This website has previously discussed how students can obtain financial aid in order to minimize the amount of debt they borrow to earn a degree. As already discussed, students can usually apply for institutional financial aid at the schools they attend, and outside scholarships and grants are also available for qualified students. However, middle-class student loan borrowers often have less financial aid options, and they usually have to make the most difficult choices when it comes to minimizing student debt.
As mentioned in a few prior articles, I did not receive any help from my family when it came to paying for college and graduate school. My parents and grandparents struggled financially themselves, and they did not have any money that could be used to help me pay for school. However, one thing that separated me from many middle-class student loan borrowers was that I was eligible for generous financial aid.
As many people already know, numerous colleges offer financial aid based on the estimated family contribution the family of a student is capable of making to assist a student in obtaining their degrees. Generally, students need to fill out the FAFSA and other financial aid forms so that the estimated family contribution can be calculated. In addition, students often need to submit documents in order to support their financial aid applications.
Since I knew financial aid would be the main way I would pay for college and graduate school, I made sure to timely fill out all applications needed to apply for financial aid. After submitting my applications and supporting documents, I discovered that I had an estimated family contribution of zero. This meant that financial aid professionals believed that my family would not be able to contribute anything to help me with educational costs.
As a result, unlike many middle-class student loan borrowers, I received generous financial aid to attend college and graduate school. Essentially, because I had serious financial need, I did not have to struggle as much to pay for my educational expenses. If you qualify for financial aid, even if you come from a low-income family, you may have an easier time paying for college and graduate school than other borrowers.
Of course, richer students also have an easier time than middle-class student loan borrowers. Students who come from wealthy families typically have parents who can afford to assist their kids with educational expenses. Indeed, it is rare for wealthy parents to refuse to help their children pay for college and graduate school, and some states even require parents to do this if they are financially capable.
However, middle-class student loan borrowers typically get hurt the most when it comes to paying for educational expenses. Middle-class students are less likely to receive financial aid, since they do not have the same financial need as lower-income students. Of course, depending on the income of a student’s family, they may be able to receive some financial aid to pay for part of their educational expenses. However, it is likely that based on their family’s income, schools will assume that a student’s family is capable of paying for some or all of a middle-class student’s educational costs.
Nevertheless, middle-class students are more likely than others to encounter a situation in which they do not qualify for financial aid, but their parents cannot afford to help them with educational costs in any meaningful way. Even though a school might assume that the family of a middle-class borrower will help with educational costs, there could be many reasons why parents are unable to assist. For instance, parents could be focused on saving for their own retirement, or have medical costs that limit the amount of money they have available to help with educational expenses.
As a result, middle-class student loan borrowers are often in a worse position than low-income students. Of course, some low-income students may not be accepted to schools with financial aid programs, and they may struggle to pay for educational expenses. However, by and large, middle-class student loan borrowers fall through the cracks of many financial aid programs. In fact, when many people seem impressed that I paid for college despite no help from my parents, I tell them that my financial background assisted me in obtaining financial help! Middle-class student loan borrowers often have to face more tribulations when paying for educational expenses.
There are a few things middle-class students can do to receive more financial aid despite the fact that their finances are misleading on paper. Financial aid officers are usually willing to listen to extenuating circumstances that might not be evident on applications and supporting documents. Indeed, I memorably remember my father relating our family’s complex story to my college’s financial aid officer, and this had a substantial impact on my financial aid award. If you feel that the FAFSA and other applications are not painting an accurate picture of your family’s finances, it is important to communicate with financial aid officers to try and secure the most aid possible.
All told, middle-class student loan borrowers often face unique challenges when minimizing their educational expenses. Because middle-class families may not be able to pay for educational costs to the extent projected by financial aid calculations, middle-class student loan borrowers often fall through the cracks. However, by communicating with financial aid officials, middle-class borrowers can increase the likelihood that they receive the most financial assistance possible to attend college or graduate school.