Financing a College Education
You just completed the FAFSA, and your expected family contribution (EFC) has been calculated by the Department of Education. What next? You probably want to know what sort of financial aid package to expect.
The financial aid award emailed to your student is calculated using two figures: your EFC and the actual cost of attendance. Cost of attendance refers to the total amount your student will be charged for a year of tuition, room, board, required fees, transportation costs, personal expenses, and other necessary expenses for a college education. When your family’s EFC is subtracted from the cost of attendance, the remaining amount is a good estimate of what your financial aid award will look like. This amount is called your “need.”
Of course, not all financial aid packages meet this exact formula. There are limited funds for every loan, grant, and scholarship, meaning the Financial Aid Office cannot always offer funds to fully cover your need. However, there are need-based and merit-based grants and scholarships a student can earn to fill the gap, and private loans and Federal Parent PLUS Loans are available to families at an amount which can be up to the cost of attendance.
Both need-based and merit-based grants and scholarships are available to those who wish to apply. Keep in mind that many deadlines are around this time of year, so act now and start looking. Banks, credit unions, churches, service organizations and agencies, and even google.com can be good starting places for your research. Be wary of any websites which charge you to find scholarships. Since you are asking for money, it does not make sense to pay.
Are you still struggling to make the numbers comfortable for your family’s budget? Consider having your student accept a work study position, or find an afterschool job to help pay for his or her education. Research shows students who have jobs while in school actually find it easier to manage time, and as a result, excel academically. Some families have found success by investing in organizations like GET and WUE, utilizing monthly tuition installment plans at your school, or even home equity or line-of-credit loans.
Thinking about financing a college education can be stressful. Be assured your financial aid administrators are here to help. They are professionals in the field, so never hesitate to ask if you have questions or concerns about finding the resources you need to send your student to college.