College Financial Planning Guide
There is no way to avoid it: college is going to cost a lot. Recent reports show the average cost of tuition at in-state universities was $6,585 in 2008, and that's not even counting room and board. But there is some good news, too. More than $135 billion worth of financial aid is up for grabs this year, which is more than ever before. This means that for students with the foresight to research and plan their school financing ahead of time, attending college is actually more affordable than in previous years. Here are some basic tips to help you get started.
Start early by figuring out your expected family contributionIt is never too early to start looking into the financial costs of a higher education. Two of the most important things you will need to know are the cost of tuition at your chosen college and how much financial aid you can expect to receive.
Start by checking out tuition costs on your university's website. From there, it is a good idea to determine how much your family will be expected to contribute. Figuring out your EFC (Expected Family Contribution) will allow you to calculate the exact amount you will be expected to pay. This will go a long way in your planning process.
Apply for the FAFSA and do it on timeThe Free Application for Federal Student Aid (FAFSA) is used in disbursing not only federal student financial aid amounts, but also Pell Grants, student loans, and college work-study grants. Therefore, it is important that students do not wait to fill out their FAFSAs. Missing the deadline for the FAFSA will cost you a great deal in the long run.
Submitting the FAFSA costs nothing, and you may be surprised at who qualifies for aid. Even families who think they earn too much to qualify are encouraged to apply. Overall, 60 percent of students attending college today earn grant aid, with the amount of aid averaging $3,300 per student at four-year public colleges and $9,600 at private universities.
Look around for alternate optionsUniversities realize that many families cannot pay their Expected Family Contribution without a little help. And while government financial aid is great, it is not a student's only option. For those who may be struggling to pay their EFC, a number of other funding sources exist, including scholarships, fellowships, grants, work study programs, and student loans. Most students use a combination of the above funding sources over the course of their college education.
There are many financial aid options available. Make sure you do your research thoroughly. You do not want to miss out on scholarship or loan opportunities because you did not make the effort to seek them out.
Do not rule out schools prematurelyStudents should not rule out attending a particular school simply because it has a higher tuition cost. Universities that have higher tuition also commonly offer greater financial aid. This means that the actual cost to attend a private school with higher tuition may not be much more than the cost of attending an in-state school with a lower tuition. A student's best option is to look at a school's overall costs and the financial aid packages available before making any rash decisions.
Manage your money wiselyFinancial planning for college does not stop once classes begin. Students receiving any type of aid, either through scholarships, grants, or loans, should plan on making a financial budget and sticking to it. Students should also realize that onerous tasks like filling out FAFSA forms and applying for scholarships are not one time events. FAFSAs need to be submitted each school year in order to continue receiving aid, and many scholarships may also be awarded on an annual basis as well.
Article Resources:
Business WeekCollege Answer
http://www.collegeanswer.com/paying/content/pay_aid_fc.jsp
http://www.collegeanswer.com/paying/content/pay_college_costs.jsp
FinAid
Student Aid on the Web
US News
More articles on Financing Your Education | ||
