FAFSA

It’s May and college graduations are springing up all over, just like summer flowers! We hope that more colleges will be able to hold in-person celebrations this year for the students who persevered through all the distractions thrown at them during the pandemic. Congratulations on a job well done, and I wish you equal success in all your future endeavors. You have certainly earned it. Parents of new grads have a right to celebrate as well for getting their students to this point, but there might be one last lesson you can impart to give these new adults a leg up on the road to future financial strength. Here are some points that will help your college grad get their money house in order: Student Loans: Grads usually have a grace period of six months to begin the repayment process after they leave college. A lot changed during the pandemic, and there is still some talk about canceling a certain amount of federal student loan debt. Currently the Student Loan Payment Pause has been extended through August 31, 2022, which means your student will be expected to begin payments in the fall, unless it is extended again. No official decisions have been made about forgiveness, so plan for now on repaying the full amount. These actions do not apply to private student loans, so your student will have to check with each servicer to determine their current stance. Calculate Debt Amount: Your student will still be required to complete exit counseling about repaying their federal student loans. The purpose of exit counseling is to ensure students understand their student loan obligations and are prepared for repayment. Take time to learn about the types of repayment plans available, and possible forbearance options in case the pause is not extended. Students may be surprised at the total amount of debt they have accumulated during their college years, so they might need a parent’s helpful guidance sorting through it all. Watch Out for Quick Purchases: Leaving college can be so freeing that many new alums go right out and make major purchases based on their anticipated lifestyle options. They should be aware, however, that job opportunities may fall through, moving costs could be higher than anticipated, and the price of everything is going up dramatically lately. Purchasing a shiny new car might be tempting, but it might not be a good idea right out of the gate. It is best to settle into a new life and look at all of your expenses, so you can determine whether a big expenditure is really in the budget. Beware of Credit Cards: Using credit to finance post-college dreams might seem like a good idea, too, but it is possible that those interest rates could increase as well, helping students dig a deeper credit hole before they even settle into their new life. Set a Budget: Some students may choose to live at home for some time after graduation, but those who go out on their own are often unaware of just how much that can cost. Give your student one last money lesson on paying for cell and data plans, meal costs, rent/mortgage expenses, daily commute costs if applicable, buying any needed work wardrobe, and the ordinary expenses of life. Help set up a budget that estimates planned income after taxes, and projects all expenses including student loan payments. For new students attending college this fall, if you have already made your college choice and loans are part of that picture, CFAA offers loan appointments in May to help in the final decision-making process. Remember that CFAA helps with every step of the financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and understanding student loan options. Rising seniors can set a CFAA new client free strategy session or a 15 Minute Power Chat to learn about finding ways to pay for college. To get the latest financial aid information and college application to-do lists, look for my weekly JustAskJodi emails and check out my monthly CFAA e-newsletter

By May, most high school seniors have settled on which college to attend in the fall. At this point, final decisions about the financial aid package must be made, as most colleges will soon require some type of payment to be made to secure your place in their upcoming freshman class. You may have been offered federal student loans as part of your school’s financial aid package. A loan is money you borrow and must pay back with interest, so it is a very serious decision to undertake. There may be some confusion surrounding student loans now, as payments have been deferred during COVID for those who already graduated from college. You may also have heard a great deal of talk about forgiving student loans, but be aware that no decisions have been made at this point. Any student loans you take out now should be with the understanding that they will have to be repaid. Another big factor to watch is that interest rates are currently increasing. Although interest rates have been set for federal student loans disbursed before July 1, 2022, it is highly likely that they will increase for any loans taken out after that point. It will probably be more advantageous to commit to any students loans for the upcoming year before July 1. If you decide to take out a loan, make sure you completely understand who is making the loan and the terms and conditions of the loan. Student loans can come from the federal government, from private sources such as a bank or financial institution, or from other organizations. Loans made by the federal government, called federal student loans, usually have more benefits than loans from banks or other private sources. Current federal student loan options include: A. Direct Subsidized Loans: Made to eligible undergraduate students who demonstrate financial need. You’re not usually charged interest on the loan during certain periods. Receive up to $5,500, depending on grade level and dependency status. The interest rate is 3.73% for loans first disbursed on or after July 1, 2021 and before July 1, 2022.   B. Direct Unsubsidized Loans: Made to eligible undergraduate, graduate, and professional students. Eligibility is not based on financial need. You’re responsible for paying the interest during all periods, but it may be deferred until after graduation. Receive up to $20,500 (less any subsidized amounts) depending on grade level and dependency status. The interest rate is 3.73% for loans made to undergraduate students and 5.28% for loans made to graduate and professional degree students for loans first disbursed on or after July 1, 2021, and before July 1, 2022   C. Direct PLUS Loans: Made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required. Maximum amount is the cost of attendance (determined by the school) minus any other financial aid the student receives. The interest rate is 6.28% for loans first disbursed on or after July 1, 2021, and before July 1, 2022.   I advise families to think carefully about their ability to repay these loans in the future. You do not have to borrow the full amount offered, but it is important that you make a decision as soon as possible. Your college will usually require a promissory note, and you may need to participate in student loan entrance counseling. If you have already made your college choice and loans are part of that picture, CFAA offers loan appointments in May to help in the final decision-making process. Remember that CFAA helps with every step of the financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and understanding student loan options. Juniors can set 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 weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

Decision Day for most colleges is right around May 1, although some have made allowances due to COVD restrictions. This means that high school seniors have very little time left to make their final choice about which college they will attend in the fall. If your student was accepted to a great college, one thing that could be holding you back from making your final choice is that the financial aid offer they made is lower than what you hoped to receive. You might be wondering if there is anything you can do about it, even at this late timeframe. Honestly, your chances get much narrower as we get closer to Decision Day, but there are a few cases where you might be able to appeal a financial aid award, such as: Other colleges made substantially higher offers. Your student made exceptional progress since filing the financial aid application, and you think a higher merit-based award might be in order. This might apply in the case of an academic achievement award, outstanding grades in challenging courses, or a higher standardized test score. Your family’s financial situation has changed dramatically since filing the financial aid application, and you think a higher need-based award might be in order. This might apply in the case of job loss, divorce, high medical bills, death, or natural disaster. Certain household expenses were not reflected in your financial aid application. This might apply in the case of an ongoing elder care situation, K-12 private tuition for siblings, or another family member entering college. You may be able to file an appeal or request a second review of the offer in these cases, but time is of the essence. Check the paperwork or the college’s website to determine if there are specific procedures to follow for appeals. In most cases, you can call or email the admissions office and explain what changed since submitting your financial aid application. Keep these guidelines in mind when appealing financial aid: Be polite and respectful. Yelling, swearing, or bullying seldom yield positive results. Be prepared to provide documentation to back up your claims. Keep copies of all documentation you provide. You can check once to be sure they have received all necessary information, but don’t contact them every day. Colleges are swamped with requests from other students. Always check your portal or email for further communication from the college. If additional information is requested, provide it as soon as possible while your case is still fresh in their mind. It is still possible that the college may decline to change its mind on your offer. You will then have to decide whether you want to accept another offer, or try to find alternative ways to make up the financial gap at this college. If student loans are a part of this picture, CFAA offers a limited number of Zoom student loan appointments in April and May of each year. The challenge now is that time is running short, but you definitely don’t want to make a rash decision that could negatively affect your financial situation. Try to find a quiet few hours to sit and really just run the numbers before making that final determination. You can put together a worksheet to compare expenses for each choice and income potential. Discuss with your student the need to address this choice as a family, and make sure everyone has a say in deciding which financial aid offer makes the most sense. If you still have questions, please contact CFAA as soon as possible for further direction. Remember that CFAA helps with every step of the financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and making the best choice based on your family’s unique financial circumstances. Juniors can set up 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 weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

Spring has officially arrived, and the days are getting longer. Your time to make final college decisions, however, is getting very short. Those students who did not accept an early decision or early action admission offer usually have until around May 1 to make up their mind on which college to attend. One big factor which will definitely play a major role in this choice is money. Your family needs to balance what you hope to get out of attending a particular college against the cost of going there. If money turns out to be the deciding factor between two solid choices, then you need to take a really good look at the financial aid offers as a tie-breaker. Here are some points to keep in mind: Figure Out Your Net Price at Each College: Find the cost of attendance on each aid offer, or look on the college website. Make sure the Net Price includes all amounts you will pay to the school directly, as well as other costs (such as living expenses, books and supplies, and transportation). Subtract any grant and scholarship offers from that figure. The remaining amount is your net price, or out-of-pocket cost that will have to come from loans or your savings. Look for Qualifiers: Make sure all grants and scholarships listed are available for the full time of enrollment, as long as you meet qualifications. Some funds might only be available for one year, which will affect your net price in the following years. Compare Debt Amounts: Financial aid offers usually include federal student loan eligibility. This is money you will be expected to repay in the future. If the financial aid offer includes a substantial debt amount, you will have to look closely at future earning potential to determine how much of a burden repayment will be. Consider Earning Potential: Your student might be able to work during the college term to earn additional money towards expenses. Some financial aid offers include federal work-study opportunities as part of the package. If a work-study job is not available, look at potential off-campus job opportunities to determine whether they can provide a sufficient source of income. Take into consideration any additional expenses incurred to travel to other jobs. Keep Looking for Scholarships: If the cost difference between two prime options is minimal, your student might be able to qualify for scholarships that can fill the gap. Look at local community organizations, or scholarships in your student’s area of interest. Some have later deadlines, and may still be open. Another possibility is to look for scholarships that apply to students already in college. You may be able to cover the costs for the freshman year, and qualify for a scholarship in the following years. If the numbers don’t add up at one particular college, there may still be time to file an appeal or provide additional documentation. Act promptly, though, as this is a very busy time for the financial aid offices. You also still need to leave yourself sufficient time to accept an admissions offer from another college. The challenge now is that time is running short, but you definitely don’t want to make a rash decision that could negatively affect your financial situation. Try to find a quiet few hours to sit and really just run the numbers before making that final determination. You can put together a worksheet to compare expenses for each choice and income potential. Discuss with your student the need to address this choice as a family, and make sure everyone has a say in deciding which financial aid offer makes the most sense. Remember that CFAA helps with every step of the financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and making the best choice for your family. Set up 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 weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

For high school juniors, spring break was always a great time for squeezing in a few college visits. Nothing is better than seeing a college in person to get a feel for the space, the people, and the classes. During the pandemic, however, this opportunity stopped almost completely and juniors were forced to go the route of the virtual visit. Now, as we finally turn a hopeful corner on ending COVID restrictions, colleges and students are tentatively rethinking the college tour. This decision has to be a careful balance between what each college is offering for its tours, and what the student is comfortable doing. Some colleges still have safety protocols in place, and some students are still concerned about potential exposure. Most colleges are anxious to open fully again, and have adjusted tours accordingly. Those that are now offering in-person tours may still require vaccinations, and some may limit the size of the tour group. For up-to-date tour information, check the websites for your selected colleges. If you are still concerned about health safety, don’t be afraid to investigate the virtual tour options. A lot of colleges perfected the art of the live virtual tour during the pandemic, and expect many students to continue to use it. If you go this route, however, make sure you sign up for a virtual information session to show demonstrated interest, in case you want to apply. You can access social media groups to get input from current students and others who have visited the college. An online site named youvisit.com also offers pre-recorded virtual tours from over 600+ schools, for free. No matter what way you choose for your college tour this year, here are some things you will want to learn: Admissions: Learn about the admissions process for your major at each college on your list. Find out which admissions application they use: Common App, Universal Application, individual college application, The Coalition for Access, Affordability, and Success Application, or A Shared Application for a System of Colleges. Some majors may require an audition or portfolio as part of the application. Also, learn about Early Decision, Early Action, and Regular Decision deadlines. Campus Feel: Think about what is important for you to be comfortable, and then investigate how each college might be able to meet your needs. Look at buildings, class size, gym/rec center, dorms, eating spaces, library, and student resources centers. Get an idea of off-campus housing, entertainment and work possibilities. Financial aid plays a critical role in the college visitation process, as you want to find out whether you will be able to afford attending each school. Review the website carefully, or set an appointment with financial aid during your visit to get answers to these questions: What are all financial aid deadlines for the college and the state? What financial aid applications must be completed? (FAFSA, CSS Profile, other?) What percentage of students receives financial aid for the full college term? What is the typical Cost of Attendance? Do most students graduate in four years? What percentage of students finds employment in their field of study after graduation? How much do they typically earn? What is the typical student loan debt balance after graduation? What work-study options are available to students? How do outside scholarships affect your financial aid offer? What is the financial aid appeal process? No matter what way you choose to take a tour, use the opportunity to gather as much information as possible. You want to apply to colleges that can meet your emotional and educational needs, but also need to be able to afford going there. Remember that CFAA helps with every step of the financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and making the best choice for your family. Set up 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 weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

National College Decision Day is usually around May 1 for most colleges, although some may make extensions due to COVID backlogs. This is the day when high school seniors are finally, really, truly required to commit to a college. Deadlines are helpful, but it is better if you select your preferred college sooner rather than later. You’ve got a high school graduation to plan, summer to enjoy with friends, and then college orientation and classes that usually begin in August. If you have not yet made your final choice, here are some points to consider: Make the List Manageable: Your student might be accepted at a number of great college choices, so it could be overwhelming to pick between so many appealing options. In reality, though, there are probably really only two or three at the top of the list. Make the “easy” choice now to eliminate those which are obviously out of your financial reach, don’t have the right emotional appeal for your student, or are simply too far away. Compare the Financials: Now, take a close look at the real cost of attending those remaining few colleges. Get out the financial aid award letters and figure out what they really mean in terms of scholarships, grants, work-study and loans. Make sure the aid package applies for your student’s entire college career. Add up all of the out-of-pocket costs for travel, room and board if your student does not stay in the dorms, cell and data plans, and personal/entertainment expenses. These could vary dramatically from one college to the next. Take into consideration any outside scholarships your student may have won. What you are trying to do here is get a solid handle on how much all this is really going to cost you, your student and your family. Consider the Cost of Student Loans: Student loans are not free – they are a cost to you and your family. If student loans will be needed, you have to look at future earning potential and assign payment responsibility. Compare the availability and repayment options for both federal and private student loan options. Understand the difference between subsidized and unsubsidized, and look at the reality of repaying possibly large-sized sums in four years. Discuss the repayment obligation very clearly with your student. Do Your Networking Thing: This is the modern social age, so take advantage of that opportunity to help in the college choice. Reach out to social media groups of already-admitted students, read reviews, and arrange chats with current students. Speak with others in your high school and local community who may be attending one of the colleges on your list. Stir In a Few Emotional Thoughts: Emotions should not usually be the top consideration, but you can bring them into the process after you’ve gone through the financial and educational reasons to attend each college. There might be some feeling or attribute that just makes one college stand out more than the others. Look to the Future: Do students graduate in a reasonable time from your course of study at this college? If so, do they then go on to grad school, or get high-paying jobs in your chosen profession? What amount of student loan debt will you have upon graduation, and will future earnings be able to cover your loan payments? Once the College Decision is made, a deposit check will need to be written to save your student’s place in the class. If student loans are part of the overall plan, set a loan appointment with CFAA for April or May, so we can discuss your options. Remember that CFAA helps with every step of the financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and making the best choice for your family. Set up 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 weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

February may be a short month, but it is packed with holidays and observances. There are one-day holidays like Chinese New Year, Groundhog Day, Valentine’s Day, and Presidents’ Day, and major observances such as Black History Month. There are a few silly days like National Tater Tot Day and National Carrot Cake Day, and the all-important Super Bowl Sunday. But one observance that should stick out to high school juniors and their parents is National Financial Aid Awareness Month. This is the time of year when the higher education community makes an all-out effort to provide crucial information about access to federal, state, and institutional student aid. The goal is to help you become more informed about the financial aid process, so it will be less intimidating during the fall college application season. It might not seem like a big reason to celebrate, but financial aid is actually the key to being able to pay for college. Statistics about institutional aid for undergraduate and graduate students, according to the NASFAA, include: In 2020-21, institutions provided an estimated $57 billion in grant aid to undergraduate students. In 2020-21, undergraduate students received an average of $14,800 per FTE (full-time equivalency) student, including $10,050 in grants, $3,780 in federal student loans, approximately $880 in education tax credits, and about $90 in Federal Work-Study. 84% of full-time, first-time undergraduate students received financial aid in the 2018-19 school year. This month, and throughout the year, CFAA joins with high school counselors, college financial aid officers, and industry professionals across the nation to provide you with information you need to make your college dreams come true. Some topics we will cover throughout the year include: The Beginner’s Guide to Financial Aid: Get the most out of your financial aid application by learning more about how the process works. All Things FAFSA: FAFSA stands for Free Application for Federal Student Aid. The S Department of Education uses the FAFSA to determine students’ eligibility for federal financial aid based on their financial situation. Completing this form could provide you with access to federal grants, scholarships, work-study, and loans, different forms of money to pay for school. Schools, states, and some scholarships also use this information to determine financial aid eligibility. What’s the FAFSA and Why Should You Care: Completing the FAFSA can help you earn federal financial aid. Not filling out the FAFSA is one of the biggest college blunders to make! It’s money that helps pay for school. FAFSA Tips & Common Mistakes to Avoid: The best way to complete the Free Application for Federal Student Aid is early, online or via the myStudentAid mobile app, and without any mistakes. The sooner you complete the FAFSA, the more aid you could be eligible for. The FAFSA typically opens on October 1 each year for the following academic year. Other financial aid applications: Depending on the college(s) your student applies to, there may be additional financial aid application requirements beyond the FAFSA. This might include the CSS Profile or supplemental forms a college may require. Be very aware of all financial aid application requirements. Scholarship awareness: Scholarships are another great way to find money to help pay for college. This process should be on the high school junior’s schedule, in addition to admissions and financial aid applications. The biggest question most students have about financial aid is, “Will I be eligible?” If you have the desire to get an education, don’t let worries about finances be discouraging. With a little effort, you will find many options available to you. Happy National Financial Aid Awareness Month! Remember that CFAA helps with every step of the financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and making the best choice for your family. Set up 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 weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

The beginning of the calendar year often inspires people to lay out a plan for what they hope to accomplish over the next twelve months. This will be a particularly busy year for those students who are currently juniors in high school, as they should be submitting college admissions and financial aid applications by the end of the year. It can get confusing, so here is an idea of what your year should look like:   January: Save all 2021 year-end financial information. Research and select top college choices. As you add colleges, make a note of their application and financial aid deadlines. Determine whether standardized tests, such as the SAT or ACT, are required.   February: Schedule college visits, either in-person or virtual. Have a list of questions prepared. Set up a CFAA new client free strategy session or a 15 Minute Power Chat. Talk to your parents about a college budget. Start listing achievements to add to applications.   March: Begin asking for letters of recommendation. Apply for FSA ID at https://fsaid.ed.gov/npas/index.htm for student and parent. Think about career options, to help narrow college field.   April: Sign up for CFAA services, if interested. Space is limited, so this should be completed as early as possible. Parents and students should file federal income tax returns for 2021. This information will be needed for your financial aid applications.   May Enrolled students should schedule an information-gathering session with CFAA to discuss the entire financial aid process. You will receive an email outlining requested information. Narrow down a list of schools to apply to in the fall. Choose dream, target and safety schools. Note any plans for early decision or early action applications. Research scholarship opportunities and deadlines.   June/July Work on admissions applications. Create your college financial aid planning timeline based on institutional, state and federal deadlines. Use Net Price Calculators to determine estimated costs to attend selected colleges.   August Visit or communicate with school campuses to narrow choices and determine financial aid policies. Update CFAA regarding the status of college applications.   September Continue refining the college list, and update CFAA regarding any changes. Keep track of requirements for state and college early decision/early action deadlines for any new colleges. Look for that 2021 financial information you set aside, so it will be available for financial aid applications. Make notes of any special financial circumstances in 2022.   October: Identify FAFSA/CSS Profile requirements and supplemental financial aid forms required by each college. The FAFSA and CSS Profile are available beginning October 1. Some colleges also have additional financial aid application requirements. Have everything submitted as early as possible, since some programs have limited amounts of funding available. Identify application and deadline requirements for any private or outside scholarships. Meet with CFAA via Zoom to review and submit completed financial aid applications.   November Closely monitor communications from colleges to determine if additional information is required. Respond immediately to any Requests for Verification. Review statistics regarding cost of college attendance. Continue researching scholarships.   December/ January Submit financial aid applications if not already completed. Review any Student Aid Reports received. This is the Department of Education’s reply to your submitted FAFSA. It summarizes your financial aid eligibility for any federal programs. Gather end of year savings and investment documentation and W-2 earnings statements from the current year for next year’s financial aid applications. Watch for end-of-year scholarship deadlines.   Of course, your schedule might look a little different, but deadlines are what really count. Please contact CFAA with any questions you might have about your personal situation. Good luck with your college action plan for 2022! Remember that CFAA helps with every step of the financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and making the best choice for your family. Set up 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 weekly JustAskJodi emails and check out my monthly CFAA e-newsletter

Well, another year has come to an end, and we have made a pretty good start on another. Let’s say good-bye to the difficult year of 2021, and hope that 2022 has much better news for us all. At this time, we usually try to focus and center ourselves by looking back to see where we have come from, and looking ahead to set our sights on where we are going. Here are some big events that are altering the world of financial aid. What Happened in Financial Aid in 2021? The overwhelming news, as with just about everything else, was COVID. It upset everything from college tours to college applications. Major events included: College Testing: Many SAT and ACT administration sites were suddenly closed due to COVID restrictions. As a result, many juniors were not able to take the necessary college admission tests. Admissions offices made moves to waive testing requirements, and there are some indicators this may be a bigger trend in the years ahead. Student Loan Payments: To alleviate financial hardship for student loan borrowers, the Department of Education put a hold on payments for millions of federal student loan borrowers, and set interest rates at 0%. After several extensions throughout the pandemic, payments are now set to resume after May 1, 2022. In October, ED also announced major updates to the PSLF program, making it easier for borrowers to receive loan forgiveness in exchange for public service. FAFSA Changes: After years of concern about the difficulty of the process, ED has affirmed its commitment to major FAFSA simplification; however, progress has been exceedingly slow. The current FAFSA for the 2022-23 academic year contained only minor revisions. What is Ahead for Financial Aid in 2022? Changes in the works regarding financial aid include: FAFSA: No big changes have been announced for the application itself as of yet. There is ongoing discussion about reworking the IRS Data Retrieval Tool that is used to automatically populate your application with data from your last federal income tax return. EFC: The one big item currently on the table is replacing the expected family contribution (EFC). This amount appears on the Student Aid Report, and shows what the family is expected to contribute to a student’s education. It also correlates to anticipated federal aid. The plan is to replace the EFC with a Student Aid Index (SAI). Although the calculations are similar, the SAI could potentially be negative. This would make it easier for colleges to identify students with the greatest financial need. Pell Grants: Work is currently in progress to make more students eligible for Pell Grants, which is free money that doesn’t need to be repaid. There is a movement underway to substantially increase, possibly even double, the size of the Pell Grant, but that has not yet been implemented into law. Student Loans: In response to continuing inflation, the feds usually tend to raise interest rates. This could affect the rates charged on federal student loans. These rates are traditionally evaluated in May, for July through June of the following year. Although there has been widespread talk of increased student loan forgiveness, no plans have yet been put into action. It is highly likely that we will see a lot of changes in financial aid in 2022. As always, CFAA will keep you updated on current events as they occur, and give you insights on how they might affect your own college planning schedules. Please contact us with any questions you might have about your personal situation. Good luck with all your college planning in 2022! Remember that CFAA helps with every step of the financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and making the best choice for your family. Set up 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 weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.

As we wind our way towards the end of the year, high school seniors start making the transition from application to acceptance and decision-time. Unless some new inspiration suddenly strikes, all of the college admissions and financial aid applications should be completed by now. The focus shifts to waiting to hear back from various colleges with news about the hoped-for acceptance. Once the jubilation of getting into a preferred college begins to die down, though, it starts to dawn on the excited families that there is a financial aid award letter to be considered as well. These enigmatic documents can hold the answer to parents’ questions about what this whole college experience is really going to cost. There are some changes from school to school, but here are things you should look for in each letter: Understand the meaning of grants and scholarships: These are amounts that go toward the cost of college, and are usually merit-based or need-based. In most cases, these will not have to be repaid unless your student does not continue to meet the award criteria. Look to make sure these offers apply to all four years, as some colleges will front-load grant amounts to entice acceptance. Also find out what happens if your child has to attend longer than four years to receive that degree. Watch carefully for loan amounts: These can sometimes be carefully disguised, but anything that says Direct, Subsidized, Unsubsidized, or PLUS is a loan that will have to be repaid after graduation. Loans do not actually cut the cost of attendance – they just defray payment of certain sums, and add interest on top of the principal amount. Take the cost of these payments into consideration when choosing a college. Find out how many students actually graduate with your child’s major, if they go into jobs in their chosen profession, and whether they will be able to earn enough money to cover these loan payments. Know what work-study means: There is a chance that your student will be expected to work as part of the financial aid package. This is not a bad thing, in most cases, but it is important to ensure that your student has the capability to invest a certain amount of hours each week in a work environment that could take away from study time. Know the net: The difference between the total cost of attendance and the financial aid awarded by the college and the government is your true net price. This is not always obvious in the information provided. In addition to the known quantities, such as tuition and fees, you also want to consider such costs as books, room and board, transportation, and personal expenses, to get a real feel for what you will be paying. Some help for comparing costs can be found on the U.S. Department of Education’s College Navigator While one college might look a little more generous in its grant and scholarship awards, it could still cost you more through loans or out-of-pocket to attend. Outside scholarship policy: If your student has earned a significant private scholarship, be sure to find out the college’s policy on scholarship displacement. Some colleges will actually reduce their grants if the student wins a private scholarship, which could end up being a wash to your budget planning. Rank the various financial aid award letters against your family’s budget for the next few years. Discuss with your student the emotional and financial aspects of each college, and be sure any work and loan repayment responsibilities are completely understood. Comparing costs can help make a wise college choice for the entire family. CFAA helps with every step of the financial aid process, from completing the FAFSA and completing the CSS Profile to comparing financial aid offers and making the best choice for your family. Set up a CFAA new client free strategy session 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 weekly JustAskJodi emails and check out my monthly CFAA e-newsletter.