Financial Aid – Money Myths Dispelled

There are many common money myths that you may encounter when applying to college. The truth is that anyone is eligible for a variety of financial aid options, including scholarships—it may just be a matter of finding out where to find the proverbial "money tree."

Following are several of the most common money myths students fall prey to as well as some facts about these myths:

• Financial aid is only available to low-income families. Why should I even fill out the Free Application for Federal Student Aid (FAFSA)?

Applying for financial aid also takes time and effort. Keep in mind you have nothing to lose by applying. Most aid is need-based and is provided by state and federal governments. The federal programs use a need-based analysis through the FAFSA. Also, the earlier you get your FAFSA filled out and turned in, the better chance you have of meeting your financial need.

While it may be cheaper to attend college locally at a public school, great educational opportunities are available at private schools, both in and out of state. Never rule out private schools solely on the basis of cost, however, because financial aid may make the family contribution manageable.

• My grades are average and I don't play any sports. I know there are no scholarships for me!

Scholarships aren't for valedictorians and star quarterbacks only. Just about anyone can receive various amounts of aid in the form of scholarships if you know where to look.

A good place to start is within your own city or neighborhood. Check with organizations, foundations, labor unions, businesses, or town and city groups for scholarships based on achievement, ethnicity, hobbies, or talents. Include in your search the Chamber of Commerce and civic groups such as 4-H, American Legion, Boy Scouts, Elks, Girl Scouts, Jaycees, Kiwanis, and the YMCA.

Also, don't overlook aid from organizations connected with your fields of interest. These organizations are listed in the U.S. Department of Labor's Occupational Outlook Handbook and are also listed in various directories of associations available at your public library.

The U.S. Armed Forces also offer financial aid opportunities. For example, all branches of the Armed Forces offer the Reserve Officer’s Training Corps (ROTC) Program, a federal merit-based scholarship program that will pay for tuition, fees, and books and provide students with a monthly allowance.  If one of your parents is a veteran, veteran's educational benefits may be available to you as well. Check with a local Veterans' Affairs office for details.

• I have no idea what I want to major in. Why should I waste the money paying for college when I have no idea where I want to go with my life

Of course you should apply to college no matter what. There is nothing to be lost by applying. The majority of students don't know what they want to major in until they take classes their freshman year and determine what subjects they like the best.

Other avenues to aid in your career decision include career assessment tests. These tests help you match your interests and abilities with potential careers.  Campus career centers and college advisors can also help you choose a major by assessing your interests and perhaps giving you a recommended selection of classes they think would best suit you.

• My GPA is high and my test scores were uncharacteristically low! Now I'll never get a scholarship at my dream school.

The first thing you can do is retake the test(s). There are many factors that can contribute to poor test scores. If you retake the SAT or ACT and your scores are still poor, apply to that dream college anyway. A high GPA shows a college recruiter that you can keep your grades consistently high throughout several years of high school, whereas standardized tests only measure your performance on one day.

Also, students with low test scores often have a chance to explain the reason(s) for the low scores on the college application. Of course, a good application essay coupled with a college interview can only add to the positive profile you can create. A recruiter can overlook poor test scores if all the other factors add up.

Now that we’ve dispelled a few of the “money myths”…next month we’ll discuss developing a funding plan.  Until then….Best Wishes!

Randy Stoltz, President