Recently, I was meeting with a couple whose son is off to
college next fall. They are in the middle of applications, getting acceptance
letters and trying to decide what is best. Their son is excited. They are
excited for one of the biggest decisions their 18 year old has ever had to
make.
Yet there was a dark cloud hanging over their excitement
because they knew that wherever their son goes, there will be a big bill to
pay. And like most families, they figured that there is no way they would
qualify for financial aid. Mind you, this family’s income is high, but not that
high! As a result, they weren’t going to fill out the financial aid forms,
because, after all, why bother?
Personally, I can’t believe anyone thinks that way. I would
want every last penny I could get because paying for college is expensive!
Or, maybe I’m just that poor…
Anyway, by not filling out the FAFSA, they would be excluded
from certain programs, such as the Stafford student loan
and the PLUS parental loans – even if they
didn’t qualify for aid. Those loan programs are two ways they could pay for
college.
Filing for financial aid is also often the entry way to
school-specific aid programs. The schools themselves may have different
criteria for awarding aid, so there’s nothing that says they absolutely wouldn’t
get aid.
In some ways, financial aid is a zero sum game. Not exactly, but in very simple terms, it is.
Basically, what that means is if someone gets more aid, by definition it means
someone else gets less. So what happens if they don’t file the FAFSA? They are
automatically shut out from potential aid dollars – which means other people
who do file would be eligible for more dollars.
When I explained this to the family, you should have seen
the look on their faces. I asked if their son has any friends who are applying
to the same schools as the son, they said yes. All other things being equal, if
their son and his friends get into the same schools, yet this couple doesn’t
file for aid, then they essentially are handing money to the friends’ families.
Next time you see them, I said, tell them to say “thank you”
for your generosity.
In addition to filling out the FAFSA, I told them to file as
early as possible. Schools can run out of financial aid money. Even if they did
qualify for aid, but applied too late, oh well…
How often would you like your friends and neighbors to say “thank
you” to you?
If you are interested in discussing your situation and
exploring strategies to increase your aid before filling out aid forms, please
contact me at jack@longhornfin.com or
877-226-4157.
