Scholarships

Avoid Getting Stressed Out Over College Decision With These Tips

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After years of hard work and months of waiting, students are starting to receive acceptance letters from colleges. Those students accepted into more than one college might face some difficult decisions to make when weighing the pros and cons of one school against another.

Three students studying and learning in a coffee shop

“College  fit” means finding the school that best meets at student’s needs for the future, but there is no such thing as a “perfect school.” Students shouldn’t stress themselves out thinking that if they pick the wrong school, their life will be ruined. After all, college is what you make of it. But with a little research and effort, students and families can feel more secure about the school they pick. Here are some tips :

Compare financial aid awards

While cost shouldn’t be the only thing considered when deciding between schools, the financial aid offered can go a long way to giving one school an edge over another. The financial aid award letter often comes after the acceptance letter, and has many things to consider when reviewing. Check out our videos on comparing financial aid award letters for more tips (here and here).

Dig deeper with schools

Students already researched schools before applying, but now is a chance to get more detailed information to get a more complete picture of what a school offers, not only in education, but day-to-day life. Such questions can include:

  • What is the graduation rate? How many students return after their freshman year?
  • Are there work or volunteer opportunities that reflect a student’s major or interests?
  • What do students do for fun?
  • What student support services does the school offer?

Students can talk to college admissions counselors, current students, recent grads or even the college’s official website to research these and other subjects. It’s important to use only trustworthy sources of information and to recognize the difference between fact and opinion. A college’s official website and its admission officers are often the best sources of factual information about that college.

Visit — or revisit — the campuses

Now that a student has been accepted to a school, a college visit becomes even more important. Even if a family has taken a campus visit previously, going back with a more focused approach will help students see if they truly see themselves as a student at that school. Can’t visit a campus? Call or email the admission office with questions, reach out to professors in your areas of interest or ask to connect current students and recent graduates. High school counselors and teachers may also be a good source to recent grads or current students.

Think about it

Research and asking questions can provide the information that students need to make a decision, but asking and answering the important questions can only be done by a student with their family. How did the student feel during their campus visit? Did the school offer both the academic and social aspects that will lead to success? Will they be happy there? These basic questions might lead to some further reflection about each school.

Make your decision

The good news is that schools don’t need to hear back immediately. Many colleges don’t expect a final decision until May 1, so students and families have some time to make up their mind. Lay out the pros and cons and find the school that fits best with financial, academic and career goals. Remember, though, that colleges are serious about reply deadlines. Not sending a deposit by the deadline can lose a student’s place in the incoming class.

Video: Identify, Separate Loans From Grants on Award Letters to Better Understand Out-Of-Pocket Costs

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Getting accepted into college is an exciting moment for students and families who are ready to embark on the next part of their educational journey, but can often be offset by concerns about just how much school will cost both now and after graduation.

Financial aid award letters help students and families get a better understanding of what to expect both in terms of money being provided by the school and state, through scholarships and grants, and costs of attendance (COA) at the school.

Award Letters Part 2

In part two of our “Understanding Your Financial Aid Award Letter” video series, we discuss how to best identify repayable financial aid options and separate them from scholarships and grants to get a better picture of the actual financial responsibility that will be required to attend a school.

More often than not, there is a gap between the “free” money being offered to a student and the COA, leaving families to determine the best way to meet the financial requirements.

On many letters, both federal and private loans are included as possible options to bridge that gap. However, as there is currently no standard format for schools to consistently show financial aid options, loan amounts are often included in the same area as scholarships or grants. At a quick glance, families might not realize that loans, which must be repaid after graduation, are being included with the “free” money of grants and scholarships.

For more tips, advice and information for preparing for college, check out Iowa College Aid’s “Your Course to College,” a free downloadable guide for students, families and schools available at https://www.iowacollegeaid.gov/YourCourse

Better Understand Your Financial Aid Award Letter With This Video

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Getting accepted to the college or university of their dreams is the culmination of a years-long effort. But receiving an acceptance letter isn’t the end of the journey, just the start of the next one.

For many families, the excitement of being accepted into a school is often soon replaced by concerns of how to pay for that education. Even those families who have put together a strong financial plan for college may not have a clear picture of what school will cost when their student leaves home.

 

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Our new two-part video series helps families better understand their Financial Aid Award Letter. Watch Here

 

The financial aid award letter is a document sent to families by the school shortly after the acceptance letter, if not included as part of the acceptance package. The award letter includes cost of attendance and other estimated costs, as well as any scholarships, grants and other funds to help pay for a student’s education.

As there is no standard format for presenting information on the financial aid award letter, families might have a difficult time comparing the actual costs of one school versus another, let alone clearly understand their financial responsibility to their student’s education.

In our new two-part video, we look at the elements of a financial aid award letter and offer tips to families for understanding the true cost of a college education. By following these tips, families can better compare schools and ask the questions of financial aid officers to make the best financial decision for their student’s education.

A Good Plan for College Helps Keep Loan Debt Low

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While the national conversation around the importance of continuing education past high school gains much attention, so to does the issues surrounding paying for it. Regardless of politics, the fact remains that paying for college stands as one of the biggest challenges for students and their families.

Getting a head-start on putting together a financial plan is always a good idea for any prospective student. Here are some tips for families to consider now to ensure that they limit the amount of student loan debt accrued while still in school:

Borrow only the amount you need

Many borrowers make the mistake of taking out more loans than necessary. To avoid doing this, create a budget to determine how much loan money will be needed and avoid using loan money to pay for unnecessary expenses, such as trips to the movie theater or expensive dinners.

Consider a part-time job

If a student’s academic schedule allows, they should consider finding a part-time job on campus to help supplement the cost of unexpected expenses. Be sure to check with the financial aid office to see if students qualify for work study, which gives the opportunity to work on campus.

Compare award letters

Once a student receives their financial aid award letter, compare loan offers by reading the fine print. If federal loans are not enough to cover the cost of education and a student is considering private loan offers, be sure to shop around for the best interest rates and repayment options.

Take college credit while in high school

Taking AP, dual credit or college credit courses while in high school can give students a head start on achieving your intended major. Find out the general education requirements at the college a student plans to attend and take courses that will fulfill those requirements. Doing this can help students graduate from college early, which means borrowing less in student loans.

Consider paying loan interest while still in school

Students who start making interest payments on their student loans while still in college will reduce the total amount they have to repay after graduation. Interest payments are usually manageable. By paying off interest as they go, students can  keep outstanding interest from capitalizing on any balances. Allowing interest to capitalize increases loan balances essentially requiring students to pay interest on the interest that has been accrued!

Apply for scholarships

Scholarships can pay for portions or all of a student’s education during an academic year. But students can’t earn scholarships if they don’t apply! Find scholarships specific to a school or department by talking to a representative from the school’s financial aid office or department chair. In addition, the following sites are just a few places to check for scholarships:

Choose a school that fits into the family budget

Review the financial aid packages from the colleges where students applied and consider how much needs to be borrowed in order to attend each. Keep the goal in mind and select a college where loan debt can be kept at a reasonable level against future income potential.

Get more tips in Iowa College Aid’s “Path to College.”

Destroying These Myths About Student Loans Will Help Students Planning For College

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For many students going to college, private student loans will be an inevitable fact of life. Private loans should be used to fill in the gaps that college savings, grants and other scholarships don’t cover in a student’s final aid plan. As a result, many students leave college with a nagging fear of the loan repayments that await.

Rather than start on the wrong foot when it comes to loans, students can get a healthy perspective of both their responsibilities and ways to more quickly get on top of their debt with these tips that destroy the common myths about student loans:

If I need help understanding or dealing with student loans, my former college or university won’t help me. Even though a student may have graduated from a school, their financial aid office is still a great resource to help explain loan repayment options and connect students with loan servicers. Financial aid offices have a vested interest in helping students understand and stay on track with their loan repayment, as high default rates can negatively impact a school. So if a student starts to get confused by paperwork, the financial aid department is a great place to start.

Man looking at monthly statement glad to pay off bills

I’ll never pay off my loans. Those first payments after graduation may feel a bit overwhelming, and will likely be a large part of any budget as a student gets started in their career. Salary increases, paying extra when budget allows and plain old perseverance will lead to progress. Income-based plans and automatic payments are just two options to “set and forget” loan repayment as a part of monthly budgeting.

Consolidating my student loans into one loan is a good idea. Loan consolidation may offer convenience, but often students will find themselves in situations which either are not eligible for consolidation or can actually negatively impact their repayment. Loan servicers will already use a combined billing for students with Federal loans so that the students have one payment to make and federal loans can’t be combined with private loans in a federal direct consolidation loan. In some cases, consolidating Perkins Loans can lead to students losing repayment benefits that the loan provides.

Filing for bankruptcy means not having to repay student loans. While Chapter 7 or Chapter 13 bankruptcy does help protect against some loans, most borrowers will not be able to discharge their student loans unless it can be proven that the loan repayment will cause an undue financial hardship. Rather than negatively impact a credit record with a bankruptcy, students should consider finding more flexible payment plans that best meet their needs during repayment.

Get more tips and advice to help in your college planning with Iowa College Aid’s “The Path to College.”

 

Understand The True Cost of College Attendance by Decoding Award Letters

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They’ve waited. They’ve watched the mail for weeks. Finally, the letter arrived: Students are getting notice that they’ve been accepted to the school of their dreams! But after the moment of excitement and congratulations wears off , the realization sets in: it’s going to cost money to go to school.

Even if a family has prepared for years, saving money, investing in 529 plans and being on top of completing their student’s FAFSA, now is a crucial time to pay attention to information from schools and have a clear understanding of the financial aid award letter.

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Financial aid award letters are sent to students in the weeks after receiving their acceptance letter to a school and reflects the cost of attendance as well as the financial options available to families to help pay for their student’s education. As the letters state, a student’s place in the schools incoming class cannot be reserved until a deposit is received based on the financial award letter. But families should take the time to understand their award letter before submitting any form of deposit, as these deposits are not refundable if a student decides not to attend a particular school.

Currently, there is no standard format for schools to report the financial aid being offered to a student. So families should use these tips to better understand what is being offered and make a smart comparison between what different schools will cost. The school with the lowest tuition fees might not always be the best financial choice thanks to financial aid awards. Knowing how to read the financial aid award letter can make all the difference.

  1. Find “free money”
    Many schools offer students institutional scholarships or grants. These types of funding can be seen as “free money” because students and families don’t have to repay this money after graduation. Make sure to look for words such as “scholarship” or “grant” in the name of the financial award. These awards are often given to students based on the information in the Student Aid Report created when completing the FAFSA, based on income or family responsibility. Families may miss these awards because they do not technically apply for them separately.
  1. Consider loans and work study options separately
    To help show families how they can meet the cost of attendance at their school, award letters will also include options that require repayable loans or other options that require further action by the student, such as work study programs. Since there is no standard format for separating these options from other “free money,” families need to recognize that any loans taken out, be they private or federal Stafford loans, will require repayment by either the student or parent (depending on the loan) after graduation. This is not funds being offered by the school, but money that will require repayment.
  1. Know the difference between “direct” and “indirect” costs.
    Attending college features a variety of costs, but not all of them will necessarily be covered the financial aid offered in the award letter. The “cost of attendance” on a financial aid award letter applies to direct school costs, such as tuition, room and board. Indirect costs, such as books for classes or travel to and from school are not considered in an award letter. These costs are those that the student and family will have to bear personally.
  1. Determine if awards are for one year or more.
    Many families fall into the trap of thinking that the financial award letter reflects the costs and awards for all four years of school when, in reality, the letter reflects the cost for one year of school. While many of the loans listed on an award letter will be available to students each year, many of the grants or scholarships listed may require a new application each year or, in some cases, are only available for one year. Determining which of these awards are renewable, or the length of the award, can help families avoid an unpleasant surprise.
  1. Make sure the award letter is final.
    In some cases, an award letter might not reflect the final amount of aid being offered to a student. If any section of the letter uses words such as “estimated,” “tentative” or “pending,” the school may not have all the information from a student’s FAFSA or other document needed to make a final determination of aid. Once this information is provided, it may have an impact on the amount of aid that the student is finally offered.

Understanding the financial award letter that students receive can lead to some difficult decisions about where a student should go to school. By making the best effort to compare award letters from all schools that have accepted a student, families can make an informed choice of which school fits best with a student’s goals while creating a financial plan that will avoid any bad surprises or unexpected debt down the road.

Five Tips For Eye-Catching College Applications

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As students completing their college applications look for every edge possible to catch an admissions officer’s eye, it’s important to remember that those things that make students stand out are more basic than a fancy essay or overly-packed resume.

Here are some tips for students to keep in mind if they’re applying now or are planning for their college applications in the years ahead:

1.  Get Involved, But From The Heart

Community involvement and extracurricular activities go a long way toward showing admissions officers not only who a student is, but what they want to be. However, throwing together a bunch of activities in an attempt to impress colleges can work against a student (and probably make that student miserable to boot). Students who follow their interests, help others and find activities in which they just have fun will show colleges what a student really has to offer. Even better, starting early (think middle school) and keeping involved through high school will show that a student isn’t just getting involved with extracurriculars to pad a resume.

2.  Test Scores Matter.

“No, duh!” says pretty much every Senior and their family. But, hey, we said these were simple and this one’s DEFINITELY worth a reminder. Don’t take the ACT lightly. Spend the time to study and prepare for the test, including reviewing test-taking strategies. Taking the test multiple times will also give students a chance to work through the nerves of the big day and gain experience that will serve them on subsequent sittings. Don’t worry. Schools are going to take your best individual scores. Admissions officers hate taking tests, too.

3.  Take Challenging Classes, Get Good Grades

Again, not a news flash here: grades are important to show a school that students know what they’re doing in the classroom. The thing worth remembering, though, is that schools pay attention to difficulty of the class as well as the grade. Does a student’s school have Advanced Placement (AP) or Honors classes? If so, a B in an AP class looks just as good as an A in a less challenging class, with the added bonus that the student is achieving success in a more difficult (often college-level) course.

4.  Know About The School

Sure, it would be pretty foolish to think that a student doesn’t know the school for which they’re actually applying. There’s a difference, though, between knowing and KNOWING. Students who research and visit colleges before applying gives them the advantage of determining whether or not a school is the right fit for their future, which might encourage them to take advantage of early admission application and scholarship options. Schools tend to appreciate the commitment and dedication that early application shows and could be the difference that gets a student into that target school. Attend college fairs, either in person or online (if a school offers them) to learn more and get familiar with admissions officers and other aspects of the application process. Plus, there’s no reason students need to wait until their junior year to visit schools. Getting students to college visits as early as 8th grade, like those schools in Iowa College Aid’s GEAR UP Iowa program do, not only gives them a taste of what a college is like but can give them a motivational goal that lasts all the way through high school.

5.  Take Advantage A Secret Weapon: Summer

Out of school? There are many ways to take advantage of vacation to get ready for college. From high-school student programs and classes at a student’s target school to volunteer and internship opportunities to a summertime job, colleges love students who make good use of their free time. Yes, there’ll still be time to hang out by the pool with friends (adults have to make time, might as well start learning now!). But more importantly, when it comes time to reviewing similar student applications, a college admissions officer might end up giving the nod to a student who spent their summer teaching at their church’s day camp instead of playing Xbox One all day. Students who take the extra step will be the ones who succeed.