"Going to college has a ton of benefits — it’s fun, educational and can lead to a roughly $30,000 annual earnings premium for people who graduate with bachelor’s degrees. But it is also undeniably expensive," Money reports. 

"'For that reason, 'it’s never too early to start thinking about college,' says Megan Coval, the vice president for policy and federal relations at the National Association of Student Financial Aid Administrators. 'There’s a lot of thoughtful research, work and conversations that can happen as early as seventh, eighth or ninth grade.'

... Coval recommends you think hard about what’s manageable for you and your family.

'In the admissions world, there is this concept of ‘fit’ that’s talked about a lot,' she adds. 'Students are used to hearing, ‘Think about a college that’s a good fit for you. Does it offer the major you want? A small school or large school? City or rural area?’ But one of the things to acknowledge early on is that college costs and the prices of institution are also a part of fit.'

... To fill out the FAFSA, you’ll need to gather your Social Security or Alien Registration Number, tax records, bank statements, investment records and documentation of untaxed income. You’ll also need to create a Federal Student Aid account, or FSA ID. Visit fafsa.gov to get started.

'Even if you think you may not be eligible for federal need-based aid, we encourage everyone to still fill out the FAFSA,' Coval says. 'If you want to take out any loans, even if they’re not need-based loans, you do have to fill out that form.'

In return, you’ll get a Student Aid Report from the government that includes some basic information about your expected family contribution and eligibility for federal grants.

Many institutions also use the data from the FAFSA to make decisions about their own aid. Once accepted, you’ll receive an award letter that presents out a 'package of all the different financial aid resources,' Coval says. This lays out grants and loans from the federal government, state and specific college you’re looking at.

'The award notification is the point in time when the real decision-making starts, especially if students are comparing multiple institutions,' she adds."

... After running the calculations, you may still find yourself short of reaching your desired college’s net price. And in that case, you might need to consider taking on student loan debt. Coval recommends talking with your family and determining the maximum amount you feel comfortable borrowing.

'Borrowing itself is not a bad thing,' she adds. 'Sometimes debt has a negative connotation, but this is an investment.'"

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 11/5/2020