April/May 2008

Bimonthly newsletter of College Assistance Plus

Understanding your financial aid package

Have you read your financial aid letter several times, just trying to understand it? Are you checking and re-checking the fine print? Do you wonder if you might be signing over your house, spouse, children, and life insurance policies without knowing it? If you are, here are a few things that may help you decode your financial aid package.

• If you are eligible for Stafford loans, the college will include them in the list of awards that your student will receive. It will make the total award number higher, making it seem as if the college is giving you more money. Don't be fooled; you still have to pay these back!

• The college will also list Federal Work-Study in the award section. This is not a guarantee that your student will get a job on campus. Your student will still have the responsibility of finding (and keeping) a job once he or she arrives at school. It is also important to note that the money will be paid directly to the student and won't be applied to your bill.

• Your student's package will probably include a breakdown of the school's tuition, housing costs, meal plans, and other miscellaneous fees. Most colleges automatically select the most expensive meal plan for freshmen; it is wise to check with the school to see if freshmen are permitted to choose a smaller meal plan instead. It will be cheaper, and let's face it - most college students don't get up for breakfast every day!

• Your package will include paper forms that you can sign and mail back, and it may also give a link to a website where you can accept or deny your financial aid. Make sure that you submit the forms, whether in the mail or online, by the date listed in your letter. You must select which aid (loans, grants, scholarships) you would like to accept. Some colleges will automatically disperse loans into your account if you do not return the forms; some may not do anything until they receive the form. You are NOT required to accept the loans.

• Unless you are receiving a scholarship or grant that specifically applies to room/board or other expenses, most college grants and scholarships apply first to tuition and other fees.

If your financial aid letter still baffles you, feel free to call our corporate office at (585) 582-1846, and we will be happy to give you some advice.

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Check out our blog!

The founder of CAPlus, Paul Celuch, has recently started writing his own blog. He updates at least once a week and discusses topics such as college loans, staggering statistics, how to avoid debt, some of the mistakes parents make, and how to make good choices. Visit his blog at http://forgiveusourstudentdebts.blogspot.com.

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Interview with a Graduate - William Kniley

William Kniley
Editor's Note: William Kniley has a degree in engineering from Rochester Institute of Technology; he currently works for a non-profit mission organization.

CAPlus: Do you have college loans?

WK: Not anymore. Between tuition and car payments, I had about $15,000 in loans when I graduated from school. But because I knew I wanted to be free of the loans, I did everything possible to pay them off quickly.

CAPlus: How long did it take you to pay them off?

WK: I did it in about ten months, I think. I wrote a lot of big checks every month!

CAPlus: Wow, that's ambitious! How did you do it? Maybe I can give our readers some tips.

WK: Well, my income was pretty good for being right out of college. But I didn't spend beyond my means. I lived simply...rented a small apartment, didn't buy many consumer goods, that kind of thing.

CAPlus: Was that hard?

WK: Not really, because I had a vision for my future, and it involved not being in debt. I wanted to be free to pursue whatever I felt like I should in my future, regardless of how good the money was.

CAPlus: You're not working as an engineer now. Do you feel like your education was worth all that you paid for it?

WK: That's a good question. I really value my time at RIT. I grew up a lot in college, and I wouldn't trade that for anything. I will say, though, that if I had left school with more loans, I would probably feel differently about it. My parents helped me out a lot, so if I had $60k in loans, that would have made things much different. I had a lot of counsel, too. The truth is, my views on debt have been shaped by my church community. I didn't just figure it out on my own; guidance from other people has been crucial in helping me get where I am today.

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High school freshmen & sophomores

• Start thinking about colleges that you might want to visit during the summer. Spring and summer are great times to visit colleges, so if your family takes vacations together, try to squeeze a few college visits into the schedule.

Keep up with your studies

• Continue saving money for college. If the student has a job, keep the money in an account with the parent's name on it to shield it from the federal aid formulas.

• If you are involved in clubs or other activities at school, try to apply for leadership roles for next year. If there are other clubs you'd like to join, do it! Colleges love student leaders.

• Talk to your high school guidance counselor about taking AP classes next year. A strong high school transcript will help you receive a better financial package from colleges.

• If you have money in mutual funds, bonds, stocks, and educational IRAs, you should consider talking to a financial planner about moving those assets into accounts that are not exposed to the FAFSA's formula.

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High school juniors

• Don't get too caught up in socialization at the end of this year and neglect your classes. Your junior-year grades show the colleges what kind of work you are capable of, and they are used to determine how much scholarship and grant money you are eligible for.

• Study for the ACT and SAT exams! The next ACT test date is June 14; registration is due by May 9. The next SAT test is May 3; regular registration is due on April 1, and you can also register (with a late fee) until May 15. Visit www.actstudent.org and www.collegeboard.com for more information and to find testing sites. There are study resources there as well. Remember, better scores can mean better financial aid!

Study for the ACT and SAT tests

• Check to see if there are any community colleges with summer classes that you are interested in. Getting some basic classes out of the way now can save you money when you begin college.

• Refine your lists of potential colleges, and explore their websites. Start comparing schools by the things that are the most important to you.

• Plan visits to any colleges that you are interested in exploring in more depth. Make informed, educated decisions on which colleges to visit; don't visit colleges that you aren't able to afford.

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High school seniors

• If you haven't finished your college applications, look for some more schools that have rolling deadlines. We suggest applying to about six of your favorite schools so you have a lot of financial options.

Follow up on your applications

• Follow up with the colleges that you have applied to. Make sure that they received all your application information, including your FAFSA, recommendation letters, test scores, and transcript.

• If you haven't filed your FAFSA yet, make sure you do it before the month is over. If you already filed based on last year's tax information, go back to the FAFSA website and correct the information.

• Don't make decisions about which college to attend until you have received all of the financial aid package letters. Compare the aid offers and make a wise choice. If you are a CAPlus client, send us your aid offers and we will help you understand the bottom line.

• Prepare for any AP exams in May. Consider taking a preparation class if there is one available, because these courses can give you college credit that you won't have to pay for later.

• Plan visits to any colleges and set up interviews that you didn't get to during the summer (or if you want to visit again). Read bulletin boards and the college paper, talk to students and professors, and try to spend a night in the dorms. Ask your CAPlus advisor for a college visit packet before you go!

• If you have made your college choice, congratulations! Don't forget to send in your tuition deposit and return your aid offer so the college knows which aid you would like to accept.

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College freshmen, sophomores, and juniors

• Make sure you have filed your renewal FAFSA to get the maximum amount of financial aid. It's easy to make a mistake, so have your CAPlus advisor review your form before you submit it.

Get a job that enhances your resume

• If you plan to have a summer job, focus on finding one that will enhance your resume. While it's easy to get a service job, you should try to find a job to help you in your field of study. Network around and get some interviews set up if possible.

• Discuss your plans for next year with your academic advisor. Talk about whether you are on track to graduate in four years. If you haven't declared a major yet, register for general classes that you will need to take at some point. Don't get trapped into an extra semester!

• Students may also want to set up a meeting with a career counselor at college. Talking with someone may help you figure out what you can do with your degree and what kind of summer job you should look for.

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College seniors

• It's almost the end of your college career! Students should keep pushing to have good grades, and parents need to keep graduation parties within their budget.

Congratulations!

• Before you graduate, get recommendations from your professors and department heads. They can be influential in recommendations and references for your first job.

• Continue looking for jobs and interviews, and talk to friends or family for ideas or contacts. You may also want to sign up at an online networking site such as LinkedIn. Getting a job is about networking, not applying online. Remember, you're only months away from the end of your college career!

• Talk to people at career fairs at your school. This is a great opportunity to talk to people in different fields and maybe get some interviews. You never know what kind of leads you might get!

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