Paying for college can be overwhelming, but don’t let it intimidate you! There are many ways to maximize the financial aid available, and with some early planning and attention to detail, you can significantly ease the cost burden on your family. Here are seven expert-backed tips to help you unlock as much financial aid as possible. Let’s dive in!
1. File the FAFSA Early and Accurately
For many families, FAFSA (Free Application for Federal Student Aid) is a gateway to getting the financial aid they need. This form helps determine your eligibility for federal aid, state programs, and even some institutional grants and scholarships. Filing early isn’t just helpful; it’s essential since certain aid programs work on a first-come, first-served basis.
Timing is Everything
The FAFSA form opens each year on October 1, and the earlier you file, the better. When our kids went through the application process, we made it a family affair to get all our documents together and knock it out as soon as it opened. Filling it out early led to offers from more state programs since they had funds left to allocate.
Avoid Common FAFSA Mistakes
One common mistake is accidentally entering the wrong tax year or forgetting to sign the application, which can delay the process. Double-check all personal details and, when in doubt, ask a college planning professional or consult FAFSA’s online help. Accurate filing can make a huge difference in how much aid you qualify for!
2. Look Beyond the FAFSA: The CSS Profile
While FAFSA covers federal aid, many private colleges use an additional form called the CSS Profile. This profile dives deeper into your family’s financial picture, so it’s worth filling out if you’re applying to schools that require it.
Why CSS Profile Matters
The CSS Profile may ask about assets like home equity or other investments, which FAFSA doesn’t include. Although it might seem more intrusive, it could open doors to additional institutional aid directly from the school.
Stay on Top of Deadlines
Many schools have unique CSS Profile deadlines, so mark these in your calendar to avoid missing out. It’s worth the extra effort to complete, as it could lead to more scholarships and grants.
3. Optimize Your Financial Profile Before Filing
Did you know that certain assets and income sources could reduce your financial aid eligibility? Understanding how FAFSA and the CSS Profile treat your finances can be a game-changer. There are a few things you can do legally to present the most favorable financial profile. To see where you stand in paying for college, schedule a free one on one college planning consultation with one of our experts!
Consider Assets and Savings Carefully
Certain assets, like retirement accounts, are generally excluded from aid calculations, but savings accounts and some investments aren’t. If you have extra cash on hand, consider using it to pay down debts or cover necessary expenses before the base year, which FAFSA considers for calculating aid. For example, we used some of our savings to pay for an upcoming car repair, so our liquid assets appeared lower on the form.
Review Family Income Sources
It’s essential to be aware of how family income affects aid. If you can, avoid taking on extra income in the year FAFSA considers (often called the “base year”), as this could decrease your aid package. For families running small businesses or with variable income, this can make a significant impact.
4. Apply for External Scholarships Early and Often
Don’t rely solely on school-based aid—external scholarships can supplement financial aid and reduce your out-of-pocket expenses. From local community awards to national programs, there’s a world of opportunity out there.
Casting a Wide Net
It’s crucial to apply to all types of schools. Too often I hear “We can’t afford that school” or “Just apply to the state schools because they are cheaper”, this is a common misconception. Even if you think a school is way out of your price range; still apply, because most of the time the expensive schools meet a high percentage of need met. To further understand this, watch one of our College Planning Webinars and learn how to get the most “free money” from institutions.
Make Reapplying a Habit
If your child receives scholarships for freshman year, they often must reapply each subsequent year. Setting aside a specific time annually to tackle these applications can help ensure these awards continue.
5. Review Award Consistency and Consider Appeals Carefully
If the financial aid offer seems significantly lower than what similar institutions are providing or doesn’t align with the average need-based aid typically met by the school, it may be worth considering an appeal. However, understand that appealing brings added scrutiny to your financial situation. Without a strong justification—such as a change in financial circumstances, academic improvement, or a unique need—you risk potentially lowering your aid package. Carefully review your Award Evaluation Report and weigh the pros and cons before deciding to appeal.
6. Seek Out Work-Study and Campus Jobs
Work-study opportunities are fantastic for helping students contribute to their college costs while gaining work experience. Work-study positions are designed with students in mind, so they usually offer flexible schedules and on-campus convenience.
Apply Through FAFSA
To be considered for work-study, your child needs to check the box on the FAFSA form indicating interest. Work-study positions are limited, so it helps to apply early and be proactive about finding opportunities that match their interests.
Explore Non-Work-Study Campus Jobs
Many schools also offer regular campus jobs that don’t require work-study eligibility. These positions are often open to any student and can be a great alternative if work-study funds run out.
7. Understand and Plan for Financial Aid Renewal Requirements
Finally, remember that most financial aid isn’t a one-time gift—it has to be renewed annually. Make sure you understand the renewal requirements for grants, scholarships, and work-study so you don’t lose funding in future years.
Meeting Academic Standards
Many scholarships and aid packages require maintaining a certain GPA and credit load. Staying on top of these requirements will ensure aid continues throughout college. Our son knew he had to maintain a 3.5 GPA to keep his scholarship, so he used free tutoring resources to stay on track.
Submit FAFSA Every Year
Don’t forget that FAFSA needs to be completed every year. This can feel repetitive, but it’s necessary to keep the aid flowing. Plus, family income or assets may change year-to-year, impacting the amount of aid eligibility.
Conclusion: Paving a Budget-Friendly Path to College
While navigating financial aid can feel like a maze, each step you take to maximize it can bring you closer to a manageable college budget. From filling out the FAFSA early to finding additional scholarships, these strategies can make a significant impact on reducing college costs.
If you’d like personalized guidance to create a financial strategy tailored to your family’s needs, schedule a free consultation with us or register for our next financial aid webinar. College is a big investment, but with a proactive approach to financial aid, you can make it a more affordable one!
