Pieces of the Financial Aid Puzzle

A recent poll found that families are making decisions about college based on inaccurate information. There's lots of information available, but it may be hard to find and confusing to understand. Two articles in the Wall Street Journal recently help families sort through costs/financial aid and paying back student loans.

From the poll article, we hope families learn that the government has begun to require that colleges provide information comparing the "sticker price" to the "discounted price". The sticker price is the total cost of attendance as published by the college and includes tuition, room & board, books, travel and other miscellaneous expenses. The discounted price takes into account all of the scholarships and financial aid that colleges award to students. The specifications of how to calculate the discounted price so that families can compare the data across colleges are vague at this point. We'll be blogging about this further as new approaches are developed. The goal is to find an affordability index comparable across colleges that provides accurate information.

One of the most important items included in the Wall Street Journal articles is the notion of "Professional Judgment Review". That's a phrase that every family should know when talking with college and university financial aid officers. They have lots of discretion and it behooves families to have frank and open discussions with the financial aid office personnel.