OK, I love shopping and all that but have to say after talking with families and students about financial aid all day and then hearing from friends and families about their Financial Aid questions at night...got me thinking. Why am I fighting the wave, I need to just stand up and surf! so here is my informal information on financial aid... Federal Aid is not going to cover all of your expenses no matter how "poor" you cry. You need to be looking out for private scholarships, incentives through your work, saving saving saving...and being smart with the money you do have. Parent's need to start saving for retirement, don't wait until your kids are out of college, by then you have missed your prime opportunity to save. (Don't you ever listen to Suzie Orman??) Anyway, start looking for private scholarships when your kid is a Junior in High School. Get to know the deadlines for applying and what application materials are requested. Become good friends with the local librarian ~ she's the one who keeps a list of scholarships available through the town's local Elks, Lodge, Women's club etc. Set your net wide, for every 20 scholarships you apply for, your lucky to get 1 or 2 . Look into borrowing smart, check out the interest rates for Parent Plus loans (right now they are at 7.9%) www.studentloans.gov You may not be able to get a better rate with a private personal loan or re-finance...but who knows, check into it. If you have a financial advisor, you should be talking with them about your goals including your intent to support your child's education, or not. Just to give you a heads up on the whole Federal aid thing, at most for the 2012-2013 year you MAY be eligible for a Pell grant of up to $5,550 and your student if under the age of 24 can borrow $5,500 of Direct loans their freshman year. If your child is planning on going to the state school and cost are low for tuition and fees you could be OK. But, don't forget about the other costs like books, supplies, computer, transportation and they all have to eat, whether they are living at home and commuting or living on campus, these additional expenses can add up quickly. My advice to you is again. 1. Start Early 2. Find out about the total costs of the school 3. Investigate private scholarships 4. Know the deadlines and complete all the forms required by the schools Financial aid office 5. Keep your fingers crossed and pray!
Good Luck
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