How to Deal with a Tight Tuition Squeeze
By Rob Kallick
Students can feel a financial squeeze when college tuition increases or their financial aid decreases. Many times, both occur simultaneously. There are a number of ways to deal with this problem, but start by taking a few preliminary steps:
"First, verify the tuition increase and determine if it is an across-the-board increase, or if the increase is directly related to your registration pattern," says Dart Humeston, director of financial aid at Barry University in Miami Shores. "Maybe you enrolled in too few or too many classes.
"Humeston adds that you should check up on your financial aid as well. "Perhaps you made an error when you completed the Free Application for Federal Student Aid (FAFSA), or perhaps there are unusual financial circumstances in your life that aren't reflected in the FAFSA," says Humeston. "Talk in person with a financial aid officer and ask them to review your file.
"Contact your financial aid office and ask for an explanation or reassessment – find out why the changes have been made. Kelly Tanabe, coauthor of 1001 Ways to Pay for College, says that if you feel that there’s a big discrepancy between your package and what your family can afford, then build a case to support this. "Crunch some numbers to put together a spreadsheet to share with your financial aid officer," she says. "This is an absolute necessity if something in your family's finances has changed since you turned in your financial aid application. There is no harm in asking for a reassessment."
Scholarships
One of the best ways to deal with a tuition increase is to apply for private scholarships. In addition to asking for an explanation or reassessment from your financial aid office, let them know that you are on the hunt for scholarships, "…not just one time but many times," says Tanabe. "If you are on the top of the mind of a financial aid officer and she receives the listing for a new scholarship, she'll contact you first about it. Every college gives away scholarships to its students, and it's your job to let the financial aid office know that you are interested in applying for these funds.
"Your department is another great source for scholarships. "Many awards are only open to students who major in a specific field," says Tanabe. "Speak with the administrative staff in your department, and let them know that you are seeking funds."
Dion McInnis, associate vice president for university advancement at the University of Houston-Clear Lake, says that seeking out a scholarship is like a job unto itself. "Polish the resume, work on writing skills to develop strong essays, and seek out both need and merit scholarships, if applicable, with a vengeance," says McInnis. "Billions of dollars of scholarships go un-awarded each year nationally."
It takes time and effort to go out and find scholarships or fellowships that may be suitable for you. "Turn over every stone by looking for scholarship opportunities online, engage area organizations like Rotary or Kiwanis as well as small groups like book clubs and others, and look at your current employer for scholarship options," says McInnis. "Once the scholarships start coming in, consider yourself a professional student. To keep a salary, an employee must maintain performance. To keep a scholarship, a student must maintain performance.
"While scholarships are a great quick way to earn a nice chunk of change, some long-term planning is in order as well. Start by creating a personal budget. Humeston says to review your expenses for the past 60 days. "Most students will find that there are many ways they can cut back their expenses," he says. "Do you really need that grandé chocolate crème Frappuccino every morning? Maybe you can survive on two or three a week instead. Also, consider working a part-time job. Or, take summers off to work full-time to earn more money."
Pre-paid tuition
For those with some time on their hands, pre-paid tuition plans have become increasingly popular for families worried about future increases in tuition. While many states have 529 plans that offer this option, Independent 529 is the only national pre-paid tuition plan. This plan allows parents to buy tuition at today's price and then use it in the future when their child enrolls at any one of 274 private colleges.
"In return for parents pre-paying college costs, member colleges accept the investment risk and protect parents from future tuition increases," says Nancy Farmer, president of the Independent 529 Plan. "Tuition purchased today is guaranteed to satisfy costs at the time the child enrolls. So, a parent who purchases a half year of tuition today will receive a half year of tuition when the child later redeems the tuition certificate at a member college. This is true regardless of how much tuition rises or what happens in the investment markets."
Tuition increase tips
Here are four tips on what to do if you face a tuition increase, from Kimberly Stezala, author of Scholarships 101:
1. Take classes during summer or winter sessions - they tend to have lower costs and condensed, intensive courses that give you more bang for your buck.
2. Take more credits or another class if your campus doesn’t charge you for credits above a minimum number.
3. Make it manageable – work one extra shift per week, go on a financial diet, or think like an entrepreneur to raise that extra cash.
4. Ask questions – financial aid is very complicated, and you need to be aware of all possible resources to assist you.
