USA Funds offer advice to college-bound students
College Students Have Options When Awarded Aid is Not Enough
INDIANAPOLIS—As college-bound students examine their financial-aid award letters this spring, some may discover that the aid their schools offer them fails to completely meet their need. USA Funds®, the nation's largest student-loan guarantor, advises students and families in this situation to explore additional options to fill this college-funding gap.
"Many students still manage to attend the college of their choice when their financial aid and family resources fall short of the total cost of attending college," said Carl C. Dalstrom, USA Funds president and CEO, who is a former campus financial-aid administrator. "Students can pursue several avenues to make up the difference."
Financial-aid award letters indicate the amounts and types of aid - including grants, work-study and Federal Stafford loans - that individual students are offered to attend a specific school. If their college-funding needs are not completely met by the award, USA Funds recommends that students and their families consider the following options:
- Take another look at the family's finances. If circumstances have changed since the student submitted the initial financial-aid application, or if there are any special factors - such as the loss of employment by a family member or extraordinary medical expenses, for example - students should relay that information to the school's financial-aid office. Unusual or unexpected financial circumstances may allow the school to provide additional consideration to the student.
- Apply for scholarships. Students should renew their search for scholarship programs that still are accepting applications for awards for the coming school year. Scholarship information is available through several Web sites, including www.mappingyourfuture.org and www.collegeanswer.com. Because of the availability of free scholarship information, families should be wary of organizations that charge fees for scholarship searches, especially if they guarantee results.
- Consider additional employment. If it does not interfere with their course work, students should consider employment during the summer and during the school year.
- Explore tuition-payment plans. If cash-flow problems make paying for college difficult, families should ask their college if it participates in a tuition-payment plan. For a nominal fee, these plans allow families to spread tuition payments over several installments, rather than paying a lump sum.
- Take out a PLUS loan. Federal PLUS loans allow parents to borrow up to the full cost of their child's undergraduate education — including tuition, fees, books and room and board — minus any other aid the student receives. The interest rate on new PLUS loans cannot exceed 9 percent.
- Examine other types of credit. Many lenders offer non-government-sponsored loan programs to meet education expenses. Another option is a home-equity loan, which allows families to tap their home equity to fund college costs.
Students and families can learn more about meeting college costs by visiting the USA Funds Web site — www.usafunds.org — and selecting Students & Parents.