Tips on Maximizing Student Financial Aid

With college costs climbing steadily, maximizing your student financial aid package can be as important as getting in the right school. Here are 6 tips for maximizing student financial aid.

1. File FAFSA. You must file the Free Application for Federal Student Aid (FAFSA) if you want access to Federal and state higher education aid, so make submitting this important document a priority.

2. Meet All Filing Deadlines. Find out filing deadlines for Federal and State student financial aid applications and be sure to submit all your paperwork by these dates. State deadlines may, in some cases, be earlier than the FAFSA deadline.

3. File Early If Possible. Don't wait until the last minute to file the FAFSA or other aid applications. Some schools begin doling out aid well before the FAFSA filing deadline, so getting in line early may pay off in a big way.

4. Find Out about Third-Party Scholarships. Maximize student financial aid potential by checking into outside scholarships for which you may be eligible. Ask your high school guidance counselor for tips on local scholarships and for help identifying other scholarship opportunities. Also use internet sites like www.fastweb.com to research scholarships. However, before applying for small, one-time scholarships, check with the financial aid office at each college that you are considering about its policy with regard to third-party scholarship funds. If they net third-party scholarship money against the grants in your financial aid package, you may be better off foregoing modest one-time third-party awards and aiming for larger four-year grants available through your school.

5. Ask for More Financial Aid If Your Financial Situation Changes. If your financial situation takes a turn for the worse (for example because of a parent's job loss, unexpected family medical expenses, a divorce, or higher college costs than you estimated when applying for aid), request for a hardship review of your student financial aid package as soon as possible. Ask for a one-on-one meeting with a financial aid officer, be prepared to explain clearly what has changed and how it affects your financial situation, and be specific about how much more money you need.

6. Take Advantage of Competition between Schools. If you are accepted at two or more relatively comparable schools and the student financial aid package for your number-one choice is inferior to the others, consider asking (in a diplomatic way) if your first-choice school can match the best aid package. Your acceptance at multiple schools indicates that you are a desirable candidate, so you may find that your preferred college will compete for your attendance by offering more money.

7. Maximize Tax Savings. Parents of college students should be sure to talk to their tax advisor about tax deductions or tax credits for education costs. For example, they may be eligible for a Federal education tax credit of as much as $2,500.

Sources:

Kelli B. Grant, www.smartmoney.com, 9 Ways to Help Your Get More Financial Aid at SmartMoney.com

Kim Clark, www.usnews.com, How to Get $2,500 in Tuition Money - College Cash 101 (usnews.com)