Paying for College

Figure Out The Best Fit

Next Steps

Once the FAFSA is completed and the EFC and SAR have been generated, the colleges to which the student has already applied and been accepted will begin to create financial aid packages based on all of the student's available information. But what should families do next? Well, it depends. Families who complete the FAFSA and find that their EFCs are well below the cost of attendance at the colleges being considered (making them likely to receive need-based financial aid) may want to consider one set of options; those with EFCs at or above the stated cost of attendance (making them unlikely to receive need-based financial aid) may want to explore a different set of options.

Click here for Next Steps for Families Who Are Likely to Qualify for Some Need-Based Financial Aid

Click here for Next Steps for Families Who Are Not Likely to Qualify for Some Need-Based Financial Aid

Special Note: If you won't be filing the FAFSA for a while, read through both sets of suggestions and consider getting an estimate of your Expected Family Contribution, or EFC, by visiting the EFC Estimation Tool on this or other available websites.

Next Steps for Families Who Are Likely to Qualify for Some Need-Based Financial Aid

Familiarize yourself with the state and federal financial aid programs and read through the Sample Financial Aid Award Letters (if you haven't already) so that you recognize the various programs when they appear in your financial aid award letter.
Accept the low-rate interest loans offered in the college's financial aid award if borrowing will be a necessary part of your college financing. Stafford and Perkins student loans typically will be the lowest rate options and offer preferential payback terms. Parent PLUS loans also will offer low rates (but typically not as low as student loan rates) but repayment of principal and interest begins immediately after disbursement. Click here for more information on loan program options.
If you plan to work during school, first accept the federal work study job offered by the college if one is included in your financial aid award. The money you earn through a federal work study job does NOT count as a part of student income in figuring your financial aid eligibility for the next academic year.
If you haven't already, seek out additional need-based and merit-based scholarship opportunities that may be available through private scholarship sources (and whose deadlines have not already passed) to help bring down the family's out-of-pocket cost, but be sure you understand how the colleges will treat these kinds of "external" scholarships in their financial aid award process. Click here for more on how colleges treat external scholarships.
If cost is still a concern after considering all available financial aid, consider the possibility of adding to your list a lower-cost college or two that may be of interest and that offer the programs most important to you (if application deadlines have not already passed). Click here to find colleges that may meet your criteria.
Look at the commuter options available and the possibility of going to a local institution to which you can commute the first year or two to help keep costs down. You will want to be sure, however, if you consider this option that you understand where and how those credits will transfer if you plan to continue on to receive a degree at another institution.
Consider the overall financial picture of your family throughout the college years. For example, those families that will have more than one child in college at some point or who may have significant changes in parent income, will want to anticipate the impact of these factors on the overall college funding situation (and make decisions accordingly).

Next Steps for Families Who Are NOT Likely to Qualify for Some Need-Based Financial Aid

Compare the merit-based aid opportunities at the colleges still on your list (where merit-based aid is offered) and identify those that may be able to help you (significantly) reduce the amount that otherwise might have to come out of your pocket.
Compare the anticipated out-of-pocket expenses at each of the colleges on the list. Figure out how much you likely will have to pay at each institution by looking at a combination of list price, anticipated merit-based aid (if any), Expected Family Contribution (EFC) and any other financial aid and/or scholarship opportunities that may be available to you. (This will be easier to do once you have received the financial aid award letters from the colleges.) Weigh these findings against the other college selection criteria that are important to you.
Consider the possibility of adding to your list a lower-cost college or two that may be of interest and that offer the characteristics most important to you (if application deadlines have not already passed). Click here to find colleges that may meet your criteria.
If you haven't already, seek out additional merit-based scholarship opportunities that may be available through private scholarship sources (and whose deadlines have not already passed). Click here for more information on scholarships.
Accept the Stafford student loan in the college's financial aid award if borrowing will be a necessary part of your college financing. (Remember that you must file the FAFSA to receive a Stafford loan.) Credit-worthy parents also can borrow up to the cost of attendance minus any other financial aid through the PLUS loan program which also offers low rates. Click here for more information on loan program options.
If the family's out-of-pocket costs are a major concern, look at the commuter options available and the possibility of going to a local institution to which you can commute the first year or two to help keep costs down. You will want to be sure, however, if you consider this option that you understand where and how those credits will transfer if you plan to continue on to receive a degree at another institution.
Consider the overall financial picture of your family throughout the college years. For example, those families that will have more than one child in college at some point or who may have significant changes in parent income will want to anticipate the impact of these factors on the overall college funding situation (and make decisions accordingly).