If you’re the parent of a rising high school senior who will be going off to college next year, it’s not too early to start thinking about financial aid. There’s a veritable gold mine of funding available, but some of the steps to getting there can be a bit confusing. Here are a few tips to consider along the way:
If you wish to be considered for government grants and subsidized loans, you must fill out the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov. Keep in mind that while the deadline listed on the form is June 30th, many schools’ aid deadlines are much earlier. Since the forms ask for the previous year’s tax information, most families wait until April to file. But it’s okay to estimate your taxes based on the previous year’s return and update it later. To play it safe, you should file the form any time after January 1st.
For additional aid resources, go to www.collegeanswer.com and click on “Paying.” This database provides access to over 2.8 million scholarships that are provided by federal and state agencies, as well as private entities. Funding may be provided for a number of reasons including academic performance, athletic achievement, financial need, religious affiliation, minority status, family heritage, community affiliations and more.
And don’t forget, Bronco sponsors the John Alan Glasgow Memorial Scholarship to recognize outstanding local students. This year alone, we awarded $25,000 for college-bound student members.
Bronco also provides a variety of student loan programs including the Bronco Education Line of Credit, Federally Subsidized Stafford Loans (based on financial need), and Federally Unsubsidized Stafford Loans and Federal PLUS Loans (which are not based on financial need).
With a bit of hard work and a little luck, you’ll receive financial aid packages from a number of different colleges. But keep in mind that all financial aid packages are not created equally.
When comparing them, look beyond the summary page to see what’s really being offered. A typical financial aid offer consists of two main categories: gift aid and self-help. Gift aid is made up of grants and scholarships that do not need to be repaid. The self-help part may include subsidized loans and work-study opportunities.
In making comparisons of different offers, break each offer down into net cost of attendance (total tuition minus scholarships, grants and work study), out-of-pocket expenses and need-based debt (what you’ll need to borrow).
You may find that the school offering the largest aid package is actually going to leave you with the largest amount of debt because it consists mostly of student loans. You may also discover that a private school you thought might be too expensive may actually be more affordable because they are better endowed by alumni donations.
Our vision at Bronco is to help ensure that everyone who wants to continue their education can do so affordably. For additional information on any of the programs we offer, visit our Student Loan section at www.broncofcu.com.
