College Financing Made Easy(er)
By Kim Price
You think the hard part’s over. You’ve chosen a school. Congratulations. Now, I’m sorry to say, the tough stuff begins. Welcome to the world of financial aid.
I would equate the process to buying a house – tons of paperwork, signatures, confusion and time. Needless to say, applying for financial aid wasn’t my favorite part of the college experience.
But recent changes have made life a little easier.
“I know firsthand as a parent, and as a former high school and current college instructor, just how challenging and overwhelming all of the financial aid forms and paperwork can be,” said Jill Biden, Vice President Joe Biden’s wife. “It was great to see how the current forms have fewer questions, easier navigation and are more user-friendly.”
Jill Biden has been fighting to simplify the infamous Free Application for Federal Student Aid (FAFSA) form. On her White House Blog post in early January, she expressed her joy at seeing students using the streamlined government aid application.
“President Obama has challenged the nation to have the highest percentage of college graduates by 2020, and simplifying the FAFSA form is a huge step toward removing barriers to financial aid and access to higher education for all,” she wrote.
Students complete the FAFSA form in order to receive federal Title IV financial assistance, including Stafford Loans, TAP (Tuition Assistance Program), and the Pell grant. Based on household financial information from the previous year, the “expected family contribution” is calculated, determining the amount of aid a student will receive.
The majority of colleges require FAFSA information to be on record.
“I even encourage parents who make a lot of money to fill out the FAFSA,” said Patrick Clark, a guidance counselor at West High School in Painted Post. “Some colleges want to see the information even though what they give has nothing to do with a parent’s financial situation.”
Pots of gold
Over his eight years of counseling at the high school, Clark has discovered “three pots of gold” to pay for college that he eagerly shares with his advisees.
The first pot of gold is the college financial aid office. Not only do they offer private scholarships, some colleges offer money based on high school GPA and SAT scores. Clark encourages students to apply early – soon after being accepted to the college, because once the pool of money has been awarded, it’s gone.
Over the past several years, Congress has been investigating universities with rapidly growing endowments, signaling the investment of money instead of the use of it to make college affordable to students. In return for the privilege of tax exemption, universities are supposed to offer public benefit. In 2007, Stanford University’s endowment was $17.1 billion – a 22 percent increase in a year.
A study done by the National Association of College and University Business Officers (NACUBO) indicated that 136 colleges in the United States had endowments of $500 million or more in 2007.
“The Senate Finance Committee is pressuring universities to use more of their wealth for financial aid and is threatening to require them to ‘pay out’ 5 percent of their endowments each year,” read an article in The Stanford Daily. “In an attempt to prevent Congressional intervention, wealthy universities have rushed to expand financial aid.”
The second pot of gold in Clark’s arsenal is private scholarships. West High seniors receive a large packet of scholarships each September, which gives them a good idea of the “free money” potentially available to them. “There are so many scholarships out there,” he said. “Thousands. It’s really hard to list them all.”
Clark encourages students to sign up to websites like www.fastweb.com and www.collegeboard.com, and to build a profile with SAT and GPA scores. The sites send e-mails when a scholarship is a match.
Included in the profile is other information – like religious affiliation. “Kids always come in and say, ‘Why are they asking me this stuff?’” Clark said. “There are a lot of scholarships that are based on those things. Some don’t take GPA into account.”
Clark’s third pot of gold is government aid. He encourages students and parents to fill out the FAFSA form as soon after the January 1 starting date as possible. That old saying remains true: The early bird gets the worm – and a lot more money than the one who waits.
For the 2009-2010 academic year, the maximum TAP award in New York State was $5,000, while Pell offered up to $5,350.
SUNY schools are a good buy
In recent history, the state of the economy has been a concern in all aspects, and college finance has not been neglected area.
“Corning Community College has broken records with enrollment the last few years,” said Clark. “SUNY schools are becoming very, very competitive.”
Many have been listed in national publications that take cost into account for a good education, Clark said. “Usually, there are certain SUNY schools that you tell kids to use as a safety school, but now their numbers are going up.”
Just because the price tag isn’t as high as a private college doesn’t mean the quality of the education is lacking. “You could buy a pair of shoes for $2,000, but does that mean they’re going to be better?” said Clark. “It’s all marketing in my opinion. One of the biggest things I try to get across to kids and their parents is that you have to understand, college is a business.”
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As with other pots of gold, these tips along with some deep digging for scholarships and early applications are sure to lead you to the end of the rainbow, where you’ll discover free money – and with it, the chance to achieve your dreams.
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