About the Book - Look Inside the Book

Paying for college does not have to be difficult     

By deciding to attend college, you have made an important decision that will help you reach your career and life goals. Achieving your college dreams will also require getting the money you need to see you through two to four years of school maybe more for certain professional careers.

The Cost of College

College Financial Aid Offices use the total cost of attending the college when they figure your financial aid package. The total Cost of Attendance (COA) for a college includes the following expenses:

Tuition and Fees

Room & Board

Books & Supplies

Transportation

Personal Expenses (i.e. toiletries, clothing, etc.)

The Cost of Attendance at a school increases each year, so it is always best to call the school?s Financial Aid Office or check the school?s website for the most recent or up-to-date figures.  As you consider the cost of college and how much you can contribute to your education, you should count on paying more money ?out of your pocket? as prices increase each year.

Merit-Based and Need-Based Financial Aid

Financial aid is usually classified into two types. Each classification is based on the criteria through which the financial aid is awarded ? either merit-based or need-based. Merit-based aid includes academic, athletic or other activity-type (i.e. musical instrument, special talents, etc.) scholarships. This is how your excellent grades or remarkable talent can really pay off. Need-based aid is awarded only on the basis of the financial need of the student and their family and is based on your (and your family?s) income and assets. When a college figures your financial aid package they may use a combination of both types of aid to help you attend a school. Both merit and need-based aid can be from a variety of sources such as federal, state, regional and private sources. 

Gift Aid and Self-Help Aid

Gift Aid is any type of financial aid (merit or need-based) that does not have to be repaid.  Grants, scholarships do not have to be repaid. Self-Help Aid is financial aid that must be repaid, such as loans and the amount that a family is expected to contribute.  The information you supply on your financial forms will determine whether or not you qualify for some financial aid programs. Colleges have limited financial aid and have limits regarding how they distribute gift aid and self-help aid.  That is why it is very important to submit your financial aid forms as soon as you can (we recommend the first week of January).

Should You Take Out a Loan?

That depends on your financial situation. Few students can afford to pay for college without education loans. Most students will find themselves with some debt after college. In fact, the average indebtedness of today?s college graduate is about $24,000 (the average wages for a college grad are also higher!). In many cases, scholarships and grants will not cover the entire cost of a college education. With rising tuition costs, many students find that they must take out government or private education loans, but that is not necessarily bad. In fact, most of the federal education loan programs that you will read about later in this section offer better repayment plans and lower interest rates than most private bank or consumer loans, making federal loans an easier way to help finance your education. Some education loans even offer forgiveness for working in specific jobs, like nursing and education. Check with your lender or state higher education agency for more information about these types of loans.

Unlike grants, scholarships and work-study, education loans are forms of financial aid that must be repaid, with interest. Make no mistake, education loans, whether federal or private, are real loans. Loans are a serious financial obligation, so give a great deal of thought about the amount before you decide to take out a loan.

Don?t Take the Bait ? Shop Around

All colleges are educational institutions, but not all have your best educational interest in mind. It is up to you to ask questions to decide what is in your best interest - educationally and financially.  Some colleges are for-profit businesses and are concerned with their ?bottom line.?  And the ?bottom line? is money, namely yours.  Beware of institutions that promise automatic admission, a large amount of financial aid (mostly loans) or a large non-refundable deposit. Reputable schools will ask for deposits, however, the deposit is refundable to a certain date and the money is put toward the cost of attendance. Ask specific questions about financial aid such as  ?how do you determine financial aid awards?? Or ?how much do you gap students?? (see p.59 for the definition of ?gap?). If you feel that your financial aid questions are not being answered directly, you should probably cross the school from your list. Some schools will give a good package the first year and then significantly decrease your financial aid for the second year even though your financial information may have remained much the same as the previous year. These schools  ?bait? students with good financial aid packages to encourage them to attend the first year, and then count on the student to pick up a much larger amount of the cost for the second and subsequent years.

Before you apply for admission, ask all of your schools about the continuity of financial aid for following year(s). A reputable school?s Financial Aid Office will never hesitate to completely answer your questions!

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The Simple Guide to College Admission & Financial Aid