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College acceptance letters are in the mail. Are you ready?

This is the time of the year when high school seniors and their families wait anxiously for the mail carrier to bring news from the colleges of their choice. The heft of the envelope usually telegraphs the answer even before it is opened. Since the “yes” letter encloses key forms for the prospective freshman to complete, it is usually thicker. Disappointing news can be politely conveyed on one thin page.

If a member of your family is currently haunting the mailbox (or may be in years to come), you will be interested in the results of The American Express Educational Loan Survey conducted in late February 2001 among 400 parents of college-bound students. According to the survey, 81 percent of the parents said they would likely apply for financial aid to help fund their children’s college educations, but only 30 percent of parents said they were “very well informed” about the application process.

Thirty-seven percent of parents surveyed said the high cost of college would likely mean that their child would attend the school that offers the best financial aid package, and 26 percent of parents said that the “cost factor” may force them to narrow their choices and only consider state or community colleges for their child.

Look for financial aid in a variety of places
Janet Gebert, vice president-marketing for American Express Educational Loans, said: “Over the next several weeks, parents may experience sticker shock after learning how much financial aid their children will receive from schools and how much their family will have to contribute. However, it’s important to remember that sources such as scholarships, grants, federal loans for parents, or personal loans, can also help finance a college education.”

Gebert added these tips for parents and children who are considering college:

• Go to the source. Families should consult all available sources for information; however, their primary contact should be the Financial Aid Office at their selected college. These offices provide valuable information regarding general financial aid advice, and specific facts about the school’s filing deadlines and financial aid resources. High school guidance counselors are also an excellent source.

• For general information. American Express Educational Loans also has a wealth of resources available on its Web site. In addition, parents can call 800-814-4595 to speak, free of charge, with American Express Educational Finance Specialists.

• Plan ahead. One of the best ways to pay for college is to start saving early. Parents could consider working with a financial advisor to help set financial goals.

• Leave no stone unturned. Parents and students should explore all scholarship and grant opportunities available from prospective schools and other organizations. Be sure to learn the filing deadlines and adhere to them.

Additional background and survey results
More information on the financial aid application process can be found in an Advice@American Express column dated May 4, 2000. Key findings from the American Express Educational Loan Survey are also available.

March 22, 2001

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