Common Assumptions About Financial Aid

1.  College is too expensive for my family.  College is expensive, but the average college graduate earns $1 more over a high school graduate during a lifetime.  College is an excellent investment in the future.  Using proven financial strategies, college can be a reality.

2.  There is less aid available than there used to be.  There is aid available and it’s often a combination of different types of aid that make college work for a family.  See our earlier post for more information on financial aid.

3.  We have too many assets to qualify for aid.  Not all types of assets are considered when using the Federal Methodology for financial aid.  For example, 401(k)s, IRAs and pension programs are not used when reviewing a family’s ability to pay.

4.  My student doesn’t get straight As, so we won’t qualify for aid.  Financial aid is based on need so straight As aren’t necessary for aid.  In addition, there are all types of scholarships for not only academic success, but for other talents as well.

5.  Private schools are out of reach for my family.  Often a private school can be less expensive than public.  Private schools  have their own aid that they can offer which makes them sometimes less expensive than public schools.

6.  We will have to sell our house to pay for college.  The value of your home is not considered when calculating a family’s ability to pay for college.  The home equity may be a factor, but income is a greater factor in determining a family’s expected financial contribution. 

Consulting with a College Financial Planner can help make your family’s dreams a reality.

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