Affluent Families Discover Untapped college Financial Aid Sources
WASHINGTON, D.C. – A growing number of affluent families are actively seeking and securing college scholarships and grants, challenging the common perception that financial aid is solely for those with demonstrated need. Experts say a strategic approach to navigating the complex landscape of college funding can yield notable savings, even for households with considerable assets.
While often overlooked, “free money” for college isn’t limited by income. A combination of scholarships, state programs, employer benefits, and precise timing can substantially reduce college costs without impacting long-term investment strategies or liquidity, according to financial advisors. Even families who don’t qualify for need-based aid can find opportunities, particularly if their student has a strong academic record or unique talents.
The key is alignment – matching a student’s profile with available funding sources. Unlike loans, grants and scholarships don’t require repayment.The potential savings are substantial; families can reduce overall college expenses by thousands of dollars annually.
Negotiating Scholarship Offers
Don’t accept an initial financial aid package without exploring potential for adjustment. A direct, professional email to the admissions office outlining competing offers can be effective.For example, a family could write: “We’re grateful for the $12,000 scholarship offer. [Competing university] has offered $15,000. Is there any room for adjustment?”
Schools are often willing to re-evaluate awards for high-priority students.
Understanding Renewal Terms
Securing a scholarship is only the first step. It’s crucial to confirm the renewal terms, as many scholarships require maintaining a minimum GPA or credit load. Always obtain renewal criteria in writing to avoid unexpected loss of funding.
Ultimately, experts recommend treating college funding with the same diligence applied to other financial planning aspects.
This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff.You can check adviser records with the SEC or with FINRA.
