How to Get a Better Financial Aid Package
College costs have become an enormous outlay for every family, and they seem to rise by larger amounts every year. In fact, tuition and fees at private four-year colleges jumped 5.9% last year, according to the College Board, and they rose 6.4% at public four-year colleges. Many families rely on financial aid to help them cover some or all of the costs of higher education. The Society of Louisiana CPAs (LCPA) advises that there are several steps families can take to be sure they get the most aid possible.
Apply Early
Most families use the Free Application for Federal Student Aid (FAFSA) to apply for the money they need. The form is typically not due until June, but many colleges that rely on the form have their own deadlines that occur earlier in the year. In order to ensure that your request is considered on a timely basis, be careful to apply early in the year – and at least no later than your chosen schools’ own deadlines.
Get It Right
This may seem obvious, but the first best step for ensuring fair consideration for your financial aid request is to make certain that you read the directions on the form(s) carefully and that you enter all your information correctly as requested. Any errors could cause delays or otherwise hinder the process. When you’re finished, be sure to sign the form and keep a copy for your own records.
Offer Up-to-Date Information
Schools often base their financial aid awards on a family’s most recent tax return. In this uncertain economy, however, that return, which covers last year’s income, may no longer reflect your current financial situation. If one parent has lost a job or if you have suffered a similar economic hardship, write the college financial aid office to let them know exactly where you stand today. (Send this letter separate from the FAFSA form, which should be submitted on its own.) The school may ask you to document the problem, so be prepared to do so. If you don’t tell the school about your current situation, they won’t take it into account in calculating aid.
Don’t Give Up
After you receive the details of the financial aid package the school is offering, you may find that it is not enough to cover your child’s total expenses. There’s no reason to give up hope. It’s a good idea for the student to contact the financial aid office and explain exactly what he or she needs and ask for additional aid. As part of this conversation with the financial aid office, it is appropriate to mention more generous offers you’ve received from other schools. The financial aid office may ask you to fax copies of these offers to them. After consideration, they may be able to offer additional aid if, for example, other candidates who were offered aid decide to go to school elsewhere. Of course, there’s no guarantee that the college will raise its offer, but it’s worth making your case.
Consult Your CPA
Applying for financial aid can be a confusing and frustrating process, but remember that you don’t have to go it alone. Your local CPA can offer advice on college planning and financing as well as any other financial concerns facing your family. Turn to him or her whenever you need expert advice on managing your money.
For more tax and financial advice, visit the Public section of the LCPA's website at www.lcpa.org.
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Pursuant to IRS Circular 230 and IRS regulations we inform you that any federal tax advice contained in this article is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties imposed under the Internal Revenue Code.
Copyright 2009 The American Institute of Certified Public Accountants.
