First come, first serve financial aid.

It’s no secret that the economy is going through some slow times. And, as the current financial situation effects many businesses, it’s also impacting the number and amount of scholarships, loans, and federal financial aid.

While this may sound ominous, there is still plenty of money to be earned. You just need to increase your diligence, preparedness, and attitude. Here are some suggestions to stay on top of the financial aid and scholarship game.

1. Fill out your FAFSA.

This year, more families than ever will be applying for federally funded financial aid. The problem, as always, is that there is a fixed amount of funds available. The sooner you apply, the greater your chances of securing some money. Apply even if you don’t think you’ll qualify. The earliest you can file your FAFSA (Free Application for Federal Student Aid) is January 1. You can file online, and I highly recommend you file the first of the year. To hit the ground running, fill out a sample form on the FAFSA website, gather all tax information, and set up a free account on www.fafsa.ed.gov. On January 1, you’ll be ready to file.

2. Get your college applications and financial forms in early.

Just as the government has a set amount of funds available for students, colleges are limited in the amount of scholarship money they can award each academic year. Typically, schools award money on a first come, first serve basis, and the number and amount of awards decrease as time progresses. What does this mean? More money is available at the beginning of the application cycle. Students that apply early in the application process are more likely to be granted a better financial aid package or get scholarships from the college. And, the amount of the scholarship is typically higher the earlier you apply. In addition to your basic admission application, be sure to complete any extra materials associated with scholarships, grants, or being considered for the college’s award money and return these forms as soon as possible. Sometimes, you are automatically considered for awards based on your college application, other times it is a separate process altogether. Check with your potential colleges to find out their procedures.

3. Apply for every scholarship you can.

In years past, students could afford to be picky. Scholarships with essay requirements were commonly ignored, scholarships less than $500 often we’re rejected, and there was basic apathy among high school students regarding scholarships. The fact is, you can’t afford to be picky. You must apply for any scholarship you have a chance at winning. In hockey, they say you miss 100% of the shots you don’t take. The same is true with scholarships. You lose 100% of the scholarships you don’t apply for. This year, take your scholarship search seriously. Visit your career center or guidance counselor and request a scholarship list immediately. If your school does not have one, conduct an online search. Visit my previous posts for specific scholarship search strategies.

The strategies outlined above may seem simple, and they are. However, knowing something and executing are two different things. When you actually do the things above, you increase your chances of securing money for college.

Good luck. If you need help, just remember to repeat the mantra: early bird catches the worm.

Check this website out!

If you want to quickly compare the merit scholarships offered by various colleges, you need to check out this website: www.guaranteed-scholarships.com. Although this site is just a list, it can be a useful tool for comparison purposes.

It's important to know that most schools offer automatic scholarships based on academic performance and ACT or SAT scores. If you know what you need ahead of time, you can prepare and score accordingly. Higher grades or test scores almost guarantee more money. Take a look at this example:

Visit Hamline University's website HERE.  You'll notice that a mere three point difference (25 to 28) ACT will earn you $2,000 more each year. That's $8,000 more over the course of four years. If you knew this before you took your ACT, wouldn't you try harder to get a higher score? 

Take a look at guaranteed-scholarships.com. Find out what you need to do to get more money for college. 

Have a great day!

Save for college, without being penalized on financial aid.

You might think that filing a FAFSA is a waste of time because your family earns too much to qualify for financial aid. Think again. There are many tactics to save for college without being penalized. 

For example, did you know that students' savings and assets are figured into the FAFSA financial aid equations at a higher rate then parents' savings and assets? 20% compared to only 5.6%. That's a big difference. In addition, things like your parents' retirement plans and homes don't count. The point? It is better for your parents to save money for you instead of saving money in your own name.

There are many other techniques you can use to optimize your savings for college. To learn more, check out the special report from WCCO news in the Twin Cities here.

"Negotiating" Financial Aid Packages.

 VERSUS

OK, there has been a lot of buzz lately about "negotiating" financial aid packages. Now, before you continue reading, I want to clear something up: negotiating your financial aid package is a personal decision. I do not recommend appealing just because of the recent media attention or because it is the newest, trendiest way to reduce the amount of money you spend on college.

While bargaining with your Financial Aid Department is, essentially, a negotiation, school officials prefer to call it an "appeal." Once you have been accepted at a college and offered financial assistance, the Financial Aid Department will happily meet with you and your family to discuss your needs. It is important, though, that YOU (the student) take the lead in discussing the package with counselors. According to the College Board, "schools look for students to be the main partner with the university in completing their educations--and that involves being an active participant in the financial aid process. Over-involved parents can, at best, compromise this independence, and, at worst, make financial aid officers feel less willing to work with you and your child" (Feb. 2008).

There are two main reasons you and your family should appeal a financial aid package:

Financial Reasons. 

Believe it or not, colleges make mistakes. Maybe they miscalculated or forgot to factor certain information into the package.  Perhaps something has happened in your family since you filled out the application. These circumstances need to be brought to their attention.

Competitive Reasons.

Another school is offering you more money than your first choice school. (Each college has different policies about "competitive appeals," so it is wise to find out your school's opinion regarding this type of negotiation first.)

Usually, if you have a good reason for requesting more aid, the financial aid counselors don't mind taking a second look. You should be prepared, however, to offer materials that support your request for more assistance. Bring the following:

• Information regarding your family's financial situation.
• A copy of the award letter from the institution that is offering a better comprehensive package. 
• Proof that you will be financing your education on your own (if this is the case).

Once you're armed with these materials, contact your Financial Aid Department and set up an appointment. Dress appropriately, and make sure that you have practiced what you want to say beforehand. (Remember, you are taking charge of this situation, not your parents.) It might go something like this:

"Thank you for meeting with us today. I want to express how much I wish to attend _____ University and I am honored that I was accepted for fall semester. Unfortunately, I was expecting a higher amount from the financial aid package and I feel that I may have circumstances that would impact the current amount of aid. Can we look over this information together?"

It may take several meetings with Financial Aid to get an adjustment (this office is bombarded with students trying to get money, so they have to weed out the less serious candidates). Don't let this deter you. In fact, you'll be taken more seriously if you're persistent, increase the odds you'll get an adjustment, and get to know the officers on a first-name basis. (Trust me, this is not a bad thing!)

A lot of students worry that if they appeal their financial aid package they will be penalized and lose their aid altogether. This is highly unlikely. In fact, it's important to know that once you're accepted to a college, they want you to be there and will try their best to accommodate your needs. They want to help you. 

The moral of the story? Don't be afraid of asking the Financial Aid Department to reconsider your award package. They are happy to do it, and you can only benefit by trying.

Compare Financial Aid Packages.

At first brush, you might be tempted to accept any financial aid package when it comes in the mail (especially if the envelope has your first choice school stamped on the envelope). My advice: be patient. You will be receiving numerous financial aid packages within a month of each other, provided that you applied to more than one school, and it is best to compare before you make a commitment. Find out which school provided the most bang for the buck: it may be that a number two school choice provides a significantly better financial aid package. 

Now, I know the hard part may be choosing a second or third choice school, but another important point to consider is the potential additional stress that accompanies being responsible for a larger part of your tuition--this stress could impact your college experience. It may be that without the additional expense, your educational and social experiences are enriched.

If you still have your heart set on your first choice school, but are offered a better deal somewhere else, try to appeal your original financial aid package. Not sure how to do it? Stop back tomorrow--I will share negotiation strategies with you!