Practical Tips and Pointers

If you plan to seek financial aid, you must consider many things. Here's a short list of tips and pointers which you should keep in mind:

Apply to many schools.  The likelihood of finding the right combination of academics and financial aid will be much greater if you have more choices. Plus, many colleges are looking for good students, so you may find that some schools are prepared to entice you financially to enroll!

Always apply for financial aid.  You certainly will not receive aid unless you ask! Keep in mind that even higher-income families can qualify. According to a 1993 survey by the U.S. Dept. of Education, 19.8% of students who were financially "dependent" (upon parents or others) from families with incomes over $100,000 received some sort of financial aid. In addition to federal aid and campus programs, don't forget state aid! (For more information, click here.)

Avoid transactions that harm your aid applications.  As far as possible, you or the financially responsible party should avoid making certain financial transactions because they may affect the impression or calculation of your need or ability to pay.

For a high school senior considering college, two calendar years from January 1 of his or her junior year through December 31 of his or her senior year is the period during which the needs analysis will be completed for the college freshman year. If you or your family sells a large asset (such as a business or a large block of stock), the resulting gain may count against you more than it should. Parents, consider the impact that putting your college-bound teenager on the family business payroll may have, since all of the first income is counted towards the student's needs.

Become educated about the financial aid process, the paperwork required and the timetables involved.  The worst mistake is to be disqualified due to a misunderstanding or lack of knowledge about the application requirements. You should particularly learn the "ins and outs" of the Free Application for Federal Student Aid (FAFSA). You can obtain a copy of the application by writing to:

Federal Student Aid Information Center
P. O. Box 84
Washington, DC 20044

Be punctual in meeting aid application deadlines.  You must meet deadlines for aid applications. You can and will be dropped from consideration in many scholarship and aid programs if your application is late. As a precaution, you may also want to have a record of receipt of your application by sending it "certified mail, return receipt requested."

Be aware of record keeping requirements.  You should generally keep copies of your W-2 forms, income tax returns, bank statements, mortgage statements, records of public assistance and Social Security and other major records that show your ability to pay. You should also find out what specific records you might be asked to turn over to support or validate information furnished on a financial aid application.

Contact as many sources of information as you can.  Agencies, civic clubs, guidance counselors, libraries and many other institutions provide extensive information about higher education and how to pay for it. Call when you need to get information quickly. For a telephone listing of state agencies involved in funding higher education, click here. For questions involving federal aid.

Count the costs carefully. We are referring to application costs, right? No, there's more to consider. If you apply for an "early decision" for example, you may be reducing your chances for an attractive aid package. By your committing to go if accepted, the school may have less of an incentive to offer the best financial aid package. Transfer students often face a similar hidden "cost" because in many cases the financial aid funds may be "committed" and not available to a transfer student.

Consider the financial strengths of the school. Sadly, many students are lured to a school in their freshman year only to find out that the financial aid in subsequent years cannot sustain them through graduation. In contrast, financially stronger schools are in a better position to offer "emergency funds" or more liberal repayment terms to ensure that their students can graduate. What may first appear to be an "expensive" college may in reality be the least cost alternative over a four-year period. Here is a list of the top schools ranked by size of endowment.

Finally, Apply a Benefit to Cost (ABC) approach to college funding. There is a cost to a quality education and sometimes the "least costly" education is also the "least valuable" to you or your children in meeting their long-term career and financial objectives.

With these ABCs in mind, you'll be ready to make the right decision!

Planning Checklist

Narrow your choice of colleges to a specific list. Your chances of receiving a suitable aid package will be greater with five or more applications and a mix of public and private schools.

Contact each college on the list for (1) entrance application and (2) financial aid and scholarship applications.

Complete each application carefully. Rules to follow include:

• Read all the instructions BEFORE answering the questions.
• Answer each question carefully and completely.
• Mark "N/A" or "0" or otherwise make an appropriate indication of any answer which does not apply.
• Think through each answer from the viewpoint of the personal who will read it.
• Type your answers where possible.
• Keep copies of all your application material.

Collect and retain copies of tax returns, wage records and similar financial records in support of your aid applications.

Obtain your Free Application for Federal Student Aid (FAFSA) and submit as soon after January 1 as possible (but NOT before) and no later than May 1.

Obtain other aid applications (for programs such as the Direct Plus Loan) which do not depend upon the FAFSA and submit them as well.

Mail all of your applications by certified mail, return receipt requested.

You should receive your Student Aid Report (SAR) from your FAFSA about 4 weeks after your application is submitted. Check the SAR carefully and mail a copy to the financial aid office of each college. Be sure to submit your SAR before the day date for enrollment or June 30, whichever is EARLIER. To check on your SAR after four weeks, call 1-319-337-5665.

If you receive any supplemental requests for information from any college, respond to the request in writing promptly.

After you have received a financial aid award letter from a school, review it and write or call the school for any clarifications.

Make your final college pick before the deadline.

Return your acceptance form promptly (including admissions documents, housing information forms, pre-registration forms and all financial aid acceptance forms).

After the first year, your next year's federal student aid application may be completed on a Renewal FAFSA with about 75% of the information already filled in and just a few "update" questions to answer.

How College Bills are Really Paid

In 1994, Sir Harold Acton made a gift to New York University of an Italian estate comprising 57 acres of prime real estate, a collection of Renaissance art and over $25 million in cash. The value of the gift to the University when ultimately received was estimated to be at least $125 million and perhaps as much as $500 million.

Gifts such as this provide invaluable support for our nation's universities. They enrich the institution in nonmaterial ways as well and enhance the value of the university experience.

Private support covers tuition costs and makes college more affordable. State and federal aid is an important source of funds for universities as well.

Among sources of voluntary support, information available through the Council for Aid to Education for the 1993-94 school year showed the following levels of support:

Thanks to all of these contributors to higher education!

Making the Most of Your College Visits

Many prospective students "shop" for colleges. Campus visits have become a popular way to get a sneak preview of college life, facilities and athletic events.

Yet many still do not take advantage of the visit to find out more about the financial aid opportunities. Not only will most colleges spend time with you on a campus visit to discuss financial aid and scholarship opportunities, many will even negotiate your package with you! If you are a serious, highly-qualified candidate who would be a strong addition to the college's program, consider "negotiating" your financial aid cost package. If a competing school has offered you a more attractive financial aid package, consider sharing that information with other schools.

There are several reasons why colleges will sometimes improve the aid package:

1. Many want to attract the best students.
2. Sometimes, they may have made a mistake or overloaded a factor in your favor in calculating your resources or needs.

Remember, if you don't ask for it, you won't get it!

How to See a College Without Really Going There

Prospective college students will soon find out that the process of evaluating schools, filing applications, taking achievement tests and making campus visits can become very expensive! College weekends for parents and students are a great way of finding out about colleges, but they can be a particularly large drain on your pocketbook.

Fortunately, there are other ways to "visit" colleges without physically going there. Many colleges will send you a videotaped program about the college with campus scenes and other useful information. Commercial services and libraries are other sources of videos about colleges.

You may also want to order some of the interactive, multimedia computer programs available on CD-ROMs. The well-designed CD-ROMs bring the look and feel of college life from campus into your computer.