The financial aid process can be a complex and dissatisfying experience for the unsuspecting family that doesn’t understand how the financial aid game is played.
Dollars available for merit-based financial aid - awarded on the student’s scholastic record – are few and difficult to come by. Most financial aid takes the form of needs-based financial aid, tuition grants, student loans and work-study programs.
The process to apply for traditional needs-based financial aid can be mechanical – complete and submit the FAFSA form, receive your expected family contribution (“EFC”) amount by letter and then wait until the target colleges send a financial aid award letter. Depending on your family’s EFC, which is determined based on the income and asset levels of both the parents and children, financial “aid” often takes the form of student loans and work-study programs – not much aid indeed!
For some families, especially those who own a small business, there are planning techniques (and mistakes to avoid) to make your FAFSA and/or PROFILE form look more favorable for needs-based financial aid. Likewise, be cautious with grandparents setting up 529 plans for their grandchildren because these funds could upset a financial aid award when expended on the child’s education expenses.
For the family that does not qualify for needs-based aid, financial aid planning centers on a “competitive appeal” strategy to create competition for your child in the form of tuition grants. Colleges often offer significant tuition grants to attract higher caliber students or achieve their diversity goals, especially if the competition for your child is another private college in their peer group.
No matter what your financial situation, we can help you navigate the financial aid system to maximize your chances of receiving non-loan financial aid and to develop a custom education plan based on your family’s financial profile.
