Question of the week.
Thursday, July 3rd, 2008This week, let’s take a question.
My 18-year-old daughter is going to college this fall. I was sure the college would just hand us a scholarship because she’s smart and was home schooled. We also have a handicapped child that needs constant care. But we didn’t get any help. I know we were dumb. But now what do we do? College is more than we can afford.
– Gail (last name removed to protect the guilty party)
A. To start, go stand with your nose in the corner for five minutes. While I am joking, if you think my punishment is bad, it’s nothing compared to what colleges will give you. I wouldn’t say you were dumb. You were naive, and you made the same mistakes that most families make.
Busy parents assume they will get financial aid if they need it or if their child is smart or has a certain talents. What they don’t realize is that winning aid - especially scholarships or grants — takes research and effort. Don’t expect them to throw money at you. Remember that colleges are full of “exceptional” students.
It requires that you understand the quirky formula that your college financial aid office will use to determine what you can afford to pay for college. The formula is embedded in the FAFSA and PROFILE forms colleges require you to fill out when applying for aid. Parents that don’t understand the formula make themselves look richer than they are. For example, they might report 401(k) retirement savings like they are regular household savings, and consequently undercut their financial aid by thousands of dollars.
Now, if you haven’t come to one of our free “Paying for College Without Going Broke” workshops, pick up the phone and call the office at 281-822-6200 for upcoming times and dates. Reserve now, because they are filling up quick. And while the workshop gives you an overview, if you haven’t come in to talk in person about how these rules will effect your personal situation, then you need to get in ASAP.
In addition, parents can greatly enhance the opportunity for winning grants and scholarships if they have their children apply for admission to many colleges, including public and private colleges.
The reason: Often private colleges give more aid than public colleges, even though public schools seem cheaper on their face.
You lost most of your power to do that when your child agreed to attend a college without first working out your actual cost for college.
I have seen parents making over $200,000 a year qualify for need based financial aid, and I’ve seen a family making $30,000 a year, screw things up and get nothing.
Remember, that NOW is the time to start working on this for your next youngest student.
It is very important to get started while they are a freshman or sophomore in high school. By the junior or senior year, you are trying to do this entire process at the last minute, and making mistakes will cost a fortune.
In conclusion, all of Gail’s problems would have been easily avoided by simply attending one of our free college planning workshops. Be warned, that every college makes huge amounts of money, based on a family’s ignorance.
Remember that knowing what to do is only the first step. It only helps if you take action.
Talk to you soon.
Your friend,
Jeremy Farmer