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Since we’re into the month of February, hopefully by now your high school senior or current college student has filed for financial aid for next fall. If not, this should be your number one priority this month. If your high school senior hasn’t yet applied to any colleges, they really need to make that happen in the next few days.
Since your student is now an “adult,” there’s nothing wrong with letting your senior take primary responsibility for doing the application paperwork. You have some responsibility too though, as a parent. You need to have your taxes filed ASAP, because your student will need some of your tax information to complete the financial aid paperwork.
The reason for the urgency in applying for admission and applying for financial aid is that financial aid is almost always handed out on a first-come, first-served basis. And there is a lot of competition to get into the colleges and programs your student may want to pursue. So the effort/hours you and your student put into this process now in February may mean saving hundreds or even thousands of dollars next fall at college. So don’t wait (procrastinators—here’s your wake-up call).
What happens after you file the financial aid paperwork? In about three to four weeks, you can expect to receive a Student Aid Report (SAR). The SAR reports all the info from your financial aid paperwork, so that you can verify the numbers. And the SAR gives you your “sticker price” (sticker shock?!?) for attending any college — your Expected Family Contribution (EFC).
The SAR doesn’t tell you how much, if any, financial aid you can expect. That report, called something along the lines of a “financial aid award letter,” may not show up until April or so. The SAR’s purpose is to verify your financial data and to let you know how much you can expect to pay out of pocket (the EFC) for next year’s college bills.
Normally, the EFC is higher than you think would be reasonable. Almost every parent reacts to it the same way (with dismay). Figures in the $6,000 to $8,000 range are average, but your EFC will be unique to your family’s situation. So take the opportunity now to get your mind set for some possibly worse-than-expected news. As they say, plan for the worst but hope for the best.
Mike Wilson, Certified Financial Planner™, is the owner of Integrity Financial Planning, Orland. You may reach him at 260-829-6319 or www.integrityplanner.com.
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