What Do I Need to Know About Financial Aid for College?
Financial Aid 101: Learn the Basics When Planning for College
Each year on October 1st, the Free Application for Federal Student Aid (FAFSA) and College Board CSS Profile open for the following academic year. Colleges use FAFSA to determine federal financial aid eligibility, and about 400 schools use the CSS Profile to award non-federal aid. For teens and families just starting the college planning journey, these forms may seem intimidating. Don’t let this process scare you, though. With the right preparation, it’s extremely manageable!
CompletE Your FAFSA Form to Apply for Federal Financial Aid
Parents who attended college fifteen or more years ago and are having traumatizing flashbacks about completing the paper FAFSA form should take a deep breath. Not only is the entire form now online, but they even offer a very handy IRS data retrieval tool that will import some of your tax return information. The online system is user friendly, and it is conveniently segmented for parents and students to log in separately to complete their parts.
On the form, be sure to designate all of the schools on your student’s school list to receive a copy of your application. Each school will evaluate your financial data and offer an aid package based on its own criteria. If your teen is accepted to multiple schools, the aid packages will likely be a consideration when choosing which one to attend. Remember that the school offering the most aid won’t necessarily be the most affordable. Look at the institution’s tuition and financial aid page to get a sense of net costs.
Should You Complete a College Board CSS Profile?
The CSS Profile is different from the FAFSA in that it is used to determine non-federal aid, and it is not used by every school. Find out if your student’s institutions participate in the CSS Profile before you complete it. Nearly 400 colleges and universities use the CSS Profile, so you are likely to find it worthwhile to complete the profile. Some schools require the CSS Profile to apply for any of their aid options.
One benefit of the CSS Profile is that it allows you to submit a deeper look at family finances and explain circumstances that could impact the aid a school provides. The FAFSA is less comprehensive and essentially follows a formula. The CSS Profile looks at more than the numbers on the page. Keep in mind that there is a fee for the CSS Profile, though fee waivers are available.
Don’t Forget to Keep an Eye Out for Scholarships, Grants, and State Aid
Students and families must be proactive about obtaining funding for college. While FAFSA and CSS Profiles are great resources that serve most college-bound students, there are literally thousands of other opportunities for aid. Make sure your student is accessing resources from their school counselor and other college advisory teachers. Check with your state higher education funding agency, employer, local bank, large local companies, and community organizations to find out about scholarships and grants. Don’t forget to discuss college planning with your family’s financial advisor, and see if your local library or high school will be hosting a “paying for college” workshop.
Many colleges also have endowment scholarships available. These competitive scholarships are typically available to students who fit a specific metric. For example, scholarships may be reserved for students who live near the school, students of a certain ethnicity or gender, students looking to explore a certain field, etc. These scholarships are more individualized, but they are worth exploring.
If you feel as though you’re in over your head with college planning for the first time, help is just a phone call away. Hollenback Consulting is your steady guide on this unfamiliar path. Contact us to schedule your free 30-minute strategy session and start breathing easy.