Mortgages and Money Blog

We’re going to start by talking about the 10 deadliest mistakes almost every parent makes when trying to find money for their child’s college education.

If you make any one of these mistakes, it could end up costing you thousands, or even tens of thousands of dollars by way of lost funding that you might have been eligible for.

I don’t want you to make these “unforced” errors. So that’s why I’ve devoted this article to teaching you how to avoid these common mistakes, so you can obtain the maximum amount of money from each school your child applies to.So let’s get into the “meat” already!

Mistake #1 is thinking that if you make a bunch of money and have a nice home, that you will not get any financial aid so you may as well not apply

Fact: There are little-known grants and dollars from private foundations and organizations that allow some financial aid to be given no matter what you income is!

You just have to know how to get your “fair share”.

The problem is that many parents give up after a short search or an initial rejection and they never reap the reward….and these funds are never claimed..you may as well TRY!

Mistake #2-Instead of focusing time on”need-based” aid, you focs your time on private scholarships

But the fact is that 99% of all the available funds come from the school your child applies to or the Federal Government….and only 1% from Private Scholarshps! Focus on where you can get the most.

Mistake #3 is assuming that financial aid is given only to athletes, minority students or gifted kids

Nothing could be more false!

“Need-based” financial aid is solely awarded based on “financial need” which is calculated by taking the cost of attendance at a school and subtracting the family contribution (which is the minimum amount the government determines you can afford to pay based on your income and assets and your child’s income and assets).

This calculation has nothing to do with the level of grades or sports achievement your child plays at….it’s a simple formula

COA (Cost Of Attendance) – EFC (Expected Family Contribution) = FN (Financial Need)

Mistake #4-Not realizing where your child falls in relation to he rest of the student body when choosing a school

Reality: To increase your chances of getting the best possible financial aid packages, it is imperative that you pick schools where your child lies in the top 10% of the incoming freshman class with respect to their GPA and SAT/ACT scores. Although schools give financial aid based on your calculation of “need” at their school, they will definitely give preferential packaging (i.e., more FREE money, less loans) to students who lie in the top 10% of the incoming class.

Only apply where your child wil be in the top % because you have to play the school’s game….they want top students

Mistake #5: Assuming all schools are created equal and will be able to give you the same amounts of money.

Remember that all schools are not the same and have different financial aid packages. Some schools have large alumni associations and are well-endowed. These are the ones that are more willing to give you money

In order to assist their students, state schools have to rely on Federal money because theydo not get private funds.

In many cases, these schools leave students short and give them less money than they are eligible to receive. It can actually end up costing you more to send your child to a “cheaper” school if they don’t have the money to meet your need. It is very important that you know each school’s history of giving money before you ever apply, so you’re not blown away when you get a bad financial aid package from your child’s top school choice.

Dedicated to Making Your Child’s College Dreams Come True

To find out exactly how I can help you with college scholarships, visit my website about Illinois college tips and get a FREE Report: “How to Pay For College Without Going Broke