19th Edition
By Joseph M. Re

Please Note: This Book is updated every September.

A Sampling of Financial Aid Q & A With The Expert

Is the Family Contribution really fair?

Some may not think so, but in all honesty, families should help cover the cost of college. The formula used to compute the family contribution is based on the family's income and assets. It certainly is fair if you take time to learn and understand the process, evaluate the options available for a particular college and plan the legal alternatives that are best for your family. Certainly no one expects a family to pay the total cost of college out of present income. Most families meet their family contribution with a combination of savings, present income, and loans. Credit-worthy families unable to qualify for federal or state assistance are offered non-need loans to help with cash flow.

Do parents attending college count as students in the number of students attending college?

Yes, when considering eligibility for federal and some state financial aid (if they are working toward a degree or certification). Some private colleges, however, may disallow consideration of parents when considering disbursement of their own resources.

Can child care be part of college costs?

Yes. If you (the student) have child care costs, make certain the financial aid administrator knows about them, and includes them in calculating your cost of college figure.

On my Student Aid Report, what does the asterix following the EFC number mean?

It means that you are subject to verification. You probably indicated that the information on your FAFSA was based on estimated income and assets. The asterix reminds the Financial Aid Administrator to verify the information.

My parents are divorced and both have remarried. Everyone is willing to help me with my educational costs. Can both sets of parents borrow under the PLUS loan?

You are fortunate to have so much support. However, only the parent you live with can borrow the PLUS money. NICE TRY.

I'm told I can't receive my Stafford Loan until 30 days after I start classes. Why?

This is a new wrinkle designed to cut the loan default rate. Some students who were eligible for and received Stafford Loans, decided after they had cashed the checks not to attend classes.

Do those questions raise some new ones in your head?
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