Will your student need financial aid? Just ask your target school for their typical student expense package and the school’s scholarship application process.
A good first step is the FAFSA website (www.fafsa.gov) to complete the “Free Application for Federal Student Aid.” You’ll need last year’s 1040 and be prepared to list assets and liabilities similar to a mortgage application. The FAFSA determines federal grant and loan eligibility. Most states and schools also use it to determine eligibility levels.
State schools tabulate your student’s college expenses—tuition, fees, room and board, books and incidentals—and subtract expected family contributions determined by FAFSA. From this data the school projects aid a student’s family might need to help pay for college.
If your family qualifies, the college creates an aid package including grants, loans and possibly some work-study. If you’re eligible for a Pell Grant, you’ll be eligible at every school to which you apply.
Compare total aid offered to total anticipated costs. What’s the gap? How much will your family contribute and how much will be needed from loans. Assuming you take these steps with a number of colleges, you’ll be able to compare the relative “investments” and opportunities for your money and your student.
When comparing college aid packages be sure to focus on other considerations: Will students receive the same aid annually? If not automatic what’s the renewal criteria? If students excel in specific disciplines, will they qualify for additional scholarships? How does funding vary as a family’s income or expenses change (eg: second child in school; loss of income; death of parent).
Additional Aid. Outside scholarships are an excellent way to generate aid. In 2009, 8,200 students attending Penn State alone brought $25 million in outside scholarships. There are a number of web sites students can use in searching out scholarship information.
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