Can You Afford College?
Answers to the Top Four
Questions That Parents Face
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By Laurie Evans

Next month, high school juniors all across the state will be taking the ACT as one of the first steps in the long journey toward college admission.

While the students are answering test questions, their parents will begin asking questions of their own.

Which college is the best fit for my student? How will I pay for this? Where can I find scholarships? What about loans?

Lexington Family Magazine has gathered these answers to some of these questions to help students and parents on the road to college.

1) What is a FAFSA form and does my child need to fill it out?
College is expensive. How much financial aid your student will qualify for depends upon your financial situation -- and this depends on something called your Expected Family Contribution or EFC.

The Free Application for Federal Student Aid (FAFSA) is the form used by the U.S. Department of Education to determine your Expected Family Contribution by analyzing your need according to your financial information, such as income, assets and other household information.

After you submit the form and it is processed, the results are electronically transmitted to the financial aid offices of the schools that you list on your application.
FAFSA is the application used by nearly all colleges and universities to determine eligibility for federal, state, and college-sponsored financial aid, including grants, educational loans and work-study programs.
Info: www.fafsa.ed.gov/

2) Is KEES money still available and, if so, how do I claim it?
Kentucky Educational Excellence Scholarship (KEES), administered by the Kentucky Higher Education Assistance Authority (KHEAA), is funded by Kentucky Lottery proceeds.

Students who make good grades (2.5 GPA or higher) can earn scholarships for college or technical school in Kentucky. The higher the grades, the more students earn toward college scholarships.

Home school and GED graduates may earn awards based on their ACT scores.
You do not have to apply for a KEES award. It is sent automatically to the college once you are attending classes.

Students who attend out-of-state schools may still be eligible for KEES money.
For the current list of programs and schools eligible for the program, visit http://cpe.ky.gov/policies/academicinit/SREB/ACM.htm.

3) Are people still saving for college in this economy?
A Sallie Mae and Gallup study has found most parents are saving as much or more for their children’s college education as before the current recession.

Although six out of 10 parents have begun saving for college, a smaller percentage -- only 29% -- are on track to achieve their savings goal.

On average, parents who save for college earmark 3.6% of annual income for their child’s education. But households earning under $50,000 set aside 7.5% of their annual income.

4) Are loans still available?
“Yes,” says Meredith Robinson, Marketing Support Manager for KHEAA and The Student Loan People.

Federal Stafford loans are still available for students, and Federal PLUS loans are still available for parents.

Additionally, new rules for some federal loans will allow parents to defer interest and payments until their students have finished college, a big bonus for parents in times of recession.

Private or alternative loans from sources other than the federal government are getting more difficult to find.

“Last year we saw a multitude of private lenders. There are fewer now,” says Robinson.

Robinson recommends that parents go to the KHEAA.com website and click on the link to The Student Load Marketplace.

Parents can fill out one application, which is distributed anonymously to a variety of lenders who offer rates and payment plans