Many college-bound students have begun to receive their financial aid packages. The aid package outlines how much money the student has been awarded to assist with paying the cost to attend a particular school.

For students who have excelled academically and have been accepted to the college of their dreams, the information in the financial aid package can be a killjoy. The award may reveal a unexpected amount of loans rather than scholarships or grants. It may make the difference between attending a dream school and choosing a less-desirable option.

Financial aid is available in several forms – scholarships and grants that you don’t have to repay and loans that require repayment. Guess which form most people desire?

In the majority of cases, however, loans will make up the bulk of college aid packages. For students who still have a few years before entering college, there are some things you can do now to help offset the cost and possibly make college more affordable.

The first step to understanding the financial aid process is to understand how your financial aid is determined.

Everyone should complete the Free Application for Federal Student Aid (FAFSA). Once this is completed, an Expected Family Contribution (EFC) is calculated. Based on several factors and your EFC, colleges will determine your financial aid award.

In addition, some colleges will require a CSS/Financial Aid PROFILE, which is the financial aid application service of the College Board. This application normally includes a fee to submit.

Get an idea of what your EFC may be by completing an EFC Calculator. An EFC calculator can be found on the FinAid website at http://www.finaid.org or on the CollegeBoard website at www.collegeboard.com under the “Parents” tab.

Follow the instructions on either website to come up with an “approximation” of what your EFC may be. Once you have this information, you will have a general picture of what you may potentially be expected to pay toward your child’s college education. However, the individual school will determine your contribution based on its “cost of attendance” and other factors they use to determine financial aid.

Once you have an idea of your potential contribution, start thinking of ways to pay for college. Saving is probably the most obvious. Savings can be in the form of a college tuition savings plan like a 529 Plan or a credit card rebate or loyalty program like UPromise, where a percentage of your purchases goes towards education savings.

Ask relatives to help contribute to a college savings fund over a period of time instead of purchasing toys, clothes and electronics for special events.

Become aware of what other financial aid programs are available to help pay for college. There may be assistance for students who have a parent who served in the military or special scholarships for students who plan to teach or do medical work in economically depressed communities.

Understand how the education lottery system works in your state and how to apply.

Time is an important asset in planning ahead to finance your student’s college education. Another asset is your child’s academic success. Students who do well academically and are involved in community service are likely to have more scholarship opportunities. Therefore, make sure your student is doing his or her part by doing her best academically.

Find community support programs that are designed to assist students academically and that will foster motivation and encouragement for academic achievement, such as the Black Child Development Institute-Charlotte, Upward Bound, NC-MSEN Pre-College program and programs sponsored by sororities and fraternities.

It’s never too soon to start planning ahead financially for college. Don’t allow the cost of college to be a barrier to your child’s future success.
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Macie Caldwell is owner of Macie Caldwell Consulting Services (www.maciecaldwell.org), which provides information, tools and resources to parents, students and organizations to assist in preparing students early for college.

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