants - Harvard and other Ivy’s,notably; others 85% free, 15% loans. A good ratio here in Florida is 60% free; 40% loans.
So it’s confusing when considering a private school that meets less than 100% of Need: If the COA is $50,000 and EFC is $20,000 - Need is $30,000 (COA-EFC). Many families mistakenly expect an award of $30,000. But if school meets, on average, only 80% of the Need ($24,000), the remaining 20% or $6,000 is additional money the family must cough up. So this family's "adjusted" EFC becomes $24,000.
I realize that this stuff is hard to understand at first blush. Most likely, you’ve never had this explained to you. That’s why we run free college planning workshops several times per month.
But here’s an important point to take away from this post: it’s critical where you apply to college. Some schools have more attractive financial aid packages than others. That’s why we recommend that you start the planning process in Sophomore year of high school; Junior year at the latest. Start by calculating your EFC, and understand that there are legal, ethical and moral ways to lower that number so you maximize your financial aid award letter. Start your planning early so you’re pleased, not depressed, when you receive your award letters.
Andrew Lockwood, J.D. is co-owner of College Planning Specialists in Weston. He co-hosts “The College Planning Power Hour” each Sunday morning, 10:00-10:00 am, WFTL Sports 1400 AM, ESPN Radio. His firm offers free workshops on topics such as “5 Myths About Qualifying for Financial Aid” and “3 Critical Questions You Must Ask The Financial Aid Office Before You Apply:” More information is available at www.CollegePlanningAdvice.com.
Saturday, March 8, 2008
College Pete and Andy Debut College Planning Radio Show!
This just in -
College Pete and I have launched our radio show, "The College Planning Power Hour." We cover all sorts of 'insider' information about college financial aid, student loans and how to find grants, scholarships and other free money for college. We also cover the greatest myths about college financial aid, including the false belief that families with high, six figure incomes cannot qualify for financial aid!
We'll also feature the "S.A.T. Word of the Day" with our resident "S.A.T Godfather," Michael El-Deiry. Each week the Godfather will enlighten our vocabulary with a fresh S.A.T. vocabulary word and try to stump us.
Since we're on ESPN Radio, we'll also come up with college sports related trivia and other stuff. For example, next week is "Selection Sunday" for the NCAA men's basketball tournament. We'll be joined by Andy Katz, ESPN college basketball reporter who will go over his picks for "March Madness." Then, we'll share OUR picks for the schools invited to the "big dance" (based on how generous each college is with financial aid.) Fun!!!
We air each Sunday, 10-11:00 am on WFTL, 1400AM - ESPN Radio. You can listen online at: www.CollegePlanningRadio.com.
College Pete and I have launched our radio show, "The College Planning Power Hour." We cover all sorts of 'insider' information about college financial aid, student loans and how to find grants, scholarships and other free money for college. We also cover the greatest myths about college financial aid, including the false belief that families with high, six figure incomes cannot qualify for financial aid!
We'll also feature the "S.A.T. Word of the Day" with our resident "S.A.T Godfather," Michael El-Deiry. Each week the Godfather will enlighten our vocabulary with a fresh S.A.T. vocabulary word and try to stump us.
Since we're on ESPN Radio, we'll also come up with college sports related trivia and other stuff. For example, next week is "Selection Sunday" for the NCAA men's basketball tournament. We'll be joined by Andy Katz, ESPN college basketball reporter who will go over his picks for "March Madness." Then, we'll share OUR picks for the schools invited to the "big dance" (based on how generous each college is with financial aid.) Fun!!!
We air each Sunday, 10-11:00 am on WFTL, 1400AM - ESPN Radio. You can listen online at: www.CollegePlanningRadio.com.
Saturday, March 1, 2008
There is $130 Billion Available For Financial Aid, But...
Here's an article that appeared recently the school paper of Palo Alto. It details that, although there is a huuuuuuuge amount of financial aid out there ($130 Billion), receiving it is more competitive than ever.
When you're done with the article, mosey on over to www.CollegePlanningAdvice, which has important information you can use to see how you can get the inside track on qualifying for your share.
Here's the piece:
College tuition prices out of controlIncreasing college tuition places more stress on college bound students
Posted Mon Jan. 28, 12:42:16 PST 2008By Kevin Harvey of The Campanile
As most Palo Alto High School students know by now, the competition involved with college admissions is enormous and steadily increasing. Of the 2008 national graduating class of 3.2 million students, about 30 percent will attend a college or university, the largest number in United States history.
Many students resort to the help of private college counselors for guidance, reassurance and such preparation as aid in essay and application writing.
Last year, over 120,000 high school seniors applied to colleges and universities with the help of a private counselor. This increasing competition allows colleges and universities to raise their tuition and application prices.
As the competition and tuition prices continue to increase, the number of students who are able to attend colleges and universities will decrease. However, according to The College Board, there is more than $130 billion available for financial aid this coming year.
Despite this, financial aid will continue to be increasingly difficult to receive because of the increasing number of eligible applicants.
Private colleges and universities are being run like corporations, striving to gain profit and forgetting about providing their services for a reasonable fee. Universities are raising their tuition prices because they can, due to demand.
The price of tuition among private universities increased by 6.3 percent this year, while public colleges increased tuition by a drastic 6.6 percent, according to The College Board.
Moreover, The College Board recently announced that it will no longer support the Federal Family Education Loan Program, one of the largest student loan providers in the nation. After Oct. 15, the College Board refused applications.
According to The College Board, students should expect to pay between $95 and $1,404 more
for tuition this year than last year, depending on the type of college or university.
In 1990, the tuition price for an undergraduate student living on the campus of Stanford University was $14,280 per year. The tuition price increased about 300 percent to an astonishing $44,267 for the 2008 academic year.
Many people assume that this is because Stanford is expanding their facilities and needs to increase tuition prices to compensate.
These assumptions are incorrect. Almost all universities in the United States pay their expenses, including their staff members' salaries, with the fees they charge for application papers. The fee that they charge attending students for tuition is almost entirely for profit.
However, many universities, such as the University of Michigan at Ann Arbor, are trying to prevent undergraduate tuition prices from increasing. But graduate school tuition prices have heavily increased to compensate for the profit lost through keeping the undergraduate tuition relatively low.
As tuition prices increase rapidly, many students apply for financial aid, but most students who apply for aid do not end up receiving it. This problem is most common among middle class families because their income is not low enough to make them completely dependent on financial aid, but not high enough to prevent them from struggling with payments and tuition costs.
If colleges and universities lowered their tuition costs, they would allow more students that were
previously dependent on financial aid to attend.
This would raise profit margins because universities would have more students attending who pay lower tuition costs.
This story originally appeared in The Campanile on January 28, 2008.
###
Want inside information on financial aid and "How to Pay for College Without Going Broke?" Visit www.CollegePlanningAdvice.com.
When you're done with the article, mosey on over to www.CollegePlanningAdvice, which has important information you can use to see how you can get the inside track on qualifying for your share.
Here's the piece:
College tuition prices out of controlIncreasing college tuition places more stress on college bound students
Posted Mon Jan. 28, 12:42:16 PST 2008By Kevin Harvey of The Campanile
As most Palo Alto High School students know by now, the competition involved with college admissions is enormous and steadily increasing. Of the 2008 national graduating class of 3.2 million students, about 30 percent will attend a college or university, the largest number in United States history.
Many students resort to the help of private college counselors for guidance, reassurance and such preparation as aid in essay and application writing.
Last year, over 120,000 high school seniors applied to colleges and universities with the help of a private counselor. This increasing competition allows colleges and universities to raise their tuition and application prices.
As the competition and tuition prices continue to increase, the number of students who are able to attend colleges and universities will decrease. However, according to The College Board, there is more than $130 billion available for financial aid this coming year.
Despite this, financial aid will continue to be increasingly difficult to receive because of the increasing number of eligible applicants.
Private colleges and universities are being run like corporations, striving to gain profit and forgetting about providing their services for a reasonable fee. Universities are raising their tuition prices because they can, due to demand.
The price of tuition among private universities increased by 6.3 percent this year, while public colleges increased tuition by a drastic 6.6 percent, according to The College Board.
Moreover, The College Board recently announced that it will no longer support the Federal Family Education Loan Program, one of the largest student loan providers in the nation. After Oct. 15, the College Board refused applications.
According to The College Board, students should expect to pay between $95 and $1,404 more
for tuition this year than last year, depending on the type of college or university.
In 1990, the tuition price for an undergraduate student living on the campus of Stanford University was $14,280 per year. The tuition price increased about 300 percent to an astonishing $44,267 for the 2008 academic year.
Many people assume that this is because Stanford is expanding their facilities and needs to increase tuition prices to compensate.
These assumptions are incorrect. Almost all universities in the United States pay their expenses, including their staff members' salaries, with the fees they charge for application papers. The fee that they charge attending students for tuition is almost entirely for profit.
However, many universities, such as the University of Michigan at Ann Arbor, are trying to prevent undergraduate tuition prices from increasing. But graduate school tuition prices have heavily increased to compensate for the profit lost through keeping the undergraduate tuition relatively low.
As tuition prices increase rapidly, many students apply for financial aid, but most students who apply for aid do not end up receiving it. This problem is most common among middle class families because their income is not low enough to make them completely dependent on financial aid, but not high enough to prevent them from struggling with payments and tuition costs.
If colleges and universities lowered their tuition costs, they would allow more students that were
previously dependent on financial aid to attend.
This would raise profit margins because universities would have more students attending who pay lower tuition costs.
This story originally appeared in The Campanile on January 28, 2008.
###
Want inside information on financial aid and "How to Pay for College Without Going Broke?" Visit www.CollegePlanningAdvice.com.
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