Long time no blog...but, I promised to blog until I went to college, so here I am! First, long overdue thanks to the Wylde Q. Chicken award committee for choosing the blog as their 2011 recipient. I also wanted to thank my fellow PCCs, because this blog wouldn't exist without their invaluable thoughts and blogs. I also want to thank my numerous guests, such as Elenita, Adam, Seth, etc. for their wonderful and insightful blogs on topics I won't even pretend to be knowledgable in. Finally, a warm thanks to Lisa Micele, for her faith in the blog from its inception, and for her guidance throughout the process. You rising seniors are really lucky :D
And now, I would like to get to the actual blog :]
During the fabulous (whyamInotthererightnow??) Italy trip, I was talking about my finanical aid with some of you rising seniors. I want to take a moment to talk about several points of interest, namely your finanical aid options (now that I have a finanicial aid package) and about contesting your particular financial aid package.
When you finally get your package, there will be a blur of numbers and categories, which might induce headache. First, I want to clear up those categories. Then, I want to talk about gauging a good package vs. a bad package. Finally, how do you contest a package if your family is truly worried about making ends meet?
Grants: Ulysses S. Grant was our 18th president, and frankly, he was kinda useless and nondescript. Jump forward to the 2000s. Seniors, I would like you to meet the essential, useful, and wonderful Grant. These are the federal and college grants. Grants in the financial aid world are like the pony you always wanted for your birthday...in that it's a gift. That's right, grants are money that is promised to you, that you never have to pay back. So, when you see the word grant, throw confetti in the air and sing "Celebration".
DIRECT loans: Alright, put the mic down young Kool there. Now it's time to talk about loans. When I first thought of loans, I thought of loan sharks, Barbershop style, or like the Mafia. Or, alternatively, I thought of 45 year old me still paying off loans, or worse, defaulting and having thousands of dollars of debt. Basically, not the best image of loans. However, although loans are never a "good" thing, they can be necessary. Further, they can be manageable.
So, there are two types of direct loans:
-Direct Subsidized loans are based on your financial need level, which is calculated from filling out the FAFSA and EFC (expected family contribution). You do not need to begin paying this loan off until after you graduate and the 6 month grace period has elapsed. Further, interest does not begin to accumulate until after graduation and the grace period has passed. There are actually multiple payment options, because not all graduates follow the same life plan. Out of all the loans, the subsidized is the best kind.
-Direct Unsubsidized loans can be taken out by anyone. The catch is that the minute the loan has been given to you, interest will begin to accrue. Like the subsidized loan, you do not have to pay until you graduate, or your enrollment drops under half-time (this being measured by credit hours). Now, it is in your best interest to begin paying off interest from the get-go, because unpaid interest is added to the principal (a process known as capitalization). Then, interest is charged on the raised principal. It's really quite fascinating. Anyway, these loans are again, not "bad", if you work with your parents and maybe a financial advisor (a bank person, a family friend) in making a financial plan.
For me personally, I am taking our the amount of subsidized loans I am qualified for, and refusing the unsubsidized.
Federal Work Study: Federal Work Study is basically a program where colleges and the government are in cahoots to make you work partime. Here's how it works. You go to college, you get job offered on campus, you work, money comes to you, you use it to pay for books, personal expenses, etc. This is quite an interesting award, because it's not guaranteed. Remember the pony? Yes? Okay. Think of the pony analogy this way. You can have the pony, if you clean the stalls, feed it, give it exercise, take it the vet, clean it, and give it a sugar cube from time to time. Pretty much, you work to get the award, and the amount of money you get is based on how much you work. Now, that doesn't mean you can work all the time. You have a glass ceiling. The glass ceiling is how much money you are eligible based on YOU GUESSED IT, FAFSA and the EFC. I hope that all made sense....
Academic/Talent Scolarship: Yay you! You are given this because of your grades, because you can eat fire, because you have known complex calculus since age three, whatever floats your boat. But, let's look at the pony situation in an academic setting. You take care of your pony really well, you keep your grades up. However, if you go two weeks without going to the barn, your pony will be worse for wear. Similarly, if you start sliding by, your scholarship might slide on out. These scholarships are a year by year thing--meaning, if freshman year you were a lazy bum that never went to class, sophomore year you will be a lazy bum without your scholarship.
Now, you have your financial aid package. How can you check if it's good? There are several things you can do. First off, look at your parent's income for the past fiscal year, or if that isn't available, the previous fiscal year. On Collegeboard, they have an EFC calculator. Use it to check numbers. Talk to a financial expert. Review your family's expenses. You might consider vacationing closer to home, or not building your mini Seaworld in the backyard. You might do some soul searching. If it's the school of your dreams, then you could take out a loan that's a little bigger than you were hoping. If the package is not feasable, but you think it could be, then let's talk contesting.
One important thing I want to bring up. If you apply early decision and are accepted, you can't really contest the package. The idea is, you enter the agreement regardless of financial aid. If financial aid is going to be an issue, you might want to have a conversation with Lisa Micele. There are students who apply to schools ED, get in, get their package, and are completely fine. But, have the conversation with your parents and with Lisa before jumping right in.
For EA and Regular decision kids here's how it works:
You are going to get your financial aid package. (IMPORTANT: As you get financial aid packages, especially really good ones from schools you're not as interested in, save them! SAVE THEM! You'll see why ;]) If it seems that maybe, with a few more thousands or so, the school could be a viable option, then the next step is to think. Think if you like this school a lot. If you really can see yourself there, then you are in a position to contest it. Next, get in contact with your admissions counselor or financial aid counselor. Tell them something like "I love this school, but financially I'm not sure it's viable...".
Your school might do it somewhat differently, but it's the same basic principle. You will mail a copy of your other financial aid offers, along with a statement about how much you love the school and why you want to attend. That's pretty much it.
Two questions I know will come up:
1) What if it doesn't work?
2) What if my dream school is my best offer/I have no schools to bargain with?
1) You are at a crossroads young grasshopper. You can either try to contest it a second time (nicely of course), or you can give it up and try to make ends meet. If you are unsure which one to choose, have a meeting with Lisa, or with your admissions counselor. They have already accepted you, which means they want you. Maybe the college is feeling stretched thin, maybe you haven't looked at your finances thoroughly, whatever. But talking to them will show your commitment, and give you a better chance at success. No promises here.
2) Talk to your counselor. They might be really happy to have been the school to give you the best offer. They might be able to bump it up, even without schools to bargain with, especially if you show interest. You are not actually in as bad a position as you think. Genuine, mature, interest from a person looking at their finances logically will go a long way for these people.
Worst case? You don't get it bumped up. But look at the bright side. You have been accepted! You have a financial aid package! And, sometimes you can choose the college you love, even if it means a little more loans. Conversely, you might choose your second, or even last favorite, and find your happiness there.
Best of luck!
Celinda
