Financial Aid

May brings the end of the school year for many students. As high school seniors graduate, juniors are rising to take their place. Rising seniors have many decisions to make throughout the next school year. It’s important that rising seniors and their families begin to gather the necessary information to make informed decisions about college applications. One of the best ways to gather information is by visiting college campuses and speaking to current students and the financial aid office. As you’re visiting college campuses this summer and fall… Here’s our top 5 questions to ask financial aid offices:    #1: How much does it really cost to attend this college?  Most colleges have a published cost of attendance on their website or other materials. It’s important to still ask about costs above and beyond that listed amount. Think about whether your student will live on campus or commute and how that will impact your costs. This decision will also influence your meal plan choices. Don’t forget about book expenses and a “fun” budget for your student.  #2: What kind of financial aid do you offer? Put together an understanding of the types of financial aid available. Does this school have work study opportunities? What are the loan options? Look into Pell Grants, merit-based scholarships, and other options the school may have, too. It’s important to understand what is free money and what needs to be paid back. #3: What is a typical financial aid offer?  While the school can’t give you an answer about your particular situation until they see your completed FAFSA, they can tell you what typical students receives. This is another chance to ask about need-based and merit-based opportunities. Understanding financial aid terms gives you a better idea of what to expect and how to understand your own package.  #4: How long does the financial aid last?  Some colleges have a nice financial aid offer to motivate you to enroll as a freshman, but the package amount decreases for the sophomore year. Ask about the second year (and beyond) as well. Try to determine how many students drop out after the first year, and see how long it takes to graduate. If it takes longer than four years, does the financial support continue? It’s good to understand as many of the possibilities as you can for your student when it comes to finishing a degree.  #5: What are the job prospects from this college?  If your student is considering federal or private student loans to attend this college, you want to be sure they will have the financial wherewithal to repay them upon graduation. Ask the financial aid office how many students graduate with a job and what the average earning rate is. Again, while all situations differ, getting an idea of the end result is important, too.  Financial aid offices are here to help you navigate this new experience as a family. When visiting potential colleges, take the time to really speak with them and understand what’s ahead for you and your student.  Have more questions about financial aid? My new book, Secrets of a Financial Aid Pro, helps readers understand the different types of college financial aid and answers questions you might not even know you have! It also provides insights into talking to your children about money at all different ages, even after college. Order now.

During your student’s junior year, visiting college campuses is one of the highlights in the college application process. College visits are the best way to truly understand the vibe of each school. It’s also a great time to have your questions answered. During these visits, there’s a lot to do: see housing, meet current students, explore campus, and look at the city the school is in.  But, it’s important to remember that during these fun moments, you and your student need to determine if this is the right school for them. A perfect fit isn’t just based on campus life. It’s also rooted in the costs financially. Each college that your student considers needs to be reviewed financially. During your campus visit, make a stop at the financial aid office. Whether or not you think you’ll qualify for financial aid, it’s worthwhile to chat with the financial aid office. Here’s four important questions to ask financial aid offices during college visits!  #1: Is financial aid need-based or merit-based?  Financial aid is not always based on your financial need; sometimes it is based on your academic merits. Understanding which method the school offers is important. Need-based financial aid reflects your family’s financial position. If your family is not wealthy, it makes sense to look at need-based institutions. Merit-based means that money is awarded based on the applicant’s skill set, and financial need is not taken into consideration. If you have strong academic, athletic, or artistic skills, it might be more effective to search for merit-based scholarships or grants. Knowing the school’s system and your family’s situation is key when determining potential financial aid.  #2: What are your deadlines for financial aid applications?  Throughout the college admissions process, there are many deadlines floating around. Ask the financial aid office to clarify their specific timelines so that you don’t miss a single one. Once you know the deadlines, it’s important to submit paperwork and required documents at least two weeks ahead of the cut off.  #3: What are your financial aid particulars? Your family needs to understand the actual reality of financial aid. Determine how many students actually receive financial aid – and how much. It’s important to also determine how many years they can receive aid. While you’re in the financial aid office, it’s worth asking how many students actually graduate and find jobs in their related fields. Don’t be afraid to ask about pay, either. Your student needs to understand earning potential vs. loan payment needs. This may sound like a lot of questions but it’s necessary to determine how much financial aid you might truthfully receive and be able to pay back.  #4: What else can I do to help with college costs?  Sometimes the financial aid office is aware of additional opportunities that could change the bottom line for your family. They may know of job opportunities, scholarships, or other important ways to bring in money to help your student. It never hurts to ask!  College visits are about so much more than just finding out if you like the campus you’re visiting. Take the time to speak with students, professors, and most importantly: the financial aid office. All of the information you learn during your visit will help you make a more informed decision as you begin the college admissions process.  Who Are We? CFAA helps with the financial aid process, from completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter. Learn more about paying for college in my book, Secrets of a Financial Aid Pro, which also contains information on completing the FAFSA, applying for financial aid, saving for college, and repaying student loans. Order it now and learn how to get more actionable data out of college visits.

One of the most important components of your student’s decision about college is finances. While the financial aid office at schools that your student has applied to will be sending information, your family also needs to consider other budget line items that impact how much college actually costs. Understanding both of these numbers will help you estimate how much college actually costs! Some examples to consider include your student’s living expenses, travel costs, and other incidentals. Believe it or not, these other items add up quickly! You should also be considering how long financial aid actually lasts, the length of time to graduate, and post-college income earning potential in the field. If you’re not sure how to estimate how much college actually costs, here’s a few questions to consider:   How long does the degree take vs. how long your student will receive financial aid? Try to get a clear picture of exactly how long it takes most students in that area of study to graduate from that specific school. You should also consider what you already know about your own student’s academic abilities. Do you expect them to take longer? Once you have a better understanding of the length of the program, compare it to the offered financial aid. Do the two amounts of time match? Be sure to look at grants and scholarships carefully – as they don’t always last a full four years. It’s important to also review eligibility requirements and what happens if a student fails to meet them at any time. The amount of assistance being received could be a major point in determining which school your student attends.  Are there any additional costs for their major? Some areas of study accrue additional costs, which may not be included in the standard cost calculation. If your student is required to travel for any reason, find out if that is an additional amount that your family will have to pay. For some art or music-related majors, concerts, recitals, and performances may require extra fees. If there’s additional learning opportunities, it’s critical to understand the out of pocket cost. Otherwise, those fees could eat up your cash! Finally, if your student is interested in studying abroad, know the numbers. Request information to understand the financial picture of that opportunity. All of these numbers need to then be considered in your planning.  What is the amount of student loans your student can actually repay? Be very sure you completely grasp how much of your financial aid package comes in the form of student loans. Student loans can impact both parents and students, as well as younger family members too. Take the time to calculate the total burden placed on all family members once the monthly repayment begins. That number should then be compared with potential income earning abilities post-graduation. Ask the financial aid office how many students in your major get a job in that field. You should also discuss what initial salaries are like and where the jobs are located. Even students in medical or business fields might find that they struggle initially to get on their feet until they are able to start earning additional money. From the information provided by the financial aid office and these other line items, you should be able to make an educated guess on college costs for your student. If the college’s website does not provide sufficient insights, you can turn to the financial aid office for further information. All of these questions obviously impacts high school seniors deciding on colleges this spring. But, even if your student is a junior, your family should consider the final number when deciding on which schools to apply to. Money impacts college decisions, it’s a fact. Your goal should be to as informed as possible when deciding on schools.  Who Are We? CFAA helps with the financial aid process, from completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

By this point in the academic year, families of high school seniors are done with their college applications. Now, comes the fun part: waiting for acceptance and financial aid letters for final decisions. If your student was accepted during early admission, their decisions are likely made. For students who went the regular application route, the final decision may still be up in the air. By May, everyone will have to make their final commitment, though. One of the key factors in that final decision is how much college your family can afford for your student. So, the gap between your income and expected college costs must be considered.  Based on your FAFSA filing each potential college send a financial aid package letter to your student. As these letters come in, it’s time to break out the calculator and determine the total expenses involved in that school, and how much financial aid you’ll be eligible to receive. Now, you’ll be able to determine the gap between your EFC and total college costs.  What does “the gap” mean? The difference in your EFC and the amount of offered financial aid is called the gap. This is the amount of money your family will have to find to make up that difference. The gap you’ve uncovered will absolutely play a role in your student’s choice of school. While some families may decide to choose the second-choice college (where the financial burden might be less), others may believe their first-choice (and more expensive) school is the best option. If that’s you and/or your student, here are a few ways to reduce the gap:  How do we close the gap between your income and expected college costs? Ultimately, closing the gap comes down to your family’s priorities and needs. Here’s six ways you can look to close the gap between your income and expected college costs. Talk to the College:  The financial aid office might be willing to take another look at your application. Let them know if there have any major changes in your life that could impact your ability to pay the necessary amount. Make sure to prepare documentation the college may request. This could be changes in income, jobs, or dependents. Ask the college if there are any other ways to pay less money out of pocket. Look for Scholarships:  Not all scholarship applications are due in December. There are many types of college scholarships that have deadlines throughout the year. Spend time completing your searches and the applications. Hard work can pay off and you may find some “free” money here. Don’t forget to search locally for scholarships too, based on your student’s interests and background.  Think Carefully About Private Student Loans:  Private student loans do not have all the benefits of federal student loans. However, if a school is that important to your student, it may be a potential solution to close the gap. Be sure to agree with your child on payment responsibilities well in advance.  Ask for Help:  Family members might be willing to contribute to your student’s college education. Instead of a gift at graduation, create a specific list of financial needs and ask for help in particular areas. Use the money as planned – saving it for books or supplies and/or paying the bills down for your student’s college education.  Have a Serious Money Talk: Have the whole family get together and really look for ways to save money, so there will be more available in the college fund. Consider cutting back on car payments, cell phone and data plans, eating out, streaming services, and clothing or other personal budgets. Anything saved goes directly into the college fund. Take the time to talk to your future college student about living on a tight budget, reducing personal expenses, and buying used or electronic books for classes, too. Anywhere that expenses are cut means more money available for to fund a college education.  Earn More Money:  Honestly, one solution to the gap problem is to find more money. This might involve second or part-time jobs, selling items online, or holding a family yard sale. If your student has a job, discuss where their paycheck is going and continue to save it for college costs.  Closing the financial gap to pay for college comes down to being creative and determining the priority of your family and student. Work together to determine the best options for your family’s needs. If your student is a high school junior, consider planning in advance and working to save extra funds now. Who We Are CFAA helps with the financial aid process, from completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

As parents, there’s so many things we need to teach our children. How to manage money is definitely one of those things. Learning how to be fiscally responsible is an important life lesson for every child. The money management skills we teach our children will define how they handle money, view money, and use their money. As you begin to think about funding your child’s college education, teaching these important money lessons should be one of the first places to start. Children who have a healthy relationship with money early on will understand the significance of the choices they’re making as college decisions get closer. Your Own Relationship with Money Before teaching your children about money, it’s necessary to pause and reflect about your own relationship with money. Are you someone who plans and saves, or buys on credit? Do you think about your future expenses, retirement, or plan for unexpected events? Does your family operate off a budget and have open discussions about money? These are just a few questions to ask before you begin to teach someone else about finances. Our relationships with money can be complicated – and it’s critical that we understand how we look at our financial picture.  When families begin to add a college education to the mix, it’s easy to feel like the decision is emotional and not based on a financial foundation plan. Instead, here are five lessons that you can share with your children to help them (and maybe you) become smarter about money. These lessons will assist you  to build a strong foundation so when it’s time to make financial decisions about your child’s future, everyone involved feels educated and aware of the choices they’re making.   5 Money Lessons to Teach Your Children Budgeting Budgeting can be difficult, especially if it’s not something you’re used to doing regularly. People who use debt as a way of paying for everyday or exceptional expenses often find themselves in a downward spiral as interest builds. For many people, that debt continues to build until it’s almost impossible to stay above water. Teach children from an early age about what a budget is and how to use it. Encourage them to save a little bit of their allowance or gift money, and put the rest towards current purchases. This small habit early on can be life changing. Earning Even from a young age, there should be a clear connection about earning money and the ability to make purchases. Try to avoid simply buying everything for your child. Instead, look for ways they could earn money to make the purchases themselves. Combined with traditional chores, your child will be learning the value of hard work and expectations for adulthood. Debt Many young people do not have an understanding of how to use debt to achieve goals. Instead, they use credit cards or personal/student loans to pay for their expenses, resulting in a heavy financial burden. This kind of debt can take years to overcome. Work with your child to understand the meaning of debt. If a child is interested in a larger purchase, consider acting as the “bank”. Setup a loan and require payments back (with interest!) as an important lesson in money management.  Needs vs. Wants Another valuable lesson to teach your children is the difference between “needs” and “wants”. For financial health, there must be a balance between the two. For example, spending all of your money on a sports car and saving nothing for college isn’t the best way to start your adult years. Even early on your children can understand that not every time you want something, you buy it. In fact, learning how to balance needs and wants early on will help create a more positive attitude towards money.  Understand that College Costs Money As your child gets closer to college age, begin having talks about what funding college really looks like. They need to understand that college comes at a cost. Have discussions with your child all through the school years about college costs, financial aid, student loans, and look ahead to make sure that the income potential exceeds the investment requirements. Helping your child understand the seriousness of the investment they’re making can be an important financial tool.  By teaching your child to become more financially literate, you are giving them foundational tools they will use the rest of their life. Learning money skills early on will help create useful discussions for your family when big decisions come – like where to go to college and how to pay for it. Children who possess lifelong money skills are better prepared to make sound financial choices when it comes to their college education. So, passing on these skills is a must!  Who We Are CFAA helps with the financial aid process, from completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options. Schedule a CFAA new client free strategy session or a 15 Minute Power Chat to learn more about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my bi-weekly JustAskJodi emails and check out my monthly CFAA e-newsletter. plan it