How to Get the Most Financial Aid for College
With tuition, room and board and other fees topping $50,000 annually at some private schools, many families are just as worried about that second letter -- the one that tells how much financial aid will be provided -- as the first, telling whether the student has been accepted.
Many colleges make students commit to their financial aid packages by May 1, so with that deadline fast approaching, CBS News Business and Economics Correspondent Rebecca Jarvis discussed on "The Early Show" how you can get the most financial aid possible.
According to the Institute for College Access and Success, recent college graduates are $23,000 in debt when they graduate, an increase of nearly 25 percent, or $4,550, when compared with those who graduated just four years earlier.
"That's crazy!" Javis said, adding, "It plays a role in where students decide to attend, of course."
Jarvis explained that financial aid is determined by several steps.
After a student is accepted -- or sometimes even before -- he or she fills out a form called a Free Application for Federal Student Aid, or FAFSA.
Jarvis explained, "Now, FAFSAs are first-come, first-serve, and you can start them in March, so if you haven't done it already -- do it now. You will need last year's income-tax return. If your family hasn't finished its taxes, you can put in estimated information. The school builds a student-aid package that includes some grant money, some loans, and some work-study."
Forms of Financial Aid:
• FAFSA - Applies to all federal student aid Federal student aid is financial assistance that's available through the U.S. Department of Education's Office of Federal Student Aid. Federal student aid covers school expenses such as tuition and fees, room and board, books and supplies, and transportation. This aid can also help you pay for a computer and dependent childcare expenses.
• GRANTS - The best, hands-down deal is a four-year university that offers generous grants, which don't have to be paid back. For those who qualify, that means no tuition and sometimes no other fees. Approx two-thirds of full-time undergraduates receive grants
• LOANS - there are countless amounts - Check out StudentAid.Ed.Gov
• WORK STUDY -- provides jobs to undergraduate and graduate students, allowing them to earn money to pay education expenses.
However, if you feel you haven't gotten enough student aid from your financial package, you can negotiate with the school for a better deal, Jarvis said.
• HIGHER OFFERS - Play the field - go to your school and tell them what the school down the street is offering you.
• SAT/ACT SCORES - If you scored above the average score for the school, let them know! One of the most important things to these colleges is rankings -- and every student they get who scores higher on these placement tests ups the schools ranking.
• SPECIAL TALENT - If you've been recruited for violin or sports or whatever -- and everybody in one department has been really keen on you -- they can serve as big advocates for you. Let them and the admissions office know. Schools are always looking for diversity, and this is a great way to say, 'Look, you recruited me for this reason, please help.'
• CHANGE IN FINANCES - This is huge. Let's say you sent out your application at the beginning of the year, and now your finances have taken a turn for the worst.There are many cases in which the school can adjust based on your financial capacity. You really need to let them know.
Jarvis added potential students and parents should try to speak to the highest level of authority at the school as possible to try to procure more student aid.
"The main thing is not to talk to an operator. ... You don't want to get turned away by someone to keep volume down. You could speak to a financial advisor off campus but really you want to go to the university directly. They are most interested in helping you and will be more responsive to you.
"Talking to someone on the phone will make you feel so much better than getting a professional email," she said. "If you live nearby you can stop by, but call ahead. You don't want to put someone in a really awkward position. Don't be embarrassed about doing this. A college wont decline you based on asking and you will regret not getting anything off the price tags."
Techniques to Get the Best Aid Package Possible:
People You Should Speak To:
• Financial aid director
• Admissions office director
• Coaches and recruiters
Financial Aid Options
• Grants
• Loans
• Work-Study
Negotiating Tools
• Higher offers
• SAT /ACT scores
• Special talent
• Change in finances