Answers for Stressed-Out Parents, Part 2 April 27, 2009

There are certain mistakes we see New Jersey parents make time and again that cost them thousands of dollars that could, and should, be theirs.

QUESTION: What are the biggest mistakes you see parents making that cost them money?

In the free community workshops we hold 2-3 times a month, we cover the 10 deadliest mistakes most parents make when applying for college aid. We don’t have the space to get into all 10 here, but here are three really important ones:

1. The biggest reason why many people don’t get the financial aid they’re entitled to is because they don’t apply for it. Perhaps they believe they make too much money. This is a mistake, because even if you don’t qualify based on financial need, many schools won’t even consider you for meritbased aid if you don’t try applying for financial aid. And there are billions of dollars of merit aid available. Even millionaires and “B” students can
   
   qualify for these awards at many schools. So regardless of what you’ve been told, make sure you fill out the FAFSA (Free Application for Federal Student Aid).
2. Another big mistake is waiting until January or even worse after January of the child’s senior year of high school to start working on college aid planning. This is a mistake for one very important reason: College financial aid is distributed on a first-come, first-serve basis. Every school you’re applying to will have a financial aid application deadline. Whatever you do, don’t miss that deadline, because if you do your aid application might never be reviewed.
3. Finally, we see parents spending too much time chasing after scholarships. Don’t get me wrong. We’re not saying don’t pursue scholarships. If your child has a special talent or skill or heritage that qualifies them for a scholarship… by all means, go after it con gusto. But when you’re trying to decide the best way to apportion your time and maximize results, keep this fact in mind: Scholarships represent only 3% of the total financial aid money available. That’s right. Only 3%. So don’t get all caught up in the scholarship shuffle.