It’s that time of the year again – financial aid award season. As we continue through the spring, families will begin reviewing their financial aid offers and start planning for their student’s college decision. Financial aid offers are more important now than ever with families still feeling the effects of the pandemic. After receiving their financial aid award offers, students and families turn to financial aid and enrollment management professionals to help understand their offers and the next steps in their college decision journey.
Below are the five frequently asked questions students and families will ask when meeting with financial aid and enrollment management professionals:
- What is the net price of your institution?
Families most likely understand that the “sticker price” of the institution is not necessarily the price they will be required to pay. However, it is essential to review and analyze the financial aid award offer and expenses, both direct and indirect, of the institution to provide the real costs of the institution.
Clearly explain the details of the award offer to encourage understanding, such as the difference between the cost of attendance versus the bill the student and family should expect. Calculating the net price with the family will help families understand the bottom-line. Indirect costs should also be explained to families, such as the cost of books, food, transportation, and other cost-of-living expenses, and how they factor into the costs of the institution.
- What other options are available for financing my education?
Federal grants and loans are the most common forms of financial aid, however, many additional options are available. There are thousands of scholarships available through outside sources, some for academically gifted students and others for students who are pursuing a particular field of study. Students and families can be directed to look at these sources for additional options that do not need to be repaid.
Federal work-study provides part-time jobs for undergraduate and graduate students with financial need, allowing students to earn money to help pay education expenses. Some institutions allow any student to work regardless of their financial need, paying these students from the institution rather than the federal government funds. There may also be job opportunities off campus as well that students can explore.
In addition to scholarships and work opportunities, there are several alternative loan options for families to consider, such as PLUS Loans and private loans.
Students and families are looking for additional options. Colleges should be prepared to provide additional information, even if it is simply directing families to outside scholarships or loans.
- How will outside scholarships affect my financial aid?
Some schools subtract private scholarships from the financial aid award package before other scholarships and grant money is applied. Others apply that money to the gap before self-help. Students and families will spend hours looking into additional scholarships, it is important they understand how such scholarships will be applied to their student account .
- What if something changes in our income while enrolled?
Each institution’s process is different when it comes to professional judgements and appeals. Providing a clear path for the appeal process is essential for these families. Especially thinking about how the pandemic affected income and expenses, families may need to update their FAFSA. Explain the process for a professional judgement to update the FAFSA data if a parent lost a job, incurred undue medical expenses, or experienced other financial hardship in the past year or so.
As families go through this process, they may ask additional questions about the process, such as whether you require an additional form or just an appeal letter, what is considered a special circumstance, and what type of documentation is needed to consider the appeal. Be prepared with the process for both professional judgements and institutional appeals, if available.
- What are the next steps?
Understanding the next steps in the process is critical. Each student may have different steps, depending on where they fall in the process. Some may need to look for additional resources, like outside scholarships or additional loan options, and others may simply need to accept or decline their financial aid and admissions offer. Describing the options available for students and families and answering their questions can help determine the next steps in the process.
While students and families may be uncomfortable talking about money, it is an essential part of the college decision process. Answering questions and providing details about additional options and appropriate next steps will help students and families ease their concerns and can potentially set your institution apart from the rest.
Sources:
Forbes: 12 Financial Aid Questions To Ask Your College
Earnest: Get More Financial Aid by Asking These 10 Questions