How do you maximize college financial aid?

[monarchsfan16]

If you want my advice you will be far better off to go full time and SAVE the extra money you make to pay the tuition bills.

Need based aid is largely comprised of loans, unless your income is very low. All you are really doing delaying paying (and/or shifting the payments to the student) and adding interest onto the bill. We just had a meeting at work last week where we were talking about the huge increase in students that are graduating with $50 to $100k in student loans. It is becoming common to finance an entire education on student loans/parent loans/private loans. For most majors, the student job prospects simply do not pay the salaries needed to make those payments plus save for retirement, plus buy a house, plus save for their own children's educations. Something is going to crash on them. Honestly, I'm scared for many of them. In my view we are largely telling them "forget buying a house for the next 10 to 20 years - your education IS your house."

Heck, if you want the kid to pay the bill then you loan him the money and have him/her pay you back with interest once they start their career.

This. The reality is, the only way to maximize financial aid (outside of merit scholarships) is to be at/below the poverty level. If you can come even remotely close to paying your bills, your child will not qualify for anything other than loans and work study. If financial aid is what's holding you back from going full time, go full time. You've got 5 years. If you've been living off of the current household income, continue to do so, and bank the new additional income. Those college funds will increase dramatically.

 

[MoniqueU]

I don't know as much as others do but have been sort of guided through some of this with a neighbor making about what we do, probably about the same morhage as I think they got some cash out as did we and she has better credit and more savings then we do. She got NADA from Boise State. She might of gotten a little off the advertised fees but not much. She didn't know about the stafford loanss which as I understand my son will qualify for at a slightly higher amount because we are likely to be turned down for a parent plus loan. I had to look into other ways of loans and found that my MIL can be a co signer for my son through a credit union at a real decent rate and alot of time to pay off the loans. Also it is a line of credit so you apply once and borrow what you need up to the schools estimated cost of attendance. It's not just an instant atm type line of credit the amount you use has to be verified as necessary by the school of attendance. I also found out that at least out here in the western states they have tuition agreements with other states for reduced tuition to students from neighboring states so don't rule out an out of state school because you think a state school is cheaper.

 

[Darcy03231]

Merit aid can be huge. My son (only top 20% of his class but with great SATs) received merit officers between $8000 to $21,500 per year.

Tips:

1. Have your kids apply at schools where they are at the top of the applicant pool.

2. Private schools tend to give a lot more merit money than publics.

3. Look at the cost of attendance of the private schools before getting your heart set on one. A $20,000 scholarship at a school that costs $50,000 a year will leave you owing $30,000; but a $20,000 scholarship at a school that only costs $30,000 a year will only leave you owing $10,000 (before need based aid.)

4. What else can your child do? My son is a singer, though not a music major. He auditioned for "non-major" scholarhips and got one worth $2000 a year, plus free voice lessons. Sounds small but it's over $8000 over 4 years! Some schools give tiny scholarships for Eagle Scouts, but some schools (like University of Evansville) give really big ones. There are also scholarships related to religious denominations (many privates have a loose historical affiliation with a religious denomination.)

I agree! Private schools usually have a lot more money to give out than state ones do. In fact, all three of mine are in private schools. Our out of pockets costs are much less than they would have been if they attended a state university because of the aid they were given through the colleges.

 

[Planogirl]

Those who say that their kids got scholarships at least partially based on SAT scores, would you mind sharing how high those scores were? Also, is there a good website that helps people find the scholarships out there?

My issue is that DS wants to go to our community college for one year and then transfer to a nearby college that he really likes. That's fine but I'd like to have as much ready for him as possible so that he can apply for scholarships and aid when he's a transfer student. I understand that that works much the same way.

 

[The Mystery Machine]

Those who say that their kids got scholarships at least partially based on SAT scores, would you mind sharing how high those scores were? Also, is there a good website that helps people find the scholarships out there?

My issue is that DS wants to go to our community college for one year and then transfer to a nearby college that he really likes. That's fine but I'd like to have as much ready for him as possible so that he can apply for scholarships and aid when he's a transfer student. I understand that that works much the same way.

Being a freshman gives you much more opportunity for money. You will lose that as a transfer. That is just the ugly truth.

FastWeb is the site we go to to look at scholarships. Hopefully people can post more.

Since you are in TX you have such high competition and graduating in the top 10%, getting a high SAT/ACT score, and high GPA are the 3 major things.

College Confidential is the site that beats everything to death (scores, colleges, essays, tips, etc) although I take everything with a grain of salt there since most of the people are trying for Ivies.

I am also interested in your question since I have an 8th grader now who is looking for top tier. She took the SAT test 2 weeks ago and is taking the ACT again in Dec.

ETA......here is the Discussion forum for the ACT/SAT on College Confidential if you want to scare yourself.
http://talk.collegeconfidential.com/sat-act-tests-test-preparation/

 

[golfgal]

Those who say that their kids got scholarships at least partially based on SAT scores, would you mind sharing how high those scores were? Also, is there a good website that helps people find the scholarships out there?

My issue is that DS wants to go to our community college for one year and then transfer to a nearby college that he really likes. That's fine but I'd like to have as much ready for him as possible so that he can apply for scholarships and aid when he's a transfer student. I understand that that works much the same way.

Transferring credits from a community college can be very tricky and they don't always transfer. Plus, there are HUGE advantages to living on campus your freshman year.

As far as scholarships go for SAT/ACT scores, DS took the ACT and got a scholarship for his score, automatically from his school. He had a 28.

 

[luvsJack]

Op, if you are interested in what your EFC is now (to sort of give you an idea of what it will be in five years), just go to FAFSA web site and fill out the form. You would have to name yourself as the student so that will make it a bit different but it will show you what questions are asked and what is considered. They do ask for amounts in savings, checking, etc. But they do not ask about homes, mortgages, etc.

That EFC number is used for Pell, student loans and any other government assistance. It is not normally used for scholarships ,but some scholarships are based on income. We have hundreds of alumni scholarships, some income based, some GPA based, some are just the luck of the draw.

There is also FA for students in certain majors in certain states. For instance in MS there is a large scholarship based program for education majors. Most states have some type of state grant too. Here you have to get less than full Pell to get the state aid but its NOT income based.

Almost all colleges have ACT/SAT scholarships. If your child is in the 8th grade, my suggestion would be to have him/her take it as many times as possible to up the score. Does your child have interest in a certan school? Find out the minimum of ACT that will get a scholarship. At many schools a 21 on the ACT will get a small scholarship, 29 will get a full ride. ACT scholarships many times are not based on GPA but ACT score only.

Check out the FA page on some school's web sites that you think your kids could possibly be interested in and it will tell you what kind of scholarhships they have. And will give you some other details about how they base income.

I wouldn't say that receiving Pell is "rare", we send out hundreds of pell refund checks every year and the local university probably sends out thousands. Pell comes in many different sizes too. There is full pell which is 2500 or more for someone of low income down to 2-300 for someone about middle income. It all depends on your income and your family size. Also, if your child works during high school; that income will count against them on any chance to get Pell. Not saying they shouldn't work, but that is just a fact.

I have seen parents that work in the oil field but work overseas--and make very, very good money-- whose children still qualify for pell and I have seen people who don't seem to make much at all that don't qualify at all.

 

[luvsJack]

Transferring credits from a community college can be very tricky and they don't always transfer. Plus, there are HUGE advantages to living on campus your freshman year.

As far as scholarships go for SAT/ACT scores, DS took the ACT and got a scholarship for his score, automatically from his school. He had a 28.

Not that tricky at all. Most academic classes will transfer. Technical classes do not, developmental classes do not.






PLanogirl, make sure your child talks to an academic councelor at the comm. college. They will be able to tell him what classes tranfer. The other thing to do is to talk to the councelor at the university your child wants to transfer to and check with them on transfer credits.

Not sure what living on campus has to do with anything, but some comm. colleges do have dorms. And there is a HUGE difference in costs. If using loans, it will help that your child will not run out of elibility before getting their degree.


Older ds got a small scholarship for a 21, younger ds got a full ride for a 29.

 

[golfgal]

Op, if you are interested in what your EFC is now (to sort of give you an idea of what it will be in five years), just go to FAFSA web site and fill out the form. You would have to name yourself as the student so that will make it a bit different but it will show you what questions are asked and what is considered. They do ask for amounts in savings, checking, etc. But they do not ask about homes, mortgages, etc.

That EFC number is used for Pell, student loans and any other government assistance. It is not normally used for scholarships ,but some scholarships are based on income. We have hundreds of alumni scholarships, some income based, some GPA based, some are just the luck of the draw.

There is also FA for students in certain majors in certain states. For instance in MS there is a large scholarship based program for education majors. Most states have some type of state grant too. Here you have to get less than full Pell to get the state aid but its NOT income based.

Almost all colleges have ACT/SAT scholarships. If your child is in the 8th grade, my suggestion would be to have him/her take it as many times as possible to up the score. Does your child have interest in a certan school? Find out the minimum of ACT that will get a scholarship. At many schools a 21 on the ACT will get a small scholarship, 29 will get a full ride. ACT scholarships many times are not based on GPA but ACT score only.

Check out the FA page on some school's web sites that you think your kids could possibly be interested in and it will tell you what kind of scholarhships they have. And will give you some other details about how they base income.

I wouldn't say that receiving Pell is "rare", we send out hundreds of pell refund checks every year and the local university probably sends out thousands. Pell comes in many different sizes too. There is full pell which is 2500 or more for someone of low income down to 2-300 for someone about middle income. It all depends on your income and your family size. Also, if your child works during high school; that income will count against them on any chance to get Pell. Not saying they shouldn't work, but that is just a fact.

I have seen parents that work in the oil field but work overseas--and make very, very good money-- whose children still qualify for pell and I have seen people who don't seem to make much at all that don't qualify at all.

Where are you finding schools that give scholarships for a 21 on an ACT and full rides for a 29? Most schools around here won't even ADMIT you with a 21, let alone give a scholarship. DS18 got $2600 for his 28, hardly a full ride.

 

[luvsJack]

Where are you finding schools that give scholarships for a 21 on an ACT and full rides for a 29? Most schools around here won't even ADMIT you with a 21, let alone give a scholarship. DS18 got $2600 for his 28, hardly a full ride.

In Mississippi. Older DS at a university, younger ds at a community college Younger ds chose the comm. college and had 2 full years, plus dorm, books and meal plan paid for with a 29. And almost every class he took will transfer if he chooses to go on (only the technical classes he took will not). So he would only have to attend the university 2 years---HUGE savings if we had paid for it.

 

[tvguy]

Transferring credits from a community college can be very tricky and they don't always transfer. Plus, there are HUGE advantages to living on campus your freshman year.

As far as scholarships go for SAT/ACT scores, DS took the ACT and got a scholarship for his score, automatically from his school. He had a 28.

Must be a regional differenct, Universities here HAVE to accept Community College classes that are listed by the Community College as transferable. But that's how the California college and University systems are built.

I've got 2 kids in college, and there are a few things I have found about financial aid.
First financial aid is most likely going to be a loan, not a scholarship or grant. In the eyes of Universities, there is no difference between the two.
Second, it's really hard to predict what you are going to be offered. My son got a $10,000 a year grant while at private university with tuition of $40,000 a year, then transfered to a community college and they waved his tuition of $800 a year. It makes no sense.
Third, for parents, retirement saving is considered optional by the financial aid folks....there is an exception, but I think you have to be over age 60 to qualify for that. The train of thought is, money you are putting away in a 401k or IRA or similar retirement vehicle should instead be going to your kids college tuition.

 

[Darcy03231]

Those who say that their kids got scholarships at least partially based on SAT scores, would you mind sharing how high those scores were? Also, is there a good website that helps people find the scholarships out there?

My issue is that DS wants to go to our community college for one year and then transfer to a nearby college that he really likes. That's fine but I'd like to have as much ready for him as possible so that he can apply for scholarships and aid when he's a transfer student. I understand that that works much the same way.

DS #1 took the SAT when it was a two part test with a top score of 1600. He scored at 1400+ - I don't remember the exact score. He didn't take the ACT. He received at 100% academic scholarship from his school.

DD #1 took the SAT the first year it changed to a three part test with a top score of 2400. She scored over 1800 (and if my memory is correct it was really close to 1900). She received a 50% academic scholarship from her school. She didn't take the ACT.

DD#2 too the SAT with a top score of 2400 and scored at a bit over 2000. She took the ACT and scored a 29. She received a 75% academic scholarship from her school. She also was a real go getter and applied for any scholarship she was eligible for. Many of them were small amounts ($50-$200) but she got quite a few of them. In fact, she just received a reimbursement check from the business office of her school. By the time all her aid was applied she got a refund of $2,991.00 for this semester.

Interestly, not one of the three attends the same school!

 

[golfgal]

Must be a regional differenct, Universities here HAVE to accept Community College classes that are listed by the Community College as transferable. But that's how the California college and University systems are built.

I've got 2 kids in college, and there are a few things I have found about financial aid.
First financial aid is most likely going to be a loan, not a scholarship or grant. In the eyes of Universities, there is no difference between the two.
Second, it's really hard to predict what you are going to be offered. My son got a $10,000 a year grant while at private university with tuition of $40,000 a year, then transfered to a community college and they waved his tuition of $800 a year. It makes no sense.
Third, for parents, retirement saving is considered optional by the financial aid folks....there is an exception, but I think you have to be over age 60 to qualify for that. The train of thought is, money you are putting away in a 401k or IRA or similar retirement vehicle should instead be going to your kids college tuition.

I know California is built that way but it isn't that way everywhere so people should ALWAYS check into that. Here very few CC credits transfer to most schools and almost NONE to any of the private schools-heck credits from one private Catholic College don't even transfer to another private Catholic College .

Financial aid-it makes perfect sense if you look at it from the college's perspective. They have so many slots to fill and they need to fill them with the "right" kids, whatever that is for each college. Ivy Leagues, for example, don't want all of their spots filled with prep school standouts so all things considered equal, a kid from a farm in Kansas is going to have an easier time getting into, and getting money from, Harvard. Like we tell DS15 all the time, who wants to go to Notre Dame, he is a white kid from the suburbs, like 90% of all their other applicants. Academically he qualifies to get in, demographically it is the luck of the draw. Had we stayed in our old town, a rural town, he would have had a better shot to get into Notre Dame, even with the same GPA/test scores, etc.

DS18 got into his school and got the money he got from them largely because he was not from their surrounding area. He fit a demographic they were looking for.

 

[luvsJack]

Also, attending some high schools will qualify a student for extra financial aid. We have students that get quite a large grant/scholarship for attending a qualified high school. There is a question or statement about it on the FAFSA. I have no clue which high schools it is but if you look at the FAFSA form, it should tell you what to ask about.

 

[MrsPete]

This is a very complicated question with dozens of "moving parts" that can affect your financial aid. It sounds like you intend to continue working part-time, which is probably the biggest decision you have to make concerning college cost. I don't think getting a home equity loan/not getting a home equity loan will affect your financial aid package all that much. They take a very comprehensive look at your family's finances, and you're not likely to change the dollar figure they'll give you.

Things you can do to make college more affordable:

Choose a college with a small pricetag.
Choose a college close enough to home that your child can commute.
Choose a major that is known for giving out money (for example, scholarship opportunities for nursing and teaching abound, while business majors have fewer chances).
Let your child know that you're funding college on the frugal plan, not the luxury option. By that, I mean, make frugal choices such as living in a double-occupancy dorm instead of an apartment. Don't take a car to campus at least as a freshman. Look into which colleges offer book rentals.

 

[golfgal]

This is a very complicated question with dozens of "moving parts" that can affect your financial aid. It sounds like you intend to continue working part-time, which is probably the biggest decision you have to make concerning college cost. I don't think getting a home equity loan/not getting a home equity loan will affect your financial aid package all that much. They take a very comprehensive look at your family's finances, and you're not likely to change the dollar figure they'll give you.

Things you can do to make college more affordable:

Choose a college with a small pricetag.
Choose a college close enough to home that your child can commute.
Choose a major that is known for giving out money (for example, scholarship opportunities for nursing and teaching abound, while business majors have fewer chances).
Let your child know that you're funding college on the frugal plan, not the luxury option. By that, I mean, make frugal choices such as living in a double-occupancy dorm instead of an apartment. Don't take a car to campus at least as a freshman. Look into which colleges offer book rentals.

I would say just the opposite. If you choose a college with a small price tag the chances of qualifying for aid are reduced. If you live at home, same thing, since you don't have room and board costs.

I think the WORST way to "shop" for colleges is by price tag because every college costs the "same" until the financial aid package comes and if you limit your choices before then, there is a good chance you will pay MORE for college in the long run.

When I was in college the on-campus apartments were LESS expensive to live in then the dorms because you were not required to have a meal plan (they were available for juniors and seniors). I have NEVER seen a scholarship for a teacher around here and very few few for nurses. DH got a full ride his last two years because he was an Economics major though.

I do agree with not having a car on campus, at all-unless you HAVE to have one. I think it makes it WAY to easy to run home and not involve yourself on campus. I have never been on a college campus that doesn't have free transportation options for students.

 

[Wish I lived in Fl]

Debt-Free U: How i Paid for an Outstanding College Education Without Loans, scholarships or mooching off my parents
by Zach Bissonette

I just read it and then gave the book to my High School Senior son.

 

[Dan Murphy]

I have recommended this book to my clients for years, as well as using it while mine were at the college time. It is excellent. It changes a bit every year, with new rules, forms, etc. A small investment to help you do it.

http://www.amazon.com/Paying-College-Without-Admissions-Guides/dp/0375427910


(not to be taken as financial advice)

 

[lyeag]

Some smaller universities will give a full ride for an ACT of 28. My daughter is a freshman at the University of OK. She was offered a full ride at a smaller state school, but wanted OU. She was given 1000/semester. A drop in the bucket. She has a few other scholarships and a reasonably small student loan. We pay the rest.

 

[CPT Tripss]

Transfering credits can be frustrating and confusing. Between DD and her friends we have seen a lot of weird stuff.

A science course for a non science major from a 2 year college was not accept as a science course required for the degree, but the same course from a 4 year school was. Confused yet, wait, this same course required for a science major was not accepted. All this was compounded by the course from the two year school being accepted as a "non required elective" for the non science major but was not accepted as any credit at all for the science major. Bottom line, the the science major had to retake the course at the school issuing the degree and the non science major that took the course at a two year school still had to take a science course at the school issuing the degree.

My head is spinning from trying to remember and write all that. Bottom line, be sure to have a clear understanding from the school that will issue the degree before taking a course at another school.