When looking at colleges, it’s important to think strategically so you aren’t hit with surprises or hidden expenses along the way. Here are two key questions to ask that will help lower college costs and increase aid.
1. What percentage of need does the college meet? Need equals the overall cost of attendance less your expected family contribution (COA-EFC=Need). Depending upon your situation, you may be eligible for need-based aid – I work with families to raise their “need” as a Certified College Planner. If you lower your EFC, then you will be required to pay less and qualify for more. If you increase your COA at a private school, your EFC may be the same if you were going to a less expensive state school, but your COA would be drastically higher. If you subtract that same EFC from the increased COA, then you’re going to wind up with a bigger “need” and qualify for more financial aid.
2. What percentage of need-based aid is actually gift-aid? There are two main types of financial aid: gift-aid and self-help. Everyone loves gift-aid – it’s free money and doesn’t cost anything. Self-help is not usually anyone’s first choice. Don’t get me wrong, it’s still a good form of aid and is very helpful. It’s just not free, and involves things like work-study programs and student loans. Understand what the school means when they agree to meet your need. Are you getting a scholarship and gift-aid, or will you be required to give them something in return?
Here’s a quick tip – Go to the school and ask in person. Better yet, ask students what percentage of aid they received. After you talk to them, see if what you learned matches up with collegeboard.com. If it does, the information is probably accurate and trustworthy. Ask the right questions – you’ll be glad you did in the end!
Secure a complimentary consultation with a Brian Safdari, CEO and Certified College Planner at College Planning Experts. Call 661-295-9946 or visit www.collegeplanningexperts.com to schedule an appointment. College Planning Experts is located at 28494 Westinghouse Place, Suite 206 in Valencia.