6 Myths Families Believe about Paying for College

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Insanely high college tuition…

Mountains and mountains of debt…

Don’t hit the panic button just yet!

These common myths influence lead to mistakes by both parents and students…

  1. Parent savings harms financial aid offers.

Most schools credit only about 6% of parent savings toward the annual cost-of-attendance. In fact, each family has an “asset allowance” the schools ignore.

  1. Chances of admission increase if I don’t apply for aid.

Unless you’re a borderline student, chances for admission and awarding of financial aid are separate and distinct situations. The highest chances for both are best at schools where you would be considered a desirable candidate.

  1. Financial aid covers all need.

Schools aren’t required to meet a student’s full financial need. Most students do not have need fully met. In fact, each school meets its own specific percentage of need, meeting need both with FREE money (grants, awards, scholarships) and self-help (student loans). The amount not met by either is left to the parents to cover.

  1. I’ll have mountains and mountains of debt by graduation.

The average debt of graduates with a 4-year degree is around $37,000. Take precautions, know what you want to study, choose a school with a favorable gifting formula and the budget to provide all aid for which you qualify, and have a strategy on how to cover the cost-of-attendance as well as a strategy on how to pay off student debt.

  1. Ignore private schools, as the cost-of-attendance is much too high.

While the “sticker price” may be intimidating, most private schools offer enough merit aid and tuition discounts that the actual cost of attending is near the cost of a public university. Let the process play out before discounting possible choice based on price and before deciding on a school.

Don’t be one of the more-than-80% of families that believe the myths and pay too much for a 4-year degree.  Start your college planning campaign with the aid of a Professional College Planner at College Planning Strategies!

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