College Preparation-When is the right time?

Now is the time to think about and prepare for your application to college. There will be the SATs [Scholastic Aptitude Test], college selection and filling out applications, interviews and the list goes on. It can be a daunting task but preparing now and knowing all of your options are important. A little bit of research and investigation can go a long way to minimize or eliminate student loan payments after graduation.

Grades and extracurricular participation in high school are an important part of college selection and acceptance.  There are steps that can be taken to raise the student’s GPA [Grade Point Average] through activities and supplemental testing, which ultimately can reduce tuition costs.

AP Exams (Accelerated Placement)

AP exams are broken into two basic groups [mathematics and language], but there is a wide range of courses that the student can test for (CollegeBoard.com). The benefits of APs included weighted GPA and the opportunity to get a full class credit and “test out” of courses, saving tuition dollars. Most universities award credits for high AP scores, but all accredited universities apply scores to a weighted GPA. There are caps on the number of courses a student can test out of and it is important to keep in mind the extra study time required for scoring high on the tests. Each exam has a fee (generally $87 per test) but the tuition savings from elective credits outweigh the exam costs.

Free Application for Federal Student Aid (FAFSA)

Most universities include a FAFSA application form in their admittance packages but the applications are available directly from the US government web site [FAFSA]. The application establishes the student/family’s ability to pay tuition based on household income and finances and offers a variety of assistance programs including grants, scholarships and even tuition reduction recommendations that most universities including private schools honor.

Grants & Scholarships

Universities offer opportunities for grants and scholarships based on academic accomplishment, as well as, for community service and volunteerism. If the student knows what major they want to pursue there are additional opportunities for scholarships and grants within specific programs. A list of these opportunities will be listed on the university web site or available by contacting the registrar’s office of that school.

Student Loans

Student loans are always an option and usually carry low interest rates with payments deferred until after graduation. It is recommended that all other assistance options be pursued first and if a loan is necessary, research available programs thoroughly. Loans are available through universities, government agencies and financial institutions and it is important to research and compare to be sure that the loan is best for the student/family and that there are no hidden conditions or fees.

ESA (Education Savings Accounts)

Sterling Van Dyke Credit Union offers Education Savings Accounts to its members to help ease the burden of tuition. Save now to prepare for later. The savings accounts allow multiple persons to contribute to the fund for a specific student. The fund can accept contributions until the student reaches 18 years of age and it does have an annual cap for the amount that can be contributed. Planning ahead with this type of account along with all of the other tuition saving opportunities can greatly reduce the financial burden and stress of finances. For more information about SVDCU’s Education Savings Account, please call us at 586-264-1212, or email us at info@svdcu.org.