Each year, a majority of American parents of college students are confronted with higher-than-expected costs for tuition and room and board, according to a College Ave survey. The same survey finds that the price tag on other college-related expenses, such as books, activity fees and transportation, also catch large portions of parents by surprise.
Making a plan to pay for college can help you overcome that initial shock and navigate these important years with less financial stress.
Take the following steps to create your plan for paying for college:
Seek aid each year: Don’t forget to submit the FAFSA (Free Application for Federal Student Aid) each year your child is in school. This is the only way to receive need-based grants, loans and work-study offers from the federal government.
Read and compare financial aid award letters carefully: Use each school’s financial award letter, delivered in the spring, to get an apples-to-apples comparison of costs. Calculate the net direct cost of each school by subtracting offered scholarships and grants from the total cost of attendance. If applicable, you can subtract work-study aid too. You should also factor in expected year-to-year increases in tuition, room, board and other fees. This analysis can help you narrow down schools within financial reach for your family.
Consider appealing: While an award package can seem like it’s set in stone, you may be able to appeal for more aid from the school of your choice. Don’t be afraid to ask for more aid if your financial situation has changed.
Look for outside assistance: Scholarships are typically based on merit or talents and can provide substantial assistance. Colleges and universities themselves award scholarships, as do national and local organizations. Encourage your student to continue applying for scholarships year-round, as every little bit helps.
Explore private student loans: The College Board reported that the average amount of aid that undergraduate students received in grants, federal loans, tax credits and work-study programs was $16,360 for the 2023-2024 academic year. Considering that the average total cost of attendance for a public four-year school that same year was $24,920 for in-state students, you might need more aid than your college initially offers. Private student loans are a great option to help supplement your financial needs. Shop around for a great rate and loan terms you can work with.
Paying for college can be intimidating but with the right plan and proper execution, it can all work out just fine.
By: StatePoint (Edited by d-mars.com)
