Paying the Bill: Financial Aid and Your Decisions

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Parents and students need to talk openly and honestly about how much they, as a family, are willing to contribute to the cost of college through savings and borrowing, especially in times of financial uncertainty. It does little good for a college to calculate that a family can contribute $10,000 a year to a student’s education when the family is either unwilling or unable to contribute that amount.

Thinking About Financial Aid Before You Apply

The uncertainties of financial aid (both up and down) are such that you should not let aid considerations determine where you apply. But if you are worried about your family’s ability to comfortably handle the Expected Family Contribution computed through the FAFSA, it would be wise to include at least a couple of colleges that you could afford and, of course, where you have a good chance of admission. Think of them as your financial good-bet colleges, which can provide some much-needed security. In the end, a private school with high tuition may actually cost your family no more than a less expensive state school because of generous financial aid. But you can’t know that in advance.

College-based merit aid is a bit of a wild card in the financial aid equation. If a college offers such aid, that’s great, but it is hard to predict your chances of getting it or how much you might receive. You should certainly not count on it. The College Board Web site, www.collegeboard.com, is just one of several that shows whether a college offers merit aid and how much it offers. It is worth checking out the colleges you are interested in to see their practices. If a college offers merit awards and your record is strong compared to that of an average freshman at that school, you’re a good prospect. The stronger your record, the better your chances of getting a large merit award. You are encouraged  to think about this when you build your college list, but don’t let it drive all your decisions.

It was clear early on that our kids would not qualify for need-based financial aid. So then we became pretty adept at looking through the Web sites to identify which institutions gave merit-based aid. - Parent of two college students who received significant merit aid

Evaluating Aid After You’ve Been Accepted

Comparing financial aid offers can be an important part of your decision-making process once you have your letters of admission in hand. Financial aid packages can vary widely, not only in total amount but also in their components. Financial aid letters also differ in the way they present information, so you should transpose them into a common format before you begin.