Stafford Student Loan News

Here is a really interesting article from the ABC affiliate in Chicago, based on a Consumer Reports report, on how to cut costs for college.

“College Cost Cutting
Consumer Reports

October 18, 2006 - With the average cost for tuition, room, and board at a private university going for nearly $35,000 a year — college-bound students and their parents face a daunting task. But don’t despair! Consumer Reports Money Adviser says there are ways to cut college costs significantly.
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Michele Mironchik and her son, Andrew, are looking at colleges. What they’re learning is that qualifying for a school and paying for it are two very different things.

“We found that some of the colleges he could get into and can get into are colleges we just can’t afford,” said Michele Mironchik, mother.

Marlys Harris, editor for Consumer Reports Money Adviser, has learned from college planning experts there are ways to cut costs.

“Last year merit grants, need-based grants, and tax benefits at private universities and colleges led to reductions in tuition that averaged an amazing 45 percent!” said Marlys Harris.

When it comes to merit awards, Consumer Reports Money Adviser says parents can size up colleges online to determine where their child stands a better chance of getting one. To be eligible, students must have an SAT or ACT test score that’s higher than the institution’s mid-range score. While ivy league schools don’t give out merit awards, plenty of private institutions do.

“Your kid doesn’t have to be the class valedictorian or get straight A’s to qualify for these grants. You want to apply to a school where your child’s SAT or ACT test scores will put them in the top 25 percent of applicants at that school,” said Marlys Harris.

Consumer Reports says here’s how to find potential schools:
# Go to collegeboard.com to find each school’s profile.
# First, check the mid-range SAT and ACT scores.
# Then, click on Cost and Financial Aid to see what the school’s average merit-based package is. Your best bet: Target schools with highest average merit aid per student.

And as far as getting into a school, Consumer Reports says you can up your chances by applying to schools in the same athletic conference — even if your child isn’t an athlete. That’s because competition between these schools can go well beyond sports.

Consumer Reports says if you are applying for a merit award — limit the number of applications to eight. College planning experts say applying to more than that could actually hurt your chances of getting in. That’s because admissions officers know how many financial aid forms you’ve filled out and may think you’re not serious about their school. “