Paying With Less Pain
There's not much of a safety net if cost is the biggest barrier to college. But here are some strategies you can use
Of course, you should buy Christmas presents in July, when they're on sale. And, yes, you should have started raising money for college years ago. But if you've waited until the student is well into high school, don't panic. Even at that late date, students can improve chances of earning an affordable degree if they flout a little conventional wisdom and some government instructions. (Don't worry; it's legal.)
Be cost conscious. Nowadays, students should include a few affordable schools—schools that are low cost or likely to give big scholarships—on their list. That means applying to at least one in-state public university or community college. To further increase chances for aid, students should also apply to schools that need whatever unique diversity, talents, or grades they offer. One common strategy: Apply to one or two schools in which the student's grades and test scores are in the top 25 percent of the student body. Students of either gender can also apply to one or two schools that are short on their gender—boys to liberal arts schools, for example, or girls to tech colleges. Most colleges post grade, score, and demographic information on their websites. Students who want to look for several schools that might serve as safety options can use the selection tool at www.usnews.com.
Be wary of early. In late fall of their senior year, students should consider bucking the trend toward applying "early decision," to increase chances of admission. Too often, those fat letters arrive in December with a price—less aid. Linda Taylor, a private financial aid counselor in Agoura Hills, Calif., advises students concerned about affordability to use standard or nonbinding "early action" applications instead.
That %$#& form! In early January, it's time to throw out some government advice. Don't believe the Department of Education's claim that it takes only about an hour to fill out the 124-question Free Application for Federal Student Aid. Set aside several hours to round up tax forms, pay stubs, and other documentation. And expect to spend at least a couple of hours making entries on the FAFSA and its work sheets.
The FAFSA is supposed to determine who really can't afford tuition and thus should receive need-based grants. Typically, students from families with incomes of less than $40,000 receive federal Pell grants. Students from families earning two or three times that amount may be able to show enough expenses to receive state or college grants.
But even wealthy students must fill out the form to qualify for some college merit scholarships as well as the federal government's Stafford program, which offers reasonably priced loans to students regardless of need.
Don't wait for the taxman. Parents should also ignore the form's recommendation that they file their taxes before tackling the FAFSA. Since many schools hand out most of their aid money in late winter and early spring, it is wiser to fill out the FAFSA in early January using estimates based on the previous year's taxes. Parents can do their taxes and update the FAFSA later.
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