Back to Articles

Articles

College Savings: FAFSA, Scholarships & Smart Strategies for Families

Amanda Howerton, CFP® CDFA®
09.03.2024
Back to School?

It is that time of year when social media is filled with posts of youngsters heading off to the first days of kindergarten, high school senior year, and everything in between. I’m squarely in the middle of the grade school years with my girls, slowly settling into the rhythm of the new fall semester.

If you are embarking on a child’s senior year of high school, moving into the fall semester is definitely not slow! The calendar is jam-packed with events and celebrations thrown in along with ACT testing dates, college application due dates, and now FAFSA/SAI (Free Application for Federal Student Aid/Student Aid Index) due dates. This last due date might not necessarily be on the top of the list, but as the year progresses, it definitely moves up in priority.

There are scores of pages online advising how to pay for college, such as obtaining scholarships and seeking financial aid. College funding can primarily be broken down into two broad categories: needs-based and merit-based funding.

Needs-based funding will be based on the FAFSA and Student Aid Index (SAI). These formulas take into consideration the parent’s income and assets, as well as the student income and assets.

Not everyone will qualify for needs-based aid. However, just because a family does not believe they will qualify for financial aid, does not mean the FAFSA should be skipped. Many schools require a FAFSA as part of the application to obtain school-specific funding.

In addition to FAFSA forms, a student may wish to complete a CSS profile (www.collegeboard.org or https://cssprofile.collegeboard.org/?navId=gh-css) which assists students in finding non-federal aid. On the CSS website is a list of participating universities, which have their own metrics for awarding financial aid. If your student’s school is a participating university, this can be a valuable source of private funding options.

If your student does not qualify for financial aid, reviewing options for increasing merit-based funding should be considered. Some schools include grid scholarships for out-of-state students based on GPA and ACT/SAT scores. If your student’s preferred school awards grid-based scholarships, investing in ACT/SAT test prep materials or classes to increase scores may be financially rewarding.

Reducing the cost of attendance can come down to a combination of choosing schools based on a history of awarding aid, opportunities for financial awards, academic scores, smart lending strategies, and potential income shifting from parent to student.

So, while the Senior calendar flies by, the timelines to remember are as follows: October (apply for FAFSA-financial aid), March-April (analyze and appeal financial aid offers), and April (select school and accept financial awards). A reminder to check for any special due dates for schools of interest.

Enjoy every moment and take lots of pictures!

Amanda Howerton, CFP® CDFA® is a Senior Advisor with Rather & Kittrell.

 

More From Amanda Howerton, CFP® CDFA®

College Savings: FAFSA, Scholarships & Smart Strategies for Families
Navigating college costs? Learn how FAFSA, merit-based aid, and smart planning can help you reduce tuition expenses and secure the best financial future for your family.

View Article
Why Diversification Wins: Avoiding Bias in Your Investment Portfolio
Is a personal bias skewing your portfolio? See why owning all the players—not just the favorites—can lead to better long-term outcomes for your investments.

View Article
Healthspan vs. Lifespan: Why Financial Planning Is About More Than Living Longer
Your healthspan—how long you feel mentally, physically, and spiritually well—matters just as much as your lifespan. Here’s how planning around four key pillars can help.

View Article
Tax-Loss Harvesting
Here at Rather & Kittrell, the end of the year is a busy time. We recently had a chili cook-off,...

View Article