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Posts Tagged ‘college financial aid’

Estimating the Cost of College

November 26th, 2007 by Matthew C. Keegan | 2 Comments | Filed in College Planning

college costs

College costs are continuing to rise and at a pace higher than the rate of inflation. This trend, which shows no sign of abating, is a cause of concern for plenty of parents including those with young children. Suddenly, being a part of the Marquette Class of 2022 doesn’t seem all that attainable never mind Georgetown 2012.

For parents wanting their children to attend the school of their choice, coming up with a plan to cover college costs is essential or settling on some lower cost schooling options may be the way to go. Let’s take a look at ways you can turn the college financing nightmare into a good dream come true.

Unless your son or daughter is already a high school junior or senior, the following information could change by the time your child reaches college age. For parents of younger children, setting aside funds in a 529 account which is a tax-advantaged savings plan designed to encourage saving for future college costs, is a good place to start. There is no telling what college costs will be by the time your child is ready for college and what other relief will be available at that time.

Your Financial Aid Road Map

We’ve developed an eight-step guide to help parents finance and pay for college. One or more of these steps can be used to finance your child’s education and help you understand the financial aid options for undergrads. The steps are as follows:

1. Review Financial Aid Steps — Before applying for aid, you should fill out the Free Application for Federal Student Aid (FAFSA) form and submit it to the federal government. Based on the information provided, the government will create a Student Aid Report (SAR) which will be submitted to the student’s college of choice and a copy to sent to the student’s family.

The college then takes the SAR and creates a financial award letter that lists the aid the student will receive. The difference between the cost and the award given is the family’s expected contribution towards the cost of education. Once that information is known then the student and his or her family will be able to determine the steps they will need to take provide the remaining funding.

2. Scholarships — Billions of dollars in scholarships are awarded annually therefore scholarships are an important way for families to close the funding gap. Scholarships can depend on financial background, race, ethnicity, course of study, school attended, and a host of other factors. Apply for as many scholarships as eligible as this can be an important way to finance higher education.

3. View Financial Aid Charts — Trying to estimate college costs beyond school expenses can be difficult. Using supplied online tools can help you keep everything in order.

4. Apply For Federal Stafford Student Loans — The federal government is a huge funder of higher education and Stafford Student Loans (SSL) are a great way to help pay for education. However, eligibility requirements are tight, therefore you will want to learn if your son or daughter is eligible as soon as possible.
5. View Other Aid Options — Grants, using your home equity, 529 funds, withdrawing IRA money, tax credits, military service, work-study programs, and loan forgiveness are options worth exploring.

6. PLUS Loans for Grads and Parents — These are government guaranteed, fixed rate student loans that can cover up to 100% of a dependent child’s cost of education, less any financial aid awarded.

7. Use Private Student Loans to Close the Gap — Families can borrow up to $30,000 annually and in some cases up to $40,000 thanks to private student lending. Private student loans are easier to get than Stafford Student Loans with a higher interest rate charged, but favorable pay back options available.

8. Manage Your Money During School — Finally, once your child is in school managing college money is essential toward collegiate success. A budget can go a long way to helping maintain financial accountability.

Once you have gone through the college admission process, then following the financial aid road map will help you achieve your goals in a timely manner. College costs are rising, but a well executed plan involving a combination of choices could be the way to go.


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In 9 Months You’ll Be Heading Off To College!

November 5th, 2007 by Matthew C. Keegan | 1 Comment | Filed in College Planning, College Search, Student Aid, Loans

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Handy tools to help high school seniors: we provide what you need to take the stress out of college planning.

The Last Hurrah

Today’s high school seniors are busy enjoying their final year of schooling, taking in frosty football games and thinking about what they will do over their Christmas break. SATs, writing projects, and applying to college are some of the other activities consuming time right now with the next few months being especially critical in planning life beyond high school.

Graduation is just seven months away and two months after that today’s high school seniors will become tomorrow’s college freshmen.

Let’s take a look at what you can do now to make going off to college as stress free as possible.

College Planning Is A Family Event

Preparing for college involves much more than the prospective student. Parents need to get involved as they are the ones providing the bulk of the financing while offering guidance on the schools to visit, scholarships offered, and financing options available. Even siblings cannot be forgotten as family decisions will impact them. Hey, you won’t have your little brother or sister pestering you for awhile, so you might as well enjoy their company while you can!

Busting The Stress With Helpful Tracking Tools

As you probably know all to well, the final year of high school isn’t as rosy as you may have thought it would be. Seniors still must finish up course work, take college entrance exams and deal with raging hormones. The thought of planning the next four years of life while handling the crisis of the moment can seem daunting; that is why we have developed free tracking tools to take the edge off of college prep.

Four tracking tools for college planning:

  1. Student aid tracking worksheet — a worksheet to record and track your financial aid information (excel file).
  2. College budgeting worksheet — an automated file to plan and budget college aid and costs (excel file).
  3. College cost comparison worksheet — compare colleges by cost and amount of aid awarded (excel file).
  4. College spending sheets — use these spending sheets to track daily – weekly – monthly spend (PDF).

Please visit this page to find the four tracking sheets and related planning tools.

Starting Your College Search

Of course, at the same time you are taking a look at your financial picture, you’ll want to begin your college search. Chances are you spent the summer between your junior and senior year visiting some campuses, but narrowing that list down to a manageable three or four schools will make college planning a whole lot easier.

Use a financial aid checklist to balance college search with student financial aid options for a clearer picture of your schooling options. Parents need to remember that Stafford loans and private student loans are two forms of student aid that have opened up educational opportunities for millions of students.

Finishing The Race In Style

With the tracking tools at your disposal, college planning becomes less of a stress and much more of an enjoyable experience. You still need to consider your college major and meet with your guidance counselor, so plan wisely now to create fond memories that will last a lifetime!


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Federal Student Loan Aid Falls Short For Many American Families

October 15th, 2007 by Matthew C. Keegan | 3 Comments | Filed in Student Aid, Loans

We have some good news and some bad news for you. First the good news: President Bush signed legislation that has recently gone into effect to help families cope with rising college costs. In a nutshell, aid amounts have been increased while Stafford federal student loan rates have dropped. Now for the bad news: The new law only goes so far as many American families will still have to borrow money to pay for their student’s higher education.

Federal Financial Aid or Private Student Loans?

Although the news is both good and bad, families still have some strong options at their disposal. Financial aid is widely available in the form of both federal student loans and private student loans. Is there a difference between these two college loan choices? Yes, so let’s take a look at how these options work and what they can offer for you:

Stafford Loans – Named for Senator Robert Stafford of Vermont in honor for his work in higher education, Stafford loans is the federal guaranteed student loan program managed by the U.S. government. College loans are backed by the federal government and, therefore, carry a lower rate than private loans. Strict eligibility requirements and borrowing limits are two important attributes of these types of loans.

Private Student Loans – As the name implies, these loans are offered by private financial institutions, such as banks. Private student loans can be used in place of Stafford loans or as a supplemental loan. Undergraduate and graduate students can borrow as much as $40,000 annually or up to the full cost of annual tuition and expenses less financial aid received, whichever is less. Because this type of college loans is unsecured, rates are usually set much higher than federal student loans.

A Two-Tier Student Lending Plan

Both private student loans and Stafford loans allow students to wait until after graduation before repayment on the loan(s) is required. Many students take a look at federal financial aid first and use private student loans to fill in the gap between what they can borrow and their actual expenses. This two-tier financing approach allows borrowers to secure low rate federal student loan aid while limiting what they will need to borrow from banks or other private student loan providers.

Shop and Compare Private Student Loans

Worth noting is that when it comes to private student loans, each lender sets their own terms, rates, and qualifications. Therefore it pays to shop and compare before choosing private financing.

Higher Education Is Within Your Reach

Although the borrowing aspect of financing your education can seem daunting, it does provide options that allow you to get a college education in the first place. Carefully examine your choices to come up with the best financial aid package that is right for you. Please visit the SayStudent website for aid information and free, downloadable tools.


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