"The Experience"



If I Only Knew: Financial Aid Advice

Author: petersons, Category: College Scholarships & Financial Aid, Scholarship Contest

Applying for financial aid can be very daunting, especially if you don’t have someone to turn to who has been through it. Not only do these families share their experiences — good and bad — they also reveal what they would do differently. If you can learn from them, you will be better able to use the system to your advantage.

We have changed the names of the families to protect their privacy.

The Criswell Family
Susan Criswell can finally see the light at the end of the tunnel. Of her three children, two have graduated from college and the third is entering her sophomore year. But what makes this widowed mother’s story so amazing is that even though she lives on a fixed income, she sent all three girls to school without the benefit of any financial aid. How? By sending all three to state universities.

Criswell admits that she didn’t spend much time looking into financial aid. “I just assumed that if I owned a home and had money in the bank,” she says, “I wouldn’t be eligible.” Her daughters’ high school counselors did not offer much guidance regarding financial aid. Rather, they helped the girls narrow down their college choices based on what Criswell could afford to spend out-of-pocket.

Looking back, Criswell regrets that she didn’t understand the process, which meant that her daughters were limited in their choices. If she had it all to do again, she would do three things differently:

* She wouldn’t have allowed her kids to wait until senior year to look for schools. This limited the number of colleges they were able to consider.
* Criswell would have taken her children to see potential colleges before they sent in their applications.
* Finally, Criswell reflects, “I should have gone to the colleges and spoken to someone about our options.”

The Veracruz Family
Most students rely on their parents to figure out financial aid. But what happens when your parents are immigrants who don’t speak much English? “I had to do everything on my own,” says Marisol Veracruz.

Veracruz began thinking about financial aid in the middle of her junior year of high school. “My parents make a modest income, and there are two of us going to college at the same time, so I knew there was going to be financial aid.” Veracruz spent a lot of time in her guidance counselor’s office, learning as much as she could. Thanks to her counselor, she discovered her home state of New Jersey’s Equal Opportunity Fund (EOF). The Fund provides grant money to residents of the state who can demonstrate financial need and the motivation to pursue higher education.

Veracruz also contacted the financial aid offices of the schools to which she applied whenever she had questions. She was surprised by the awards she received from New Jersey’s Montclair State and Rutgers Universities. She chose Rutgers, and in her second year she was again surprised by how large her package was. Besides the EOF grant, a Perkins Loan, and a subsidized loan, Veracruz’s aid package includes work-study. “I’ve gotten $2,000 a year in work-study. That’s been helpful.”

She offers two pieces of advice to families who are applying for financial aid:

* “The sooner you can start the process, the better. If you wait until you’re a senior, you’re just going to panic.”
* “Keep all of your paperwork from each school in a separate file when you’re sending out financial aid applications. As the days went by, I could check to see if I was on the right track.”

The Wilk Family
Barbara Wilk’s daughter Tiffany had high SAT scores, strong grades, and plenty of extracurricular activities. “Everything,” says Wilk, “that you were supposed to do to get all the money you could get.”

The Wilks were thrilled when Tiffany received merit awards from Lehigh and Lafayette. But the awards were not enough to make a significant difference. Wilk says that when you’re looking at such a large expense, “It’s not about what the college is giving you, it’s about what you have left to pay.”

The Wilks took the next natural step: they applied for need-based aid. Wilk and her husband were proud that they had paid off the mortgage on their home. But every financial aid officer the Wilks spoke to had the same response: “For the equity that you have in the house, you can send three children to this school.” Need-based aid would not be available. In the end, the Wilks took out a home-equity loan. “You owe your child an education, so you need to put in some of your own money to show your child the value of it.”

To offset costs, the Wilks had several recommendations:

* Look into private scholarships. “There are a lot of scholarships out there — religious, cultural, heritage affiliations — but you have to search them out.”
* Look into private schools that offer tuition reductions. Because of Tiffany’s strong SAT score, Rider offered to knock enough off to make the cost equal to that of a state university. “But parents beware,” she warns, “if your child does not maintain an academic average, you lose it all!”
* Don’t rush to pay off your house. It isn’t worth it.

The Delvetto Family
Annie Delvetto’s son Tommy received aid packages from ten different colleges. So when the Delvettos sat down to compare the awards, they quickly realized that they had to get organized. “You can’t just look at the numbers and go from paper to paper,” she says.

The Delvettos, who live in New Jersey, initially were impressed by the large package offered by a well-known private university in Massachusetts. “But people fail to take into consideration all the extra expenses that go along with college,” says Delvetto. “Everyone seems to think that the amount of money in the college guide is what it’s going to cost. They don’t add up all the other little incidentals that come along.”

Delvetto and her husband, Paul, went through the process with two other children a decade ago. But when it came time to apply for Tommy, they discovered that things had changed dramatically. “More forms to fill out, they ask you more questions, they ask for what your children have in their savings accounts.’” Realizing how critical it is to understand the questions on the financial aid forms, the Delvettos hired a financial aid adviser.

When it came time to compare aid packages, they created a spreadsheet on their home computer with three types of columns: expenses (tuition, room and board, and transportation); aid (subsidized and unsubsidized loans, work-study, and scholarships); and unmet need.

Annie Delvetto has the following advice for parents:

* Get organized by making a binder for each school in which you’re interested.
* Visit each school’s financial aid office.
* Write down your impressions about each school after each visit — “otherwise you will start mixing up who said what and how much he said.”

The Reynolds Family
When it comes to finding financial aid, you might think that Bob Reynolds has an advantage over most families. He’s an accountant. It turns out, though, that the opposite was true. “I didn’t know what to expect,” he says of applying for aid for his stepdaughter. But it didn’t take long before he learned “to forget the government unless you’re at the poverty level, except for loans.”

Reynolds’s stepdaughter was open to both public and private schools. The final decision of where she would go would depend on the financial aid packages she received. As an accountant, Reynolds has seen his share of families who take out large loans to put their kids through college. “But I didn’t want her or me saddled with a lot of debt,” he recalls.

The family knew that they would have a better chance at winning scholarship money from colleges that most people have never heard of. So they applied to four small schools in Massachusetts, including Regis College. Once acceptance letters arrived, Reynolds got in touch with the financial aid offices by phone to negotiate aid packages. “If the college wants you,” advises Reynolds, “they’ll find something for you.”

He found the staff at Regis to be “very pleasant” in the three or four calls he placed. And because it was a small school, each time he dealt with the same two people, one of whom was the school’s financial aid director. Ultimately, he and Regis negotiated “a very nice package,” says Reynolds.

Reynolds is about to start the process again with his son, a high school junior. What will he do differently this time? “I’m starting earlier, looking at potential colleges that meet his needs.” Also, Reynolds will encourage his son to apply to more schools and to visit more colleges for face-to-face interviews.
“Find those schools that not everyone is applying to.” There are hundreds of small colleges out there that families pass over because they aren’t the most popular or prestigious. What people don’t realize is that these schools are the ones that are willing to make some concessions so the cost of higher education is affordable to middle-class families.

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