Financial Aid News and Information
Don't Let Cash Concerns Kill Your College Dreams
- by Dawn Papandrea
First,
the bad news: Tuition has climbed at more than twice the
inflation rate for the last decade, according to a report
by the National Center for Public Policy and Higher Education.
While a federal Pell grant covered 98 percent of the cost
of tuition at a public four-year college in 1986, by 1998
it covered only 57 percent. Does that mean your college dreams
have to end before they begin? Of course not!
"There are many misconceptions about college financial aid," says Harold Burtley (and he should know, he's director of financial aid at Northwestern Business College, Chicago, IL). And, he says, giving up on college because of a lack of funds is the result of one of them. Before you quit on your college dreams, try finding other sources of cash to pay off that tuition bill, whether it be private scholarships, work income, or loans.
Another misconception: If your family has a middle-class income, you're stuck in the middle of the financial aid food chain -- too much income to qualify for aid, but not enough to afford college. Not to worry, says Burtley. "Students from middle-class families regularly qualify." That's because there are various federal and state loan and grant programs to meet the needs of students of all income levels, he explains.
Then there's the concern that your financial situation will dictate which college you must attend. On the contrary, experts agree that cost should only be one of several factors you consider when choosing a school. In fact, don't let a school's tuition "sticker price" fool you, because it isn't necessarily what you will pay.
"Regardless of your family's income level or your academic record, you are likely to be eligible for some form of financial aid," says Michael Steidel, director of admissions at Carnegie Mellon University, Pittsburgh, PA, in the College Money Handbook (Petersons, 2002). In short, if you're really interested in a college, see what it can offer you financially before you rule it out.
Of course, if you're like most students, taking out thousands in school loans isn't something you want to do. However, the reality is Federal student loans are considered financial aid. Why? As Burtley explains, "Offerings like the federally-subsidized Stafford Loans and Parent Plus Loans offer lower interest rates than those available through banks or credit unions." In other words, don't look upon loans too negatively -- if they're necessary for your college journey, consider them an investment.
Don't think you can hack the financial aid application process? You're not alone in your self-doubt, but don't let a little confusion keep you from reaping financial rewards. "Help is available from the admissions or financial assistance offices at the school of your choice," says Burtley. "Most will [even] walk you through the entire process, as well as counsel you about the programs available for their particular financial situation." Of course, you will have to be the one to ask.
Same goes for scholarship opportunities. Sure, it's a lot of work tracking down and applying for various scholarship awards, but doing so may bring you hundreds -- even thousands -- of dollars closer to meeting tuition costs.
The common thread here? Asking the right questions and doing your research will help you make a financially-educated higher ed' decision.Financial Aid Advisor
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