Applying to "Expensive" Colleges: The Secrets of the Financial Aid Process

Many people think that the top colleges in the nation are out of reach because of the expensive cost of attendance. However, most of these selective schools offer some of the best financial aid packages in the nation. The financial aid is primarily need-based and grant based, meaning that it does not need to be paid back like student loans. At many colleges, including the Ivy League, students from families making less than a certain income annually will not have to pay anything to attend. That amount is usually around $60,000 per year. Often, families making below about $120,000 will not have to pay for tuition, leaving only room and board as the primary expense. This means that for low-income and middle-class families, cost at these selective colleges may be just as or less expensive as in-state public schools. However, this will vary based on the college's financial aid package and in-state tuition benefits. Going out of state for college is not necessary for all students because of the great state schools our country has, but for those who want to, the cost may not be as much as they first thought.

Some colleges are better than others regarding financial aid so in-depth research should be done while selecting colleges to apply to. Even for families that are well off, financial aid may be available. For instance, at some top colleges financial aid is available to families making more than $200,000 a year. Although financial aid is typically very good at top colleges, it may not always cover everything or be affordable. Depending on financial circumstances, federal work-study and federal student loans are often available for additional assistance. Federal loans are based on financial need, which is determined based on the amount of financial aid a college provides compared to the estimated expected family contribution determined on the FAFSA. These loans will help, but loans max out at 5,500 for freshman undergraduates based on need (3,500 may be offered as subsidized, meaning no accumulating interest during college). This amount increases throughout the undergraduate years. Even if eligible for loans, the cost of attendance may be too high, which means public state schools are a good option that will provide a great education.

To qualify for financial aid at top private colleges, the CSS profile will likely need to be completed. This is similar to the FAFSA, but provides a more complete picture of a student and family's financial circumstance. This must be completed through the College Board. Research a specific college's financial aid application requirements to see if the CSS profile must be completed.

Students determined to attend the top colleges in the country should not immediately be deterred by the cost of attendance as this is highly variable based on the individual student. For many, it will be much more affordable than they first thought. Attending one of these dream schools should not be thought of as impossible for any student, and the goal should be pursued if desired.