20 things you need to know about paying for college
To get the right answers, ask the right questions.
Part of making smart decisions about college, especially about
how to pay for college, is asking questions. Below you'll find
our list of recommended questions to ask and consider as you
go about searching for, applying to, and deciding on colleges.
Searching and applying
1. What's the average total cost (including tuition and fees,
books and supplies, room and board, transportation,
and other personal expenses) for the first year?
2. What are the ranges of room costs (single or double),
board costs (21 meals/week), and special tuition rates
(e.g., flat rate for 15-18 credits)?
3. By how much will total costs increase each year? (A
three-to-five-year printed history of tuition and fee
increases as well as room and board increases should
be available.)
4. Does financial need have an impact on admission
decisions? Does a decision to apply for early admission
affect financial aid?
5. Does the school offer both financial aid based on need
and merit or other scholarships that aren't based on
financial need? Is it necessary to apply for merit aid,
and if so, how do you apply?
6. What application forms are required to complete the
financial aid process?
7. What is the priority deadline for applying for financial
aid?
8. When will I be notified about financial aid award
decisions?
Deciding which college to attend
9. What will my total costs be? Are there any other costs
not listed in the award letter that I should budget for,
such as expenses for books, room and board,
transportation, or personal needs?
10. How much financial aid will I receive?
If the financial aid award package isn't enough to make
it possible for me to attend my preferred college, under
what conditions, if any, will the aid office reconsider the
offer?
11. If my family can't meet the financial responsibilities from
current income or assets, what financing options are
available to help me pay my share?
12. How will my aid package change from year to year? Will
loan amounts increase? What impact will cost
increases have on the aid package? What will happen if
my financial situation changes? What will happen if my
enrollment status (or that of a family member) changes?
13. What are the terms and conditions of the aid programs
included in my award package (e.g., treatment of
outside scholarships)? What are the academic
requirements or other conditions for the renewal of
financial aid, including scholarships?
14. What amount of student loan debt does the typical
student borrower have once he or she finishes college?
15. Where do I fit on this scale?
Before you leave home
16. When can my family expect to receive bills from the
college? Is there an option to spread the yearly payment
over equal monthly installments? If the bill is not paid by
the deadline, will there be penalties? Does the college
accept payment by credit card?
17. How much money will I need during the first week of
school for things like books, a parking permit, moving
expenses, etc.? Can I use financial aid to pay for books
and supplies? Can books be charged to my student
account? What typical out-of-pocket expenses do most
students have during the year?
18. Is information available regarding budgeting resources,
money management, and credit card usage?
19. Are there banking services with fee-free ATMs and/or
check cashing on or near campus? Does the campus
have a debit card?
20. How are student jobs assigned? How are jobs
assigned? How many hours per week will I be expected
to or allowed to work? How often and in what manner
will I receive payments? Will earnings be automatically
credited to my student account?
Think about it. You wouldn't buy something expensive for
yourself -- a stereo, bike, computer, or car -- without
researching it and asking the salesperson questions. The
same should hold for college. It's probably one of the largest
purchases you'll ever make.
Top 10 tips for paying for college
10.~Save for college.~
If you haven't already done so, you should begin saving for college immediately. Even if you are going to college in the fall, you can still begin saving now to help cover some of the costs, such as your first semester's books. You have a variety of options available to make the most of your savings.
9.~Use education loyalty and affinity programs.
Loyalty and affinity programs allow you to save for college by shopping at certain stores, buying particular products, or using a designated credit or debit card.~
8.~Explore financial aid options.~
Financial aid is one of the tools that make higher education possible for many students. It may mean being able to continue your education when you otherwise would not be able. Or it could mean being able to attend the school of your choice despite higher tuition costs.
7.~Review your eligibility for federal financial aid.
6.~Apply for financial aid.~
The first step in applying for financial aid is to complete the FAFSA (Free Application for Federal Student Aid), which collects information about your financial situation, as well as your family's financial situation.
5.~Review your Student Aid Report (SAR).
4.~Find scholarships and grants and consider work-study programs.
3.~Consider borrowing student loans (should be your last resort).
2.~Claim tax credits and deductions for education.
And the number 1 tip for paying for college is . . .
Review your award letter and only accept the financial aid you need
January 31, 2012
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