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Your son or daughter has decided to go to college. A college education has been a dream of yours since they were a small child. Now that it is upon you, the financial picture looks a bit less than optimal. Here is a parent’s guide to navigating the waters of financial aid for college.

Read the literature. High school guidance counselors have information on all types of student financial aid for college bound people. Ask about loans, scholarships, grants, and other aid awards that are available. The more you know, the easier it will be to formulate a plan to find the money that your student needs. Don’t discount any school or any financial aid program until you have read all the information.

Motivate your child. Kids are prone to let the senior year of high school fly by in a blur but if they plan to go to college, this is no time to slack off. Their senior year is the last best effort to take the classes that are required for their chosen colleges. It is also the time to check out college information, make campus visits, and take the SAT one more time. College applications need to be filled out and mailed as early as possible so that your child can qualify for financial aid with the institution.

Go over the family finances. Don’t be disillusioned by the price tag on your son or daughter’s favorite school. Look at what you have set aside for college (529 plans, savings accounts, etc.) and what is still needed. Try to figure up how much money can be put towards a student loan payment should you need to borrow to cover the cost of the family contribution.

Talk to your child. Sit down as a family and discuss the financial picture. Talk about scholarships and loans as a possible solution to the financial aid puzzle. Set up a calendar to let your child know what they have to do to get the ball rolling on their financial aid forms and scholarship applications.

Do a scholarship search. There are a few websites that offer free searches for college scholarships. Between you and your child, go over the search results and mark the ones that apply to them. Ask the human resources officer at your job if they have any scholarships available for college students.

Read the financial aid award letter together. By April or May, the awards letters for financial aid and acceptance letters from colleges are arriving. Each letter needs to be reviewed to see what is being offered. Federal grants and scholarship monies are not subject to repayment. They may not cover the entire cost, but if they comprise the larger percentage of the aid, then you are in good shape.

Look at any loans offered. Loans come in all shapes and sizes and have different names, such as the Stafford Loan and the PLUS Loan. Student loans that are based on need are considered first because they have a grace period before repayment and lower interest rates. Private loans, non-need based loans, and parent loans are also available. The terms of borrowing and repayment vary so study each one with care.

Consult the financial aid office. If you can’t get answers here, you can’t get them anywhere. The financial aid office that awarded the aid package can advise parents on how to proceed with loans and other financial options for their child.

Work out how to pay the family contribution. Now that the letters have been received and the school has been chosen, the family portion of the bill is still pending. If the contribution can be managed, then no loan needs to be used. But, when books and other essentials are needed by the student, a loan may be the way to get those things and unburden the family at the same time.

No school has to be out of reach for your child. Applying to several schools in and out of state offers students more choices to pick from when the time comes. Parents can help to motivate their child by helping with the legwork for scholarships and other financial aid options. The more that you know, the better informed your decisions about financial aid will be.

Tags: financial aid for college | family contribution | scholarship search | college education | student loans | student loans | finances

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