by Melissa Brock | Oct 1, 2020 | Financial aid and scholarships |
This post may contain affiliate links.
Do you need to fill out the FAFSA?
You don’t wanna do it. You’re dreading it. Almost as much as the Q4 proposal project at work. Or cleaning the garage. Or staining your broad-as-a-beach deck.
You. Just. Don’t. Want. To. Do. It.
So, how to make you feel better about the FAFSA? I wrote “Why is the FAFSA important?” the other day, then realized I didn’t dig deep into how you feel about this dreaded experience.
My bad. I spent so much time convincing you that you need to file that I forget everyone has a giant mental block about the thing.
Plus, most of this going-to-college business is so serious that it’s time to put the energy back into the college search.
Let’s try to trick your mind into thinking you’re having tons of fun! Stop saying, “But… it’s not!”
Who says the FAFSA can’t be fun?
1. Tell yourself, “It only takes 55 minutes.”
That’s the amount of time it takes to fill out the FAFSA. Just 55 minutes.
Only 55 minutes. You can do anything for 55 minutes. If you can work out for an hour (and put yourself through that torture daily — (let me tell you how much I dislike exercise!) you can file the FAFSA.
2. Do something enjoyable while you file.
Quick — what can you do while you file? Right off the top of my head:
- Watch “Grey’s Anatomy” episodes (gosh, I love that show). Or, obviously, another show you find fun to watch.
- Bake something that takes an hour (bread, a pie, etc.) and it’ll be doubly rewarding at the end of 55 minutes.
- Self-pamper — glass of wine, mud mask, pedicure, etc. Might as well be relaxed as you sift through your 2019 tax information.
- Relax in a lounge chair outside (as long as your papers won’t blow away… I swear, it’s like we live on the edge of a cliff on the edge of a violent ocean or on the top of a mountain, it’s so windy here. I’d never be able to work outside). If you can do it without chasing papers across your backyard, enjoy!
- Go somewhere else. If you find it relaxing to go to the library or a coffee shop and remove yourself completely from the chaos at home, go for it.
- Eat something enjoyable. Get takeout. A noodle bowl. A container of brownie cookie dough chocolate chip ice cream (that’s the kind my husband brought home the other night).
Obviously, you can’t summit one of Colorado’s fourteeners while you file the FAFSA, but why not watch your favorite movie? Slurp a mudslide?
Make it fun!
3. Get your partner or spouse on board. Or involve your child.
Okayyy, so this might not be the most relaxing idea ever. But at least you’ll have some company while you file, even if your go-to person isn’t that much help. (I keep thinking about all the moms and dads who do the FAFSA all by themselves every year. So sad!)
Make it a FAFSA date night! (LOL!)
4. Get some help.
Don’t even worry about trying to figure it out yourself. If you’ve never done it before, you can find someone at your state planning agency who can help you. (For example, if you live in Nebraska, you can have EducationQuest help you.) These agencies provide programs, tools and resources to help students and parents with all aspects of planning and preparing for the academic, social and financial aspects of life after high school.
5. Think past the gargantuan task of filing the FAFSA.
Focus on the first thing you must do first — turning on the computer, then going to the website and log in. When you start to think about the FAFSA as a whole, that’s when you might feel like you’re choking or not getting enough air.
6. Watch videos to get you geared up.
EducationQuest offers some great videos to show you how to file the FAFSA. They take you step by step through each FAFSA section. Watching them helps you realize the FAFSA is easy-peasy, pumpkin squeezy (something my seven-year-old daughter says).
After you watch the videos, just make sure you actually do the FAFSA next.
7. Think of all the scholarships and other financial aid your child will get.
Is that not motivation enough? Filing the FAFSA is the way to get the most federal money you possibly can.
And if that isn’t enough, check out the Scholarship System’s list of scholarships. It’s an excellent, comprehensive list, and the Scholarship System even has a fantastic list of scholarship websites to boot!
8. Zoom with a friend and do it together.
Chances are, you’ve got a friend who also has a child going off to college. Set up two screens — Zoom on one, FAFSA on the other. Chat happily away as you fill out the FASFA, line by line. Warning: You’ll have so much fun you won’t get done in 55 minutes.
9. Get prepared.
There’s nothing worse than scrambling for documents when you’re trying to fill something out. You’ll need a few things before you get started, including your:
- FSA ID: See why it’s a major bonus to get the FSA ID ahead of time so you don’t have to wait when you’re ready to file?
- Social Security numbers: You’ll need both your student’s and your own Social Security number to fill out the FAFSA form.
- Driver’s license number: Don’t worry about this step if you don’t have a driver’s license number.
- 2019 tax records: You always work two years backward on the FAFSA. On the 2021–22 FAFSA form, you report your 2019 income information.
- Untaxed income records: Gather information about child support, interest income, veterans’ non-education benefits and more. Again, you’ll need your 2019 tax information.
- Assets: Gather information about your money — savings and checking account balances, stocks, bonds, secondary real estate and more.
- List of schools your child may attend: Add any college (you can list up to 10!) your child is considering, even if your child hasn’t applied for it yet. The FAFSA form will automatically send your FAFSA results electronically to those schools.
10: You can speed it up! (Whew!)
Use the IRS Data Retrieval Tool (DRT) to make the FAFSA a breeze. The DRT allows you to securely transfer original IRS tax return information using the FAFSA’s easy-to-use prompts.
Note: Not everyone is eligible to use the IRS DRT. Furthermore, the IRS DRT does not input all the financial information required on the FAFSA form. Make sure you have your 2019 tax return and 2019 IRS W-2 available as a backup.
How Else Can You Make it More Fun?
Again, do you need to fill out the FAFSA?
YES.
There’s no reason it has to be un-fun. Just do it, get it over with, submit it to those schools.
Maybe you’ll come out of the process smelling like lavender with perfectly manicured nails. Or with messy hair — because you file the FAFSA on the beach.
It’s 2020 and weird. Embrace it!
by Melissa Brock | Sep 27, 2020 | Ask the admission office, Financial aid and scholarships |
This post may contain affiliate links.
Oooh, friends, the FAFSA opens October 1. The Free Application for Federal Student Aid (FAFSA), used to calculate something called the expected family contribution (EFC), measures a family’s financial strength and eligibility for financial aid.
Once, Mr. Donelson, my student Chris’ dad, swaggered into my office and said, “We don’t file the FAFSA. I make too much money.”
Not one to meekly say, “Okay, it’s your choice,” I took a wild gamble, knowing full well my boss would have a coronary. I said, “Sir, how close are you to retirement?” (It was a gamble because I wasn’t sure if he was actually close to retirement or not.)
“A year, tops.” (Whew.)
“How many kids do you have in college right now?” (I already knew that answer.)
“After Chris, we’ll have four in college all at the same time,” he said proudly.
“Did you know the FAFSA takes those factors, like time to retirement and kids in college, into consideration?” I asked politely.
“Hmmm,” he responded.
He filed the FAFSA and I’m happy to tell you that his son received federal aid, including work-study. He worked in our admission office as a tour guide and was a total rock star.
Why is the FAFSA important? I’m so glad you asked.
1. You’ll find hidden secrets.
Actually, these secrets — not so hidden. But you won’t know unless you file. Everyone should file the FAFSA! Even if you can fill an Olympic-sized pool with all of your $100 bills, you should file the FAFSA. As I shared with Mr. Donelson, there’s more that goes into the expected family contribution, or EFC, than just parent income.
Your family’s taxed and untaxed income, assets and benefits (such as unemployment or Social Security) chips into the formula. Also rolled into it: Family size and the number of family members who will attend college or career school during the year.
2. Your child can qualify for federal aid.
Your child will not get federal aid if you don’t file the FAFSA. Completing this form is the only way to receive state and federal financial aid.
The U.S. Department of Education uses the FAFSA to determine your eligibility for federal student aid. This includes low-cost loans, grants and work-study.
3. You might have to do it for your child to qualify for other aid.
Put federal student aid to the side for a sec. The FAFSA may also determine your student’s eligibility for other forms of financial aid through the state, the college and, sometimes, private scholarships.
By the way, I wholeheartedly recommend checking out the Scholarship System’s free webinar. It is excellent at helping you navigate scholarships!
4. Your child can get work-study.
I mentioned this already but I think it deserves a second mention. Federal work-study is a way you can earn money while your child works a part-time on-campus job. (You may be able to get off-campus jobs as well.) Not every school participates in the Federal Work-Study Program, so ask whether colleges your child wants to attend participate.
Colleges offer a specific amount of funds to each eligible student. Students receive money based on the hours they work, very similar to other hourly jobs.
5. You might have to do it anyway.
Depending on where your child goes to school, completing the FAFSA is a prerequisite for high school graduation. Check with your student’s guidance counselor for more information.
6. Most students qualify for federal loans.
Never, ever, ever, ever EVER take out private student loans before federal loans. Private loans have high interest rates and lack the consumer protections that federal student loans include.
The Institute for College Access and Success reports that 47 percent of private loan borrowers could have used more affordable federal loans. By completing the FAFSA form, you can make sure your student takes advantage of the best student loan options.
7. You don’t have to accept all aid.
Completing the FAFSA does not obligate your child to accept student loans or any other form of financial aid. So, for example, let’s say your child gets:
- Scholarships
- Federal student loans
- State grants
- Federal work-study
You and your child can decide you want the scholarships and grants (free money) but don’t want the federal student loans (must be repaid).
Many families think they have to take everything the student gets awarded — but that’s just not true!
8. Your child may leave money on the table.
Take a wild guess at the percentage of high school graduates who completed the FAFSA in 2014.
Only 44 percent.
All that money — unused! It means billions of dollars left on the table.
9. Situations change.
What happens if you experience a change in income? You’ll be glad you filed.
Situations change. Unfortunately, jobs get lost, people pass away, etc. Your financial situations can change. Remember, you can always appeal for more aid every year.
Just because your student doesn’t receive financial aid one year doesn’t mean that he or she can’t get it another year.
10. It’s free.
Note the “Free” in “Free Application for Federal Student Aid.” It costs exactly no money to apply, and more importantly, you don’t have to pay anything to find out whether your child is eligible for federal aid.
11. It’s easy.
It’s no longer the behemoth it once was. (I remember my dad spending hours hunched over the paper version when I was in college.) Now, it takes just 55 minutes to fill it out. That’s less than the time it takes to order and eat a pizza. That’s less than an entire Netflix episode.
12. You can gather just a few materials to fill it out.
What materials should I gather in advance before starting the FAFSA?
- Driver’s license number (if you have one).
- Your 2019 tax records for the 2021–22 FAFSA form. You report your 2019 income information on this year’s form.
- Records of untaxed income, such as child support, interest income, and veterans’ non-education benefits.
- Your assets (money) from savings and checking account balances, investments and real estate, though you don’t include your primary residence.
- List of the school(s) on your child’s list. Add any college your child’s considering, even if you haven’t applied or been accepted yet. You can list up to 10 schools at a time on the FAFSA.
13. It (could) ensure your child goes to college.
Ninety percent of high school seniors who complete the FAFSA proceed directly to college, versus only 55 percent who don’t complete the FAFSA, according to the National College Access Network (NCAN).
14. You can fill it out early — then relax.
Fill it out as soon as possible! Even if you don’t know which school you plan to attend. You can always add various schools’ FAFSA code to your already-filled out FAFSA as the year progresses. So, let’s say you file the FAFSA on October 1. You add three schools that you want the FAFSA to be sent to, then you become interested in another school in November. You can log back in and have it sent to that school as well.
It’s also okay to add a school to the FAFSA that you decide later on that you won’t apply for.
15. It helps schools that also require the CSS profile to understand your full financial picture.
What’s the diff between the FAFSA and CSS Profile? The FAFSA awards families with federal grants, scholarships and student loans, while the CSS helps schools award non-federal institutional aid.
Filling out the CSS Profile does not take the place of the FAFSA. Rather, it is an additional application for non-federal financial aid.
Schools that require the CSS typically meet 90 to 100 percent of family need and package their financial aid with institutional grant money.
The CSS has some significant differences from the FAFSA, in particular the way it calculates certain assets.
Examples:
- The FAFSA considers cash gifts as a part of parents’ total assets.
- FAFSA looks strictly at numbers such as income and family size, so families must discuss personal situations and hardships directly with schools.
- The CSS counts cash gifts as parental income, which decreases a dependent student’s eligibility for aid.
- The CSS takes a closer look at family finances than the FAFSA does.
- The CSS evaluates a family’s medical bills and school costs for younger children, among other factors, to determine a family’s expected contribution.
- For some students, this could mean more financial aid opportunities are available through the CSS.
You Want the Best Shot Possible
The FAFSA is important, even if you’re not sure what will come of it. File it anyway. You don’t want to be wondering “what could have been.”
The FAFSA gives your child the best possible chance of receiving federal aid. Don’t leave money on the table. Like Mr. Donelson, it might make you wonder why you ever doubted it in the first place.
Happy FAFSA filing!
by Melissa Brock | Sep 24, 2020 | Build relationships, College Money Tips |
Your high schooler’s busier than you. (Okay, maybe not.) But between cross country practice, homework (ugh — how hard is trig?!) and making sure those gym shorts smell Snuggle-fresh, who has time for anything else?
Even though your kiddo’s busy, it’s still important to put that math homework to good use because it could affect your child for the rest of his life.
Check this out.
When Caroline was 14 years old, she and her dad decided to invest $2,000 every year for five years. Call it a little experiment, if you will. Here’s what it looked like:
Age 14: $2,000
Age 15: $2,000
Age 16: $2,000
Age 17: $2,000
Age 18: $2,000
Caroline and her dad invested no more money than that initial $10,000.
Fast forward 51 years. How much money did Caroline have after 10 percent annual return, at age 64?
$1,184,600.
How’s that for some incredible math? (Skip solving for x.)
Why Learn About Money Now?
Investing is so important — but that’s not all your child should spend time learning. Unfortunately, high schools and colleges just don’t teach basic financial literacy.
It changes lives when they learn this stuff early:
- Your kids show up equipped to handle debt. The less debt a child has over his lifetime, the more he’ll be able to do the things he wants to do, such as buy a home, purchase the things he wants (not on credit), retire and more.
- It’s fun. When you see money compound, your eyes fall out of your head. It’s more fun than living paycheck to paycheck, that’s for sure.
- It’s habitual. Get it together early on and those good money habits will follow your child the rest of his life. Encourage him to put 10 percent of his income into a retirement account and increase that account a little bit at a time. Your child will be in good shape if she keeps it up till retirement!
- It makes him a lifelong money learner. Books about money these days are so dang good. And so inspiring! Check out Why Didn’t They Teach Me This in School?. He might start stuffing it into his trig book and devouring it during class.
Money Topics Your Child Won’t Learn in School
Here’s what your child needs to learn about money management from you, through books and other methods.
Budgeting and Other Fun Stuff
Budgeting 101 is typically not an essential high school class, so check out the basic budgeting steps your child should know. Why not let him in on all your expenses and bills so he sees what you do?
- Add up expenses like rent, utilities, internet, groceries, clothes, household supplies — you know, those fun adult things you get to tackle each month.
- Add up income. How much money do you make from all income sources?
- Subtract expenses from income.
- Understand the difference between “needs” and “wants.” Start applying this now. “Needs” should only include necessary items, like rent, utilities, groceries and more. “Wants” include coffee runs, entertainment and expensive jeans. A really crucial lesson for kids to understand!
- Sign up for automatic bill pay. Incurring extra fees or interest when you fail to pay your bills on time is a real bummer — and it can ding your credit. Show your child how you pay for everything on time.
Make it fun! Your child can tap into lots of budgeting apps, like YNAB and Mint.
College Costs
Encourage your child to learn about college costs, including a few keywords:
- Tuition: The cost of taking classes at a college
- Room: On-campus housing
- Board: Meals on campus
- Activity fee: Fee to go to events on campus
- Total cost: The sticker price — most students won’t pay this amount!
Let Quatromoney help you (and your child) understand college costs. Quatromoney helps you assess how savings and cash can help your child reduce the need for loans. The company helps your child plan for four years, not just the first year of college.
Student Loans
It’s really important to understand student loans — heck, all loans! — because your child might need them to pay for college.
Student loans seem super complicated, right? They are. For now, let’s reduce student loans into just a few quick facts:
- You pay interest when you borrow. Interest is the amount your child pays (a percentage of a loan) to borrow money. In other words, when your child borrows money for student loans, it costs more money to pay them back. The longer your child takes to pay them back, the more he owes. (Does your child understand this stuff?)
- Take federal loans first and private loans as a last resort. (Let’s go over this more in a second.)
- Get to know the college’s financial aid office. Financial aid officers can help your child navigate everything. Get to know the financial aid personnel at your child’s college. You’ll be happier for it.
Now, onto the basics of federal and private student loans.
Federal Student Loans
The U.S. Department of Education offers Direct Unsubsidized and Subsidized loans and Direct PLUS loans, including Grad PLUS loans for graduate and professional students and Parent PLUS loans for parents of undergraduate students.
What to know: Federal student loans trump private student loans for several reasons:
- No credit checks are involved (although Direct PLUS loans do require a credit check).
- Your child might qualify for an income-based repayment plan once he graduates, which means it depends on how much money your child makes once he graduates from college.
- They’re most often forgiven, which means your child may not have to repay. This depends on which career your child chooses after graduation.
- Federal student loan interest rates are lower compared to private loans.
Private Student Loans
Private student loans fill in the need gap after your child exhausts all scholarship, grant, savings and federal student loan options.
What to know: Private loans often require a co-signer. This person is commonly you or another relative. A co-signer needs a good credit score and needs to show proof of income.
Finally, remember that co-signers are just as responsible for paying back loans. Have a conversation with your child about risk and how your child plans to repay private loans before your child agrees to co-sign.
Starting a Retirement Fund — Now! Yes, Now!
Let’s go back to that fun math problem we did at the very beginning of this article. It took Caroline 51 years to earn a million dollars. Sixty-five years old might feel like it’s a lifetime away.
I’ll repeat what Grandma told your child a million times: “You’ll be my age before you know it, Sonny!”
She’s right — you know that now! (How do the years slip by?)
Do you wish you’d saved $2,000 for five years starting at age 14? I’m sure you do. Hopefully that example is enough of a motivation. Hopefully it propels your kid to scrape up the money from every birthday he’s ever had and invest it.
What to know: If your child’s earned income, she can contribute to a Roth IRA. This could include money earned from a W-2 job or even from self-employment gigs like dog-sitting.
Help Your Child with Financial Literacy
It’s easy for a high schooler to think, “I’ve got plenty of time to figure this stuff out!”
It’s easy to say, “Retirement’s like, 100 years away.”
It’s not! Help your child with this knowledge and let her peer over your shoulder when you’re doing things like paying bills online. Involve your child — they’re great lessons for the future.
by Melissa Brock | Sep 22, 2020 | Ask the admission office, Build relationships, Financial aid and scholarships |
I’m in awe of the things my parents say to my kids: “Sure, you can do/have/play with/buy that! And here’s an ice cream cone. And $50. Oh, and a kitten.”
Whaaaaa…?
I find myself wondering, “Where was that generosity when I was a kid?”
Then I remember: Oh, yeah, at my grandparents’ house.
Your parents (your kids’ grandparents) may want to help you save for college.
Bravo for them! The only thing is, they may have very specific ideas on how they want to do it — which might not be the most advantageous to your child or the best option, tax-wise.
Let’s go through a few ways grandparents can help!
How Grandparents Can Help Save for College
Your parents may be in a perfect position to help for college — they may have plenty of money saved up and have plenty of ideas! But first… tamp down the excitement! College funds for grandchildren (and alternative options!) can go lots of directions.
1: Start a conversation.
The first step: Always start with a family conversation.
I remember working with this family in admission, the Larsons, who wanted their son to pitch in for some college costs. However, the grandparents wanted to pay the whole bill! (Tempers ran high, especially when the grandparents went behind the Larsons’ back and paid for a whole year of college up front.)
Your parents can tap into a number of strategies. Throughout these conversations, consider how college savings might impact the whole family:
- Maybe you want your child to shoulder some of the cost so he takes college more seriously.
- You want to cover the majority of the costs with your own money. (“My kid, my responsibility.”)
- You want to make sure your parents keep their own needs at the helm. Maybe they may live on a fixed income in retirement and shouldn’t pay for college.
- Certain savings vehicles might affect the financial aid your child receives.
2: Discuss specific vehicles.
Your parents may have it in their head exactly how they want to help your child pay for college. But is it the best option for your family? Here are some great topics to launch your conversations.
Talk About 529 Plans
What’s a 529 plan? Many people herald them as the grandpappy of all college savings plans. Here’s why: Your parents won’t pay taxes on earnings and withdrawals as long as your child uses them for qualified education expenses. (Your parents can also save $10,000 of tuition expenses for elementary, middle, or high school education and to repay qualified student loans and expenses for apprenticeship programs.)
Your child can use 529 savings at accredited institutions for:
- Tuition
- Room
- Board
- Fees
- Other educational expenses
Appeal factor: 529 plans must be used for educational purposes and nothing else. For estate tax purposes: The money is no longer considered part of the parents’ or grandparents’ estate.
Your parents might wonder whether to use these options if your child is in high school. They sure can! For example, they can put in five years of annual gifts — up to $15,000 (up to $75,000 per person, per beneficiary) at once without messing with gift tax or scraping away at the lifetime gift tax exclusion.
Consider UGMAs or UTMAs
Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) accounts, also called custodial accounts, let the grandchild take control of assets in the account as soon as they reach a specified age. What age? That depends on your state laws.
The custodian (who can be anyone — it doesn’t have to be your parents) controls the account until your child reaches (usually) 18 or 21. After that, he can spend the money on whatever he wants, even a brand-new Corvette. You may want to have a conversation with your parents about skipping this option if your kid’s liable to say, “I’m rich, I’m rich! Never mind going to college, let’s all go to the south of France!” And then he rents a house on the beach for his friend for a month and the money’s gone.
Another issue: You can’t transfer UGMAs or UTMAs to another beneficiary. For example, let’s say it becomes super apparent that your child will goof off with the money. Your parents can’t switch and give money to a more studious sibling.
Also — talk to your parents about the possibility that your child will get less financial aid if your parents opt for a UGMA or UTMA because they count as student assets and factor in at 20 percent, more than the 2.6 percent to 5.6 percent for parent assets. (Yikes!)
Warn them that they won’t see as many tax benefits. The interest, dividends and earnings is the child’s income and taxed at the child’s tax rate once the child reaches age 18. The first $1,100 is untaxed if the child is under 18 and the next $1,100 is taxed at the child’s rate. Anything over $2,100 is taxed at the grandparent’s rate. Visit IRS.gov for more information.
Appeal factor: You can contribute virtually any type of asset toward both UGMAs and UTMAs. You can even contribute real estate to an UTMA. Your path is much less limited and your parents may like the larger number of investment options in a custodial account compared to a 529 plan.
Talk about Coverdell ESAs
A Coverdell education savings account (Coverdell ESA) is a trust or custodial account for paying qualified education expenses. You can pay qualified higher education expenses (and elementary and secondary education expenses) with a Coverdell ESA. Note: The designated beneficiary must be under the age of 18 or be a special needs beneficiary.
Your parents can contribute to a Coverdell ESA with cash but they’re not deductible. The downside is that the total contribution to all accounts on behalf of a beneficiary in any year can’t exceed $2,000 with a modified adjusted gross income (MAGI) up to $190,000. The amount reduces incrementally for MAGI between $190,000 and $220,000. If your parents’ incomes rise above $220,000, they’re ineligible to contribute to a Coverdell ESA.
Whew, that was kind of boring. Sorry! Let’s up the excitement in the appeal factor section.
Appeal factor: Tax-free withdrawals! More investment flexibility than 529s! No withdrawal cap like the 529’s $10,000 tax-free withdrawal cap for qualified expenses to an elementary or secondary public, private or religious school! Also, your parents can transfer money from one grandchild to another.
3: What if they prefer to pay the bill directly? Talk through it.
“We’re not interested in all that,” your parents may say, with a wave of a hand. “Taxes, shmaxes.”
You may reply (with a hint of exasperation in your voice), “But a savings vehicle makes the most sense, tax-wise!”
Paying directly is not considered a gift. Your parents could still use their annual gift exclusion to give up to $15,000 to one grandchild. However, direct tuition payments do affect financial aid. The other downside is that money doesn’t grow tax-free in an account — your child doesn’t have interest working in his favor.
4: Discuss a tuition payment plan.
The tuition payment plan is one of the secrets of breaking up college payments into tinier chunks. It simply means you pay for an item in fixed amounts at specified intervals — you make small payments over time. A tuition installment plan means you can reduce a remaining balance by splitting it up into a specified number of months. You’ll pay that amount over a typical nine- to 12-month period.
Most colleges’ installment plans cover only the direct costs billed by and paid to the college, which includes:
- Tuition
- Fees
- Room and board (only applicable if your child lives on campus)
- Books, supplies, equipment and transportation to and from school are not covered.
A tuition payment plan does not include things like transportation, school supplies and other outside expenses.
Talk about a specific monthly amount they want to help with — and make sure you agree.
5: Discuss money they’ve already ferreted away.
Do your parents have money ripe for plucking in traditional and/or Roth IRA accounts? Why not use it to pay for their grandchild’s college education — particularly if they’ll have plenty of money left in it for themselves?
As long as your parents are 59½ and older, they can withdraw money from a traditional IRA to pay for college without paying a 10 percent penalty on distributions. Traditional IRA owners do pay federal income tax on the amount withdrawn.
If your parents are under 59½, it’s better to take money from a Roth IRA. Your parents won’t suffer a 10 percent penalty on distributions used for qualified education expenses as long as the account as long as they’ve had the account for five years.
A Sweet Gesture
Even when you disagree on the vehicle to pay for it (or, like the Larsons’ parents, paid for the whole thing without permission) you’ve got to recognize the effort your parents are putting in.
The best thing you can do is talk as a family to discover which option fits your child best.
by Melissa Brock | Sep 19, 2020 | Ask the admission office |
This year, college application season feels like you’re a sloth. You finally move three inches, then get sizzled on a power line.
You should see the questions on college Facebook groups I belong to.
One parent just posted, “My daughter is a senior and her Sept ACT got cancelled again. What can we do to get a test scheduled. The dates r blocked till Dec. any info would be appreciated.”
Another one posted, “So do kids have to take the SAT or ACT and whcih one. I’m confused.”
I do love social media spelling and grammar — because you know what it means? You’re BUSY. You don’t have time for punctuation! Don’t waste another second monkeying around figuring out how to get this school year started. Get the College Money Tips Start of School Checklist for the College Search now. You need this checklist, if not just to keep your sanity!
Now, let’s get to our burning topic: ACT and SAT and all the questions.
Should My Child Take the ACT or SAT?
Is this not the question OF. THE. YEAR?
College website says: “Standardized tests are optional.”
You say, “Uhmmmm… Is that a trick question?”
First of all, let’s talk about these tests. Colleges use both the ACT and SAT, or standardized tests, for admission purposes and to determine which students receive merit-based scholarships.
Most colleges accept both the SAT and the ACT. (Learn more: What Does ACT Stand For? And What Does SAT Stand For?) Typically, colleges have no preference for which test your child takes, despite persistent rumors that one is “better” than the other.
Just when you think you have it all figured out — ZZZZZZszzzt. (That’s the sound of crisping sloth.)
The question just got more complicated because now colleges have introduced test optional, test flexible and test blind.
Test Optional, Flexible and Blind: Versions of the Same Thing?
I marvel at the way college admission offices invent terms to addle our brains. (Consider how many types of admission exist in this world.)
What the. Heck. is Test Optional?
Your child gets a choice about whether to send in SAT or ACT scores.
As if things couldn’t get murkier.
It’s like they’re saying, “Weeeelll, you can send in SAT scores — if you think you want to.”
If this is your response: “Seriously. Just tell us what to do. If we need to, we’ll take the test. We’ll wear eight masks! We’ll stand in line for days! Just tell us what to do — I don’t want to hear that it’s optional.” I completely understand.
But that’s really the deal with test optional. You and your child decide whether to submit test scores with the application. Most test-optional schools consider SAT and ACT scores if they are submitted, with a large caveat. They also consider:
- Student essays
- Recommendations
- Grades
- Coursework
They look at these just as (or more) closely than your test scores.
The benefit: Test optional gives your child a chance to purposefully craft his or her candidacy. It means your child can offer other ways to present herself in the best way possible. Maybe your Scorsese-obsessed child submits a video essay. Maybe your daughter can craft her essay around the novel she started two years ago.
You and your child get more control over what your child presents to those steely-eyed admission officers!
What’s Test Flexible?
So, test flexible. This is my favorite, because it looks like it’s more relaxed, but you still have to take a test!
A test-flexible policy requires your child to send test scores but students submit other test scores in place of the SAT or ACT. A few examples:
- SAT Subject Test
- International Baccalaureate exam
- Advanced Placement test
Now… Test Blind? (Are They Kidding?)
A handful of colleges allow test blind admission. I know, I know. The fun never stops.
Colleges with test-blind admission policies do not want you to send test scores at all.
Sounds like the most straightforward option of all of them, doesn’t it?
The college’s website might sound something like this, from Northern Illinois University: “Test-blind means that we will not review standardized test scores (SAT or ACT) for general admission and merit scholarship consideration starting with applicants for the fall of 2021.”
But then NIU’s site goes on to say, “We’ll look at your high school GPA instead. Research shows that GPA is a better indicator of success in college. You may need to provide your ACT or SAT score for certain other scholarships. You’ll also need to provide it if you’re applying to the nursing program, a limited admission program.”
Read everything because college policies vary!
How Do Students Get Admitted Without SAT or ACT Scores?
How do students get admitted without SAT or ACT scores?
It’s important to remember that even before the pandemic, most U.S. colleges admitted two-thirds or more of students who apply. And don’t forget that most public four-year and community colleges are open access. This means no exams required!
I decided to catch up with one test-optional college to find out what test optional means at that institution. Terri Crumley, director of admissions at the University of Northern Iowa (UNI), says, “At UNI, students not submitting a test score (test-optional) will be reviewed using holistic review. The review will include factors such as the student’s high school GPA and core course selection.”
How Are Scholarships Dished Out Without ACT/SAT Scores?
How does no ACT or SAT translate to scholarships?
Great question.
“We are offering initial scholarships based on the GPA. We also have some scholarships that will require an ACT/SAT score or an additional application. Need-based scholarships will also be available,” says Crumley.
However, it’s extremely important to check with the institutions your child’s interested in to determine how each college offers scholarships, particularly scholarships where you might need to audition and more.
How to Decide Whether to Take the ACT or SAT
Now your child must decide whether to take the SAT or ACT. Take these steps to figure it out.
Step 1: Look carefully at colleges’ qualifications.
Check online first. You may quickly figure out that all schools you apply to are kind of in the same pool — all test optional or all test flexible.
Do they require class rank, weighted and unweighted GPA? Make sure you look for all the details and all the requirements.
“Most high schools are not using class rank anymore. If a high school offers both a weighted and unweighted GPA, students should include both,” says Crumley.
Step 2: Reach out to schools your child’s interested in.
Every school is different. I can’t stress this enough. Let’s say your child’s grades aren’t stellar. The ACT may boost your child’s qualifications, so he might want to take the SAT or ACT.
You must get on the phone with admission counselors and find out what they recommend. Share your particular situation.
Ask questions like this:
- Will taking the ACT or SAT greatly enhance my child’s chances of getting admitted?
- What other things can we do to increase my child’s chances of getting in?
- Should we include letters of recommendation or additional personal statements? What additional materials do you need? Academic work? Scientific research?
- What are your exact policies? Do these policies depend on my child’s potential major?
Step 3: Make sure your child gets a seat.
Have you decided it’s in your child’s best interest to take the ACT or SAT?
It might be hard to get a seat. For example, the ACT has done its best to place the class of 2021 seniors in seats at sites that are currently open for the fall. Some of these students could not be automatically registered for fall test dates. However, ACT has tried to secure additional space for students.
Consider where you might be able to go beyond your area to take the test or arrange for alternate test dates.
Make a Decision
By the way, if it seems as if I’m making light of admission policies and processes, it’s simply to get you to smile. In no way do I mean to make light of the situation we’re in.
Colleges continue to exhibit flexibility and adjust requirements for students. For those with younger students: Nobody really knows how the situation will change.
The process of learning about the SAT and ACT might seem sloth-like. No matter what, though, ACT cancellations should not put your child at a disadvantage.
