But there is some money out there–you just have to work a bit to find it. Almost all schools hand out help that’s not tied to need, and many schools–though they won’t admit it–are willing to sweeten offers if they’re fighting with other schools over good students. And there are other ways to whittle down the college price tag:
Make your case, nicely. Most schools that provide aid will reconsider their offer if you can show them you have less money than they thought. Write or call with evidence of a job cutback, your need to support an aging parent, unexpected medical bills and the like. You can also show them competitive offers (if they really are from comparable schools), and any evidence you’ve gathered about their record of giving aid. The College Board says parents should let Junior do the talking–he’s going to the school, after all.
Focus on the bottom line. The biggest award may not be the best deal if it’s mostly loans or comes from the most expensive school. Loans are a bigger part of student aid every year–about 58 percent of the pie. So ask the school to shift some of the award to grants, rather than loans.
Prepare for the future. Some returning upperclassmen find their deal looks less attractive than it did in their freshman year. So ask the school to commit to a four-year award while you are at it. Meanwhile, structure your family’s finances to lower your bill. Use your child’s savings account as much as possible the first year, since that money can cost as much as 35 cents in lost aid for every dollar the child has in the bank. Pay off credit cards and auto loans with other savings. Continue to feed your retirement account. Perhaps you’ll be positioned better for next year’s aid cycle, or at least for when the next sibling hits campus.
Fill the gaps. Many schools will break down the bursar’s bill into more digestible bites. Syracuse University, for example, allows students to go on a –monthly-payment plan; Pennsylvania State University will split every semester into thirds. Encourage the kids to fill some gaps on their own by getting AP credits while they are in high school, working part time and committing to a schedule that guarantees they’re finished in four years.
Break down and borrow. Many experts who watch broad trends in Americans’ debt levels worry that the growth in loans may be burdensome for students, especially those graduating into an uncertain job market. But at today’s low rates, it’s hard to find a better deal than a student loan. It’s not too late to fill out the federal financial-aid forms this spring and automatically qualify your child for a Stafford loan of $2,625 in the freshman year, $3,500 in the sophomore year and $5,500 for each remaining year at an interest rate expected to be about 2.5 percent by this July. Congress is on the verge of raising those loan limits, too. Parents who have filled out the form can borrow whatever they need to finish the deal at 4.22 percent, and that rate is expected to go down in July. And stop worrying. You borrow at higher rates to get your car or that home-entertainment center you put on your credit card. And that college education is an appreciating asset.
