Financial Aid Applications Rise by 10 Percent

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There are a lot of ways to play the financial aid game to one's advantage - and I'll leave that advice up to the financial experts. But as a career professional, I will offer this smart strategy: It makes sense that students who have realistic and appropriate career and educational goals are most likely to stay in school and graduate on time (thus, saving college expenses and launching them in their careers more successfully).
So -- one of the best ways to increase a family’s chances of making a wise investment of their college savings/loans ($60K - $200K over 4 yrs.) is to have a student (age 16+) participate in a personalized, comprehensive career assessment that includes interests, values, personality and most importantly, objectively measured aptitudes. Research says that aptitudes, or natural talents, are the best predictors of performance on tasks (which make up jobs). A credentialed consultant can synthesize the results and discuss them with the student and his/her parents, and give 6-10 career recommendations that are a best fit for the student. (Fit=Do well and enjoy.)
Just like a vacation, where once you know where you’re going, you know how to pack – when a student can identify a career direction that is an ideal fit for them, they will know better how to put a plan into place: how to select a college, which majors prepare them best for the chosen career, how to sniff out great internship or research opportunities.
This process and the assessments used did not exist when parents were 18, and career decisions were not as complex as they are with today’s overwhelming array of choices. But excellent career assessments and planning services do exist now, and is a smart way to prepare a student for college success and use family savings, grants, and loans most effectively.

Paula Kosin of IL 1:29PM January 27, 2009

I suspect that the differing impact of the economy on our students is attributable to how adequately our students were being aided in the first place. If an institution does not have the resources to suppelement federal and grant aid with institutional money, then their students are living on the edge to begin with and their families are no doubt tapped out.
At UNC-Chapel Hill, our costs are low ($16,300 all inclusive for one year, for an in-state student). Further, we meet the full documented need of all needy students, with a package composed of 65% in grant/scholarship aid and the remainder in work-study and loans. This is true for both in-state and out-of-state students (whose annual costs, all inclusive, are about double that of an in-state student). So we have few mid-year requests for supplemental aid this year.
Conversely, a number of my colleagues at higher priced, but less well-resourced, institutions tell me that they are struggling with numerous mid-year requests for additional aid. The reason: they were unable to meet the students' full need in the first place, and now those students and families are "really on the edge." I think these differences among intitutions help to explain why ". . .the economic downturn appears to be touching down and wreaking financial aid havoc for some colleges while leaving others unscathed," as Ms. Clark puts it.
It is hard to tell what will happen next year, as I expect it will be more difficult everywhere given current economic trends. Our aid applications at Chapel Hill were up 13% this year, and we think the increase (in expectations, if not real need) will certainly outstrip that number going forward.

Shirley Ort, Associate Provost for Scholarships and Student Aid of NC 11:11PM January 15, 2009

An interesting point to consider regarding the "tornado effect" of increased applications hitting some colleges and not others is the reality of how net cost is driving this year's college search for many families. Interest in public colleges and universities here in Masaachusetts is up substantially this year. We've realized this at MEFA as we are just finishing college financing presentations at over 300 high schools, attended by about 40,000 parents and students statewide. Lower-cost is a major issue drawing more families to explore public instituions. The other harder to detect issue is that families are becomming more aware of the fact that institutional merit aid is often awarded based on a relative comparison among applicants. They realize the 'safety school' is much more likely to award a merit scholarship than the 'good fit' or 'reach schools' on the student's application list. In my opinion, many of these safety schools are going to experience a jump in the yield rate of applicants who have been offered merit aid this year.

Paul J. Lynskey; Director of Secondary School Relations; Mass.Educational Financing Authority of MA 12:40PM January 15, 2009

Your article states that the Free Application for Federal Student Aid is "the most important aid application." This is misleading.
For an individual student, an application for a major private scholarship program might be significantly more important than the federal aid application. Similarly, students who plan to enroll at higher-cost institutions may find that the College Scholarship Service's PROFILE application, or their school's unique institutional aid application form, may lead to financial aid awards significantly larger than the relatively small federal grant and loan awards resulting from filing a federal application.
It would be more accurate to refer to the Free Application for Federal Student Aid as "the most widely-used aid application" or "the application that is used to determine eligibility for federal student aid."

Jeff Shelby of CA 6:16PM January 14, 2009

Thanks to Ms. Clark's article and other media attention, we have received many questions regarding The University of Toledo's program offering tuition and fees to students in several Ohio urban areas that have earned at least a 3.0 grade-point-average and show financial need. This program is known as the "UT Guarantee". We are very proud of the UT Guarantee because it will allow many "first generation" college students the opportunity to shape their lives through education. "Improving the Human Condition" is our main objective at UT and we believe this will improve lives for generations to come.

Lawrence J. Burns, Vice President for External Affairs of OH 5:54PM January 14, 2009

Just like colleges, Student Financial Aid Services, Inc., the oldest and largest student aid advisor, reported having a huge jump in families applying early in the financial aid season. During the first 5 days of the season that started Jan. 1 it had a more than 40 percent increase in calls compared with last year.
We expect competition for student aid will be fierce and urge families and students to apply as soon as possible because a lot of aid is disbursed on a first-come, first-served basis. Waiting can cost students money. Families don't have to wait to file their income taxes to file their federal aid applications, known as the FAFSA. They can file free on the Dept of ED site or if they want advice and not to work through the 137 tax and asset questions alone they should call a FAFSA preparer that works to maximize their eligibility and double checks for accuracy. More than 2 million FAFSAs were rejected by the Dept. of ED last year for errors. Error correction costs families time and subjects students to possible loss of aid.
Nearly every student is eligible for some form of financial aid, including low-interest federal Stafford and/or parent PLUS loans, regardless of income or circumstances, provided a student:
• is a U.S. citizen, a U.S. national, or an eligible non-citizen;
• has a valid Social Security Number;
• has a high school diploma, GED, or equivalent;
• is registered with the U.S. Selective Service (if a male ages 18 to 25);
• completes a FAFSA promising to use any federal aid for educational purposes;
• does not owe refunds on any federal student grants;
• is not in default on any student loans; and
• has not been found guilty of the sale or possession of illegal drugs during a period when he/she received federal student aid.

Mary Fallon of CA 11:51AM January 14, 2009