Waiting on FAFSA? Consider alternatives...

This past week, the Department of Education released another announcement describing an error. The new issue could force the Department of Education to reprocess thousands of applications which will further delay the release to colleges and universities. The delay to these institutions will also shorten admission decisions for thousands of high school seniors because their aid packages have not been finalized. While waiting on the FAFSA, it may be beneficial to consider alternatives.

First, have your student log into the Department of Education/FAFSA website and verify the form has been processed. Once processed, you'll receive a Student Aid Index (SAI) score. This new score replaces the previous equation and evaluates expected family contribution amongst other variables. The purpose of the score was to help colleges more accurately assess student need; however, the commission of inflation as well as the recent issue may be concerning.

I highly recommend reviewing how your SAI may correlate to funding by visiting The College Investor and My College Corner. Both websites have charts and resources to help you navigate the amount of aid versus contribution money for college. If your FAFSA data has been transmitted and you have an SAI, this is what colleges and universities will be using to offer aid packages.

After you have verified your FAFSA form and data are complete, reach out to the admission representative or the financial aid office at your schools to see if they have received the information. The data is being released slowly and with the new error causing a reprocessing, there will be increased delays. Subsequently, many schools are not requiring students to commit until May 15 or later. Again, check with your school to verify any new timeline based on the receipt of your FAFSA information.

Now is the time to do some strategizing...list the schools you have been admitted to and if aid is known, make a note. Verify any athletic scholarships, outstanding grant applications, merit aid or other financial contributions - ensure these are calculated before deciding on school of choice.

In the event your financial aid packages are incomplete or the school has not received your FAFSA, now is a great time to do some research. Research federal loans first as once your FAFSA is on file, you'll be eligible for subsidized and unsubsidized student loans. Next, research any private loan options through credit union or other lending institutions. Be sure to check interest rates, payback timeline, co-signer or other necessary details. Other funding options may include 529 accounts or other investments made on your behalf by family members. Check the fine print on the 529s because not all schools can be paid for with 529 accounts. Case in point: room and board costs cannot be funded from a 529 if the school does not offer on-campus dining facilities and/or meal plan. A tax professional can assist with these fine points.

Finally, apply to scholarships...since the issues with FAFSA are well-known, the landscape for scholarships and other available funding has also changed. Many spring deadlines are being extended to accommodate for an increase in applications and some annual options are also changing the application criteria. Some scholarships are more focused, while others have decreased the amount to provide options to more students. Regardless, while you wait, apply, apply, apply!

I suspect the FAFSA issues will lead many colleges and universities to extend deposit deadlines as well as registration for first-year freshman courses. This will cause a bit of chaos and may be beneficial to last minute acceptances. Stay tuned, the next 30-45 days will be interesting for families with high school seniors!

Do you know about articulation agreements?

What Is an Articulation Agreement? 

An articulation agreement is a formal agreement or contract (like) between academic institutions. The agreement describes how credits earned at one institution will transfer to another institution. This includes course equivalencies and program requirements specifically for students transitioning from a two-year school to a four-year school and in some cases - into a direct-admit program. Students who qualify to transfer under an articulation agreement may have their satisfactorily completed academic credits applied toward their new academic program. The main purpose schools establish these agreements is to streamline a transfer process - a win for students and a win both schools.

What Is the Purpose of Articulation Agreements for Transfer Students? 

Articulation agreements play a crucial role in promoting accessibility, affordability, and efficiency within bachelor’s degree and direct-admit or pre-professional programs. Students who take advantage of articulation agreements will have their completed coursework recognized by the receiving institution - ensuring a seamless transfer. Students must still meet the admission requirements for the transfer institution since articulation agreements are not a guarantee of admission.  

Articulation agreements are becoming more popular and many states have established portals or databases where incoming freshman can research all articulation agreements within the state. Students attending community colleges can also take published agreements and use them at out-of-state or Ivy League schools to ensure the proper coursework is completed. Community college students can use articulation agreements to transfer to Ivy League schools - please be sure to speak with transfer coordinators or academic advisors prior to beginning any program.

Types of Articulation Agreements 

What are some of the types of agreements?

• Course-to-course or course equivalency: This agreement identifies how individual courses match between both institutions in terms of relevance, content, and learning outcomes 

• Program to program: Aligns two-year degree programs with comparable four-year programs in terms of general education/core requirements, major requirements, and electives. An example of this would be completing General Education/Core courses in preparation for a Bachelor's degree in Elementary Education; these are sometimes called a 2+2 program.   

• Joint/dual admissions: This agreement allows students to be admitted to both institutions simultaneously, though they are only enrolled at one institution at a time. Since the institutions have a reciprocal agreement, the student receives credit for all coursework completed.  

• Guaranteed admissions: The student is granted admission when a certain set of requirements are completed. Students may need to complete additional requirements to gain admission into specific programs, like a pre-professional program.  

• Joint/Dual enrollment: Allows students to be enrolled in more than one institution simultaneously. This is common with high schools, allowing students to complete their high school diplomas while attending college courses to work toward a degree. In some cases, these may be referred to as a "fifth year" or "early middle college" program depending on the program.  

It’s important to understand how the transfer process works between your current school and the school where you want to transfer so you know what to expect - be sure to verify all courses, credits and any special admission criteria are completed before the transfer is initiated.

Need help?

Aspen Ed reviews transcripts and coordinates with all institutions to verify transferability. If you need assistance, please contact us to set up a complimentary consultation.

Trends in College Pricing and Aid, 2023

As the 2023-2024 academic year enters the final push following spring break, parents are finalizing funding plans for the first year of college. The College Board conducted research and provides data in their latest report: "Trends in College Pricing and Student Aid, 2023."

While the report is data heavy and includes very nuanced data related to income and inequity, there is a glaring detail parents should take note of: enrollment is declining. Why does this matter?

According to the report, between fall 2019 and fall 2021, enrollment declined 5 percent (about 947,900 students). Most of this is due to COVID and we have not seen the recent data, but I would hedge a bet, most campuses have not fully recovered to pre-pandemic enrollment levels. As such, the availability of federal aid, institutional (merit & needs) funding, grants and loan packages will also decline.

Additionally, with many community colleges offering dual-credit or dual-enrollment programs, the K-12 school district is paying the costs, resulting in a change of source, but not necessarily the number of students serviced by the institution. The pot of money used to assist needs-based students has been relocated to some state sources, shifted to schools with larger direct-admit or some schools are offering special programs for in-district "free" tuition when certain criteria are met.

For parents, this means tuition may increase to offset declines in funding sources. The report indicates in the 2022-2023 academic year, tuition increased anywhere from 2 percent to 4.5 percent depending on public/private institution or two-year/four-year program. Once the 2023-2024 data is released, I'll post the report here.

Finally, the report does not directly address the direct-admit offer many state-schools have implemented to the top 5 percent and 10 percent of in-state graduating classes. These public, state schools automatically admit students who meet the criteria in hopes of increasing the size of the incoming freshman class. In turn, the larger class size may increase federal funding provided to the school to offset institutional aid. The down side to guaranteed admission is a less competitive process also means fewer spots for everyone else. For less populated, more rural states, this may not be a big deal. However, for larger school systems in heavily populated states where students wish to save money by living at home, the available aid will decrease. Additionally, the prospect of receiving larger aid packages as an out-of-state student are also decreasing.

I encourage everyone to review the report from College Board and investigate how the findings may impact your personal situation. With the delayed FAFSA and schools also adjusting their merit and needs-based aid packages, this year will be one to set the financial baseline for classes beginning in fall 2025. Stay tuned!