Financial Mistakes Parents Make During the College Admissions Journey
For most families, sending their child to college for studies is one of the most awaited and exciting milestones but it is also one of the most expensive. Charges quickly add up considering the tuition fee, housing, meals, books and any other hidden fee and the financial burden increases. While all parents wish for their child to get the best education, many parents make avoidable mistakes along the process, recognizing these early can help save a lot of financial stress and unnecessary debt.
1. Believing You Don’t Qualify for Financial Aid
Most parents assume that their household income is too high for them to be eligible for financial aid. The truth is it depends on many factors, not just one, it also depends on the number of people in that household who are in college, the family size and other policies that might differ in each college. Many families miss out on scholarships, aids and grants, simply because they don’t apply for them.
A smart move is to always apply for any financial aid forms, your child might get a little fee waived off, but that also reduces the overall cost.
2. Waiting Too Long to Complete Applications
Some programs run on the first come first serve basis. The more parents delay the application process, it is more likely that they get less assistance. Parents who procrastinate too long also carry the risk of making mistakes in the admission process due to the rush, which again decreases the chances of good financial aid.
Timing is important when it comes to financial aid. Parents should submit applications as soon as they can with all information double checked before sending, as accuracy is important.
3. Putting Too Much Money in the Student’s Name
It seems logical to save up funds in your child’s name for their college journey. But when it comes to financial aids, savings of a child are considered more than what the parents save. As a result, putting too much money in the student’s name could work against them.
Parents should keep majority savings under their own name or they can use a specialized college savings account which is more helpful in aid calculations.
4. Relying on Loans
Loans can be there to bridge the gap when savings and aid both don’t do the job. But relying too heavily on loans will set the family up for a long term financial burden. Parent loans in particular accumulate quickly and leave the parents with big monthly payments well into retirement.
Use loans sparingly and go for the options with a suitable payback plan. It is better to combine smaller loans with aids, grants or work-study opportunities.
5. Focusing on Prestige Instead of Value
A majority of parents and students fall in the trap of a “brand name” instead of seeing the long-term ROI. Prestigious schools do carry recognition, but the cost of that degree may not always match the value it brings, especially if debts outweigh future earning opportunities.
A less expensive or a less prestigious school may provide the same opportunities to a student, that’s why it’s important to evaluate the affordability, graduation rates, recognition and earning potential of a program different colleges offer.
6. Overlooking Merit Scholarships
Parents often think that scholarships are there just for straight A students or for athletic students. But there are thousands of opportunities out there for students with different potentials and achievements. Ignoring these opportunities means missing out on thousands of dollars in free money.
Parents should encourage their child to apply to as many scholarships as possible, even the smaller ones. A couple of smaller rewards means a significant decrease in the education cost.
7. Misunderstanding the Real Cost of College
Families in most cases look for the sticker price of a college program and assume this is what they will be paying, ignoring the scholarships, aids and grants which would reduce the cost. Similarly some families underestimate the costs that come along with a college program like housing, supplies, and transportation cost, leaving them unprepared for the financial challenge ahead.
Calculate the net price of attending the college, considering both direct and indirect costs to be incurred before and during school.
8. Ignoring Professional Guidance
Most parents try to handle the financial process alone and it leads to costly errors as well. Understanding how scholarships, grants and aid systems work is important as missing a minor detail can become costly. Parents and students should seek guidance from professionals like school counselors or college admission consultants. As they not only help families with cutting the financial costs but also prepare the students on how they can position themselves strongly for scholarship or financial aid applications.
Final Thoughts
College admissions journey is one of the key financial decisions a family faces, especially if there is more than one child, a wide family planning is important. College should open doors for opportunities and not for a long term debt, that’s why financial planning, applying for all opportunities out there is important, whether it’s merit based scholarship, financial aid or a grant.
By applying early, saving strategically, opting for manageable loans, and focusing on a loan term’s financial health, parents can help their child get the best education out there while keeping the financial stress on the family manageable. You can seek guidance from https://sayhellocollege.com/.
