TOWAMENCIN- During a time where student debt equals the same amount as consumer debt (one trillion dollars), it is helpful to have knowledge of ways to lessen that burden. Two representatives from local business College Pro Advisors LLC, Kevin Bukatman and Doreen Corlies, joined with Mr. Travers on October 9th to discuss college financial aid with North Penn parents and students.
The presentation began straightforward, easing parents and students into the exciting world of financial aid that awaited them. Attendees were greeted with business cards, but also a small warning: the cost of attendance for college both private and public has drastically increased since parents in the audience were involved in the college process.
Speaker Kevin Bukatman described financial aid as “a broad term to describe to the system designed to determine and meet student’s demonstrated need.”
Throughout the evening, various financial aid myths appeared on the slideshow, waiting to be corrected by the speaker.
The first was simple and reassuring: the federal government does not take grades into account for need based aid; grades are only taken into account for merit based aid.
Bukatman stated the overall process:
EFC (Expected Family Contribution) à Plan à Strategy à Before Filing FAFSA
The first step of the process is to create a parent and student pin on the Federal Student Aid website, www.pin.ed.gov. Your pin is used as your electronic signature to apply for student aid every year of college.
EFC is what the government decides a family can afford to pay for college over time, which can be from 5 to 30 years.
Helpful tip: attempt to lower your EFC as much as possible BEFORE filing FAFSA. After you file, it is set in stone and nothing can be changed, only with exceptions for loss of job/medical emergency/death.
Bukatman emphasized that cost of attendance for college doesn’t only include tuition; it includes living expenses, travel, books, lab fees, etc.
Another myth: applying to expensive colleges means you will get more financial aid. This is especially not true, and Bukatman made it a point to explain that colleges are not required to provide 100% of a student’s financial need. “In fact,” he said, “I’ve only seen a few cases of full rides.”
Several different methods of determining financial need were explained throughout the evening:
1. FAFSA
2. State methodology
3. Institutional methodology (some schools have individual methods/processes for financial aid)
4. CSS Profile
5. Ivy League Universities
Bukatman gave many helpful tips for completing the FAFSA. For divorced parents, only the custodial parent’s information is required with FAFSA. Also, retirement assets are not counted, which is different than the CSS Profile.
“Now, this is not a time to be too proud of your home” said Bukatman. CSS requires the value of the family’s primary residence. www.finaid.org is a useful site for determining your home’s value.
Many different varieties of financial aid are available to students, including grants and scholarships. Scholarships include local, merit, athletic, and work study programs.
A local North Penn scholarship foundation only had 48 applicants last year, and about 50% were given scholarships.
Another useful tool is called Parent PLUS Loan, an affordable financing opportunity for parents paying for college. There is no collateral required,
The message of the night can be summed up into a few words: plan, prioritize, and perform. Be sure to take advantage of all opportunities for financial aid and know your deadlines.