Financial Aid Can Be Fickle – Video
Here at Ameritech Financial, we know that college tuition can be expensive. As a result, students need to turn to financial aid in a lot of scenarios for help. But not everyone is able to qualify for as much as they need, so people need to be aware of what can happen.
Students with parents that are making enough money to create a dent into their financial aid debt don’t always have enough to cover the entire tuition cost. This is especially true of private schools which can have their tuition to over $50,000 per year.
When using the Expected Family Contribution, it might not be nearly enough to cover tuition. If the EFC in that scenario for the private school is $40,000 then they will not be receiving more than $10,000 in financial aid. It doesn’t really seem fair for a family to be expected to pay $40,000 for just one year of school.
This is a problem because now in this scenario, a student may have to take out a private loan. This will cause the interest rates to be higher for the student and as a result will give them much more debt than they can handle.
Of course, scholarships are able to help but it can only do so much. This has resulted in some families that aren’t extremely well off having to keep their children away from their dream schools if they are too expensive. They aren’t exactly poor, but the financial aid doesn’t cover nearly enough in scenarios like this to help.
This is something to consider if you are applying for a school that is out of the price range of your Expected Family Contribution. If you can stay away from a large private loan, then by all means do. It’s much easier to repay your Federal Government loan, but they can’t always cover the full cost of schooling.
Make sure to always check back with us at Ameritech Financial for more and up to date information on student loans.
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