Comparing Aid Packages
When your college-bound student completes and submits the FAFSA (Free Application for Federal Student Aid), the federal government sends the student's expected family contribution (EFC) to the schools the student lists on the FAFSA. The EFC is the amount the student and family is expected to pay toward college.
Colleges subtract the EFC from the total cost of attendance to determine financial need, on which they base the student's financial aid package. The financial aid package includes federal and state grant awards, institutional awards, work-study, and federal student loans.
Each school will send the student an award letter, detailing the types and amount of financial aid the school is offering. You and your student should compare the award letters from various schools to determine which offers the best financial package. The Award Analyzer on EducationPlanner.org makes it easier for your student to compare aid packages. Enter the financial aid information from each award letter into the spreadsheet, then select "Calculate" to see the results. The Award Analyzer allows you and your student to compare the award packages side-by-side to determine which college offered the best package.
Trends in Student Aid
The recent College Board report "Trends in Student Aid 2009" found that undergraduate students in 2008–2009 received an average of $10,185 in financial aid per full-time equivalent (FTE) student. This included $5,041 in grant aid and $4,585 in federal loans.
Other findings included:
- In 2008–2009, undergraduate and graduate students received more than $168.4 billion in financial aid in the form of federal, state, and institutional grants; federal student loans; federal work-study; and federal tax credits and deductions.
- In 2008–2009, 39% of undergraduate grant aid came from colleges and universities, and 36% came from the federal government.
- Nearly 6.1 million students received Pell Grants in 2008–2009, with recipients receiving an average of $2,973.
- Total educational borrowing increased 5% from 2007–2008 to 2008–2009. This same time period showed an increase of $14.7 billion in federal loans and an estimated decline of about $10.6 billion in nonfederal loans.
- Approximately 8.5 million taxpayers benefited from federal educational tax credits and deductions in 2008.
Skills for Success
Your teen's job prospects depend on the skills the teen offers to an employer. This is especially true in today's competitive job market. Employers participating in the "Job Outlook 2010" survey, conducted by the National Association of Colleges and Employers (NACE), ranked communications skills at the top of the list of skills they look for in potential employees. Rounding out the top five desirable jobs skills were analytical skills, the ability to work in a team, technical skills, and a strong work ethic.
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