Financial Aid Questions to Ask Colleges

Here's an ideal scenario: You completed the Free Application for Federal Student Aid (FAFSA), received your SAR (Student Aid Report) and think your child's first choice college will send a letter of acceptance! There's just one problem—you're not sure you have enough money to finance that dream education.

Understanding the financial aid process can be hard, and you may not know where to turn for answers. The financial aid section of each college's website is a good starting point. If you don't find answers there, call the financial aid office. Here are 20 questions to ask:

1. What types of financial assistance do you offer: need-based, merit-based or both?
2. Can you provide an early estimate of what our financial aid award might be?
3. If we don't qualify for need-based aid, what alternative financing options are available?
4. What percentage of your student population receives financial aid?
5. How much does an average student owe on student loans when he or she graduates?
6. What forms are needed in order to apply?
7. When are financial aid applications due?
8. What costs for my student are considered by the financial aid office? For example, does the aid just take into account tuition, room, board, and transportation? What about additional expenses such as books, fees, computers and personal expenses?
9. What is included in the comprehensive fee? For example, do students have to pay extra for computer time or to attend campus events (concerts, plays, films, lectures, athletic events, etc.)?
10. When will we be notified about the amount of assistance we can expect?
11. Does the institution have an appeal process to review special circumstances?
12. Is there a commitment for financial assistance beyond the first year?
13. If not, how and when do we apply for financial assistance after the first year?
14. What grants, loans and work-study opportunities does the college offer?
15. How long does it typically take a student to graduate from this college? Four years or longer?
16. What impact do scholarships from outside sources have on other financial aid?
17. Can we apply financial aid toward an off-campus study program, either in the U.S. or another country?
18. What happens if our family's financial situation changes substantially during the school year?
19. Are there payment options available, such as monthly or quarterly?
20. Do you participate in the GATE (Guaranteed Access to Education) loan program?

529 Plans: One Option for Socking Away College Money

It's a new year and you've probably made some resolutions. Why not add one more to the list? Put away a little money each payday to pay for higher education. Make your resolution an easy one to keep: sign up for automatic withdrawal each pay period.

One way to save is through a 529 plan. Introduced in 1998, these college savings plans are offered by all 50 states. In most cases, you can live in one state and choose to invest in another state plan.

Because plans vary state by state and many states offer more than one plan, it's important to do your homework before choosing the option that works best for you and your child.

What Is the True Price of College?

When it comes to college tuition, it's important to know that you do have financial options. Once you complete the FAFSA online, you may be eligible for not only financial aid, but also grants and scholarships.

Two good starting points for financial information are ACT's Financial Need and Financial Aid Packages pages.

Once your child is accepted at a university and you have a firm financial aid offer (see 20 questions above), it's important to remember there are two types of college prices: direct and indirect. Direct prices include things like the tuition package, room and board, and college fees. Indirect costs—like those in our own adult lives—are the kinds of events for which we may not necessarily plan. Many people don't have a budget line for leaking pipes or a new transmission. Likewise, it's easy to forget about "extra" fees at college.

Know that your student will want to come home and visit. How much will his or her gas or plane fare cost each semester? How much do lab fees cost for science classes? How many books will be needed and how much do they cost? How many late night pizzas will your child buy? Is parking on campus free or does your son or daughter need to pay? What is the cost of joining various campus groups? Does the college require a laptop? These questions are just the tip of the iceberg, but they should promote some discussion between you and your teenager. Now is the perfect time to begin teaching your child how to budget. Explain that in return for your investment, you expect financial responsibility and accountability. And don't forget that student work-study programs are another option to pay for college.

College Prep Video on ACT Website

ACT now provides a college prep video to help parents whose children take EXPLORE® and PLAN®. The video, Using EXPLORE and PLAN to Get Ready for College, is a useful resource. In addition, print materials are available through school counselors.

The video shows how one student learned he needed more than athletic talent to prepare for his future after he took EXPLORE in 8th grade. The video also explains how EXPLORE and PLAN work with the ACT to provide educational and career planning information to students so they can plan their futures.

Find additional information on EXPLORE and PLAN.

ACT Test Date Reminder

The next nationwide ACT testing date is April 4, 2009. The regular registration date is February 27, and the late registration deadline with an additional fee runs from February 28 to March 13.

Another national test date will be offered on June 13. The regular registration deadline is May 8 and the late registration deadline runs from May 9 to 22. Online registration and test date information is available at the ACT Web Account. Remind your student to register early to avoid heavy web traffic and delays.

ACT also offers an optional Writing Test. Find out about the Writing Test on the ACT student website, including the colleges that require it.

On the ACT student website, check out the test prep aids. Free sample questions are available along with test-day tips, a list of what to bring, and approved calculators for use on the Math Test.

Preparing for the ACT, a booklet with a complete practice test, scoring key, writing prompt, and sample essays, is available to download on the Test Prep section of actstudent.org. The ACT registration packet, available from the counseling office, also contains the booklet. Sign up for ACT Online Prep™, the only test prep program developed exclusively by ACT test development professionals.

For more information about preparing for college and career, check out our ACT Student Blog. If you have questions, comments or suggestions, we'd love to hear from you. Contact us to share your feedback. If you found this information helpful, we encourage you to forward a copy of this newsletter to your friends, family, and local school.

See also:

ACT's Information for Parents

The ACT

PLAN

EXPLORE

Financial Aid

College Search

Careers