TWELVE MYTHS ABOUT PAYING FOR COLLEGE

Bi= llions of dollars in financial aid are available to those who need help paying for college. Yet a lot of misinformation clouds the facts about what type of aid is available and who= is eligible. Here are some myths dispelled for those confronting the process of securing financial aid.=

College is just too expensive= for our family.

De= spite the media hype, a college education is more affordable than most people thi= nk, especially when you consider that college graduates earn an average of $1 million more over the span of their careers than high school graduates. The average yearly tuition at a four-year public college in 2006-07 was $5,836. There are some expensive schools, = but high tuition is not a requirement for a good education.

There’s less aid availa= ble than there used to be.

In= fact, student financial aid in 2006-07 rose to a record level of $135 billion. Most students receive some form of aid. Less of this aid now com= es in the form of grants (money that doesn’t have to be repaid). Most aid is awarded through low-in= terest loans or institutional and other grants.&n= bsp; You should carefully consider the financing packages you’ve be= en offered by each college to determine which make the most financial sense.

My family’s income is t= oo high to qualify for aid.

Ai= d is intended to make a college education available for students of families in = many financial situations. College financial aid administrators often take into acc= ount not only income but also other family members in college, home mortgage cos= ts, and other factors. Aid is awa= rded to many families with incomes they thought would disqualify them.

My parents saved for college,= so we won’t qualify for aid.

Sa= ving for college is always a good idea. Since most financial aid comes in the form of loans, the aid you are likely to receive will need to be repaid.&= nbsp; Tucking away money could mean that you have fewer loans to repay, an= d it won’t make you ineligible for aid if you need it. A family’s share of college = costs is based mostly on income, not assets such as saving.

I’m not a straight A st= udent, so I won’t get aid.

It= ’s true that many scholarships reward merit, but most federal aid is based on financial need and does not even consider grades.

If I apply for a loan, I have= to take it.

Fa= milies are not obligated to accept a low-interest loan if it is awarded to them. One financial aid administrator recommends applying for aid and comparing the loan awards with other debt instruments and assets to determine the best financial deal.

Working will hurt my academic success.

St= udents who attempt to juggle full-time work and full-time studies do struggle. But research shows that students w= ho work a moderate amount often do better academically. Securing an on-campus job related = to career goals is a good way for you to help pay college costs, get experienc= e, and create ties with the university.

Millions of dollars in schola= rships go unused every year.

Pr= ofessional scholarship search services often tout this statistic. In fact, most unclaimed money is s= lated for a few eligible candidates, such as employees of a specific corporation = or members of a certain organization. Most financial aid comes from the federal government, although it is= a good idea to research nonfederal sources of aid.

My folks will have to sell th= eir house to pay for college.

Ho= me value is not considered in calculations for federal aid. Colleges may take home equity into account when determining how much you are expected to contribut= e to college costs, but income is a far greater factor in this determination. No college will expect your parent= s to sell their house to pay for your education.

I should live at home to cut = costs.

It= ’s wise to study every avenue for reducing college costs, but living at home m= ay not be the best way. Be sure = to consider commuting and parking costs when you do this calculation. Living on campus may create more opportunities for work and other benefits.

Private schools are out of re= ach for my family.

Ex= perts recommend deferring cost considerations until late in the college selection process.<= span style=3D'mso-spacerun:yes'> Your most important consideration = is to find a school that meets your academic, career, and personal needs. In fact, you might have a better c= hance of receiving aid from a private school.&nb= sp; Private colleges often offer more financial aid to attract students = from every income level. Higher co= llege expenses also mean a better chance of demonstrating financial need.

We can negotiate a better dea= l.

Ma= ny colleges will be sensitive to a family’s specific financial situation, especially if certain nondiscretionary costs, such as unusually high medical bills, have been overlooked. = But most colleges adhere to specific financial aid award guidelines and will not adjust an award for a family that feels it got a better deal at another sch= ool.