POPULAR MYTHS OF COLLEGE FUNDING
Let’s consider a few of the more popular misconceptions about the high cost of college:
We’re not going to apply, we earn too much money or are too wealthy to qualify for financial aid.
There are actually seven major factors that determine a student’s financial aid eligibility – and yes, parent and student income is included. However, did you know that everyone who files a financial aid form (correctly) qualifies for some type of financial aid!
Application for Aid
It doesn’t matter when we submit our financial aid application so long as it is before the final deadline.
A financial aid candidate must submit the FAFSA between January 1st and June 30th for the forthcoming school year. Candidates who submit their applications in January will have a greater likelihood of receiving more financial aid than those who submit the application in June.
We plan to send our child to a public university because it is a lot less expensive than a private university.
Many families find that it actually can be less expensive to send their child to a private university, despite the loftier ‘published price’.
We already have a plan in place, our financial advisor showed us projections then set us up with a 529.
Financial advisors rarely take into account financial aid eligibility when formulating your college plan. For example, a 529 Savings Plan actually will reduce your child’s financial aid eligibility; thus other methods for saving may be more appropriate.
Our savings projections were based upon our child attending college for only four years.
According to statistics released by the Department of Education, the percentage of students who graduate from public universities within 4 years is only 29% (private universities at a rate of 59.4%)
Our child is a tremendous athlete, it is likely that she’ll receive a full scholarship for athletics.
According to the NCAA, annually less than 2% of high school athletes are awarded full or partial scholarships.
Oh well, it’s too late for us to do anything now.
It’s never too late to start planning for college (nor is it ever too early) – Paradox specializes in late-stage college planning!