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| CWR College Funding BrainTrust How to Successfully Prepare for College Financially By Tanya Knight, MBA We can no longer afford to ignore them. We need to walk them through the education maze so that each and every student can and will go to college". ~Tanya Knight
 College education could be the most expensive yet invaluable investment that a family makes in life. Don't be surprised that I'm using the terms expensive and investment together. This investment, when made in a calculated and planned manner will definitely turn out to be the investment that gives maximum returns (to our children - just what we parents want, isn't it?).
After all, can anyone deny that in today's economy, which is accelerated by the thirst for more and more information, the need for a good college education is an obvious requirement! College education serves as the most effective platform that could elevate you to a constantly rewarding career.
Whether you're the parent of a college student or the student yourself, it's important to have a thorough understanding of the FAFSA and how the financial aid process works. There is so much confusion, misunderstanding and misinformation surrounding the financial aid process that some parents and students don't even complete the FAFSA form or apply for financial aid. Many families automatically assume that if they own a home or earn a six figure income, they simply won't qualify for financial aid. However this myth is simply not true! Everyone including you and your family is eligible to receive some form of financial aid. However if you fail to complete the FAFSA the first time, you'll lose the opportunity to receive financial aid and secure free college scholarships.
College Cost Planning Made Easy
Many parents tend to overestimate the cost of college or simply assume that all colleges are very expensive. While this may be true for Ivy League schools and other highly rated colleges, this is not necessarily the case for all colleges. In fact, the average tuition rate for most colleges is in the range of $3,000 to $4,000. At the same time, many expensive colleges can be made affordable through financial aid.
There are several costs that are combined to create the final cost of college each semester. These include:
Read before you sign Keep accurate records and check all statements Remember a credit card is a loan, not a gift Most students do not realize that tuition is just a portion of what you pay for college. The fees that are associated with registration, access to certain campus facilities (such as a gym or swimming pool) and fees for taking specific courses all add up in the long-run. Because you're paying for access to many facilities, it's highly recommended that you take advantage of them because you're paying for them anyway! Certain courses may also require additional fees, such as a computer use fee or supplies fee that helps the professor pay for the supplies required for the course. Finally, you'll pay for your room and board, food, supplies, books and transportation.
Financial Aid and FAFSA Renewal Process
Financial aid is a step in college preparation that both the student and parents need to be aware of. You can apply for federal student aid as early as January 1st, prior to starting college in August. Keep in mind, the absolute last day that you can turn in the FAFSA for federal aid is June 30th. In order to apply, you will need to have your income taxes completed prior to filling out the application. It is vitally important that both the student and parents complete their income taxes as early as possible to ensure that they can send in the FAFSA (Free Application for Federal Student Aid) as early as possible. The earlier you send it in, the earlier you will be able to determine if you'll receive federal aid, school assistance, scholarships and how much you qualify for in student loans. The FAFSA can also be filed online at http://www.fafsa.ed.gov/.
The FAFSA also determines how much your family expected contribution is or EFC. This is a very important number, as it is how much your family is expected to contribute to your education based on your tax information and annual income. It will also be a determining factor in how much you are qualified to receive in federal student loans.
Although a student should avoid taking out student loans at all costs, many students will need to apply for a loan. Be certain that you understand the types of loans that are available to you from the government. These loans are better than private loans from a bank as they have better interest rates and deferral periods. You typically have 6 months after you graduate or go to a half-time course load before you are required to begin making payments on student loans. This is often essential, as it can take you at least that amount of time, if not more, before you receive a job after graduating from college. You can learn more about the loans and grants that are available to students by visiting http://www.studentaid.ed.gov/.
Regardless of what year you are in college or whether or not you previously filed a FAFSA understanding the renewal process it extremely important. Each year the Dept of Education provides you and your family with the opportunity to reapply for financial aid by the deadline June 30th each year. The renewal application can also be filed online at http://www.fafsa.ed.gov/.
Scholarships and Other Alternative Options
There are several others ways that you can pay for college and the first one begins by saving money as early as possible. There are several savings accounts that offer tax benefits that parents can begin early in a child's life. These include 529 College Savings Plans and many states have these available. You can also invest privately, but you often do not receive a tax benefit on private savings.
It is also a necessity that you begin searching for scholarships that you can apply for as soon as possible. Colleges also offer scholarships, but often have very early deadlines for scholarship applications. Be certain that you prepare ahead of time to apply for those scholarships. Finally, scholarship applications can be sent into schools and other organizations a year to six months prior to school beginning. Most colleges have an early scholarship application deadline. This deadline is generally around February 1st prior to the fall semester beginning. Search for scholarships online as well as locally from various organizations in your community. Many corporations also offer scholarships to students of employees and it is important that you look into those as well, if they are available
Finally, another option you have for paying for college is a work study program. Many colleges offer summer and part-time work study programs for students to help pay for their education. A work-study job is part of your financial aid package and the money that you earn at that job goes towards paying your tuition and fees for college.
Following these simple steps, you will be able to successfully prepare for college financially and set yourself up for ongoing success! About The Author: As America's Education Coach, Tanya is a skilled advocate for the importance of higher education. The acclaimed author of Who Says You Can't Go to College?, she is also an engaging public speaker and personal mentor. A graduate of Columbia College, Tanya also holds an MBA in Leadership from Grand Canyon University. She is currently completing her Doctorate in Education Leadership with a focus on retention. Tanya's diverse client list includes high school students, adult learners, school districts, colleges, universities and Fortune 500 corporations. Each and every client receives personalized services that draw on Tanya's extensive experience working in the fields of education and human service for more than 10 years. Tanya's flagship organization, Tanya Knight International, maintains the web's one-stop education resource center at http://www.theeducationcoach.com/.
Contact Information:
Tanya Knight International, Inc.
P.O. Box 1331
Sanford, FL 32772
(866) 799-5978 Copyright 2010, Donell Edwards Media. All Rights Reserved. | |
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