by Heather Tomasello

Created on: June 20, 2009   Last Updated: June 21, 2009

College on a Budget: Tips for Parents of High School Seniors

The recent economic downturn may have sent your stock market portfolio and savings plunging, while the cost of college tuition, room and board, and other fees continues to rise. The ability to pay for their child's college education concerns many parents more than ever. Here are some creative strategies from a former academic advisor at the University of Florida to make college more affordable.

Have the Money Talk Early & Often

If you haven't already, have a frank discussion about what you expect to contribute (if anything) to your student's education. Colleges and universities use a formula to determine your child's eligibility for federal aid known as the Expected Family Contribution (EFC.) The formula takes into account income, assets, family size, and other factors. The website: http://www.finaid.org/calculators/finaidestimate.pht ml can help you calculate your EFC.

Your EFC is important because the college(s) your child is applying to will use it when determining an appropriate financial aid package. According to the College Board, the EFC is subtracted from the cost of attendance at the college. The result is a calculation of the student's financial need or eligibility for financial aid. This may be in the form of grants or loans.

According to the College Board, about two-thirds of all full-time undergraduate students receive grant aid. In 2008-09, estimated aid in the form of grants and tax benefits averaged about $2,300 per student at public two-year colleges, about $3,700 at public four-year colleges, and about $10,200 per student at private four-year colleges.

However, that EFC may not line up with the amount you are able/willing to contribute to your child's education. It's important to have open, realistic discussions about these numbers with your student BEFORE he/she applies to universities. How does your EFC compare to the amount you are planning to contribute (again, if any)? Hard feelings and disappointment can be avoided early in the process by determining which universities are in your student's price range and which are not.

Consider the Long-Term

Most high school seniors do not consider the long-term consequences of college debt when making college decisions. They do not factor graduate school, or projected starting salary for their possible careers, into the equation.

This site: http://www.finaid.org/calculators/scripts/loanpaymen ts.cgi allows

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