Most of us don’t have the full four years of college expenses socked away in a 529 plan when our student starts college. That means that most of us use a combination of savings, out-of-pocket spending, and borrowing to pay for college. It’s logical to assume
Many people call themselves “financial advisors” when they should in fact be called sales people. A number of these types are active right now telling parents of high school juniors and seniors that they should buy annuities or life insurance to help themselves in the financial aid process. This “investment” is not as helpful as you might think.
One great thing about living in the Big Data world is, there is data available on just about any topic. One topic that those going through the college application process should be concerned about is, are graduates of the schools I’m interested in financially solvent? With more than half of students borrowing to pay for college and average loan balances of…
While the federal government is the largest provider of financial aid, states also provide aid. There’s a big difference, too: Most federal aid comes in the form of loans, whereas a new study from NASSGAP (National Association of State Student Grant and Aid Programs) shows that over 90% of aid provided by states comes in the form of grants.
Those wanting to know how the sausage gets made should review the FAFSA EFC formula for the 2016-2017 school year. It is available here. The worksheets provide the detail on the calculations; the tables and supporting documents explain more about the process. This will give you a far more accurate EFC estimate than the FAFSA4caster, though admittedly you’re estimating much…