Senior year of high school is a nice balance of partying like no tomorrow and the stress of college applications. However, other strains have recently been plaguing many senior classes and their parents whom fund many of their graduates. A recent report from the College Board showed that the costs associated with a college education are rising significantly faster than many parents’ salaries. While more students are applying to college more than ever now, costs for parents have risen, as many face unemployment, credit card debt and many other financial issues.
With this being said, many people forget about the other, more economical, paths that their future college graduates can take. Pre college breaks, started at community college and finishing at instate schools are just a couple of routes that many successful graduates today have taken and it has definitely cut down on their student loan costs.
Aside from parent or student loans, another extremely important way to cut down on student costs, which is increasing in popularity, is applying for financial aid. Two types of financial aid include merit-based scholarships and need-based scholarships. Merit-based scholarships include both scholarships awarded by the individual college or university and those awarded by outside organizations. Merit-based scholarships are typically awarded for outstanding academic achievements and minimum SAT or ACT scores, although some merit scholarships can be awarded for special talents, leadership potential and other personal characteristics. Need-based finacial aid is awarded, as the title hints, on the basis of financial need of a student. The Free Application for Federal Student Aid, or FAFSA, is generally used for determining federal, state, and institutional need-based aid eligibility. At private institutions, a supplemental application may be necessary for institutional need-based aid.
In determining the amount of aid your student will receive, the federal government will calculated the expected family contribution amount and compare it to costs to determine any shortfalls in your financial plan. The bottom line is, if your future college student expects to go to any college they get into, there are always different ways to accomplish these goals, but also some tradeoffs.
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