Annual college costs can easily get to be 25% to 50% of a family’s yearly income. For most people, this is a huge burden. But many families look at the base cost of college and don’t consider the different financial aid packages and options that are available. The forms can be complicated and the options can be confusing. There are options such as scholarships, grants, and loans, and many people feel overwhelmed by the process of finding the right financial aid possibilities for their family. A Financial Aid Consultant will help your child find the best options that will give them the lowest out of pocket cost for a college education.
Certified Financial Aid Consultants are trained in the different ways to fund college. They can help families identify areas of possible financial aid that they may not have considered before. This includes showing families how to negotiate with the colleges themselves to get the maximum benefit for their child. Many families don’t realize that most colleges have scholarships and aid money available, based on both merit and need. This money can significantly reduce the cost of college expenses. In addition to helping families identify what the best financial aid options are, a Financial Aid Consultant will help them fill out the FAFSA, which is required for most financial aid awards. A Financial Aid Consultant can help families make college more affordable. The sooner families start planning for college the more money they can save.
Parents who are looking at sending their child to college, may be bewildered by the amount of costs that are involved. The current average cost a year for tuition, fees, room and board at a public 4 year college is $12,796. If a child wants to go to a private school then the costs are even higher. The average cost a year for a 4 year private college is $22,218. Considering that the average national wage that was earned in 2010 was $41,673.83 these costs can represent a large burden to families, especially if they don’t plan for them in advance.
Families that want to send their children to college face a major obstacle – college tuition. The cost of college continues to rise. Costs of college have doubled since 1988 and there hasn’t been an increase in the amount of funds available in government subsidized student loans since 1992. It is maxed out at $23,000 for an entire four year degree. In addition median income has barely risen since 1988, staying at about the same level of $33,000 for two decades. At a time when family incomes are not keeping pace with rising college costs more and more of the burden is being shifted to families to pay for a larger percentage of their children’s college education on their own.
There are several types of financial aid assistance available for college. Federal student aid is the type that people think of the most often. To qualify for federal student aid, and most other types of financial assistance, students need to fill out a FAFSA or Free Application for Federal Student Aid. The types of financial aid assistance that are available through the federal programs include work-study programs, federal loans for students, and grants. The government funds $150 billion dollars for these financial aid programs every year.
A family that has children going to college is often facing one of the most difficult financial times of their lives. College costs can stretch budgets to the breaking point. But college is important. In October 2011, college graduates had an unemployment rate of only 4.4%, while high school graduates had an unemployment rate of 9.6%. Having a college degree cuts a person’s chances of being unemployed by over half. Also, many economists say that one of the reasons that we have such high unemployment in this country currently is because too few people have a college degree and the skills that qualify them for higher level jobs. While college is expensive, the data suggests that it is worth the expense.
With the high unemployment rates nationally, a college education is more important than ever. College graduates have less than half of the unemployment rate of the US average, with only 4.4% of people who hold a Bachelor’s degree or higher being unemployed. In addition college graduates earn nearly $1,000,000 dollars a year more than their counterparts with a high school diploma. Unfortunately, even though the benefits are great, the cost of college keeps going up. Public 4 year institutions raised their rates by more than 8% last year, which is more than double the rate of inflation.
While most colleges have financial aid services, many families are also consulting with Certified Educational Planners. These professionals provide a private road map for families seeking to put together the best financial aid package they can for their children’s college tuition, room and board. Instead of a one size fits all approach, they are able to take the time and learn about a family’s specific needs and situation. This way they can identify opportunities for financial aid that colleges may have missed.
Students who take out loans during college end up having to pay back an average of $25,250 at the end of their college careers. This can make it hard for students to become independent adults and be successful living on their own. Understanding all the possible college tuition solutions available to them can help families reduce the need for student debt which helps their children get off to a solid start in their adult lives.
get the maximum amount of financial aid for college. This reduces the amount of out of pocket expenses a family needs to pay for their child’s college education. It also reduces the need for taking out loans to pay for college. Students who take out loans have to pay back an average of $25,250. This places a large burden on both the students and their families. Many college students cannot afford to move out on their own once they are done with their degree. This is due in large part to the debt they take on while in college. Part or all of this debt can be avoided by getting the best financial aid package possible.
