The College Financial Survival Kit
If you are the parent of a senior, you may be feeling a little relieved. The early action deadline is over along with University of California and California State University applications. Whew! Your child survived! Now the big question:
How prepared are you to best understand the financial expectations to support your child’s needs?
As our two daughters faced the same situations, we were fortunate to have put away money into financial programs that we could safely borrow from at low rates and pay ourselves back without losing a beat on financial gain. However, not everybody plans nor can everybody afford the budget needed to save.
Here is how parents can take control of the financial demands of College:
Learn to navigate the net price factor calculator. This is a tool that you can access on the college websites your child has applied to. Using an online calculator, calculate your child's "Student Aid Index" or SAI - formerly known as Expected Family Contribution or EFC. This is the minimum amount you'll be expected to pay. Be aware that the amount you'll actually have to pay is often more than the SAI.
Using the the calculated SAI, you'll be able to determine whether your child will qualify for need based aid at each of the colleges on their list. (remember the formula for need based aid): Cost of Attendance for each college minus SAI = Potential Need Based Aid.
Using either the college website or a 3rd party source, determine what % of need based aid is provided with grants and scholarships and what % is provided with loans and work study. (gift aid vs self help)
To understand Merit Aid (primarily at Privates Colleges & Universities)
Using your child's GPA and test scores (if taken), check each college's website (or a 3rd party source) to determine whether they will qualify for any merit scholarships. While the awarding of merit aid is often subjective, many scholarships are awarded (provided funds are still available) based on grades and test scores. Subtract the estimated merit aid from the COA to get your estimate.
If you have younger children, start planning now for the finances you will need in this college journey. EYH College Coach can guide and also refer you to professionals for your success along with your child’s journey. We also have packages that you can customize to support your child in every stage of the college process.