Fine Tuning the College Equation | PSAT and National Merit Scholarship
Episode 114R
Episode Guide
Episode Timestamps
Navigating College Costs: Actionable Strategies for Financial Independence
Reducing your college expenses while maximizing your financial aid is essential in an increasingly competitive education landscape. Here, we will explore effective strategies to minimize costs and secure funding, ultimately empowering families towards financial independence.
Understanding the Evolving Landscape of College Admissions
The college admissions process is evolving, especially regarding GPA requirements and scholarship opportunities. Understanding how GPA plays a crucial role in financial aid is paramount.
The Importance of GPA
In today’s world of grade inflation, maintaining a strong GPA is more critical than ever. Increasingly, colleges are placing weight on GPA alongside standard test scores. A solid GPA not only bolsters your college application but also helps secure merit-based scholarships. If your current GPA is lower than desired, take proactive steps to improve it, as this can directly impact your financial aid potential.
Maximizing Financial Aid Opportunities
You can significantly reduce college expenses with strategic planning and a well-informed approach to admissions processes.
Standardized Tests: The Gateway to Scholarships
Equally important, preparing for standardized tests like the SAT and ACT can yield substantial financial gains through merit-based scholarships. Allocate time to prepare for these tests just as you would for any key academic endeavor. The potential financial rewards are compelling; improvements in test scores could translate into thousands of dollars in scholarships.
For example, focusing efforts on achieving a high score can mean an increase in offers from colleges, sometimes reaching as high as $100,000. Use practices tests to gauge readiness and improve performance.
Dual Enrollment Programs: A Strategic Advantage
Taking advantage of dual enrollment programs allows high school students to earn college credits while still in high school. These programs often reduce the time and cost of obtaining a degree by allowing students to transfer credits earned at their local community college towards their future degree.
AP and IB Credits: Graduate Early
Advanced Placement (AP) and International Baccalaureate (IB) programs offer high school students the chance to earn college credit, allowing for earlier graduation. Students should strive to obtain high scores on AP exams, as some colleges grant credits only for scores of 4 and 5. This flexibility not only reduces tuition but can also provide options for changing majors without delaying graduation.
Resident Advisors: A Hidden Financial Gem
Consider the financial savvy option of becoming a resident advisor (RA). Being an RA may sound like a hefty commitment, but the financial benefits can be significant. Many colleges offset housing costs, leading to savings that can reach tens of thousands of dollars over the course of two to three years. This position often comes with additional perks, such as waiving internet fees and offering access to exclusive campus resources.
If you're considering this route, start familiarizing yourself with the application process early. Engage with the residential life office to position yourself as a strong candidate.
The Role of National Merit Scholarships
Aspiring students should also consider the National Merit Scholarship Program as a potential funding source. The PSAT serves as the qualifying test for this scholarship. Scoring 1300 or higher positions students well for consideration and can significantly impact financial aid packages offered by prestigious institutions.
Be proactive; take the PSAT seriously, and strategize your preparation to maximize your prospects for this scholarship. Many colleges have recognized the value of National Merit Scholars and will extend generous offers to attract these students.
The Art of Choosing Colleges
When applying to colleges, don't limit your choices to elite institutions. Research schools that offer generous merit-based scholarships, as these can greatly reduce the financial burden of college. Sometimes, schools with less rigorous admission standards can provide lucrative financing packages.
The Strategy of College Applications
Applying to a range of institutions can increase your chances of receiving generous merit aid packages. While you may have ambitions for the Ivy League, the path to financial aid may be broader than you think. Many families overlook great financial opportunities simply because they don’t consider a diverse range of colleges.
Actionable Takeaways
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Prioritize Standardized Test Preparation: Allocate time each week to practice for the SAT/ACT and consider summer preparation intensively.
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Explore Dual Enrollment: Take advantage of local community college offerings while in high school to earn credits.
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Apply to National Merit Scholarships: Research which colleges reward National Merit status with merit aid.
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Embrace the Role of Resident Advisor: If considering a position as an RA, inquire about the selection process early and get involved in campus activities.
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Investigate College Choices: Look beyond elite schools and research mid-tier schools with strong merit awards; they may provide significant financial benefits.
Conclusion: Take Control of College Costs
Navigating the financial aspects of college is daunting, but with informed strategies and planning, families can significantly mitigate costs. Begin conversations about GPA, standardized testing, and college choices early. Knowledge is power in the pursuit of financial independence—start your planning today, and your future self will thank you.
- Financial independence is generally about knowing the rules and making decisions according to what you value in life.
- Many colleges use an equation to award merit aid --> a specific GPA + a specific test scores = a certain amount of merit aid.
- With a better strategy to studying for the SAT or ACT, even a small bump could save someone tens or hundreds of thousands of dollars.
- Is it better to get a summer job, or spend the summer studying for the SAT/ACT?
- With the Common Application, it’s beneficial to apply to a few extra schools because the merit aid packages available are hugely varied.
- Just being aware of the rules gives you the best opportunities to succeed, and to opens up as many options as possible.
- How has Brad’s mindset toward paying for college changed during the past two years of ChooseFI interviews?
- A message from Paul in the Facebook group, who appreciated that Brian presented college scholarships with a realistic perspective about the challenges.
- A comment from Rayanne, who shares the process her daughter is navigating as a graduating senior in California, looking for the best scholarship opportunities.
- Lynn is grateful for Brian’s realistic suggestion that students don’t start studying for the SAT until the end of their sophomore year; in New Jersey even sixth graders are being asked to consider future standardized tests.
- Julie messaged to remind parents that students should also study for the PSAT, as the PSAT is what determines a student’s National Merit standing.
- Brian Eufinger, from Monday’s episode, returns to talk about the PSAT and National Merit Scholars:
- CLEP credits and dual enrollment are good options for high school and current college students.
- Academic Common Market – in some states, students can pay in-state costs at an out-of-state school if they’re majoring in a subject unavailable in-state.
- Making a college-transfer strategy early will help students transfer from a community college to a four-year institution without any hiccups.
- “There’s no greater financial aid than finishing in four years.”
- Bringing AP credits into college gives a student more flexibility to change majors, study abroad, work internships or co-ops, or study for post-grad tests.
- In rural areas that don’t offer as many AP courses, many states offer online AP courses.
- The reward for being a National Merit Scholar varies widely between universities, but can be as much as a full ride, books, etc.
- PSAT is offered in sophomore and junior year.
- If your sophomore student scores higher than 1300 on a PSAT, it’s a disservice to not study for the PSAT in their junior year.
- Only 50,000 students get National Merit status:
- Top 16,000 students are awarded “semi-finalist” status
- Next 34,000 get “commended” status
- Many campuses offer cash for participating in graduate research projects.
- Being a Resident Advisor (RA) at most schools earns you free room and board, which can be as much as $20k a year.
- Becoming an RA is typically competitive, so start planning your application earlier.
- Being an RA is potentially the biggest scholarship you can get.
- The financial independence group in Scandinavia just surpassed 1,000 members.
- The Houston ChooseFI Local Group is hosting Alan Donegan from the Pop Up Business School, along with the San Diego and Los Angeles local groups.
- Jonathan will join the Washington, D.C., Local Group for a meet up soon.
