Financial Aid for Students 101
Preparing for college while still in high school can be difficult for even the most academically-minded student. These days, you need to excel in the classroom, make sure you're involved in extracurricular activities and enroll in challenging classes to impress a college admissions board. On top of that, the financial cost of higher education may add to what is already a stressful time in an ambitious student's life. Luckily, with a bit of preparation, you can make applying for financial aid painless and stress-free. Read on to learn more.
Start Planning Early
It’s important to remember the earlier you start your planning, the less overwhelming it can feel.
Meeting with a financial professional to discuss retirement is a great way to begin the conversation since things have changed so much in the last 20 years. See the tips for each age range of kiddos and check out this article:
Elementary School
Reading and writing are a heavy focus in all these standardized tests, entrance exams and preparation for all educational endeavors. It starts here. It is also a great time to start thinking about what “buckets” of money you have set up and if it’s appropriate to start a bucket that focuses on “college-specific funding” or “dual-purpose assets.” Where are you saving for your goals? Do you have a place to save for college times as well?
Middle School
Taking challenging courses, developing studying habits, becoming involved in community service, and even solving academic challenges are the most important things you can learn before high school. It’s also essential to explore what careers or things you are interested in and good at. Are you mechanically inclined? Do you love biology and sciences? Finding things that interest a student will help them determine the kind of programming they need in their undergraduate education. As parents, you can research the cost of different institutions and see what sort of aid students might qualify for. If you haven’t started some tax-advantaged savings, it is time to start talking about where to save to help with college costs.
High School
9th Design your four years with the classes you need for college entrance. Take challenging classes such as AP or Honors to enhance your grade point average and make college entrance stand out. Fund your college savings regularly and begin to budget your own money as a student
10th Begin taking your practice exams for college entrance. Start thinking about volunteering or doing internships in your field of interest. Understand the difference between grants, loans and scholarships. Narrow down the colleges you want to visit for more information about the institution. Having funding for college in place that does not hinder your ability to qualify for aid is becoming increasingly important.
11th Start to narrow down which colleges to apply to. Colorado schools have free college application days (https://cdhe.colorado.gov/cofreeappdays), so having “instate” options narrowed down next year for your application is important. You will start to be thinking about college funding and aid applications. Remember to talk to a financial professional to help review where you should and should not be contributing money to college financial applications.
12th You will fill out your “Free Application for Federal Student Aid” or “FAFSA” in the fall of your Senior year. You also want to apply for scholarships, etc. Locally, Bootstraps (https://www.bootstrapsinc.org/scholarships-and-interest-free-loans.html) offers scholarships and 0% loans for Conifer, Evergreen, and Bailey college students.
There are many great resources out there. Read up and start making your timeline and checklist.
Preparing For College Checklists
If you have questions about 529 plans, check out this resource. Colorado has tax advantages not available in other states.
College Invest
Because a 529 can be in the market like retirement, it is vital to consider when to utilize the market and stay safe. Always ask your advisors to help you navigate some of these tricky concepts.
Standardized Testing Matters
Every October, second and third-year high school students can take the Preliminary SAT (PSAT), also known as the National Merit Scholarship Qualifying Test (NMSQT). Even if they won't need to take the SAT for college, taking the PSAT/NMSQT is required for many scholarships, such as the National Merit Scholarship.1
Looking forward to the spring of their junior year, college-bound students will want to take the SAT or ACT. An early test date may allow time for repeating the test their senior year, if necessary. No matter how many times your child takes the test, most colleges will only look at the best score.
A Fresh FAFSA
Applying for Student Aid for the first time occurs during the high schooler’s Senior year, but preparing for that should happen much earlier than that. Each year, roughly 17.6 million students file their FAFSA and receive a combined total of more than $112 billion in grants, work study, and low-interest loans from the U.S. Department of Education. Recent changes to the FAFSA website have streamlined the application process, but some preparation before you sit down to submit your FAFSA can make it even easier. Make sure you gather all the information you can regarding your and your family's finances. Pausing now to make sure those documents are close at hand can save both time and frustration later on.2 Students and parents continue to apply every year while enrolled in college.
Don't forget about "gift aid"
Grants and scholarships are often called “gift aid” because they are free money – financial aid that doesn't have to be repaid. College-bound students can learn about grants and scholarships in several ways, but the most-effective strategy starts with contacting the financial aid office at the college or university you plan to attend. Doing your own research can also be an effective strategy, but be careful: scholarship and grant scams are plentiful.
1. CollegeData.com, 2023
2. StudentAid.gov, 2023
3. StudentAid.gov, 2023
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.
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