After Filling Out College Aid Forms, What's Next?
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What is the main topic discussed in this episode?
Here's your Money Briefing for Thursday, February 4th. I'm J.R. Whalen for The Wall Street Journal. Paying for a college education can be one of a family's biggest financial undertakings, but receiving financial aid can make it a lot easier. Last month, we explained why it's crucial for families to fill out financial assistance forms, but it's just as important to know what comes next.
You should really look at things like you have to look at the total cost of the school or the net cost, what a family is going to pay out of pocket, which is after the scholarships and grants. And then you can compare it on an apples to apples basis.
Coming up, our contributor Cheryl Winokur-Monk will tell you where to look for scholarships and grants and why families might not see a cent of that money if they don't write a thank you note. Yeah, that's after the break.
A few weeks ago, we called on WSJ contributor Cheryl Winokur-Monk to explain why filling out the Free Application for Federal Student Aid, or FAFSA, is an important step in families receiving financial assistance for college. But that process doesn't end there. Cheryl is back to explain what parents and students need to know next to unlock money for college. Cheryl, thanks for being with us.
Thanks for having me.
What should families do immediately after submitting the FAFSA?
So last month, we discussed the importance of filling out the FAFSA, but let's talk next steps. Once families submit the form, what should they do while they wait to see what offers from schools come in?
Well, to some extent, it is a bit of a waiting game, waiting to see what your offers are. But that doesn't mean you can do absolutely nothing. For example, you can be looking for scholarship opportunities. Many scholarships are on a rolling basis, and it's good to get them applications in early. So you could be certainly doing that and thinking about other ways you may pay for aid or for college, I should say. And the other thing that you can be doing is kind of thinking through your finances to figure out, you know, what... if the aid offers come back and there's no grants or scholarships, is this school feasible? Just so you have a sense in your head before the offers come back.
So if families get offers from several schools, how should they sort through them from a financial perspective?
You really should start by looking at how much free money is being offered through scholarships and grants. Loans are going to have to be repaid, but scholarships and grants won't. So if a school is giving you more in scholarships and grants, even a school that costs more may ultimately be a better deal than one that you have to take out more loans for. You should really look at things like, you have to look at the total cost of the school or the net cost, what a family is going to pay out of pocket, which is after the scholarships and grants. And then you can compare it on an apples to apples basis.
How can families compare college financial aid offers on an apples‑to‑apples basis?
Okay. So is the issue here that families just don't spend enough time comparing and contrasting offers?
It's not a matter of taking enough time. It's a matter of getting very confused. There's no general aid offer form that's used, that colleges use. You can apply to 10 different schools and get 10 different offer letters. And that makes it very confusing. There are legislative efforts to change this, and there are hopes that in the future there will be a standard form. But that's really the issue is that you're looking at terms that look unfamiliar and every school does it somewhat differently. And that makes it much harder to compare things on an apples to apples basis.
Now, let's say you get money from the school of your choice, but it's not as much as you'd like. Do you have any options?
Why do aid offer letters vary so much between colleges?
So there's no guarantee that you're going to get additional money, but that doesn't mean you shouldn't ask. And especially this year, every year there's a process called professional judgment. And that means that financial aid counselors have the authority to review your financials and to see if more aid can be given. This year in particular, more families had their incomes affected by the pandemic, and there may be more issues.
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Chapters
6 chapters
1
What is the main topic discussed in this episode?
0:05–1:20
2
What should families do immediately after submitting the FAFSA?
1:20–2:49
3
How can families compare college financial aid offers on an apples‑to‑apples basis?
2:49–3:34
4
Why do aid offer letters vary so much between colleges?
3:34–4:43
5
Can families request more financial aid and how does professional judgment work?
4:43–7:18
6
Where should students look for scholarships and how can local awards help?
7:18–7:36
Speakers
2 identifiedMore from WSJ Your Money Briefing
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