Module 3 of College Afforability Project: A Tutorial for College Aid Pro™"-Handout #2: How Much Colleges Think You Can Afford

Handout #2: How Much Colleges Think You Can Afford

Pdf Summary

The College Affordability Project is a framework created by Joe Messinger that aims to help navigate the complex world of college funding. There are five critical things to consider when planning for college expenses. <br /><br />Firstly, colleges will assess how much they think you can afford to pay. This is determined through the Free Application for Federal Student Aid (FAFSA), which takes into account factors such as income and assets.<br /><br />Secondly, the total cost of college each year, known as the Cost of Attendance (COA), is an important factor. This includes tuition, room and board, books, and other fees.<br /><br />Thirdly, the financial aid need is calculated by subtracting the Student Aid Index (SAI) from the COA. This determines the amount of financial aid that may be awarded.<br /><br />Fourthly, the college funding gap refers to the difference between the COA and the financial aid received. This can result in the need for student loans to cover the remaining costs.<br /><br />Lastly, it's important to be aware of the changes in the financial aid landscape. The FAFSA simplification act, effective from 2024-2025, reduces the number of questions on the form and expands access to aid for low-income families. Additionally, there have been changes to asset protection allowances, income protection allowances, and the treatment of outside assets.<br /><br />Overall, the College Affordability Project provides a framework to understand and navigate the college funding maze, helping families plan for the costs of higher education.

Keywords

College Affordability Project

Joe Messinger

college funding

FAFSA

Cost of Attendance

financial aid

student loans

financial aid landscape

FAFSA simplification act

higher education