It’s never too early to make a plan to pay for postsecondary schools or training! The process to understand, research, and find the right options takes time and should optimally begin in middle school or 9th grade. No matter what grade your student is in, it is best to be informed so you can plan accordingly and maximize your student’s options.
1) Figure out your Expected Family Contribution (EFC) to know what your student/family will be expected to pay annually so you can plan and save accordingly. (FAFSA will begin calling it your Student Aid Index)
The EFC (or student aid index) is an estimate of the minimum amount that colleges or programs will expect your family to pay annually. (This number may be higher than families think they can afford.)
The EFC (or student aid index) determines if a student qualifies for federal and state financial aid.
Institutions (colleges and programs) use the EFC (or student aid index) for their aid decisions, but don’t always meet the full financial need.
Families need to know their EFC (or student aid index) so they can plan to save, figure out how to maximize their aid, and be ready to take out loans or make other plans (such as student living at home).
Calculate your EFC (or student aid index) using the calculator at bigfuture.collegeboard.org.
2) Estimate Your Student’s Cost of Attendance (COA)
Once you calculate your EFC (or student aid index) , look at a few two and four-year colleges or technical certification programs to see what their complete costs are (i.e. tuition, fees, room, board, etc). For example, look at UO, OSU or PSU, PCC, and few private schools such as Lewis & Clark or University of Portland.
3) Determine your Financial Need
Subtract your EFC (or student aid index) from the total cost to attend school annually (COA) to determine your financial need. [COA-EFC=Financial Need]
Schools usually do not meet 100% of your financial need, so there is often a financial gap that will need to be filled. A general guideline is that student debt should not exceed the student’s expected gross income in the first year after graduation.
The sooner you assess your need, the sooner you can strategize to maximize the aid your student can get.
5) Maximize Your Financial Aid
Research financial aid early, so you have time to find and apply to options that are right for you.
Keep your grades up and develop good test-taking skills. Merit-based awards and scholarships have minimum GPAs and ACT/SAT scores.
Advanced Placement (AP) and dual credit classes provide opportunities for you to earn college credits and save money.
Research scholarships based on your talents and interests.
Consider which organizations or entities provide the aid, so you can prioritize your applications.
The federal government provides most of the financial aid nationwide, followed by institutions (college, universities, or programs), and then state and private sources.
Understand the main sources of aid.
Grants and scholarships that do not have to be repaid. Grants are often need-based, and scholarships have a wide range of criteria. Consider the primary sources for grants and scholarships.
Work-study programs provide students with campus jobs as part of their financial aid package or provide on-the-job training which offsets the cost of the program.
Loans which need to be repaid with interest.
Go to Sources of Financial Aid for links and information to learn about and apply to financial aid.