OVERCOMING STICKER SHOCK

By Howard Freedman

“Sticker Shock” is a common yet avoidable reaction when students and parents are confronted with rising college costs. Yet despite high prices, colleges continue to attract students like you who can benefit from financial aid opportunities.

Start your journey by becoming more organized with a calendar for critical admission and financial aid deadlines and a binder to consolidate your college information. Focus on colleges that provide quality educations to satisfy your academic and career goals over what it costs to attend. Then realize that few students pay the full-published costs.

Plan campus tours, mingle with students, attend classes and visit the financial aid office, an important visit that is often overlooked. Meet with a financial aid officer to learn about scholarships, grants, average financial aid per student and the criteria for awarding it. Remain positive and focused on what it will take to afford your college of choice. Each situation is different, and you will never know if you never apply for financial aid.

Financial aid includes scholarships, grants, work-study and loans with varying interest rates, terms of repayment and fees. All colleges require the FAFSA (Free Application for Federal Student Aid) for federal and state aid available at www.fafsa.com and on paper. The FAFSA is used to determine a family’s EFC, (Expected Family Contribution), the amount your family should be able to pay for college. Many private colleges also require the CSS/Financial Aid Profile available on line at www.collegeboard.com and or their own forms. The CSS/Financial Aid Profile can be submitted in early October, while the FAFSA cannot be submitted before January 1.

Financial aid is a process that should begin when or before your college applications are submitted. The financial aid forms are your ticket for financial consideration after you are accepted. Start by complying with each college’s financial aid filing deadline by using estimated income that can be adjusted later. Verify and update your information before it is submitted and when you receive your SAR (Student Aid Report) after the FAFSA is processed.

The final and most important step is evaluating your financial aid awards after you are accepted. Each award should state the COA (Cost of Attendance) at that particular college, less your EFC calculated from your FAFSA. The difference is your financial “need” on which the financial aid award is based. Compare what each college offered to fill your need with scholarships, grants, work-study and the types of school loans offered. Then you and your family may decide to accept or reject all or part of your award or ask the college to match better offers from other colleges. You may also file an appeal for more financial aid but will be more successful if there is written and factual documentation to support it. Most of all, shop around for the best loans, rates and fees rather than impulsively committing to more expensive convenient or pre-approved offers.

Continue to manage your money in college while building your credit scores.

• Avoid credit card and pre-approved offers with high rates.
• Take advantage of no-interest installment payment plans.
• Conduct your free scholarship searches.
• Consider less-expensive meal plans.
• Become a resident assistant to reduce your dorm costs.
• Take summer courses at less-expensive colleges.
• Report changes in family status that can increase your need.

Make the most of your college experience knowing the investment pays lifetime dividends from the opportunities it creates.

Mr. Freedman is a financial aid consultant and can be contacted at www.financialaidconsulting.net or finaidman@comcast.net.