October College Newsletter

As the harvest season slows down, Fall colors become abundant. Nature amazes and enchants us with endless shades of red, orange, and yellow. The days are getting shorter and finally cooling down from record high temperatures.

Halloween will be here before you know it. And so will the first Early Decision Deadlines!

In this issue we’ll be going into the Pros and Cons of applying early as well as the delay of the new FAFSA.

Early Decision vs Regular Decision

We receive many questions about Early Decision vs Regular Decision. Students and parents need to understand its implications fully before opting for it.

What is Early Decision?

Early Decision (ED) is an application process offered by many colleges and universities wherein students commit to attending the institution if they’re accepted. It’s a binding agreement, which means if you’re admitted under an ED application, you’re expected to enroll at that school and withdraw all other college applications.

Benefits of Early Decision

1. 1. Higher Acceptance Rates: Many schools tend to have higher acceptance rates for ED applicants compared to Regular Decision applicants.
   2. Peace of Mind: Getting accepted in December (which is typically when ED results are released) can significantly reduce the stress of the senior year, as students know where they’ll be heading the following Fall.

Pitfalls of Early Decision

1. 1. Binding Commitment: If a student is admitted through ED, they’re expected to attend that school unless there’s a significant financial reason that prevents them from doing so. This can limit options if circumstances change, or if your student has second thoughts.
   2. Financial Aid Complications: Since students are committing to a school without comparing financial aid packages from other institutions, they might not get the best possible financial deal.
   3. Rushed Decision: Since ED deadlines are typically in November of the senior year, students might feel pressured to make a decision without thoroughly exploring all their options.
   4. Potential for Reduced Effort: Once accepted via ED, some students might feel the urge to coast through the remainder of their senior year. However, colleges do look at the final transcript and can rescind offers if a student’s performance drops significantly.
   5. Fewer Options to Consider: Students applying ED are essentially putting all their eggs in one basket. If they’re not accepted, they might feel they’ve missed out on other opportunities.

Recommendations for Students Considering Early Decision

1. 1. Research Thoroughly: Before applying ED, students should visit the college, speak with current students, and ensure that it’s genuinely their top choice.
   2. Consult a College Counselor: Discussing the decision with a school counselor or a private college counselor can provide valuable insights.
   3. Understand Financial Implications: If financial aid is crucial, ensure you understand the school’s financial aid policies related to ED and consider the potential implications of not being able to compare aid packages from multiple schools.
   4. Have a Backup Plan: Even if applying ED, students should be prepared with a list of other colleges to apply to during the Regular Decision or Rolling Admission cycles, in case they aren’t admitted through ED.

Even though Early Decision can be an excellent opportunity for students sure about their top-choice school, it’s vital to be fully informed about the process and implications. Remember, college is a significant decision both academically and financially, so take the time to make the decision that’s right for you.

The New FAFSA: Deadlines

The brand new and improved (and shorter but not really all that much shorter) Free Application for Federal Student Aid (FAFSA) that everyone has been waiting years for will not be available until sometime in December. Some colleges state that it won’t be ready until January 1, 2024.

Remember when there was panic over a computer flaw, the so-called “Millennium Bug,” that led to anxiety and the Y2K (Year 2000) scare? Engineers used a two-digit code for the year, leaving out the “19.” As the year 2000 approached, many believed that the systems would not interpret the “00” correctly, therefore causing a major glitch in the system. If you recall, nothing happened at all.

The launch of the new FAFSA is causing a great deal of concern among college financial aid personnel and professionals, including yours truly. For parents and students completing it, the worst that could happen is that it will take a couple of weeks to work the bugs out. NOTE: I wouldn’t file the FAFSA until January 15, 2024. I always let a couple of weeks go by before I send my students through the gauntlet. The glitches should be sorted out by then. And financial aid deadlines– including state grant deadlines– are already being extended, so not to worry.

The CSS Profile: An Overview

When it comes to financing your student’s college education, navigating the sea of forms, applications, and deadlines can be daunting. One form you might come across is the CSS Profile. Let’s break down what this form is, why it matters, and how to approach it.

The CSS Profile goes into more detail than the FAFSA. It asks about home equity, the value of family businesses and farms, real estate, other specific assets as well as other recent and expected future income and expenses.

Two hundred mostly private colleges and a few public universities use this form. The reason is most of them have more money available to meet the student’s financial need than colleges that don’t use it. This allows participating institutions to offer non-federal, institutional financial aid packages that might be more generous or tailored to a student’s specific financial situation. This is how an expensive private college can be similar to the cost of an in-state public university.

While the FAFSA has reduced the number of questions, the CSS Profile is considerably longer. However, about 25% of the colleges that use the Profile will have a shorter version available.

The FAFSA is free to submit, but if a family’s Adjusted Gross Income is $100,000 or more, there is a fee for the CSS Profile. The cost includes a base application fee and an additional fee for each school or program to which you’re applying. However, fee waivers are available for eligible students based on the information provided in the application.

Given its detailed nature, accuracy is key when completing the CSS Profile. Errors can delay the process or impact the aid offered.

Some colleges that use the CSS Profile also require non-custodial parents to complete an additional Profile form. Check with individual colleges to understand their requirements.

Each institution has its own deadlines for the CSS Profile. Schools offering ED and/or Early Action (EA) will generally have deadliness close the admission application deadlines; i.e., November 15th. A few schools have Regular Decision deadlines on January 1st, but the majority of deadlines are February 1st through February 15th.

Unlike the FAFSA, the CSS Profile includes a section to explain the special circumstances. If there’s a significant change in your financial situation, such as job loss or unexpected medical expenses this is where you’d provide this information, at least initially.

A formal letter of appeal may be necessary, either prior to admission or just after the award letter arrives. Ask the college when they would want to read it and in what manner their protocol calls for. Sometimes it’s a form, often it’s a letter.

Each month, we provide you with tips on your best ways to pay for college regardless of your financial situation.

Many parents say that they are probably not eligible for aid, and ask if they should complete the FAFSA?

The answer is yes, they should!

Top Reasons Why Everyone Should Apply for Financial Aid

1. 1. Parents are not the best judge whether they qualify or not. As college costs go up, the Student Aid Index (SAI), the minimum amount of money a parent will be asked to contribute to college costs based on a federal formula, may indeed show a gap between the cost of the most expensive schools and the SAI leaving room for financial aid.
   2. College is big business and wants good customers. Colleges often award funds to the students who need them the least. That means not only bright students, but also parents who can better afford to pay. And admissions are looking for students who could become donors in the future.
   3. Borderline students — and this will vary from school to school– with no financial need are often favored with an offer of admission and a scholarship over a similar student with greater financial need. Colleges would rather offer the student with no need; i.e. $20,000 per year vs $40,000 per year for the same student that has a financial need.

And finally, for some parents it’s also a great way to use the federal loan program and pay next to nothing for college.

Until next time, Happy Halloween!

Bob Chitrathorn

PS. There are more trapdoors and landmines than ever before. Do everything you can to avoid mistakes, by preparing now for the financial aid process.

Please contact us at (951) 465-6409 to schedule a consultation to discuss your personal circumstances to learn ways you may be able to reduce your college costs.

PPS. The next time you’re with a friend with college-bound children, please tell them about us and share this email with them. As you know college is becoming unaffordable for far too many families. Anything we can do to help them bring down the cost will be highly appreciative.

Disclosures

This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation.