Does FAFSA punish the frugal?

[winterbaby]

 

Older students, but especially part-time students splitting their time between school and working drop out of completing the degree in much larger numbers.

 

Based on what I have seen - I have a close family member who is a CC educator, and I have tutored a number of CC students over the years - going back and forth between school and work in phases is definitely a way better idea than splitting the difference. Yes, there's the possibility of life happening and derailing you, but as noted many people also get derailed from the four year college immediately after high school path  - and if you're going to get derailed, you'll be better off if you didn't assume debt first. We are blessed to live in a country without formal age limits on college attendance.

[frogger]

Have you run any EFC or NPC calculators? What sort of grades/scores/accomplishments does the child have to get merit aid?

 

Most kids cannot pay their own way through four-year college. It's just too expensive, and the hours of work required to earn enough to make a dent in it can make it impossible to do well academically.

 

The most economical path for a self-funded kid is community college, but statistically a lot of kids get lost there and never finish a four year degree.

 

And yes, for financial aid purposes, the child should consider giving excess income to the parents to save for him in their name rather than his own after about 5 to 6K in his own name.

 

That last section will help because he has been trying to save. He already knows that we can't help him a lot though we will try to help some, that the local university doesn't have what he wants to pursue, does have a strong idea of what he does want to do. We don't have a C.C. but the local University if he could live at home would be cheap. Too bad it is not an option due to not having the degrees he wants. He actually would like to stay home. He has no idea what a stereotypical college experience is like and knowing him probably doesn't care so that may be a benefit.

 

So far we have found we are expected to pay between $19 and $30k per year. Ha ha ha Maybe if I moved with his 3 younger siblings into a van down by the river.

 

We have been looking at places like UA-Huntsville where he could get full ride and a number of places in the West that are part of the Western Undergraduate Exchange which will at least get him 150% in state tuition or with merit actual in state tuition so EFC may not be relevant but of course I want to know everything because we really don't know. Some calculators I have run show us paying similar amounts at private schools if he managed to get in but then we don't really know how much he will owe plus the private ones will probably take less of his earned credits from Clep or D.E. He is finishing sophomore year now and could have quite a few credits by graduation. Excepting something like UAH's full tuition it feels like no matter where we go he will pay the same but if he starts with a lot of credits perhaps it will take less time.

[JanetC]

Graduating early is a great college cost saving strategy! We have found WUE schools to be very willing to accept DE credits. CLEP not as much. If AP is an option, you might look at that as well.

 

Even if local university doesn't have the degree, he could spend a year there doing prereqs and gen eds, depending on the number of DE credits he already has by senior year.

 

Specific, less common degree interests are a real pain in the college search process. I'm going through that with my soon-to-be senior.

[frogger]

Another thing I've been thinking is that state schools with merit aid won't change the amount of help they give if you get an outside scholarship whereas if you obtain outside scholarships a private school will just lower the amount of aid needed correct? So no matter what you do, you are stuck with whatever debt they think you ought to take on.

[Lori D.]

... the local university doesn't have what he wants to pursue... We don't have a C.C. but the local University if he could live at home would be cheap. Too bad it is not an option due to not having the degrees he wants...

...We have been looking at places like UA-Huntsville where he could get full ride and a number of places in the West that are part of the Western Undergraduate Exchange which will at least get him 150% in state tuition or with merit actual in state tuition so EFC may not be relevant but of course I want to know everything because we really don't know. Some calculators I have run show us paying similar amounts at private schools if he managed to get in but then we don't really know how much he will owe plus the private ones will probably take less of his earned credits from Clep or D.E. He is finishing sophomore year now and could have quite a few credits by graduation. Excepting something like UAH's full tuition it feels like no matter where we go he will pay the same but if he starts with a lot of credits perhaps it will take less time...

 

Yes, CLEP and DE are great options for racking up credits early, and shaving off anywhere from 1-4 semesters at a 4-year university. Absolutely critical to making this work is to know which universities DS will apply to, and which CLEP tests and DE credits will transfer to those schools specifically as credit towards a degree program. CLEPs and DE courses that don't match up and transfer to the 4-year university will only be counted as electives, and will not count towards the degree program, and won't shave off any time (and therefore money) in advance.

 

For example, here is the webpage on the UA-Huntsville website that lists CLEP policies and which specific CLEP tests they accept. You would ALSO want to look up which of these CLEPS take care of the gen. ed. credits your student needs for the degree program of choice at UA-Huntsville. For DE credits, you might look for a credit transfer website for your state or your area, so you can see exactly how which specific course from one institution will transfer (or not) to another institution.

 

Another thing that can be problematic with CLEP and DE is that while the credits may transfer, the core courses for a degree programs are sometimes scheduled such that it really does take 4 years to get through them all. Example: to take class C (which may only be offered in the fall semesters) which is required for many of the upper level classes, requires first taking class B (which -- surprise! -- is only offered in the fall semesters), but to be able to take class B, you must first take pre-requisite class A (also only offered in the fall semesters!). So in this example, you are locked into 3 consecutive fall semesters just to get through the 3 prerequisites to then get to the core concentration courses of the degree.

 

Mostly it is architecture, engineering, nursing, and pre-med degrees that have programs scheduled such that there is no way to get out faster than 4 years, even if you have knocked out gen. ed. credits in advance. If that is the case, what you can do is make the most of having to go 4 years -- either have lighter schedules so you can work part time to help pay college costs. Or do a double major, or use the time for an internship/research to increase marketability after graduation.

 

The other thing to work on is lots of PSAT Test Prep and Practice (maybe even tutoring or a test prep class if he is close to a top score) and shoot for getting into the 99% of the PSAT scores in his 11th grade year. While the actual NM scholarship is a small ($2500) one-time award, MANY colleges offer meaty 4-year tuition scholarships to the NMS finalists. The DD of a family in our homeschooling group landed one of these scholarships for being a PSAT NMS finalist :) :

- PSAT Official Student Guide -- test tips and practice test

- National Merit Scholarships  -- list of full tuition, full ride, and other awards

- 2016 PSAT Student Guide -- (different from above) check out the last 3 pages of this pdf for list of schools that offer scholarships to NMS finalists

 

There are also some free tuition schools (although, you still pay for room & board, or work on campus in exchange for college tuition). We have friends with a son going to Berea College this way, and he is happy with his choice. Check out the lists of these schools at:

- FinAid website

- Affordable Schools website

 

Check out the lists of schools and requirements for guaranteed aid at:

- Guaranteed Scholarships

- The Collegiate Board Blog

- College Matchmaker website

- FinAid: Full Tuition Academic Scholarships

- College Prep website: 81 Colleges With Full Ride Scholarships (based on ACT/SAT scores)

 

Hopefully some of these match up with your DS's degree program of interest, so he can start considering these schools and look more closely at their CLEP and DE policies, but esp. their test score requirements and how he can improve his test-taking skills.

 

And finally, it might be worth checking out the list at the College Xpress website:

"Colleges That Go The Extra Mile to Make it Financially Possible to Attend"

 

Good luck! Warmest regards, Lori D.

Edited May 28, 2017 by Lori D.

[JanetC]

Another thing I've been thinking is that state schools with merit aid won't change the amount of help they give if you get an outside scholarship whereas if you obtain outside scholarships a private school will just lower the amount of aid needed correct? So no matter what you do, you are stuck with whatever debt they think you ought to take on.

No, probably not correct. If you are lucky enough to get a large outside scholarship, check with individual financial aid offices how that affects any financial aid package you receive. This varies a lot and you need to be sure you understand it if you are competitive for something like that.

 

The worst debt is the debt outside your financial aid package -- that PLUS or private loan you had to take to meet the gap between your budget and your net price. Alas, those loans are generally the last dollars to be offset by a scholarship.

 

Large outside scholarships are the exception, not the rule, so cross that bridge if/when you get there.

[madteaparty]

nm, not helpful

Edited May 27, 2017 by madteaparty

[MarkT]

They can invest the money in a way to not have to be declared on the FAFSA. This would include any retirement funds. I know there are other ways, but, you could google articles to find exactly what kinds of investments are protected. Since they still have a mortgage, they might wish to consider placing their savings in to the mortgage and pay that down. I think there is also a portion of savings that is not counted. The first..whatever thousands of dollars. 

Actually He mentioned that after I shared what I learned here with him.

 

by the way, I want to thank everyone in the hive that help out with answering these type questions it saves me hours of search and read time.  

 

My friend has nominated me as his "college adviser" for his son because I seem to know so much ( all learned here!!).   :lol:

Edited May 28, 2017 by MarkT

[Sebastian (a lady)]

I just wanted to address the "cashing out retirement funds" bit. YES, that raises ones EFC a TON, BUT... check with the colleges and file an appeal explaining the situation. We have most of our retirement funds in real estate and had a man come to us offering us a price we couldn't refuse on one of them. We sold it. This raised our income for that year significantly and made it look like we could be full pay for both boys in college. If we had done that, there go the retirement savings. Needless to say, that couldn't happen. We needed to reinvest.

 

Both colleges adjusted our EFC with the appeal and numbers were far more affordable. If they hadn't, our boys would have skipped a year due to the finances. We're thankful. I can't promise that with all colleges, but it's worth a try. My kids were an upcoming junior and incoming freshman at the time.

The possibility of doing an appeal to explain specific circumstances is important. You can't assume that the college will be understanding, but they can't modify without the appeal.

 

From my reading, colleges absolutely expect a family to appeal in these situations.

[Lori D.]

Actually He mentioned that after I shared what I learned here with him.

 

by the way, I want to thank everyone in the hive that help out with answering these type questions it saves me hours of search and read time.  

 

My friend has nominated me as his "college adviser" for his son because I seem to know so much ( all learned here!!).   :lol:

 

I've picked up some more tips, too, so thanks everyone!

 

And MarkT, I have a similar situation -- I accumulate wisdom from all these amazing homeschoolers and then share with my local homeschool group. And in spite of me repeatedly saying it's all repeating from you guys and your great experiences and wisdom, they keep thinking I'm some sort of homeschooling high school/college advisor wizard.  :tongue_smilie:

 

So thanks for making me look good, all of you!    :w00t:   :thumbup1:  :hurray: