What Every Parent Needs to Share with their Students as They Apply to College
Dear Parents:
Hopefully, your seniors are submitting their applications as I write this, so they are beating the admission deadlines, versus just meeting the deadlines. The message I really want to convey with this month is the importance of discussing the issue of college debt. It is so important students understand the cost of attending college, especially if your student is planning to major in a “soft subject” such as Anthropology, Psychology, Philosophy, Political Science, a foreign language or Fine Arts. These majors will require additional education, or if the graduate wants to immediately enter the workforce, will generally find jobs that are not known for paying high salaries.
Students need to understand the concept of “Return on Investment “(ROI). The type of major needs to be a consideration when evaluating how much to pay each year for a college education. Students need to attend colleges that are affordable. For instance, a four-year college degree from a highly selective school that does not offer Merit Aid in English is fabulous, if paying full price for this degree does not affect the parents’ ability to retire when they want to and does not affect their ability to pay for their siblings’ educations.
Although, the current Administration in Washington DC is moving towards forgiving student debt, it is not a long-term guarantee. It is complicated. Again, the earlier in the college planning process parents visit with their college bound children about the cost of college and how to determine what is reasonable to pay, the better.
Both articles in this newsletter are about Financial Aid. The first article is great because it is about mistakes to avoid when completing the Free Application for Federal Student Aid (FAFSA).The second article is about Parent Plus Loans. I hope you find both helpful and informative.
Thank you. Have a wonderful Thanksgiving! We are blessed to live in the United States of America. We have so much to be thankful for this year.
Sincerely,
Catherine Marrs, CEP
10 FAFSA Mistakes that Affect Financial Aid
The Free Application for Federal Student Aid (FAFSA), is a Department of Education managed form required by federal and state governments.
Colleges also require FAFSA information from students that wish to qualify for financial aid, federal work-study, and other financial aid programs, such as the TEACH Grant.
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Parent Plus Loans: How much Debt are Parents in and Can it be Forgiven?
The parents of dependent undergraduates can use a Direct PLUS Loan, commonly referred to as a Parent PLUS loan, to borrow up to the cost of the student’s attendance each year with no limit on the amount borrowed.
While a loan without a cap may seem appealing, there’s potential for parents to get into serious debt.