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…
Last week I appeared in an article in the New York Times’ personal finance section about whether saving for college is advantageous or disadvantageous with respect to receiving financial aid. Many people believe that college savings result in lower financial aid awards; it’s a logical assumption since
High school seniors beginning the application process are confronted with countless choices. One of the first is, do I apply early decision or early action rather than waiting for the regular admissions process? If financial aid is a key consideration in your school selection, then generally you are best served by waiting and going the regular admissions route.
Here is a great article on how and why to talk to your student about paying for college. My favorite quote: “Many students view attending their dream school as the reward for working hard in high school. Instead, parents should portray financial independence in their mid-20s—a goal that’s more easily achieved by saving money in college—as the sweetest reward.”