The Facts About College Financial Aid

Most American households are offsetting the high cost of college by applying for some grade of financial assistance by submitting their FAFSA (Free Application For Federal Soldier Student Aid) on or after January 2nd. Unfortunately, this is not a simple procedure as the college financial assistance system is anything but user-friendly. There are an eternal number of pitfalls in the application process, and it is far too easy for households to lose some or all of the assistance they are eligible for.

Many households neglect to even attempt application because they don't cognize how to, or they incorrectly presume they are not qualified, or simply because they are intimidated by the complicated and confusing procedure and all its paperwork. With far more than qualified appliers than desks in all of America's colleges and universities, it is sensible to anticipate a system intentionally designed to eliminate all but the most knowledgeable and relentless applicants.

According to a distressing statistic from the United States Dept. of Education, over 90% of all financial assistance applications are rejected for mistakes and inconsistencies! As financial assistance is awarded on a first-come, first-served basis, the loss of clip in the resubmission procedure consequences in thousands of dollars of lost financial assistance to eligible households who braved the college support procedure blindly and alone.

This beingness the case, what's a household to make with one or more than college-bound students facing as much as $160 to $300 thousand dollars to direct their children to a 4-year college? Many brand the error of relying solely on the advice of counsel counselors, college financial assistance officers (FAO's), and even their accountants. Sadly, these households are not getting all of the financial information they need and are in for a ill-mannered awakening!

Nationally, counsel sections are facing their worst crunch ever, and are overloaded with as many as 800 or more than students for each counselor! Budget cuts have got added to the problem causing schools to increase the duties of counsel counselors in countries other than guidance, leaving them with even less clip for their students - and there is no relief in sight!

Despite these obstructions and to their credit, counsel counselors still manage to effectively counsel students in career planning and college selection. However, when it come up ups to college funding, they come up short in providing the necessary financial information that could salvage households thousands of dollars!

Counselors have got small clip and deficiency the expertness to demo parents how to reduce their Expected Family Contribution (EFC), the minimum the federal authorities determines that each household will pay for any college, based on the information submitted on the FAFSA. Additionally, knowledge of specific legal financial assistance strategies and their right application would assist households avoid or reduce an array of appraisals that could cost them thousands of dollars for each twelvemonth their students are in college!

For example, parents and most counsel counselors are unaware that students have got no plus protection allowance. Consequently, students with assets in their ain name are assessed by the federal authorities at 35% for each twelvemonth they are in college! Thus, a student with $1,000 will be assessed $350 for each twelvemonth the $1,000 remains in their name. After 4 years, they will have got lost $1,400 in financial assistance for having only $1,000 worth of assets! This is tragical as it can be legally avoided - if you cognize how.

Periodically, counsel sections present "in-house" Financial Aid Nights which concentrate on filling out financial assistance word forms and apprehension the rudiments of the process. Nevertheless, twelvemonth after year, 9 out of every 10 households applying for financial assistance go on to be rejected for filling out their word forms incorrectly. Clearly, parents are not getting adequate counsel on the college support process.

Well-meaning guidance counselors ask for FAO's to talk at their high schools, trusting them to set the best interests of the students above the financial interests of their college. By evening's end, parents are often left with a false sense of security that the college of their pick will present their student its best possible financial assistance package. This is hardly ever the case!

Much like economical employers whose end is to engage the most talented appliers for the least amount of pay, FAO's seek the most promising students for the least amount of financial aid. Relying on an Food and Agriculture Organization to cut your college costs is like expecting an Internal Revenue Service agent to assist reduce income taxes! FAO's tin be helpful, but their loyalties are with their schools - not their applicants!

Accountants may offer some assistance, but far too few have got experience with college funding. Although they are experts with income tax word word forms and tax strategies, college financial assistance forms and college support strategies are a horse of a different color. The good-intentioned application of accounting rules to college support can actually impede a family's opportunities of getting all the financial assistance they are entitled to!

There is an eternal amount of misinformation on the topic of college funding, and a good deal of it is from so-called dependable sources. In fact, one direction on the current FAFSA, if followed, will cost households thousands of the financial assistance dollars they are eligible for! (See our website for FAFSA ALERT!) So, "who you gonna call?"

One of America's best kept college secrets is the being of the college support professional! This small grouping of admittances and financial assistance experts assist parents through the college support procedure and help households supply their students with the best possible college instruction for the least possible cost. One would naturally presume they are in great demand and buried with invitations to talk at America's high schools. Sadly, this is not the case!

It would surprise and outrage parents to learn that, on a national scale, most counsel sections decline the services offered by college support professionals, often stating that bringing in "outsiders" is against school policy, even when such as services are offered absolutely free! The distressful consequence is, every year, parents come in the college support sphere without the necessary ammo to make battle with the system - and severely overpay for college!

For additional information and guaranteed solutions to America's higher instruction crisis, delight visit: http://www.thecollegebook.com.