Ten tips

By LAURA T. COFFEY

© St. Petersburg Times, published May 27, 2001

Understand the ins and outs of college financial aid

A college education isn't cheap. According to the College Board, it costs about $11,000 for a full year of tuition, room and board at a public university and $25,000 at a private one. But the amount of financial aid that's available is way up. Consider these tips from Quicken.com and the Better Business Bureau when deciding how to pay for a college education.

1. Talk to financial aid officers. Especially if you or your son or daughter is starting college this fall, consult financial aid officers right away to find out what help is still available.

2. Know your options. You can pay for college several ways: by saving up money in advance, paying as you go, applying for grants and scholarships, taking out student loans or combining these approaches. View loans as the last and least desirable route to take.

3. Haggle when appropriate. If you are unhappy with a financial aid offer, write a letter explaining why you think it should be more. Mention any special circumstances, such as a recent change to a lower-paying job or high medical expenses.

4. Pursue tax credits. If you're a single filer and you make less than $50,000 or a couple with income of less than $100,000, you could qualify for a Hope credit and a Lifetime Learning credit.

5. Make tax plans for 2001. If you or your child will be starting college in 2002, think about deductions and other measures that would trim your adjusted gross income for the 2001 tax year. The lower your adjusted gross income, the more financial aid you may be eligible to receive.

6. Do good work. It's inescapable: High grades and standardized test scores will put you or your child in line for scholarships and grants that don't have to be repaid.

7. Choose a safety school. Apply to at least one school where you or your child's SAT scores and grade-point average are higher than most applicants'. You'll likely secure merit aid.

8. Remember work-study programs. They make it possible for students to earn college credit, make some money and beef up their resumes.

9. Hunt for scholarships. Contact local organizations in your community about scholarships, and do searches on the Internet through sources such as FinAid (http://www.finaid.com) and the College Board (http://www.collegeboard.com, 800-626-9795). Other useful sources include Mapping Your Future (http://www.mapping-your-future.org) and U.S. News & World Report (http://www.usnews.com/usnews/edu).

10. If loans are unavoidable. Opt for federal loan programs that offer lower interest rates. Contact the U.S. Department of Education's Federal Student Aid Information Center (http://www.ed.gov, 800-433-3243); the Department of Education's Free Application for Federal Student Aid office (http://www.fafsa.ed.gov, 800-801-0576); Nellie Mae (http://www.nelliemae.com, 800-367-8848); and SallieMae (http://www.salliemae.com, 888-272-5543).

-- Compiled by Laura T. Coffey.

Sources: Quicken.com (http://www.quicken.com); and the Better Business Bureau (http://www.bbb.org)

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