Do you have a child that is about to start college? Are you wondering how you will help pay or pay for college? The best way to pay for college is to start saving early in a tax deferred account such as an approved 529 plan. That combined with an approach of selecting a school that is academically a fit for your student and is also a fit financially is the key to success. Look at all options early and figure what amount and kind of aid the institution provides. All schools require the FASFA to determine aid eligibility. Do not wait until your child’s senior year to fill this out and find out what amount of aid will be needed. Go to the FAFSA website and use the on-line calculator to estimate your child’s need.
Now the FAFSA will tell how much assistance the family is expected to contribute with income being the main factor. Things such as savings, retirement accounts and your home’s equity do not factor into the equation. Now after the FAFSA is filed out it will determine if your child is eligible for federal financial aid. This could be a guaranteed job through the work study program, grants, or loans. Institutions use it to determine what grants or scholarships they will offer a student.
The key to selecting an institution is first look at in-state universities, flagship universities in other states, and both large and small private universities. Each is unique and will offer a variety of aid. By looking at all these different universities your child will surely find one that is a fit for them and their academics. Not all schools have the same programs or degrees especially some of the smaller public and private universities. Also be watchful for schools that may be placing new importance on a given academic area and thereby will be offering extra incentives for students to attend.
Okay now your future student has found several universities that are an academic fit. The next step is to select universities that will help fund as much of the college expenses as possible. Many will provide full scholarships to students that excelled in high school and tested well on the ACT or SAT. Even if your child was not the best in high school in many instances above average will provide just as useful and beneficial. Many schools are fairly liberal on their merit scholarships and grants. Also some schools excel in providing aid that will supplant the student and family’s contributions and provide a need based scholarship or grant to cover the unmet need of the student. Look for institutions that provide as close to 100% of the need of its students by researching the schools website. Try to apply to universities where you will be in the top 25% of incoming freshman. That will give your future college student the best opportunity to fully fund their college experience.
Do your research. Save early for college. And do not limit your child to one school or another. Look at all options available even including Ivy League schools as they have some of the largest endowments that can fund more and more of a students need. Apply for scholarships on a national level and never forget scholarships that are local. While a $500 scholarship might not seem like much it could help cover the cost of books or if combined with other scholarships pay for college in its entirety. The one thing to remember is do not wait until your child’s senior year to examine schools start as early as possible.
