Myths & Realities

When it comes to the topic of paying for college and student financial aid, it seems that everyone has an opinion.  These opinions are often formed by personal experiences, listening to others who have experienced paying for college, or listening and/or reading about it in the news.  Some of those opinions are accurate, some are not.  The following is a list of some of the more common myths and realities about paying for college.

MYTH: College tuition costs more than $20,000 a year.
REALITY:
Of the 3,600 colleges and universities in America, 200 charged $20,000 or more for tuition and fees in 2002-03. Nearly 80 percent of full-time undergraduates at 4 year institutions face tution of less than $8,000
*College is Possible Website: http://www.collegeispossible.org

According to the US Department of Education, National Center for Education Statistics,
The average costs of attending college are:
(costs are in State rates including tuition, fees, and room and board)

• Minnesota State 4-Year Public Universities: in 2005-2006 $12,777
• Nation wide 4-year Public Universities: in 2005-2006 $12,108
• Nation wide 4-year Private Universities in 2005-2006 $27,170

MYTH: Only the very rich can afford college.
REALITY:
Nearly 20 percent of traditional-aged undergraduates come from families with income below $25,000 per year. The federal government, states, and institutions all offer financial aid to help low-income students afford college.
*College is Possible Website: http://www.collegeispossible.org

MYTH: You really don’t need college to be a success look at Bill Gates
REALITY:
Bill Gates' story is exceptional. Today, the average annual income of full-time workers with a bachelor's degree is almost 45 percent higher than for those with a high school diploma. Those with an associate degree earn 19 percent more than high school graduates. Today, some postsecondary education or training is necessary for almost every good job.
*College is Possible Website: http://www.collegeispossible.org

MYTH:  It’s not what you know when it comes to college and financial aid, --it’s whom you know.
REALITY:
It is most important to forge relationships with people who can provide solid information and advice, such as high school guidance counselors and college admissions or financial aid personnel. 
*College is Possible Website: http://www.collegeispossible.org

However, in general, Federal and State Student Financial Aid awards are based on the same criteria for all students, regardless of who you might know.  Forging a relationship with your institution’s financial aid office is important to make sure the office understands any special circumstances your student and family may be experiencing.

MYTH: My family makes too much money to qualify for any financial aid.
REALITY:
Financial Aid is not limited to grants and scholarships.  Federal Student Financial Aid programs (and many State Financial Aid programs) include low-interest educational loans.  Students whose families may have incomes too high to qualify for grants may still qualify for loans. 

MYTH: Our neighbor’s income is the same as ours.  Our student should get the same amount and type of Student Financial Aid as their student.
REALITY:
There are many factors involved when determining a student’s financial aid eligibility.  Family income is one of the primary criteria in determining eligibility, but other information influences eligibility, such as, the breakdown of the income (how much was the students, did one or both parents have wages), family size, number of students in college, assets, even the date of the completed FAFSA application can effect the student’s financial aid award.  It may appear that your situation is exactly the same as your neighbor’s, but this is generally not the case.

MYTH: If the student is not claimed as a dependent on the parents Federal Income Tax Returns, the student is considered independent AND/OR the student does not live at home and does not receive money from the parent(s), the student is independent.
REALITY:
For purposes of Federal and State Financial Aid, the criteria for an independent student are: (at least one of the following criteria must be met to be considered an independent student)
The student must:

• have been born before January 1, 1982,
• be working on a degree beyond a bachelor’s degree in school year 2005-2006,
• be married (at the time of application),
• be a ward of the court or an orphan,
• be a veteran of the US Armed Forces
• have dependents (who receive more than half of their support from the student)

The student must meet one of the six criteria to be considered an independent student for Federal Student Financial Aid.  Living arrangements, whether the student was claimed on the parent’s Federal Tax Returns, or whether they receive support from the parent(s) are not factors in determining dependency status for financial aid purposes. 
However, students and parents may contact a financial aid administrator at the college they will be attending if they want their specific situation evaluated in determining dependency status.

For more information on the myths and realities about the cost of college and/or student financial aid, please contact the financial aid administrator at the institution you plan to attend or visit the College is Possible Web site at http://www.collegeispossible.org

Continue to next section...

[Back to FAFSA]