Top myths and mistakes in paying for college
Concerned about paying for college? Read up on these common myths and mistakes made throughout the paying-for-college process, and be sure not to make them yourself.
Mistake #1. We will have plenty of time to deal with the cost issue after we finish the admission process.
Planning for college costs is equally important as navigating the admissions process successfully. Neglect of the "aid side" can result in a very unfortunate outcome -- being admitted to your dream school but not having the money to pay for it.
Mistake #2. Going it alone -- having a problem paying the college bill and never talking to an aid counselor.
College aid counselors are there to help you by coming up with an initial award that makes it possible for you to attend, helping you stay in school once you are there, and making sure you don't borrow too much money or pay a higher interest rate than necessary. Talk to them.
Myth #1. The most common form of college aid is a scholarship based on the student's academic ability or talent.
By far the largest amount of financial aid given to undergraduates is awarded based on demonstrating need. After adding in federal student loans and work-study jobs, more than 90% of all aid goes to needy students.
Myth #2. Colleges have an income cutoff for awarding aid.
There is no income limit when it comes to giving need aid. Eligibility is determined by the family's ability to pay compared to the cost of the college. At expensive schools, families with quite high incomes can qualify, especially when they have more than one child in college at the same time.
Myth #3. My chance of being admitted is much greater if I don't apply for aid.
First of all, 75% of all students attend a public university where it doesn't matter to the admission office if you apply for aid or not. Even among private colleges where there is a limited aid budget, the vast majority of applicants are admitted regardless of how much money they need. Having said that, there are some private colleges that, at the tail end of the admission process, will only be able to admit "full pays" since their aid budget has been expended. From that point on, the school will fill the remainder of the class with students who do not require financial assistance. However, from the family's point of view, there is no effective strategy to deal with the very small chance that your student will be subject to this policy. Since it is impossible to predict for any given college if the "full pay only policy" will be necessary, when it will happen, or if your student will be included, the best advice remains - if you need aid, apply for it.
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