When A Scholarship Doesn’t Cover the Rest

The evaluations, comparisons, campus tours, and conversations are over. Hundreds of family’s and students have made their choice. We’re off to college.

Oh, what a minute…. Have got everything done? One being the tuition bill… and it’s on its way!

Parents of Sophomore and Juniors – read our article on Pre-Qualifying for College Costs

College tuition bills are on their way!

When scholarships and financial aid don’t cover every, students and families need to have a Plan B

Plan B

  • Continue to investigate and apply for scholarship programs; deadlines continue right through the summer and restart in the Fall. If you missed one or didn’t get selected, reapplying in the second, third, and fourth year of school.
  • If there is any doubt or questions regarding the information reported when completing the FAFSA, parents should contact the Financial Aid Office.
  • Family’s whose financial status profile has changed since the FAFSA (or CSS Profile) filing to the present needs need to inform their college or university. Reductions in earnings, loss of income, unexpected medical bills, and caregiving responsibilities may qualify for an appeal under the extenuating circumstance guidelines.
  • Consult with the Student Account – Bursars’ Office regarding the use of a 10 Month Payment Plan. Plans generally require an initial administrative fee payment – consider it an interest-free short-term payment program.
  • Then there are the loan programs!

Federal Direct Student Loan a loan that 99.9% of all financial aid awards include. The loan that has quietly been remained by some parents is the FAFSA loan. A low-interest, non-credit-based loan for undergraduate and graduate/professional students. Loan limits are staggered, starting at $5,500 for year one students and progressively higher in upper-class years. Projected fixed interest rates effective July 1, 2021, for the academic year 2021-2022 will be:

Direct Subsidized and Unsubsidized Undergraduate Loans – 3.73%
Direct Unsubsidized Graduate and Professional Loans – 5.28%
These loans also carry a yet to be announced Origination Fee (2020-2021 fee was 1.05%)

Federal Direct Federal PLUS Loan is the second education loan offered by the US Department of Education and US Treasury. Federal Direct PLUS Loan is available to creditworthy parents of undergraduate students. The loan can cover all or a portion of the remaining cost of education, and projected fixed interest rates for the upcoming academic year will be 6.28% (origination fee yet to be announced). Note this loan is subject to repayment and does not carry all of the benefits that the Federal Direct loan offers.

Private Educational Loans, commonly known as alternative student loans, are available to eligible students with many similarities to a standard consumer loan. A credit-based consumer loan where the student serves as the primary borrower along with a creditworthy co-signer. Loans rates are variable, and fixed interest rates starting as low as 1.22% (variable), 3.0% (fixed), and can range as high as 12% depending on the lender. Rates are set based on the creditworthy status of the student and co-signer and whether repayment begins immediately or payment is deferred while the student is in school. Before utilizing any loan, a family should exhaust all other resources and be highly concern with debt tolerance and excessive borrowing.

Spoiler #1 – a student with little or no credit will require a credit-worthy co-signer. No co-signer, no private loan!
Grandparents can contribute to 529 Plans but should not co-sign private loans

Find more program details and download the Education Loan Program Chart

Spoiler #2 – No matter how dreamy the college or university is; no matter how many tears – never touch Retirement Savings! 

 PLUS: Food for Thought

    •  Protect your first-year student and family from unforeseen liability and losses by putting in place important legal and medical documents.
    • Agree to a routine of communicating and monitor warning signs. Loneliness and issues associated with being a first-year student are not just study habits and academics. Talk, don’t hover, listen, don’t’ preach, call, don’t just text, and find a time when both are not rushing to get something done.

Learn more information, before, during, and after college at Pivotal College Years

Have Questions – Calm the Waters – Consult an Independent College Counselor

An experienced college counselor (who can fault me for banging my own horn) can help families develop and manage a customized college plan. Each plan should address a student’s individual needs, expectations, and abilities, plus a family’s capability to finance the educational costs.  A college counselor can considerably cut the stress by laying out clear timelines, unbiased guidance, and accountability for managing the overall experience. Using a holistic lens, a good counselor will connect all aspects of the college experience, finding, selecting, and financing the right college to career choice.









No Summer Slide for 2022 Planning

Congratulations to the graduating Class of 2021

To the students and the parents of the graduating class of 2021, wow. kindergarten, elementary, middle, high school, college, graduate school. Wow. In all of my 35+ years in education, never has there been a year. Congratulation!

Now, no sliding during the summer. Put your relentless determination, newfound savviness, and ability to pivot to work, and take your next step. Parents and students use the month of June to recharge and refuel but do not let up on the gas.

Whether your classroom is moving up, changing schools, grade level, pursuing graduate school, internship, apprenticeship, licensing, or joining the workforce, take the bull by the horns (little ones not a good idea) and champion forward. We are here to help and have your back!!

Summer Doesn’t Take a Break

The pandemic has changed the college admission and financial aid landscape for the foreseeable future. If you’re a rising senior you have time and opportunity. This summer is going to be key to recovering and taking advantage of missed opportunities. The campus is opening for tours, information sessions, and meeting with college admissions and financial aid departments. Learn, explore, ask questions, and prep for the Fall. Need answers and insight – call us, schedule an appointment. We do not pitch until you say help!

Still, Thinking About College?

Opportunities await even now for September 2021 enrollment. The pandemic caused many students and families to pause during the school year to question what’s next—a good pause for many. This past year, we have learned a lot, including that we need to celebrate and support multiple pathways education and careers.

If you are now ready to go in September, over 150 colleges, universities, and Community Colleges in MA and New England are waiting to hear from you. If an internship, apprenticeship, licensing program, or skilled professional program suits you, then go for it. Turn to your resources at NSCC, NECC, No Shore Career Center, and the vast network that makes up the Route One BNG family.

Preparing to Pay – September College Tuition Bill

It will be in the mailbox, your student’s email or the college portal, the September tuition bill. Arriving as early as July, the bill, once resolved, is the pathway to key swipe card) for dorm rooms, access to the dining halls, and campus life activities. Yes, academic classes too. Finalizing financing options should be done sooner than later. Investigate all options, including a school’s Monthly Payment Plan, use of savings (529 plans), scholarships, and personal financing resources (home equity). If, in the end, a private education loan is the only option, borrow conservatively, and remember, a loan must be repaid.

No Break from Campus Tours

Parents of high school sophomores and juniors, no, no. The pandemic has left many slightly behind or not even engaged. In-person campus tours, information sessions, and 1-1 interviews are back! Students and families will need to map their thoughts on where to visit by the strength of the college list, who’s hot or not. The pandemic has changed the rules, many that will continue into the 2021-2022 college year. Don’t lose the benefits of the summer months!

Repaying Education Loan and Employee Assistance Programs

Changes during the pandemic placed a hold on the repayment of Federal Student Loans, which tentatively ends on September 30, 2021. It is unclear what, if anything, the Administration or Congress will do, but those whose loans were frozen should begin to factor the return of their monthly payment into the budget. Education loan refinancing and modified repayment may be an option if there is a continued financial strain on the family budget.

The use of employer-sponsored education reimbursement benefits also experienced changes with the introduction of expanded services—benefits, including assisting with education loan debt.

Power of Saving

Financial aid is available for those who qualify—a classic statement used by colleges and universities and many who advise students and families. However, saving is king. Every dollar saved strengthens a student and family’s access to college. Setting aside as much as possible through a broader range of education savings programs will increase access to a wide range of college options. Parents, grandparents, and relatives can also participate in the college savings game. Connect with one of the many financial service experts in the Route One BNG family for additional guidance and assistance.

Consult an Independent College Counselor

Need help with the checklist, calming the waters, getting started, or just answering questions. An experienced independent college counselor can help parents guide their students. They listen, focus on needs and expectations, and help manage realistic and holistic college planning. Plus, you’ll get the peace of mind that a professional is on the team 100% of the time.

Tom O’Hare is the Founder of Get College Going, a North Shore-based full-service college counseling practice. TOur goal is to help family’s find the right education, for the right reason, at the right school for the right investment—resources before, during, and after college.

Schedule a free consultation or obtain your free Comprehensive College Guide at www.getcollegegoing.com
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