Before College: May 1 is Right Around the Corner!

May 1 is just 34 days away. That’s the deadline for paying a nonrefundable enrollment deposit to hold a spot at the 4-year college your student decides to attend this fall. When it comes to affordability, there’s much to do.

(1) Award Letter: Be sure your student has his financial aid offer from each school he’s considering. If a school’s award letter hasn’t arrived yet, make sure you’ve completed verification (if the school required it), then contact the financial aid office to request one IMG_5726ASAP.

(2) Outside Aid: If you know about scholarships your student’s getting from parties outside the school, report them to the aid office right away. Not doing so will freeze financial aid once the school learns of these awards, because it’s required to determine that the aid it awarded isn’t affected by outside scholarships. Should reductions be required, schools usually cut loans, then work-study and, last, grants or scholarships.

(3) Appeal: File a financial aid appeal ASAP if it might lower your student’s Expected Family Contribution and qualify her for more need-based aid. The aid office can tell you how.

(4) Affordability Analysis: Evaluate the affordability of each school under consideration.

First, use the “Tuition, Fees, and Estimated Student Expenses” on the National Center for Education Statistics College Navigator website to calculate annual growth in the average cost of attending a school over the last four year. Multiply the school’s 2017-18 costs by this average for each of the next four years to project your student’s 4-year cost.

Now project the financial aid to be received over four years. Some institutional grants and scholarships are for one year only, so be sure to differentiate between them and 4-year IMG_5659awards. And watch out for schools that practice bait and switch. Assume federal and state grant amounts will remain constant each year. Keep your borrowing assumptions within annual federal loan limits.

Subtract your 4-year financial aid projection from your 4-year cost projection. Now the big question — can you and your student cover the remaining gap? If so, keep that school on the list for consideration. If not, it may have to be dropped.

(5) Fit: Fit is absolutely critical. If a college or major doesn’t work for your student, chances are he’ll transfer, which’ll increase the cost of his degree. So consider fit carefully.

Need help analyzing the affordability of the colleges your student is considering? Contact College Affordability Solutions by email at collegeafford@gmail.com or by phone at (512) 366-5354.

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Before College: Should You File a Financial Aid Appeal?

Your 2017-18 Free Application for Federal Student Aid (FAFSA) — despite all the information it collects, it can’t cover everything. It doesn’t gather unusual information that could impact your student’s Expected Family Contribution (EFC) — the key to determining his eligibility for financial aid awarded on the basis of financial need.

Since 2015 ended, did you suffer:

  • A big income loss — a layoff or employment termination — that’s still affecting IMG_5702you; or
  • Any major uninsured medical expenses in 2015, 2016, or 2017; or
  • Similarly unavoidable financial problems?

If so, appeal. These may lower your student’s EFC, qualifying her for more need-based aid.

The financial aid office can tell you how to do an appeal. You’ll no doubt be asked to file it in writing and to provide documents proving your income reduction, medical bills, or other financial losses. Why? Because parties funding your student’s need-based aid often audit EFCs. If they’re not convinced that your student’s EFC is correct, the school becomes liable for need-based aid it gives him in excess of his resulting financial need.

DOG_ATTACKKeep copies of the documents you submitted with your appeal. You might need to them to respond to follow-up questions from the aid office.

Because there are so many appeals at this time of year, file yours as soon as possible to give the aid office’s staff sufficient time to review it and make a determination before May 1. That’s when your student must make a go/no-go decision about which 4-year college in which she’ll enroll next fall, and you don’t want this decision made without knowing her financial aid situation.

If your student’s EFC should be changed, the aid office will tell your student. And should additional need-based aid still be available, it’ll send him a revised financial aid award letter showing changes in such aid.

Remember, the EFC can’t be lowered for small, optional, or routine financial matters. A successful appeal will document that your situation is exceptional and unavoidable — e.g. medical bills aren’t for something like elective cosmetic surgery. It’ll also demonstrate that your situation significantly impacts your ability to help pay your student’s college costs — i.e. the loss you’ve suffered costs more than just a few hundred dollars.

If you meet these criteria, file an appeal ASAP. It could make a difference!

Questions about the financial aid process? Contact College Affordability Solutions for a free consultation at (512) 366-5354 or collegeafford@gmail.com.