414: A Crash Course in Paying for College & Common Affordability Myths
Dec 28, 2023
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Financial aid specialist Amanda Miller joins the host to discuss paying for college, winning scholarships, avoiding debt, and finding affordable colleges. They debunk myths about financial aid appeals and out-of-state tuition, providing valuable tips for navigating college affordability and financial planning.
Exploring various avenues like scholarships, grants, and loans can make college affordable.
Understanding the types of scholarships and leveraging institutional financial aid are crucial for managing college expenses.
Completing FAFSA and CSS Profile can unlock potential aid opportunities, even for families unsure of eligibility.
Deep dives
Understanding College Payment: Scholarships and Financial Aid
Scholarships, financial aid, and paying for college are comprehensively discussed in this episode. The key point is that students can explore various avenues to make college affordable, including scholarships, grants, and loans. The importance of understanding the cost of attendance versus net cost is highlighted to manage college expenses effectively.
Navigating Scholarships: Types and Misconceptions
The podcast delves into the types of scholarships available, including institutional, local, and private scholarships. It busts the myth that scholarships are mainly from external sources like Coca-Cola or duct tape. The episode emphasizes strategic ways to approach scholarship applications and the importance of leveraging institutional financial aid.
Financial Aid Application Process: FAFSA and CSS Profile
Listeners are guided on navigating the financial aid process through FAFSA and CSS Profile. The significance of completing these forms even for families who think they may not qualify for aid is underscored. The episode stresses the potential benefits, including state and institutional aid, that may result from completing these forms.
Understanding College Debt: Making Informed Financial Decisions
The discussion focuses on realistic views towards college debt, suggesting that manageable debt can be acceptable based on future income potential. Practical advice is given to assess the reasonable level of debt relative to career prospects post-graduation. By understanding the relationship between debt and future earnings, individuals can make informed financial decisions.
Practical Steps for College Financial Planning: Students, Parents, and Counselors
The episode concludes with actionable advice for students, parents, and counselors in navigating college financial planning. It promotes flexibility in college choices for students, encourages parents to support their child's financial journey, and guides counselors to assist students effectively in applying for scholarships. The holistic approach ensures a well-rounded financial planning process for college education.
On today’s episode, Ethan is joined by Amanda Miller, who got her start in financial aid through the College Advising Corps at Davidson College in 2014. A few thousand students, several resources, and dozens of financial aid presentations later, Amanda’s an independent financial aid specialist and college adviser who also serves as the financial aid go-to lady for the Matchlighters program and someone we consider to be a part of the extended College Essay Guy family.
Ethan and Amanda discuss:
How do people identify the best ways to pay for college?
What are some things that people who win scholarships do differently?
What’s the most important thing a student can do to make college affordable and avoid going into tons of debt?
How can you learn which colleges are likely to be affordable to you?
Myths on topics ranging from financial aid appeals to applying out of state
Play-by-Play
1:45 - Intro
2:49 - How do people pay for college?
4:39 - Where does most of the money come from when it comes to paying for college?
5:28 - What are the three types of scholarships?
7:28 - How do students win scholarships?
10:38 - How does the FAFSA help students pay for college?
15:21 - How do students avoid taking on too much debt?
19:23 - How do students figure out what kinds of colleges will be affordable?
27:30 - What are some of Amanda’s favorite affordability tools for students and parents?
29:43 - Amanda busts some college affordability myths
37:33 - How can families determine if college is truly worth the cost?
41:42 - What is the difference between “cost of attendance” and “net cost”?
44:04 - Why should most people still complete the FAFSA?
47:57 - What is a reasonable amount of debt to graduate with?
50:21 - What steps should students take to figure out their financial plan for college?