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Funding our children’s college education is a pivotal milestone in a parent’s life.
Hello Discerning Parents and Future Graduates,
Funding our children’s college education is a pivotal milestone in a parent’s life. There are many variables to consider – such as need-based and non-need-based financial aid – to determine what best supports our children’s academic journeys.
Understanding Need-Based Financial Aid
Need-based financial aid is awarded based on the financial circumstances of a student’s family. It aims to make higher education accessible to students who might not afford it otherwise. This type of aid is crucial for families with significant financial constraints and is calculated based on the difference between the cost of attendance (COA) and the Expected Family Contribution (EFC), which is determined by filing the Free Application for Federal Student Aid (FAFSA).
Exploring Non-Need-Based Financial Aid
On the flip side, non-need-based financial aid, often known as merit-based aid, rewards students for their academic achievements, athletic skills, artistic talents, or other specific accomplishments. This aid is not influenced by family income and provides an avenue for students to be recognized for their individual talents.
Optimizing Need-Based Aid
- File the FAFSA early to ensure you submit the FAFSA as soon as it’s available to take advantage of early allocations of funds.
- Complete the CSS Profile if required by some schools to determine eligibility for non-federal aid.
- Research schools that meet a high percentage of demonstrated financial need.
- Minimize taxable income to lower your EFC and increase your eligibility for aid.
- Keep your financial information up to date and report any significant changes in your family’s financial status.
Maximizing Non-Need-Based Aid
- Academic Excellence: Maintain high grades and standardized test scores.
- Develop a Strong Portfolio: Showcase your talents through a well-crafted portfolio or audition tapes.
- Apply Widely: Don’t limit your applications; apply for both local and national scholarships.
- Engage in Extracurriculars: Demonstrate leadership and initiative through diverse activities.
- Network: Utilize recommendations from mentors to bolster your applications.
As you enjoy the lingering glow of fireworks and the spirit of freedom, remember that choosing the right financial aid strategy can liberate your family from unnecessary financial stress. Whether it’s need-based or non-need-based aid, the right approach depends on your financial situation and your child’s unique strengths.
Are you ready to illuminate the path to your child’s educational and financial independence? Schedule a Getting Acquainted Call with me today. Together, we’ll tailor a plan that not only meets but exceeds your aspirations. Secure your spot now, and let’s turn these planning sparks into a brilliant future.
This article was originally published here and is republished on Wealthtender with permission.
About the Author
Julie Bray, CFP® | GW Financial, Inc.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by GW Financial, Inc. to provide information on a topic that may be of interest. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2023 GW Financial, Inc.
To make Wealthtender free for readers, we earn money from advertisers, including financial professionals and firms that pay to be featured. This creates a conflict of interest when we favor their promotion over others. Read our editorial policy and terms of service to learn more. Wealthtender is not a client of these financial services providers.
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