Strategies for the Ages
Sticker-shock survival: the right moves for families to make
FAFSA for all. Filling out the Free Application for Federal Student Aid (FAFSA) is also key. Studies show that hundreds of thousands of families who would be likely to get some aid miss out because they don't bother. If the child is applying to a private university, fill out the College Board's Profile form as well. Don't assume you won't be eligible for aid. Private schools are so expensive these days they often hand out need-based grants to children whose families earn more than $100,000 a year.
Seniors too busy with applications and classes to write new essays for scholarship contests can still take a few minutes to troll for contests that will allow them to use essays they've already written. "They need to develop a suite of reusable material so they are just tweaking something they have already done," Kaplan explains. Don't rely solely on Web searches, Kaplan adds. Local contests often have better odds.
Once the offers start coming in, it's time to make tough decisions. Students and parents should beware of offers with fancy-sounding scholarships that will actually end up costing them more out of pocket. Research has shown that students and families are so flattered by the award of, say, a "Presidential" scholarship that they will often pass up less prestigious-sounding (but financially superior) offers from better schools. Families should also be skeptical of offers that expect the student to contribute more than about $3,000 a year in earnings. Most private schools expect students to contribute at least $1,150 in summer earnings. And counselors say kids actually do better in school if they work 10 to 15 hours a week during the term. But any more than that hurts their grades. Also, families should be leery of any offer that includes a PLUS or other parent loan, since those don't actually reduce the cost of attendance.
If the offers aren't enough, parents can appeal for a "professional judgment review," by documenting, say, extra doctor bills or other costs that the aid office didn't take into account. Families that can't prove they have extra costs but want more aid can try negotiating. Many schools refuse to bargain. But if approached politely, some will respond. "You can negotiate with me," says Glenn, the Cincinnati soccer coach. But she warns parents against playing hardball. She'll drop a student who lies about being courted by other schools. However, if a student says, " 'If you could just make it 10 percent more, I'd love to come,' I might say, 'OK, but you've got to earn it.' "
That's the new reality for parents and students. They've got to work hard to put every piece of the financial aid puzzle together. Now, more than ever, students really have to earn their degrees.
Newborn
Fix finances First, pay off credit cards and max 401(k) match.
No toys Ask for gifts to a 529 instead of birthday Barbies.
Age 5
Do math Considering private school? Calculate the advantages of moving to a better district.
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