Most families are terrified about trying to pay for college. And that is understandable since 4 year colleges and universities can cost over $70,000 per year! With multiple college-bound students in the family, this amount can be staggering.
Many families do not believe they will be eligible for financial aid, but the truth is that most families with incomes ranging from $50,000-$150,000 per year who own homes are eligible for some form of financial aid. There is over $150 billion available each year from a variety of sources; you just have to know where to look! You would be surprised how many high-six and seven digit income earners are eligible for some kind of financial aid. Many families become obsessed with searching for scholarships, but the fact is that private scholarships only make up 5%-7% of the money available to help pay for your child’s college education. So it is best to focus on getting the other 95% that comes from other sources. So how do we do that?
First of all you need to find out if you will qualify for need-based aid. You can use an EFC calculator on the College Board website to calculate your expected family contribution (EFC). Subtract that number from the total cost of attendance at the colleges you are looking at and you will know if you are eligible for any need based financial aid. For example: If your EFC is $15,000 and the cost of attendance is $55,000, you will be eligible for $40,000 in need based aid.
Next, find out what % of your need each college will meet. Most do not meet 100% of your need. Ask if each college has a ceiling on the maximum amount of financial aid a student can qualify for? Find out if the financial aid package remains the same all 4 years and what are the specific requirements to maintain that amount. There are usually GPA requirements. One last thing to find out is how they treat private scholarships. In other words, if you get an outside private scholarship (say from the Rotary Club), will they subtract that amount from your need based aid? It is also important that if the student will be eligible for need based aid, that the family file the FAFSA as early as possible. The early bird gets the worm; that is to say that need based aid is doled out on a first come first served basis!
So what of you find out that you will not be receiving any need-based aid? Then it is up to the student to be sure grades and test scores are high, and that he/she is academically in the top 25% of applicants at the schools where he/she will apply. Colleges can be very generous with merit-based financial aid. Merit aid is not typically based on family income or assets. If you will not be eligible for need-based aid, then applying for private scholarships can help! It is a lot of work and takes several years of searching since the private scholarships are typically only for one year.
And finally, much to the dismay of many, California colleges are expensive! So if the student is willing to get out of California, there may be many more affordable options! Sorry Mom!
