A big factor for most people when picking a college is how hard the costs will hit their family’s budget. But with a smart financial aid strategy, you might get some happy surprises—like a surprisingly generous offer from that expensive private school at the top of your list, making it even cheaper than your local state university.
Your first step in unlocking federal aid is filling out the Free Application for Federal Student Aid (FAFSA) as early as you can. The deadline for the 2019-2020 school year was June 30, but you could submit it as soon as October 1 of your senior year. Colleges also use this form to hand out their own aid, and each school might have different deadlines, so staying on top of key dates is crucial.
The FAFSA calculates your family’s finances to determine what you can afford to pay. But when schools put together their aid packages, multiple factors come into play.
First, it helps to know if a school is “need-aware” or “need-blind.” Need-blind colleges don’t look at your financial info when deciding admission—they focus purely on academics and other credentials. Need-aware schools, however, might consider your family’s financial situation when evaluating your application.
“Our admissions team looks at many factors, including how much a student might cost us,” says Sean Martin, Director of Financial Aid Services at Connecticut College.
One reason is that the school promises to meet every student’s full demonstrated need—meaning they’ll cover the gap between your Expected Family Contribution (from the FAFSA) and the total cost of attendance.
Not all schools do this. Many use “gapping,” offering less than full need, especially to applicants who aren’t top-tier. Others might “admit-deny,” accepting a student but providing little to no aid.
Still, Martin says students shouldn’t assume needing aid hurts their chances. “They might bring other strengths that outweigh cost,” like geographic diversity, strong academics in a certain field, or a passion for music or activism. A good strategy? Apply to a few schools where your GPA and test scores are above their average admitted student.
Once admitted, colleges typically put together aid packages mixing federal grants, loans, and merit-based scholarships. Some students also get work-study jobs as part of their federal aid.
More schools are now offering no-loan packages, replacing federal loans with grants. About 50 schools do this for low-income families, and 16—like Princeton, Brown, and Vanderbilt—extend it to all families.
Many colleges also require the CSS Profile, a more detailed form than the FAFSA. It digs into home equity, family business income, and may require financial details from divorced parents (and new spouses, if applicable).
Compare offers carefully. Even if the bottom line looks similar, one package might lean more on loans while another gives more grants. Some colleges sweeten the deal with bigger grants for students they really want.
Cindy Deffenbaugh, Financial Aid Director at the University of Richmond, recalls parents comparing an offer they thought was far better—until she pointed out it included a Parent PLUS loan (optional federal borrowing). “To compare fairly, subtract grants and scholarships from each school’s cost. What’s left is your out-of-pocket amount,” she explains.
Also, check if scholarships renew yearly. Some require maintaining a certain GPA, while others are one-time awards. If the offer letter isn’t clear, ask the financial aid office.
Watch for tuition changes. Some schools freeze tuition for four years but still raise fees (like lab or counseling costs). Robert Durkle of the University of Dayton notes that their fixed-price plan locks in net tuition, with aid increasing to cover any hikes. Dayton also gives up to $500 per semester for textbooks to FAFSA filers.
Since Dayton’s fixed-price policy started in 2013, student borrowing dropped 22%, with average debt at $18,000—well below the $30,000 national average. Other fixed-price schools include Ohio University and George Washington University.
Private scholarships can also cut loan debt. Even small awards help, though some colleges may reduce your aid package accordingly. Princeton student Sunny Sandhu won $600,000 in scholarships by starting early (using apps like Scholly) and applying widely—from the Gates Foundation to local clubs. “It takes research, but it’s worth it,” he says.
Can you negotiate aid? Sometimes. If your financial situation changes (divorce, medical bills, etc.), schools may reconsider. Brooke Fincke, a college counselor, suggests detailing expenses in a spreadsheet to support your appeal.
Pitting schools against each other usually only works if your top choice accepts appeals without financial changes. Specialized skills can help—but you’ll need to share competing offers.
“If another school offers more, we ask for their award letter and a short essay on why they’ll succeed here,” says Kathleen Gailor of the Culinary Institute of America.
Charlie Javice, founder of financial aid tool Frank, says to “present your case clearly and politely.” She successfully negotiated more aid all three years at Penn. “Schools will work with you—they don’t want to lose good students.”