Although the government provides many different forms of financial aid for college students, they also expect the student and the parents to contribute a monetary sum. This is called the Expected Financial Contribution (EFC).
Computing your EFC is easy enough to do, especially if you are working with a respected college funding solutions provider like John McDonough’s The Studemont Group College Funding Solutions, LLC. The problem lies in the result of your EFC, as there are times when the amount that comes up is far more than what you were expecting.
College tuition fees have been skyrocketing over the past few years, making reliable college savings funds a priority for parents around the country. According to College Board, a nonprofit corporation that helps provide students with access to higher education, the average tuition fee at a moderate private university during the 2014-2015 school year sat at $46,272. Do not let that number discourage you though.
As a parent, you only want the best education you can possibly afford your child. After all, every child has the right to receive a proper education. Even with rising tuition fees, know that there are many ways to help lessen your financial burden and provide your child with the best possible college education. One of the best ways to do this would be to help your child win merit scholarships.
Getting a college education is undoubtedly expensive, with the nation’s top private universities having an average tuition of $200,000 for four years. Skyrocketing tuition, however, won’t stop students from pursuing their dreams and building their careers because they can seek financial aid to get through college. This financial aid package comes in the form of the Free Application for Federal Student Aid, or the FAFSA.
With the help of FAFSA, families of college-bound kids can get financial aid to help them in getting quality education. Most parents will want to know how to get the best financial aid packages, but are daunted by the seemingly complicated process of applying for it. Contrary to popular belief, filing for FAFSA doesn’t need to be complicated, and you can even get more free money for college if you’re able to follow these tips in getting a better deal.
It’s every parent’s dream to be able to send their children to a reputable college where they can earn a degree to prepare them for their futures. Though planning for their college education might be among the most expensive investments you’ll make, you may be able to decrease these costs by making these smart choices and decisions that begin with proper planning. To achieve this, college financial planning experts share these common mistakes most parents are still doing that prove to be costly in the end.
Not Saving Early
College costs have steadily increased in the past few years, rising by as much as 100 percent in just a span of 10 years. This can also be traced back to the effects of inflation, which contributes to the increase of college costs by as much as 5 or 6 percent annually; hence, the earlier you start depositing into your 529 college plan, the bigger growth your money will see over time.
Financial aid can help much when you’re putting your child through college. With rising college fees and costs, however, it is progressively becoming harder. Seven years ago, the average cost of a year’s stay at a four-year institution was $19,362. The costs now would be even higher, and that’s why you’ll need the help of experienced college funding advisors to ensure that you get the most out of the available financial aid out there.
The most basic financial aid program that you can apply to is the Free Application for Student Aid (FAFSA) program. It also forms the basis of how much financial aid various colleges award their students. Some colleges even make it a requirement when you’re applying for financial aid; for some scholarship programs, a rejection for financial aid is even a requirement. This is why it’s important to get your FAFSA application out of the way as quickly as possible.
College nowadays is an expensive undertaking; depending on your child’s choice of college, you may end up paying hundreds of thousands of dollars. You won’t even be able to depend on the college fund that you saved up, since increasing fees mean the fund might not even be enough to cover the customary four years. This is why you and your child should consult expert college financial advisors to help you both with paying for college.
Experienced college planning advisors will help you focus on the main source of a lot of financial aid: the Free Application for Federal Student Aid (FAFSA) Program. Groups like The Studemont Group College Funding Solutions, LLC can help ensure that your application for FAFSA will be approved and you can get as much financial aid as possible.
Most parents have savings and investments to pay their children’s college cost. Those who have not prepared enough, however, may find the need to tap their retirement accounts, such as their 401(K). If you’re contemplating on loaning from your 401 (K) to augment your college funding solutions, here are some things you should be aware of.
It significantly reduces your overall retirement funds. Borrowing from your account limits the growth of your earnings. For instance, if you take out a $25,000 loan, that amount won’t be earning any interest all throughout the loaning period. Therefore, you lose not only the gains from the accruing interest but also from compounding and tax deferral.