Common FAFSA Mistakes and Oversights

As a college solutions specialist for College Funding and Planning in Overland Park, Kansas, Michael Berlau helps college-bound high school students navigate financial-aid application processes. Among other services, Michael Berlau offers strategies for optimizing Free Application for Federal Student Aid (FAFSA) awards. Completing the FAFSA is a crucial step for students applying to secondary-education institutions, and the earlier and more completely the forms are submitted, the better the chances of receive higher funding amounts. 

Despite the application’s vital role in helping students afford college, many students and parents make a number of mistakes when submitting the FAFSA that significantly impact their eligibility for aid. Common errors include waiting too long to complete the application and neglecting to acquire a Federal Student Aid (FSA) ID prior to filling out online forms. An FSA ID is required to submit forms electronically, and it can take up to three days for the Social Security Administration to verify information and approve the ID. 

Another frequent mistake is providing inaccurate information or not including certain details when filling out the FAFSA. The most common errors range from inputting the wrong household income from tax returns to confusing student information with parent information, while other applicants forget to list other members of their household attending school or the full list of colleges to which they are applying. The names, birth dates, and social security numbers must also match FSA ID records to avoid application-processing delays. 

In order to avoid these and other common errors when completing the FAFSA, students and parents should gather the necessary documents and information ahead of time and submit the forms as early as possible. Attending informational sessions and workshops presented by colleges and consultants can also ensure applicants understand the process.

Three Tips for Preparing for College

The co-author of How to Give Your Child a 4-Year College Education Without Going Broke, Michael Berlau has more than a decade of experience helping students and families prepare financially for college. Michael Berlau draws on the skills acquired throughout his career as a college solutions specialist with College Funding and Planning in Kansas, where he hosts workshops for college-bound high school students and their families who need financial support. 

In addition to attending planning sessions and events, young people bound for higher education institutions can take other steps to establish a plan for paying for college. The following tips can aid in this process. 

Complete the FAFSA
The Free Application for Federal Student Aid (FAFSA) is a financial-assistance program administered by the US Department of Education’s Federal Student Aid office. Funds awarded to qualifying students can come from colleges, the state, the federal government, and other organizations. Students may also be eligible for subsidized and unsubsidized federal loans. 

Check how course credits and withdrawals affect financial aid
The number of credits you take could affect how much you receive in loans and financial support, and full-time enrollment will usually ensure that you can accept 100 percent of available funds. Part-time students may only qualify for 50 percent of the amount offered. Additionally, dropping or withdrawing from classes may affect your eligibility. 

Create a college-spending plan
While financial assistance can help students pay for college-related costs, it will not usually cover regular living expenses or rent for those who live off campus. Budgeting for these needs can ease the difficulty of such financial challenges. Furthermore, factoring in ways to pay off students debts can reduce accrued interest and the time spent clearing acquired debt.

Three Things You May Not Have Considered about Choosing a College

With a master’s in economics from the University of Missouri, Michael Berlau serves as a college solutions specialist with College Funding and Planning in Overland Park, Kansas. Michael Berlau assists students and their families in all aspects of college planning, including how to calculate the Expected Family Contribution and how to ensure students attend the college best suited for them.

When choosing a college, students typically consider factors such as the rankings and reputation of the institution and how much it costs to attend. The following are three important yet often-overlooked factors to think about when selecting a college.

1. Academic assistance. Some academic institutions offer students remedial courses and tutoring in subjects such as English and math when extra educational support is needed. Students who have benefited from help outside of the normal classroom curriculum should determine whether their prospective institutions offer these types of additional learning programs.

2. Safety on campus. Every college is required by law to publish an annual crime statistics report. This report details the incidence of assaults, burglaries, and all other serious crimes taking place on campus. Before selecting a college, prospective students should review these statistics and learn what safety prevention measures are in place to protect those on campus. 

3. Extracurricular programs. Students interested in participating in a non-academic activity should contact each institution to learn about related groups, committees, and teams. Involvement in certain activities may be competitive, but extracurriculars are ideal for developing and showcasing skills in areas such as leadership and can be valuable for finding a job post-graduation.

An Overview of the Expected Family Contribution

Since 2008, Michael Berlau has served as the owner of College Funding and Planning, a Kansas-based consulting firm that specializes in college planning solutions. A graduate of the University of Missouri, Michael Berlau has received numerous accolades that include the "Top Industry Advisor in the Midwest" by the College Planning Network for his college planning advice. In addition to facilitating public workshops, Mr. Berlau publishes informational videos on YouTube that address topics such as the pros and cons of public and private institutions and how to lower your Expected Family Contribution (EFC). 

The EFC governs whether a student is eligible for federal financial aid in the form of Pell Grants, Stafford Loans, Perkins Loans, work study programs, and FSEOG grants. The EFC is calculated via a formula designed to assess the ability of families to fund a college education. 

The EFC formula is affected not only by the expected contribution of parents, but also the expected contribution of students. To determine these values, data elements from the Free Application for Student Aid (FAFSA) are utilized. These include assets, income, allowances, and net worth, among others. Once the EFC is determined, school administrators subtract it from a university’s cost of attendance to produce a financial aid amount. A financial aid package can then be offered to prospective students.

Tips for Creating a Strong College Essay

Michael Berlau, a college solutions specialist with College Funding and Planning, has guided numerous students and their families through the admissions process. Michael Berlau offers advice on all aspects of college application and entry, including the personal essay.

For students applying to selective colleges and universities, a personal statement or essay is a mandatory part of the application. While it may not be the highest-valued part of the application, it may be a deciding factor between two students with similar credentials.

The essay allows students to communicate who they are on a personal level and share experiences that a transcript cannot cover. For this reason, a strong essay addresses an experience that is or was genuinely meaningful for the student. It includes not only the facts of the situation but also a reflection on how the experience has impacted the student's life, as this shows the school that the student is both self-aware and open to growth.

Experts say that the writing style of the essay should reflect the student's unique voice. This means de-prioritizing advanced vocabulary in favor of language that communicates passion and personality; it also means clearly communicating who the applicant really is, and what they can bring to the university community.

To be sure the essay conveys all of this succinctly, the student may wish to write more than one draft. This is not to say, however, that the student should re-read and revise the essay ad nauseam. Once it is clear and rich with personality, as well as strong in its grammar and usage, the student can rest and submit it with confidence.

529 Strategies - Prepaid Tuition vs. College Savings Plans

As a college solutions specialist with College Funding and Planning in Overland Park, Kansas, Michael Berlau assists families with applying to and paying for college. Michael Berlau draws on a detailed knowledge of college savings vehicles to help families determine the best way of making education both affordable and tax-efficient.

For families who expect to be sending a child or children to college, the 529 plan serves as a tax-advantaged savings vehicle. The plan is available to any US resident or citizen who is 18 years of age or older and is most often used to save for a younger child's education, although it is possible for the account holder to save for his or her own college costs as well.

Each US state and the District of Columbia sponsors at least one 529 plan, while a large number of institutions have their own prepaid tuition plans. The prepaid plans allow an account holder to purchase tuition or fee credits at current prices, to be used in the future. Most such plans feature state sponsors and some may be guaranteed by state governments, though some do not offer a guarantee.

College savings plans also feature sponsorship by the state and are not backed by state guarantees. These plans take contributions from the account holder and place them into investment vehicles, most often chosen by the saver. There are also a number of plans that channel assets into static funds or select investment vehicles based on the beneficiary's age, so that investments become more conservative as the beneficiary moves toward college age.

Like prepaid plans, college savings plans feature state sponsorship but do not guarantee contributions. However, investments in protected bank products may include FDIC insurance.

Good Sources for College Recommendations

Since 2008, Michael Berlau has served as a college solutions specialist with Kansas-based company College Funding and Planning. Michael Berlau helps students and their parents to understand the strategies involved in applying to college, a process that often requires the submission of recommendations.

One of a student's best networking resources is teachers. A teacher can write a personalized recommendation letter and give colleges a sense of your abilities, interests, and personality as a student. Experts recommend asking core academic teachers you had as an upperclassman or teachers you have had throughout your high school career. These instructors are most likely to know you well enough to speak not only of how well you do in class, but how you think and work with material.

Taking the time to network with a school principal can be an even more effective time investment, as a principal's letter can have even more influence over admissions deciders. These kinds of connections do take time, as the principal needs to get to know you well enough to speak about you in detail.

Employers may also be able to give colleges an idea of you as a person outside of school. If you can work well with others, have a strong work ethic, and/or have shown good character in your place of employment, your boss's testimonial can help you to stand out. The same is true for civic or religious leaders who know you well as a person, as well as for adults you know who have connections at a particular college or in the field you wish to study, provided that the person in question has known you for long enough to have a strong sense of who you are and what you can do.

Wait Listed for College - What to Do

As a college solutions specialist with College Funding and Planning in Kansas, Michael Berlau helps students and their families to navigate the process of applying for and finding financial aid. Michael Berlau draws on detailed knowledge of the application process, including how wait listing works.

Receiving a wait list letter can be disheartening, especially if it is for one of your top-choice schools. It is important to remember that wait listing happens when you meet a college's criteria but the college has reached its admittance capacity. If one of the admitted students decides not to attend the college in question, the school may offer you that slot.

If you still want to attend, you will need to respond to the wait list offer and let the school know that you would like to stay on the list. You will not receive any offers of admissions until after the decision deadline, but you can contact the college and find out where you rank on the wait list. 

If you choose to contact the school by mail, you can also add any information that you feel might make you a more competitive candidate. This includes any new achievements or honors, as well as anything not on your original application.

Finally, because there are no guarantees once wait listed, you may wish to consider other schools. If you have been accepted to a school where you believe you would be happy, you can send in a deposit so that you have a secured place. If you receive an acceptance from the school where you are wait-listed, you can then decide whether you want to forfeit that deposit.

If you have not yet received an acceptance, you can spend some time deciding on your backup plan. You may decide to take a gap year and prepare a second round of applications, or you may choose to apply to a school that is still accepting applications. Either way, you may still have a chance of transferring to your top-choice school in the future.

Costs of Public vs. Private College

Since 2008, Michael Berlau has served as a college solutions specialist with College Funding and Planning in Overland Park, Kansas. In this role, Michael Berlau helps families to identify resources that can reduce the out-of-pocket cost of a college education.

One of the main differences between public and private colleges is the source from which each institution draws its funding. Public universities often receive government funding, which subsidizes costs such as faculty salaries and results in lower tuition. Private institutions rely entirely on donations and tuition to cover costs, which means that students tend to pay higher fees.

A 2011 College Board report revealed that in-state students at a public institution paid slightly more than $17,000. The cost for out-of-state students at the same schools hovered around $24,000, while total tuition and fees for private university students totaled more than $38,500.

There are, however, a number of factors that help to close this gap. Some public universities offer tuition reciprocity, meaning that students from certain states can pay the in-state rate for those institutions. Meanwhile, at private institutions, grants and scholarships mean that approximately 42 to 48 percent of students pay only about half the total price of the college.

Options for Student Loan Forgiveness

Michael Berlau owns and operates College Funding and Planning, an organization that helps families understand how to pay for secondary education. A dedicated advocate for his clients, Michael Berlau offers insights into potential student loan forgiveness programs.

Although half of current college students believe that they can secure forgiveness for their student loans, a student must meet certain criteria for this to happen. One option is available under the Public Service Loan Forgiveness Program, which is obtainable by those who work full-time for the government or a nonprofit organization for a full decade. Available to such professionals as law enforcement personnel, public health workers, and early childhood educators, it becomes an option after the candidate's 120th student loan payment.

Direct and Stafford loans also offer a dedicated loan forgiveness plan for teachers. Such plans forgive up to $17,500 for professional educators who work in low-income public schools for five years or more. However, those with larger loan balances or who intend to work in a qualifying school for 15 years or more may benefit more from applying for Public Service Loan Forgiveness. 

For individuals in other fields, particularly those whose compensation packages make it difficult to repay student loan balances, income-driven repayment plans may offer alternative forgiveness options. Although these may charge higher interest rates than a traditional repayment plan, they adjust payments based on the candidate's ability to pay. They also repay remaining balances after 20 to 25 years, though this forgiveness is subject to income tax.