What to Expect When Financing College

Financing a college education is one of the most significant investments a family will make. Understanding the landscape early can save you tens of thousands of dollars.

1. The FAFSA is Non-Negotiable

The Free Application for Federal Student Aid (FAFSA) is required for access to federal grants, work-study programs, and federal student loans. Even if you don't think you'll qualify for need-based aid, many merit scholarships require a completed FAFSA on file.

2. Sticker Price vs. Net Price

Rarely do families pay the "sticker price" listed on a university's website. The "net price" is what you actually pay after grants and scholarships are factored in. Private colleges with high sticker prices often have larger endowments to offer substantial institutional aid, sometimes making them cheaper than public universities.

3. Start the Scholarship Search Early

Don't wait until senior year spring to look for scholarships. Local scholarships often have less competition than national ones. Check with your employer, local community organizations, and your high school guidance counselor.