If you have a youngster going to college, don’t assume that you won’t qualify for financial aid just because your family has ample income. A recent academic study found that 22 percent of families making $100,000 or more were receiving financial aid. Your student might not qualify for aid from a lower-cost college but might qualify for aid from a more expensive–and perhaps more desirable–school.
The majority of financial aid comes in the form of loans, which will have to be repaid. However, the loans are often subsidized so the borrower doesn’t have to pay interest or principal on the loan until after the student leaves school. In addition to loans, the student may receive financial aid via work-study programs while many colleges (particularly private universities) provide grants or merit scholarships from endowment funds.
Even if your family doesn’t qualify for aid one year, the next year some financial support might be available. The university’s aid pool or criteria may have changed or your own circumstances may be different: you might have a second child entering college, which will boost your prospects for financial aid.
