How to Pay For College When Your Economic Recovery Hasn’t Kicked in Yet April 26, 2010
Ian Welham reviews proven tips to lower the cost of college.
Reading the newspaper and watching the news lately, one would think happy economic days are here again. Banks and Wall Street firms report fat profits. (Weren’t these the same guys we gave billions to?) A national magazine giddily declares victory over the recession. Squawk Box talking heads predict the stock market is going up-up-up.
Meanwhile, the regular folks I know and the people coming into our office every day are singing a different tune. They’re worse off than they were 1, 2, 3 years ago – in some cases much worse—and they’re nervous about how they’re going to pay for college.
For the forgotten middle class, here’s a quick review of how to maximize college financial aid – and lower your out-of-pocket college costs:
- Start your college financial aid research and planning ASAP. Competition for aid is tougher when the economy is weak. And in most cases, college aid is given out on a first-come, first served basis.
- Apply for financial aid whether you think you will qualify or not. Four reasons: (i) You could be wrong. (ii) Some schools won’t consider you for merit aid if you don’t fill out the FAFSA. (iii) You have to fill out the FAFSA in order to qualify for the best low-interest student loans. (iv) If you lose your job or experience a decline in income, some colleges will consider your reconsideration appeal only if you filed for aid (even if they turned you down initially).
- Choose federal loans over student private loans.
- Pick a college or university near home so you can save $10,000 a year on room and board.
- Cut the cost of college in half by attending community college for two years then switching to a 4-year college. Your degree will come from the 4-year college or university.
- Take as many AP exams as possible and score well. Many colleges award course credits for high AP exam scores. It’s possible to enter college with 12… 15… 18 credits – an entire semester already completed.
