True. For many families, the lion’s share of financial aid is in the form of federal loans often supplemented by private loans, particularly when incomes are above a certain level and many need-based grants have been ruled out.
Important caveat: If you combine all grant/scholarship aid dollars from all sources for all undergraduates, the amount would exceed the total federal loan dollars. Federal loans constituted 34% of total undergraduate student aid in 2013-14, according to the College Board.
How did you do? Hopefully this information has helped you to better understand the financial aspects of college planning — in particular the powerful but somewhat complex 529 college savings plan. To learn more about 529 plans and selecting the right plan for your situation, contact a qualified financial advisor.
For more on the financial aid process, the following organizations offer ample, free information:
- The College Board: Call your regional office or visit collegeboard.org.
- FinAid: Visit http://www.finaid.org.
- U.S. Department of Education, Federal Student Aid Information Center: Call (800) 433-3243 or visit www.fafsa.ed.gov.