Since the pandemic hit our community, we’ve adjusted to a new way of working with students and families. We’ve gotten comfortable on Zoom, seen inside each other’s homes, and built relationships even if we haven’t ever had the chance to meet face-to-face. In such an uncertain time, it’s been more important to us than ever to make sure our students and their families know we’re here to support them.
We also want the greater community to have that same feeling of support, so back in the spring, we started doing webinars. Every few weeks, our team has hopped on Zoom and invited members of the public to join us as we tackle different college planning and admissions topics. We’ve talked about essays and the Common App. We’ve hosted Syracuse University to play the GPA game with families. We’ve partnered with an educational psychologist to discuss online learning. But there’s one topic that we’ve repeated a few times. It’s often requested and, if I checked our records, I bet it would be our most widely attended webinar topic. The topic, of course, is financial aid.
We get a lot of questions about financial aid, especially this time of year. The FAFSA and the CSS Profile have been open for just over a month, so this is when most families are navigating the financial aid process. It can be a complicated process in a normal year, but because of COVID-19, there are more questions and uncertainties than usual.
For part 2 of our COVID-19 and College Applications series (you can find part 1 here), I want to talk about financial aid and answer some of the questions we’ve been hearing lately.
TO FILE OR NOT TO FILE?
I strongly recommend all families fill out the FAFSA and, if required, the CSS Profile even if you don’t think you will qualify for any need-based financial aid. It’s an uncertain time, and I can’t predict the future (as much as my students would love me to be able to).
If your family circumstances change (for example, due to job loss, medical bills, unexpected expenses, etc…), even a year or two down the line, some colleges won’t consider financial aid packages for students if no FAFSA was filed for that student’s freshman year. I’d rather you be safe than sorry.
WHAT IF OUR FAMILY FINANCES ARE IMPACTED BY COVID-19?
The FAFSA for 2021-2022 looks at your family’s income from 2019. Your situation may have changed since filing your 2019 taxes. If this applies to your family, contact the college’s financial aid office as soon as possible for information about how to request an appeal or special circumstances review of your student’s financial aid package. Colleges may be able to adjust their financial aid award, but they are not required to do so.
WHAT IF WE NEED TO TAKE OUT LOANS?
Student loans (and student loan debt) are like spiders. They’re scary, and even though we try not to think about them, they’re everywhere. But spiders aren’t all bad. They do some good in our ecosystem. Likewise, student loans do some good in that they allow students to make an investment in their future education.
I think, to an extent, it can be a good investment in the long run. You might take out a loan to buy a car or a small business loan to start a new venture, and an education is just as valuable. Student loan debt can also be “good debt” and help students build good credit.
Before I misrepresent myself as a supporter of student loans in all cases, the most important thing here is to be smart about how much money you or your student is borrowing. A solid education does not guarantee a well-paying job on the other side, and no one wants to be saddled with decades of debt.
Another thoughtful borrowing tip is to compare all financial aid award letters from each college in the spring. I would recommend not submitting an enrollment deposit anywhere until you have received and reviewed all of the financial aid awards and compare the net prices of all colleges on the list.
SHOULD I ADJUST MY COLLEGE LIST?
Just like we encourage students to research academics or social life at a college, we also encourage them to research and talk with their families about financial fit. It’s worth looking into how colleges award financial aid to students. Some, but certainly not all, colleges give out merit-based financial aid. Some, but certainly not all, colleges meet 100% of demonstrated need. Each college has its own approach.
Colleges are required to have a net price calculator on their website. Use this calculator early in the college planning process to understand what the financial commitment will be for your family. I also recommend looking at the average debt of graduates from each college (this can be found in a college’s Common Data Set).
It’s always a good idea to have an in-state public option on the college list (and for North Carolina families, that should be a less-selective option than “just UNC!”). But it’s also important to note that private colleges who are generous with merit aid can be just as cost-effective if you’re in the top range of their applicants.
CAN OUTSIDE SCHOLARSHIPS MAKE UP THE DIFFERENCE?
Honestly, probably not.
Most financial aid comes from federal and state financial aid as well as from colleges themselves. In fact, according to the Institute for Higher Education Policy, outside or private scholarships only make up 2-3% of all the aid available to students.
Outside scholarship applications can be a lot of effort - often more essays and/or interviews - and those famous “full-ride” scholarships are incredibly competitive. Local scholarships can be an option for students who are willing to put in the work, but many outside scholarships are not renewable year-to-year and are small awards. They may pay for books freshman year, but don’t rely on them to close the financial gap year after year.
I hope this helps address some questions about financial aid during the pandemic. If you want to learn more about financial aid or you still have questions, keep an eye on the webinars page on our website and sign up for our next webinar on 10 Keys to College Funding & Affordability.