Financial Aide

Rick Darvis, CPA, certified college planning specialist and one of the nation’s leading experts on college funding and founder of Solutions for College, Inc. in Plentywood, Montana offers the following tips that college-planning specialists share with clients in Bottom Line….

Don’t hesitate to apply for financial aide even if you think you don’t qualify for needs-based aide. A couple making $130,000 a year, for instance, may still snag a needs-based package if their child ends up at a pricey institution , and the income ceiling for aide can rise significantly especially with more than one child in college.

Ask for tuition discounts. Whether or not your family qualifies for financial aide, it pays to look for tuition discounts. The nation’s private colleges and universities are currently giving incoming freshmen an average tuition discount of 41% according to collegeboard.com. These price breaks may be awarded regardless of the parents’ income.

To boost your chances, identify schools where your child’s scores on standardized tests and grades put him/her in the top quarter of the applicant pool. You can compare your child’s academic standing with that of students enrolled at a school by looking at student profiles posted on www.collegeboard.com and www.princetonreview.com (click on “College”).

Play on Rivalries. Even if your child is not athletic, consider applying to schools that face off with one another competitively. You’ll be exploiting their long standing rivalry, not only athletically but academically and other extracurricular pursuits. Competing schools will learn where your child is applying because you list these colleges and universities on your financial aide form. Look beyond your backyard. The school that wants your child may be two or three time zones away. Colleges always are looking for students from faraway states to boost the geographic diversity of their campuses.

Play the cheap card. Even if your child would prefer to attend a pricey private school, make sure he applies to at least one in-state public university. When a private university believes it is competing with a cheaper alternative, it’s more likely to kick in money to seal the deal. Select a college with empty seats. Some perfectly fine colleges and universities are rejected by students more than others. You can tell how often a school is spurned by asking about its enrollment yield. For instance, if a school accepts 1,000 students per year, but only 200 accept offers of admission, that’s a 20% yield. Popular schools have yields of 50%-60%. Schools with more seats to fill are motivated to entice a child to attend and often willing to negotiate tuition based on offers that the student has received. Your son or daughter also can apply to a school with a lower yield in hope of receiving a fat award package, which he can then use as leverage with schools that he really want to attend.

Try negotiating. If you’re disappointed in the aide package your child receives from a college, don’t give up. It’s possible to negotiate a better awards package by asking to have the financial aide offer “appealed.” When making an appeal, send copies of award letters from other colleges to the school your child really wants to attend.

Related Links:
College Corner
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