Financial Aid Realities

True or False: You can’t afford college, or you can’t afford the college of your dreams.

• True

• False

Answer explanation

Truth: When students and parents see the tuition price, the cost of living in the dorms, and the price of textbooks

they get “sticker shock.” Paying for college is the largest single investment many families make. Two out of

three students get at least some financial aid to help make college more affordable. Students can receive a

combination of grants, loans, scholarships, or work-study jobs to help reduce the cost of college.

True or False: My dream college is a private school. My family can’t afford the tuition.

• True

• False

Answer explanation

Truth: Don’t rule out the college of your dreams just because of the cost. If a college has higher tuition and

expenses, students often get more financial aid to help cover the extra cost. For example, Harvard University has

pledged that a family with an income of $60,000 or less will not be expected to contribute to college costs.

True or False: You have to be very poor, very smart, or uncommonly

talented to qualify for financial aid.

• True

• False

Answer explanation

Truth: Financial aid comes in many forms—grants and scholarships, which don’t have to be repaid, and loans,

which do have to be repaid. There is need-based aid for students who come from lower income families and

merit-based aid for students who excel in athletics, drama, debate, instrumental music, community service, and

many other areas.

True or False: The college with the lowest price will be the most affordable.

• True

• False

Answer explanation

Truth: Not necessarily! Some of the more expensive colleges have raised significant amounts of money for

scholarships from their alumni and friends. As a result, they have more money to give to students in the form of

scholarships, which reduces the “sticker price.” If a student qualifies for need-based aid, they may receive more

financial aid at the more expensive school, thus reducing the final cost.

True or False: You can get more scholarships or financial aid for college

by paying someone to search for you.

• True

• False

Answer explanation

Truth: Beware of any group or individual that guarantees a scholarship or financial aid if you pay a fee. These

groups utilize high pressure tactics to get parents to pay for a service they don’t need. There are many very good,

free scholarship and financial aid sources.

True or False: I’m expecting to receive a lot of scholarships, so I don’t need to apply for aid.

• True

• False

Answer explanation

Truth: Apply for all types of aid: scholarships, grants, work-study opportunities, and loans. If your final tab after

paying tuition, fees, books, room and board, computer, etc., is completely covered by your scholarships, you can

turn down the other aid. Also, in the unlikely event that you need to switch schools unexpectedly, you’ve already

secured some aid towards your potential new school.

True or False: I am going to pay for college myself, so it doesn’t matter

how much money my parents make.

• True

• False

Answer explanation

Truth: Most need-based financial aid is based on parents’ income and assets. Most schools require students to fill

out the Free Application for Federal Student Aid (FAFSA) in order to qualify for need-based aid. That form asks for

parent’s income information.

True or False: You can wait until you get accepted to a college before

worrying about financial aid.

• True

• False

Answer explanation

Truth: Most financial aid is distributed on a first-come, first-served basis. Planning should start junior year for

what sources of financial aid you will apply to. There are some scholarships that are available to juniors, so

starting early may mean more money for college.

True or False: I want to go to college, but my parents don’t have the money,

and I can’t afford to take out loans to pay for college.

• True

• False

Answer explanation

Truth: Almost all students today can get low-interest education loans to help them pay for college, and

education loans typically don’t have to be paid back until a student is out of school. The average loan debt of

undergraduate students today is roughly $20,000—that’s less than the cost of most new cars!

True or False: There is no money for college.

• True

• False

Answer explanation

Truth: Total annual financial aid available to students is approaching $200 billion. This includes the entire

spectrum of aid, such as grants, scholarships, work-study, low-interest and government-subsidized loans.

However, students must apply for the different types of financial aid, meet the requirements, and meet the

timelines.