Don’t Leave College Money on the Table: Understand Financial Aid and Find Colleges That Offer Meaningful Scholarships
5 Key Takeaways
1. Don’t assume you make too much money to qualify for financial aid.
Financial aid eligibility is school-specific. A family that receives no need-based aid at a lower-cost college could qualify for significant aid at a more expensive school, so it’s important to understand your Student Aid Index and evaluate each school individually.
2. Start planning for financial aid earlier than senior year.
FAFSA uses income from an earlier tax year, while assets are generally evaluated when you file. Understanding the timing can give families more opportunity to make legitimate planning decisions around retirement contributions, savings, debt, and how assets are held.
3. FAFSA and the CSS Profile can produce very different financial aid outcomes.
FAFSA and CSS Profile schools don’t always treat home equity, businesses, retirement contributions, divorced parents, or multiple children in college the same way. Understanding which methodology a college uses can help families estimate their actual aid eligibility more accurately.
4. Most scholarship and grant money comes directly from colleges.
Rather than spending all your time chasing outside scholarships, understand which colleges are likely to offer your student meaningful merit or need-based aid. Local and national scholarships can still help, but institutional aid can have a much larger impact on the total cost.
5. Evaluate an aid offer over four years, not just freshman year.
Check whether scholarships are renewable, what requirements your student must meet, and how rising costs could affect the total. Understand the borrowing required before committing.
