College Financial Aid

You could spend more to educate your children today than you paid for your home. The average tab for freshmen who entered a four-year public college in 1998 ran over $31,000. For those attending private institutions, the total bill will be more than $81,000. This is according to The College Board, an independent research organization that tracks college costs. That's just for a bachelor's degree — graduate programs can add tens of thousands more to the costs.

The good news: According to Consumer Reports (August 1998), two-thirds of all students attending public universities and 80% of those at private schools receive financial aid, with each student averaging almost $3,000 a year in assistance.

Still, BILLIONS of financial aid dollars go begging each year, while parents re–mortgage their homes or students mortgage their futures to pay the high cost of higher education. There are literally thousands of different types of aid programs available, in three general categories:

• Federal, state and campus-based grants. Grants are free money generally offered on a financial-need basis.
• Student loan programs. These can take a number of forms from special rate guarantees to special repayment schedules. These are also generally available on a needs test basis.
• Merit and "special situation" scholarships. These are given for achievement without regard to income or assets. They include performance awards and scholarships for talents such as music, dance or athletics, as well as scholarships based on affiliation to a certain religious or other group.

Unfortunately, many students never receive aid for which they are eligible. A number don't even apply.

1. Always apply. Don't assume you are ineligible. Even if your family income is high, it never hurts to apply especially since many other families won't.


2. Educate yourself. The application process can be long and complicated. Learning how the system works, however, can be worth thousands of dollars in aid.


3. Expect to jump through hoops. Eligibility standards and criteria for most aid are set by the federal government. You may have to deal with bureaucratic hassles. Worse, some of the most intimate details of your finances will be laid bare for scrutiny. At the same time, keep in mind that there is no single source of funds or single set of guidelines. Be prepared to request and complete many detailed and different scholarship forms. On the bright side: Much of the information requested will be the same.


4. Follow the instructions. Following the instructions to the letter in financial aid forms is crucial. Otherwise, you risk losing thousands of dollars in aid over a technicality.


5. Talk to a financial aid professional. Your best source of information? High school financial aid offices are good; college financial aid departments are better. Their job is to help students find college money. And there's no charge.


6. Be wary of third-party advisors, including scholarship search services and companies that tie product sales to financial aid advice. The information they sell is often available for free at libraries or guidance offices.


7. Negotiate your child's aid package with the individual institution. Competition for students is keen, so don't assume the school's first offer is its best. Let it be known that you are shopping around among several colleges. You may be pleasantly surprised.


8. Don't wait until the last minute. Start talking to counselors while your child is a junior in high school. Many offer seminars to help you get started.

There are no guarantees that your child will qualify and there is a fair amount of work involved. But you owe it to yourself and your child to explore the possibilities. Begin by checking out books at the library and visiting the numerous Internet sites that describe the many scholarship options available today.

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