Date: Fri 18-Oct-1996

Publication: Bee

Author: DOTTIE

Quick Words:

schools-tuition-scholarships

Full Text:

Rising College Tuition Costs: Finding A Way To Pay

B Y D OROTHY E VANS

There is good news and bad news for families struggling to keep up with rising

college tuition costs, according to a report released in September 1996 by the

New York City-based Kaplan Educational Center.

The Kaplan report summarizes information released by the College Board Annual

Survey of Colleges, 1996 and Trends in Student Aid: 1986 to 1996 and points

out the bad news about college tuition costs, which are rising faster than the

rate of inflation.

In addition, the report states, while there are more students than ever

applying to college, the competition for financial aid is also increasing.

Compared to last year, for example, 1996-97 tuition and fees at four-year

public universities increased by an average of six percent. Tuition and fees

at four-year private universities rose about five percent.

As for the good news, the Kaplan report states there are many ways to help

fund a college education - methods that include sound financial planning begun

early on and a systematic effort to seek out available financial aid.

In many cases, money to lessen the tuition burden is out there, but families

don't know how to go about applying for it.

"Families may need to adjust their strategies" for getting help, says Kate

Foster, director of the Kaplan Student Loan Information Program (known as

KapLoan) and a contributing editor of the book, You Can Afford College.

Newtown High School Guidance Director Donald Elliott agreed that financial aid

is definitely "out there and available" but "it takes a lot of hard work" and

organization on the part of the families to secure it - and that the sources

are not always well known.

"It's like an Easter egg hunt," Mr Elliott commented recently.

Hidden Tuition Costs

Providing background information that was taken from the College Board study,

the Kaplan report listed the following key points to give an idea of the scope

of problems faced by families nationwide, in funding their children's college

educations.

For the 1995-96 academic year, the available amount of financial aid hit a

record high, increasing four percent to $50.3 billion, yet the annual rate of

financial aid growth trailed that of tuition and fee increases.

Financial aid includes educational loans, grants and scholarships. The amount

of available financial aid is increasing, but the majority of this increase is

in the form of federal loans that must be paid back with interest.

Because of a demographic shift, more 18-year-olds than ever are applying to

college. This means that more students are competing for "free" money, such as

grants and scholarships.

The actual cost of college continues to outpace the inflation rate of three

percent, so the best strategy is to begin investing money wisely and as early

as possible, ideally at a yield of more than six percent.

Families should be aware that tuition, room and board figures do not include

the hidden expenses of college, which can be significant. These can include

travel to and from school, books, supplies, lab fees, dues, medical and

personal expenses.

Financial Planning Tips

The Kaplan report offers the following advice.

Never assume your family is ineligible for financial aid.

You must submit the Free Application for Federal Student Aid (FAFSA) to

receive financial aid. Submit the FAFSA as soon as possible after January 1,

but not before.

Contact schools as soon as possible to find out their financial aid deadlines.

Financial aid time lines may vary from school to school.

Find out from each college's financial aid office if any supplemental

financial aid forms are required.

Start the process as soon as possible. Don't wait to be accepted. Grants and

scholarships awarded by universities are limited, so the later you apply, the

less likely you are to receive "free" money.

If your goal is to get as much financial aid as possible, think carefully

about whether to apply for early decision, which commits you to a certain

school if you are accepted. You'll also be committed to whatever financial aid

package that school decides to give you.

Establish and maintain a working relationship with one financial aid counselor

at each school where you are applying.

Don't wait to submit the financial aid forms until after you complete your

taxes. Estimate income tax figures on the forms, and, if necessary, correct

them with the federal processor later.

Estimate your financial aid needs by considering expenses beyond tuition, such

as room and board, fees, books and supplies, entertainment and transportation.

Keep copies of all paperwork.

Evaluate financial aid packages from different schools carefully. Packages are

often negotiable.

Understand what kind of loans you may be eligible for. Increasingly, federal

loans are unsubsidized, meaning that families must pay interest on the loan

while the student is in school.

Inquire about tuition payment plans. Many schools allow a monthly payment

schedule.

Remember that you must re-apply for financial aid each year.

Newtown's guidance director, Donald Elliott agreed with the Kaplan report's

advice that families needed to start saving for college costs as early as

possible.

"They should really begin the day that child is born - setting up a trust fund

or investing in CDs," Mr Elliott said.

Other Sources For Information

Any Newtown High School senior who is planning to attend a college or a

university for an advanced degree should already be in contact with the school

guidance department, Mr Elliott said.

He and the four Newtown High guidance counselors, Jan English, Jack Quinlan,

Elaine Schwartz and Gerry Waterbury, are trained to help students, not only

with the college selection and application process, but also, later in their

senior year, with guiding them in preparing their financial aid packages.

The guidance office keeps an updated file on scholarships and grants and mails

seniors a monthly publication with current news, titled "Senior Scoop."

The guidance office is located in the corridor adjacent to the main school

office and the phone number is 426-7651.

Mr Elliott said that he hoped many seniors and their parents would attend a

Financial Aid Night that is being planned at Newtown High School, on Tuesday,

November 12. More details about the upcoming event would be sent to the

seniors, he added.

Students and their families interested in learning more about financial aid

strategies might also want to consult with outside educational specialists,

such as the Kaplan Education group. The Kaplan Educational Center may be

reached at 1-888-KAP-LOAN or on the Internet (http://www.kaploan.com).