“My family makes too much to qualify for financial aid.” Lots of parents believe this statement, but plenty of them are wrong. In reality, many families qualify for some sort of financial aid. This financial aid myth is a stubborn one because parents don’t understand how financial aid needs are determined.
How much will you have to pay for college? The answer will depend heavily on your Expected Family Contribution. If you missed it, our last post explained what an EFC is and why it’s important to know what yours is.
For decades teenagers across the country have been applying to colleges blindly when it comes to costs. Most students have no idea when they submit their applications if the schools will give them scholarships or grants. In fact, teenagers and their parents often don’t discover whether a school will be generous or stingy until a few weeks before the deposit deadline.
Will your investments hurt your chances for financial aid?
Many parents worry about this, but investment accounts rarely impact financial aid awards. It’s been estimated that only 7% of families who complete aid applications are penalized for their savings.
How can grandparents best help with college costs?
It’s an important question because well-meaning grandparents can inadvertently sabotage a family’s chances for financial aid.
A popular way for grandparents to save for college is through 529 college savings accounts. These tax-advantaged accounts are available in every state and offer a lineup of underlying mutual funds.