College Financial Aid Advisors

Every so often you will hear something in the media about how expensive the cost of attending college has gotten. Yet every year, right about this time, tens of thousands of high school students across the country are anxiously awaiting notice of whether they have been accepted into the college of their dreams. While the cost of college might rise, just as the cost of everything else does, parents and students are being just as determined in their search to find ways to pay for it. The number one way to pay for college is through financial aid. Each year, the U.S. Department of Education awards about $150 billion a year in grants, work-study funds, and low-interest loans to more than 14 million students. This aid can help cover the costs of tuition, fees, room, board, books and supplies. In addition to the federal government, aid can come from your home state, the college you plan on attending, or an outside organization. There are also many great grants and scholarships which can help cover your college costs. These are often considered “free” money because they do not have to be repaid. Some are based on need and some are based on merit, while others have unique factors which apply. It is well worth the time to research the types of grants and scholarships which are available because they can go a long way towards helping you pay for college. About one-third of today’s costs are being met through scholarships and grants. Another third or so is covered by parent and student savings. After that it comes down to student and parent borrowing through federal and private student loans. An August Discover student loans poll of 1000 parents of college-bound students revealed that twenty-nine percent of parents said that most of the money to pay for college will come from student loans. Half of the parents said that their children plan to use student loans, with 54 percent planning to use a combination of both federal and private student loans, 32 percent just using federal, 4 percent just using private, and 10 percent not sure. Knowledge Can be Powerful The poll also revealed that understanding the differences between federal and private student loans can help families determine what suits them best. While 68 percent of parents said they were very or somewhat knowledgeable about the differences, and 30 percent were either not very, or not at all knowledgeable. If you don’t understand the differences between these types of loans it is best to talk to the financial aid office at your college or talk to a trusted private college financial aid advisor who can help you make informed choices about the best choices for you. Set up an appointment now for a free financial aid strategy session with College Financial Aid Advisors (CFAA). Also be sure to request your free copy of The Twelve Most helpful College Financial Aid Tips.

What can you do after you have determined your federal and state college financial aid eligibility, applied for scholarships, and still find yourself short of funds needed to attend college? For some students, a student loan can help bridge the financial gap. While grants and scholarships do not have to be repaid, a loan must be paid back with interest. If you take out a loan, make sure you understand who is making the loan and the loan’s terms and conditions. Student loans can come from the federal government or from private sources such as a financial institution. To avoid financial difficulties in your future, don’t make these common student loan mistakes: 1. Not understanding the difference between subsidized and unsubsidized loans: Under the federal direct loan program, the Department of Education is the lender. Students who demonstrate financial need can qualify for subsidized loan programs. The Federal Perkins Loan Program is available to undergraduates with exceptional financial need. Under this program, the school is lender. Interest rates, amounts available and repayment terms vary based on the loan type. 2. Not taking advantage of PLUS loans: These loans are made to parents of dependent undergraduate students. While they involve an origination fee and different interest rates, they do offer deferment options while the child is in school. 3. Not understanding the difference between federal and private loans: If you still need funds after exhausting your eligibility under the federal loan programs, you may need to search for private loans. These loans are made by a lender such as a bank, credit organization, state agency, or a school. There are differences from federal loans and from lender to lender. Be sure you understand the terms of any private loans. 4. Borrowing too much money: You are allowed to borrow less than your school offers, and should only borrow what you need. Plan on using the money loaned to you only for educational expenses, and not living expenses. Student loans can add up quickly and you may find yourself with a larger amount of debt than expected upon graduation. 5. Failing to understand repayment terms: Understand that your student loans may become due if you drop out or reduce the number of classes you are taking. Upon graduation find out about any deferment or consolidation options. Failure to make payments on student loans will cause an adverse mark on your credit history and could follow you for many years to come. Learn More About Student Loan Options. Rules and terms about student loans are constantly being reviewed and updated. Talk to a college financial aid advisor who can help you sort through the options and make the smart money moves for your individual financial situation. Set up an appointment now for a free financial aid strategy session with College Financial Aid Advisors (CFAA). Also be sure to request your free copy of The Twelve Most helpful College Financial Aid Tips.

A new year always brings a flurry of resolutions and to-do lists, some of which even get fulfilled. Why is it so hard do things we know will benefit us in the long run? Do something different this year, and make a to-do list you can actually use. For high school seniors and their parents this means sitting down and paying close attention to the financial aid aspect of attending college. Put these five items on your to-do list now and you’ll have a better chance of being able to pay for the school of your dreams: 1. File the FAFSA: No two ways about it – the Free Application for Federal Student Aid is the entry point for all things having to do with college financial aid. It is the gateway to federal aid, and many states and colleges use it to determine your eligibility for financial assistance as well. The new 2020-21 FAFSA is available online now. Since some financial aid is awarded on a first-come, first-serve basis the sooner you fill it out, the better your chances of receiving the highest amount of aid to which you are entitled. 2. Check Your Work: The number one reason for failing to receive the maximum amount of financial aid is errors on the FAFSA. Don’t submit your form until you have checked all of your work. If you are not sure of something, ask someone. 3. Watch Deadlines: Each state has a different deadline for submitting your information. Some are a lot earlier than you might expect. 4. Understand the Financial Aid Process: You want to obtain the greatest amount of financial aid, scholarships, and grants first as this is money that does not have to be repaid. If there is still a gap, you will need to explore private financial lending sources. 5. Keep Looking for Scholarship: There is scholarship money available in many different shapes and forms. Some have earlier deadlines than others, and amounts vary from small to large, but it is well worth your time to expand your scholarship hunt. Resolve To Seek Help When Needed Most people are not born knowing how to complete the financial aid process, and few have the time available to fully learn all of its intricacies. There are professionals available who understand all aspects of this process. Talk to your high school counselor, the financial aid office at your college, or Federal Student Aid has live chat sessions available. All of these people can help make it easier and less stressful for you. It can also be helpful to speak with a college financial aid advisor who is totally focused on helping you receive the highest amount of financial aid available. Set up an appointment now for a free financial aid strategy session with College Financial Aid Advisors (CFAA). 

Each year The Lawlor Group conducts extensive research of their own, and also reviews other available research, to identify trends in the higher education marketplace. One of the trends they identified is called “The Power of Perception.” Their research indicates that “Economic conditions are influencing the way prospective students and their families view the value of attending a particular college.” Some of their specific findings include: • What students are paying: Lawlor reviewed College Board statistics which found that most students attend a college with tuition and fees of less than $11,100 per year, but for more than half of students at private colleges, tuition is over $31,000. • What students are borrowing: Students appear to be borrowing more than recommended, and are quickly ending up in default on their student loan debt much more than anticipated (Federal Student Aid). • Tuition increases may be outpacing median household income: In 2011-12, full-time dependent students had an average out-of-pocket cost (total price of attendance minus all aid, including loans) of $18,100 at four-year private institutions (NCES).  According to a Discover student loans poll, 79% of parents of college-bound students are “very” or “somewhat” worried about having enough money to contribute toward their child’s college education. Other polls suggest that parents may be restricting the colleges to which their children apply based on tuition price alone. In fact, Sallie Mae found that 67% of families eliminated colleges based on cost at some stage during their research and admission process – either before researching, after research but before applying, after admission, or after financial aid. However, these parents may be doing their students an injustice by eliminating a college too early in the process. It Ain’t Over Until the FAFSA is Filed The only true way to know whether a college is too expensive for a family’s budget is to complete the entire financial aid application process. This starts with the FAFSA (Free Application for Federal Student Aid) and finishes with a SAR (Student Aid Report). The FAFSA determines how much a student might be eligible for of the over $150 billion in grants, loans and work-study funds available each year. In addition FAFSA information may be used to calculate eligibility for state and school aid. FAFSA forms are available now. It is important to complete your form early as some funds are granted on a first-come, first-served basis, but it is even more crucial to make sure your FAFSA is completed correctly. The Department of Education reports that “the majority of people fill out the FAFSA in such a way that they do not receive all of the aid they are eligible for.” Make sure you get all the facts about finances before ruling out any college. Set up an appointment now for a financial aid strategy session with College Financial Aid Advisors (CFAA).