Paying for college the focus of ‘Financial Aid 101’

By STEPHANIE BERNABA
Posted 10/23/19

About a hundred Cranston families came together at the Cranston High School West Auditorium on Oct. 6 for an informational panel discussion, “Financial Aid 101,” designed to explain the …

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Paying for college the focus of ‘Financial Aid 101’

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About a hundred Cranston families came together at the Cranston High School West Auditorium on Oct. 6 for an informational panel discussion, “Financial Aid 101,” designed to explain the intricacies of applying for college financial aid in Rhode Island.

The event, geared towards families of high school juniors and seniors, was hosted by U.S. Sen. Jack Reed and featured a panel of experts, including representatives from the Rhode Island Student Loan Authority, the College Planning Center in Warwick and the Rhode Island Association of Student Financial Aid.

Reed, who opened the meeting and then left to attend a prior engagement, noted that student lending in the United States is “only second to mortgage lending,” and he urged families to “be judicious in your loans.”

Charles Kelley, executive director of the Rhode Island Student Loan Authority, moderated the panel discussion.

Stacy Crooks, director of the College Planning Center, used her time to discuss the Free Application for Federal Student Aid, or FAFSA, including procedures and application deadlines.

She also discussed the function of the CPC, explaining that the center provides free services to all Rhode Island families. She said center, located near Target inside the Warwick Mall, is open seven days a week from 9 a.m. to 7 p.m., and is available to help during all stages of the process.

Anne McDermott, director of financial aid for Salve Regina University in Newport and the board president of the Rhode Island Association of Financial Aid Administrators, explained the timeline for applying for financial aid, including deadlines and other important dates, and stressed that financial aid and application deadlines for college are rarely ever on the same date.

She continued by explaining that a student who applies to a college may learn they’re accepted to a college long before they learn what or how much their financial aid award would be. She urged families to wait to accept invitations until they receive this very important piece of information.

“Every school has a slightly different timeline for when awards are given,” she explained, noting that in general, award decisions seem to be made by May 1.

“Have open and honest conversations with your family about college affordability,” she cautioned. “Put it out in the open – what can your family afford? What are you willing to pay and for what services?”

McDermott repeated several times that the decision of where to go to college should not be taken lightly, and all factors – including affordability, family structure, and how many individuals in the family were or would be attending college – are worthy of discussion and consideration. She urged families to be mindful of deadlines, and to be in contact with each financial aid office in order to understand each individual school’s deadlines and policies.

Frank DeLuca, a CPA and personal financial specialist at Piccerelli Gilstein & Co. of Providence, informed attendees of the tax implications of attending college, explaining tax exclusions, tax credits and tax deductions.

DeLuca explained and described 10 types of credits or financial situations that may help relieve the burden of college for the taxpayer, including the Lifetime Learning Credit, which can be claimed throughout an active student’s lifetime; Section 529 Plans, which provide a place for parents and grandparents to save for their childrens’ educations; student loan interest deductions; and the tax implications of scholarships, fellowships and grants, which, he explained, are not taxable.

Charles Kelley also urged attendees to visit rischolarships.org, a site that lists small, local scholarships for Rhode Island students, and encouraged students to apply for all awards which they may be qualified.

To close the meeting, Kelley reminded families: “Focus on free money … Borrow as little as you can.”

Following comments, the panel hosted a Q&A for students and their families.

The panel remained after the event to answer individual questions about specific or complicated situations. Nancy Bessette, associate director of financial aid at Rhode Island College, was also present to meet with and answer questions from families.

Visit the College Planning Center of Rhode Island’s website at cpcri.org to plan or schedule an appointment with one of its advisors.

Anyone can text STACY to 24000 to receive a link to download a copy of the RISLA’s Financial Aid 101 presentation.

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