Published March 2011. Financial aid and student loan rules change often, so some details may be out of date. Ask us about your situation.
Just like the beginning of Spring, many hopeful high school seniors and their families are anxiously looking forward to the proverbial “breath of fresh air” with each new Financial Aid package they receive from one of their top college choices.
Financial Aid arrives in many ways from each College’s Scholarship/Grants and Loans to Federal and State Scholarships/Grants and Loans. Also, Federal Work-Study programs can be a part of the Award packages but this program requires the student to work and earn their award over the academic year.
During March and April, students and their families will be sifting through the many award packages to understand the value each package brings to the goal of making college affordable. To start, know the 2011-12 fixed cost (Tuition, Fees, Room and Board) at each college and how the individual financial aid awards impact the cost’s bottom line. Remember all loans have an interest rate and need to be repaid over time, thus all loans cost more than just the Principal indicated on the award packages.
Paying for a college education is a significant financial investment, so ask questions if you do not fully understand the value of your Financial Aid package. Knowing the true costs of the academic year can save you money, get a “better return on investment” for the college education and truly make college affordable!