What you need to know about PAYING FOR COLLEGE

Paying for college is a good news-bad news thing. The bad news is that college can be expensive and no two schools are alike in awarding financial aid. The good news is that there are affordable choices out there for every budget, and tools you can use to find them.

One of the best guides to paying for college is by our friend and financial aid expert Amanda Miller. Both students and parents you should set aside time, settle in and read Paying for College. Really. It’s worth it.

This free resources is comprehensive: it covers Scholarships, Building an Affordable College List, and forms you will fill out such as the FAFSA. There are 16 topics in total. Start exploring Paying for College now and use the “next” buttons at the bottom of each page to navigate all the pages. You can do it!

Prefer a video?

Foundational Concepts:

Ann Garcia: How to Pay for College (Podcast)
If you missed Ann's recent visit to the Palouse, you can hear her talk about paying for college from this early 2023 with Morningstar. Also, check out another recent article of hers on How much Parents should Save for College and the associated Podcast from that article. More info on Ann’s Website.

WHAT KINDS OF AID ARE AVAILABLE?
There are two kinds of financial aid: merit aid and needs-based aid. Merit aid is awarded regardless of financial need, based on your academic ability or some other skill or quality you have that a school or college desires. Needs-based aid is determined based on your family's income, assets and expenses. There are schools that strive to meet 100% of need.

WHAT DO I HAVE TO DO TO GET IT?
To get merit aid, you have to apply to a school that awards it (a few dozen schools give all their money to students with need). Most schools will make their decision about merit aid based on your application. To qualify for needs-based aid, you have to complete the FAFSA. If you are applying to private schools, you may also need to complete the CSS Profile. Have questions? You can now ask a ChatBot about the FAFSA.

HOW DO SCHOOLS DETERMINE HOW MUCH I GET?
When your family completes the FAFSA, a formula will be applied to calculate you Student Aid Index (SAI). That’s the amount your family will be expected to contribute to your education. Your “need” is the cost to attend the school minus your SAI. If the school does not meet 100% of need, that means when you add up SAI and the aid package, there will be an amount left over your family will have to pay (over and above the SAI).

Each school uses its own formula. A school may base their awards of merit aid on SAT or ACT scores, GPA, special talents like playing a musical instrument or athletics, leadership or even state of residence.

DO I HAVE TO WAIT UNTIL I AM ADMITTED TO FIND OUT HOW MUCH FINANCIAL AID I CAN GET?
No! And you shouldn't wait. There are a lot of tools you can use to find out what your family's SAI is likely to be. Also, every college is required to have a net price calculator (NPC) on its web page (use Google to find it). This should give you an estimate of the merit aid and need-based aid it will provide so you have a good idea of the total cost your family will pay for a year or college.

HOW CAN I GET SCHOLARSHIPS?
There are a whole bunch of other sources for scholarship aid: private foundations, churches, businesses, clubs… You can find a number of websites that can help you identify sources for aid based on your skills and interests.

You should also do some research in your community to see about local scholarships. There may be scholarships at your high school!

My Intuition is a website created by a number of colleges providing generous financial aid.  It provides some easy tools to give families a good idea of the scholarships available. 

Be careful of scams. Some people promise scholarships, but they are really just after your money.

HOW DO I FIND SCHOOLS WHICH ARE THE BEST BARGAIN?
One important way to make college affordable is by finding a school that does not cost a lot to attend. Your least expensive option may be a public school in your state of residence that is close to home. That way you can pay affordable in-state tuition, and keep living expenses low by living at or near home. Another option is finding a school that participates in a reciprocity program such as the Western Undergraduate Exchange (WUE). This program allows students in participating western states (Idaho is one of them) to attend school in neighboring states schools for no more than150% of their resident tuition rate. Make sure you explore WUE options carefully, and confirm availability at the schools you consider. 

There also bargains available from private schools. Some are very low cost. Other private colleges and universities may appear expensive, but they offer such great packages of needs-based and/or merit aid and families pay a modest amount. You can use online tools to explore the average Merit Aid schools give.

The ideal school meets 100 % of need with scholarships and grants (maybe some work study) so you can graduate debt free! 

It’s important to recognize, though, that cost isn’t the only thing to consider when looking for value. You have to also look at the quality of the education you receive. Will you be able to graduate in four years? Will you be able find a job once you graduate? There are a lot of intangibles, but a couple of statistics you can use to compare quality are percentage of students who receive a degree within a reasonable time and the percentage who default on their student loans. You can find that information at collegecost.ed.gov

IT’S TOO COMPLICATED! I’M OVERWHELMED!
Don’t be. There are people at your high school and at the colleges you are interested in who will help you. Palouse Pathways will help. The Federal Financial Aid site provides guidance. You can also consider private consultants such as Ann Garcia who wrote the book How to Pay for College. The bottom line is there are people willing to help you who want you to succeed - just ask.