Putting that college sticker on the back window of the family SUV is a family’s way of saying who really owns that car! Finding ways to pay for that sticker, or rather, for Junior’s college education is a daunting task in today’s economy. Leveraging the family cash flow, assets, home equity, and even (foolishly) retirement accounts, are some of the ways that families pay for school. Having the right approach to a “working” family contribution can make a difficult task, more manageable.
Sadly, another part of today’s faltering economy is the growing number of unemployed, in particular, the wage earners of families about to, or in the midst of putting kids through college. You can plan all you want but there are always chances that a financial crisis might occur and derail those plans. I was shocked to hear that a family recently tapped into their 401k to help pay for Freshman year for their student… FRESHMAN year? Stealing from your retirement funds? You mean there are at least three more years of this? Yikes!
Approaching the Financial Aid office at your son or daughter’s college is not an easy thing for families to do. The emotional issues many Americans have when it comes to money can paralyze them and send them further into the depths of debt.
Having the strength and knowledge to put together an appeal to the Financial Aid office after losing a job, or having some other kind of change to the family financial situation, is of utmost importance when trying to help your child finish their undergraduate career.
Important items to prepare an appeal for more aid:
- Statements showing severance, unemployment assistance, etc. in order to have proof for the appeal
- Making the effort to visit the financial aid officer in charge of your student’s account, in person to plead your case (you may want to think about how you plan to present yourself in that forum as well)
- Research options for more loans, outside scholarships, help from family members
- Student options – take time off from school to work and save $$, take basic courses at a community college, transfer to another school that may be able to offer more aid
Once the appeal is put together in writing and presented in person, the waiting period begins. Assuming all goes well and the college has money to offer, you may find your family is able to ride out these challenging times. Knowing what your BATNA (best alternative to a negotiated agreement) is before storming into the aid office demanding more money, will show the financial aid officer that you’ve done your homework and that your student is serious about continuing his or her work toward an undergraduate degree.
Remember that if you are put in the unsavory position of feeling overwhelmed by the pressures of the college financial aid appeal process, others have had to persevere through challenging times and have been able to overcome them. You can too!
