Navigating Financial Aid for College
If your child is already in high school, or even looking to head to college this year, there is still time to finance their education. As a mother of three elementary-aged kids, I know my time is coming, and I know how stressful such preparation can be. I also know, as a financial advisor, how many parents feel confused, lost, or hopeless when it comes to the financing process. Let’s talk about your options.
Where to Start Financing College
The first step for most parents is to fill out the Free Application for Federal Student Aid (FAFSA). This form will help to determine the amount your family can contribute compared to the amount that college costs. The difference in these figures sets your student’s “financial need.”
Once you have determined this figure, you can better understand what aid your child is eligible for and how much the federal aid program will be providing.
Some of the information you will need on hand to complete the FAFSA includes:
Student’s social security card and driver’s license or state-issued identification card
Parents’ social security cards
W-2 Forms (or other earned income statements) for student and family
Federal tax returns for student (and parents if student is still a dependent)
Records for untaxed income (i.e. child support, pension contributions, veteran benefits, military or clergy allowances)
Bank statements for current accounts
Records of any stocks, bonds, or other investments
Business or farm records (if applicable)
An alien registration card (if not a U.S. citizen)
After filling out the FAFSA, you’ll know what you’re eligible for in terms of federal grants and loans.
Some students may be eligible to apply for a Pell Grant. Unlike loans, grants do not typically have to be repaid, so long as requirements are met.
The U.S. Department of Education also offers student loans to pay for education. These often have the best rates available. These loans are to be repaid, typically after your student has earned his or her degree. There is interest involved, but rates through the USDE can be some of the lowest available.
After your child narrows down their college choices and starts submitting applications, they will receive financial aid “offers” from individual schools that have accepted them. Depending on the school, these can include not only federal aid, but school-specific scholarships and grants. Your child’s interests and abilities may also lead to additional aid at the institutional level, such as athletic scholarships and academic scholarships.
Minnesota Assistance for College Financial Aid
For those in Minnesota, unsure of how to fill out a FAFSA or that have questions on the process, you can reach out to the state. The Minnesota Office of Higher Education can be reached by telephone at (651) 642-0567 or 1 (800) 657-3866.
This state office can assist Minnesota students and parents in understanding the various timeframes and deadlines, as well as how to handle questions on your application. Generally, our state requires forms to be submitted within the first 30 days of enrollment to an educational institution, by midnight central time. However, as our state varies depending on the institution, it is best to call for details regarding your specific school of choice.
Other Ways to Finance College Expenses
Many students take advantage of the Federal Work-Study program, where they can get a job on-campus to help offset their college expenses. Once enrolled at a college, there may also be institution-specific scholarships and grants they can apply for, based on career goals and academic aptitude. Talk to your child’s school for specific tips and applications, so you and your child don’t miss out on potential aid opportunities. Finally, many families offset college expenses by having their college-age students work while on break from classes.
Make an Appointment
The best advice I can provide is to schedule an appointment with me. If your student is younger, you have time to set up a 529 Plan. But, if college is approaching faster than you expected, you can schedule an appointment here to meet with me one-on-one and get some advice.
As a mom, and someone who truly enjoys helping educators, I love helping families find the very best ways to fund their children’s continuing education!
Participation in a 529 Education Savings Plan (529 Plan) does not guarantee that contributions and investment return on contributions, if any, will be adequate to cover future tuition and other education expenses or that a beneficiary will be admitted to or permitted to continue to attend an educational institution. Contributors to the program assume all investment risk, including the potential loss of principal and liability for penalties such as those levied for non-educational withdrawals. Check with your state’s guidelines prior to withdrawing the funds.
An investor should consider, before investing, whether the investor's or designated beneficiary’s home state offers any favorable state tax treatment or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Consult with your financial, tax or other adviser to learn more about how state-based benefits (including any limitations) would apply to your specific circumstances.
For more complete information, including a description of fees, expenses and risks, see the offering statement or program description.
