I’d like to share a couple of thoughts having been in the college planning business since 1995.

The biggest mistake families make is approaching the application and financial aid process separately. 

You can’t separate the two processes.  They affect each other.   Merit assistance, based on the qualities the student, is almost always a part of the application process.  So the college application is not only critical because it determines acceptance, it also determines merit assistance. 

On the need-based side, looking at schools without knowing your EFC (Expected Family Contribution) provides no financial basis on which to screen your list of desired institutions.                                     

These circumstances demand that planning is done ahead of the application process and the financial aid filing.  An analysis of the family’s finances with regard to the EFC calculation should be accomplished prior to January of the junior year of high school.  The base year for need-based eligibility is in part based on prior year’s taxes. 

This allows for better planning, looking at the cost of institutions vs the family’s fair share and any potential adjustments to the family’s finances which might improve the outcome of the EFC Calculation.

The shopping aspect of the college process is still the most important, but must include both financial and application considerations.

Lastly, families need to be careful of taking advice from private financial aid consultants without first checking out their credentials.   Financial aid, tax and investment strategies are not compatible.  One must understand more than just the EFC calculation to properly advise a family on their finances.  Your college consultant should have a background in the financial sector as well. 

1.      Don’t procrastinate: 

          Career exploration should start during middle school.

          There are private scholarships that high school freshman can apply for.

          Shopping for the right school should begin as a sophomore in high

          school. 

          Planning for need-based aid should begin no later than fall of the junior

          year of high school.

College applications should be filed before winter break of the senior year to get a “better look.”

Financial aid applications should be submitted as soon as possible after Jan 1^st of the senior year.      

2.      Don’t rule out private colleges: 

Depending on the numbers, it may be less expensive to attend a private college.

3.      Don’t assume you’re not eligible for aid:

           50% of students at public schools and 72% at private institutions receive

           aid.        

You won’t know unless you apply.  The formula is complex and there are many variables.

4.      Don’t ignore deadlines:

            Missed deadlines reflect poorly on the student and mean missed

            opportunities.

5.      Don’t spin your wheels chasing private scholarships:

            Less than 7% of all aid comes from private sources.

In most cases, if “need” is established, private scholarships will not reduce the family’s share of the cost.

Maximize government and school resources, then look for private money.

6.      Don’t accept attendance without a campus visit.

             Every school is different.  Spend time there. It will pay off.

Colleges sell education.  Those glossy brochures can be misleading.

7.  Don’t shy away from loans:

Government-backed loans are considered financial aid.  Interest rates are capped and they offer attractive repayment options. 

              Consider letting investments grow while using borrowed funds.

8. Don’t think you and the college have the same goal:

              Their job is to use their resources to help as many students as

              possible.  Your

              job is to get as much aid as you can through marketing.

9. Don’t apply early decision:

Early decision locks you in and limits your ability to facilitate the financial aid offer. 

              Early Action is not binding and can be used to test a student’s

              perceived value. 

10. Don’t ignore the process:

Filing for aid and letting the system take its course is like letting the IRS do your taxes. 

The forms ask for numbers.  You need to let the college know if there are extenuating or mitigating circumstances. 

 11. Don’t forgo filing the FAFSA:

Most schools will not offer you any aid unless you file the forms.

            In order for the school to certify your student loan, you must file. 

12.  Don’t limit your applications to a couple of colleges:

            Apply to at least six schools to increase your chances of being accepted.

            Once accepted, you’ll have more than one offer of aid to consider. 

13. Don’t forget the financial aid office:

Merit assistance is controlled by the admissions office. Need-based aid is controlled by the financial aid office.  Don’t assume they share information.