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Monday, Jan. 18, 1999

College financing full of misconceptions

Parents: Check library, Internet for information or hire consultant

By PETER S. HUDSON
Scripps Howard News Service

   For the benefit of all you white-knuckled parents of college-bound juniors and seniors who wonder where the money will come from to pay for all this higher education, take heart: We may have good news for you. First, let's start by shooting down some misconceptions about the College Financial Aid system.

Misconception No. 1: "If I earn an income of more than $50,000 to $60,000 a year, I'm out of luck when it comes to financial aid." Wrong. Even if you earn in the $80,000- to $100,000-a-year-plus range, there well may be aid for you if you know where to find it.

Misconception No. 2: "My student doesn't get high enough grades to qualify." Nope. Nothing to do with it, if the kids aren't failing in school. The financial aid formulas primarily have to do with income and asset levels of students and parents, how many kids in the family will be attending college or secondary school at the same time, and the ages of the parents. Otherwise, grades have nothing to do with "need-based" financial awards.

Misconception No. 3: "I'd never get financial aid because I own a home." Wrong again. The Free Application for Federal Student Aid, or FAFSA, no longer requires this information, although most private schools require more personal and in-depth information regarding real estate and other holdings on their financial aid profile forms.

Misconception No. 4: "I'd love to send Johnny to a private university, but all we can afford is a state school." Not necessarily so. In many instances, by understanding and properly working the financial-aid formulas, parents can send Johnny to his No. 1 choice for less money out-of-pocket than even a seemingly less expensive local state school.
   There's a world of opportunity for financial assistance for sending kids to school without exploding your debt level. So where do you go? To start with, visit the reference department in your local library. Next, plan to spend a few hours exploring the information and resource materials available on the Internet, including cyber-FAFSA forms.
   And if time is at a premium, you may even choose to seek out the professional services of a College Financial Aid Consultant, who will charge a fee to walk you through the process and help you position your income and assets to receive the best aid package possible.
   But whatever you do, don't wait until the last minute to educate yourself. An early start could possibly save you thousands towards college expenses.
   

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  © 1999 Corpus Christi Caller Times, a Scripps Howard newspaper. All rights reserved.