So, we’re deep into the financial crisis and you have kids that may be of college age. You planned to help them with the costs but now you are not so sure that’s possible. How do you decide whether or not to send your kids away to college during this unstable time? One thing remains the true even in these troubled times: more information is needed to make a good decision.
The unfortunate truth about our financial aid system in the U.S. is that it is next to impossible to figure out how much money it will cost to send a child to college, until that child has been accepted by a college. Huh? Yes, really, students apply to colleges in the fall, and receive acceptance letters in the early spring. Only then can they find out how much it will cost to attend each school that they were accepted to.
First things first: Don’t panic. The price of tuition printed on college websites and brochures is the price you would pay if you were able to, without sacrificing food and shelter for the rest of your family. Most people do not pay that price. That price can be significantly (or even totally) reduced by applying for financial aid. Every family has a unique financial situation and only by going through the entire financial aid process can you determine the true cost of attendance. Patience is the key.
Here’s how the financial aid system works. First you fill out a Free Application for Federal Student Aid (FAFSA) in January. This information allows the government to compare your family’s financial status against everyone else in the system. Based on the comparison, they send you a Student Aid Report, (SAR) usually in March. The SAR includes your Expected Family Contribution (EFC) – the dollar amount that your family is expected to come up with. This EFC is sent to the colleges where your kid has been accepted.
In the spring colleges look at all of their admitted student’s needs (EFCs) and see what they can offer your kid from their pot of money. Finally, the colleges send you offer letters that are called Financial Aid Award Statements in April.
Conveniently, April is the month when housing deposits for dormitories are requested. Sierra College in Rocklin starts taking deposits mid-April and usually fills up by early June. (By looking at your award statements you can see if community college really will be less expensive).
So, how do you find extra money next fall to cover the cost of your EFC? The answer is simple: scholarships, loans, and savings. Right now, this fall, before your child has even begun the college application process, is the time to start requiring your high school senior (or junior) to start applying for scholarships and get a job! The more scholarships and savings they can contribute, the less money you will have to borrow. Students that do not have Social Security Numbers and attend college rely primarily on scholarships and savings, due to the difficulty of securing a loan. It can be done.
Between the looming 30 percent University of California fee hike and the Obama Administration’s promise to make higher education more affordable there is no possible way to estimate what students will pay for college in the fall of 2010. Don’t make any decisions now. Play it safe and proceed as though everything is normal. Go through the college application process as well as the financial aid process. In April 2010, you will then have real numbers and be able to make an informed decision.
~ Emily Wexler is the Director of the College Planning Grant Program of the Plaza Comunitaria Truckee Tahoe, a 501(c)(3). This program gives local students money to use for college applications and provides guidance through the application process. emilywexler@gmail.com.
