| A few weeks ago, I was wringing my hands over financial responsibilities for my daughter's college education. Since that time, I've applied to two local colleges to further my own education. I've found that my years of experience don't count in many employment situations. An undergraduate or graduate degree seems to add an air of credibility to a person's resume.
This experience was also a test: I wanted to prepare myself for the sticker shock and mental stress of Cora's college experience. I was pleasantly surprised with the application and financial process. This article is for the moms who have considered going back to college to further their career, or to change careers.
All the information below will vary depending on the college of choice. If you want to attend a private college, that's a different scenario than if you want to attend a public institution of higher learning. Educational choices will also depend on your past college credits, your age, your marital status, your children, and so on and so on. Only you will know what your obstacles and advantages are, and if you want an education, you'll find a way to get around them or on top of them. I've learned a few tricks in my recent application experience that may help you get started.
Since there's a possibility of rejection, you need to apply to at least two institutions of higher learning. It helps if you live in an area that's home to a few colleges. The option to attend college in another state with your children in tow could make relocation a bit stressful and financially daunting.
You also need to decide if you can attend full-time or part-time. If you can manage to attend classes full-time, this is the best choice when going for financial aid. If you work, and your advancement depends on more schooling, talk with your employer about your wants and needs. More employers are offering time off, scholarships, and monetary perks for employees who want to succeed within the company.
After your college applications have been mailed, go to the U.S. Department of Education site to fill out the Free Application for Federal Student Aid (FAFSA). The FAFSA information determines your eligibility for all other financial aid. You can fill out the application online and receive your results within two to three weeks. The information is also sent automatically to colleges indicated on your form. The results explain how much Expected Family Contribution (EFC) you need to make for your education.
Before you sit down to fill out the FAFSA, you need to have tax information handy from the previous year. The FAFSA will ask you how much you have in savings and investments, as well as your income and your business assets. It doesn't ask you how much you have in your retirement funds. Private colleges, however, may ask about your retirement assets, and may use the total as an indication of your financial strength when awarding aid.
Don't let this process throw you off, especially if you have unusual or stressful financial situations that aren't allowed on the FAFSA. Most colleges will ask you to write a statement outlining your goals. You can use this statement to submit your hardships, or you can relay your financial stress to the college's financial aid office. Don't be embarrassed to talk about your needs. Divorce is common these days, and it seems common knowledge that women still walk away with less than their due from this situation. Medical expenses are taken into consideration, as well as your capacity as a single mother who is head-of-household. If you're in a tight situation, use it to your advantage. This is the time to cease any resemblance to a wallflower.
Your college and/or your state of residence both will have special programs to assist you financially. Your college financial counselor is the key to this information. Once you've received your EFC on the FAFSA, they will tell you which programs are applicable for your situation. There are scholarships, grants and loans to consider.
College loans defer repayment to after your graduation, and they usually have low interest rates. They also have incentives if you repay loans on time, including even lower interest rates. If you qualify for a federal loan, the government requires you to participate in loan counseling prior to receiving the financing. You can pre-test yourself at the Department of Education Direct Loan Entrance Counseling site. Some colleges will accept this test for your pre-counseling.
Don't put your fees or tuition on your credit cards, and try to avoid loans if possible. Even with low interest rates, you may wipe out future profits in your IRA or in other investments. Don't feel guilty (even though I advocate this form of motivation for positive goals) about seeking scholarships and grants. As a taxpayer, you deserve as much access to these financial services as the 2001 high school graduate.
Once you decide you want to attend college, pay off all your consumer debts. FAFSA doesn't consider your credit-card debt when applying for aid. You'll feel the pinch, but this move could help you qualify for a better financial aid package.
You can still work while attending classes. I know work added to school is a stretch for single moms, but your financial aid office may have some work-at-home jobs available to help fill the gaps. This option will also allow you to attend daytime classes while your own children are in school. Your children may feel the added responsibilities at home, but there's an upside to this inconvenience: your efforts will show them how important a higher education is to their own future.
Don't stop investing in your portfolio during your college career. With a minimum investment of $20 per month (plus commission), you can still invest at BUYandHOLD. If you attend college full-time for four years, that $20 per month only comes to $960. You can squeeze this out of your budget with your wardrobe savings (not many students wear suits and heels, and when in Rome...). Not only will you receive compound interest on this money, you'll also continue to provide a great example to your children. Plus, these small investment amounts will not affect your yearly FAFSA applications.
The only obstacle you may meet when going back to school is your own ego. The solution to my resistance to joining classes filled with people half my age is to continue to develop my leadership qualities. It's one of those GRIPs (see last week's article) to spur me on to make the Dean's List. After all, I have my reputation as a type "A" personality to uphold.
Until next week,
Linda Goin |
