Negotiate a Better Financial Aid Package

Some schools have endowment money saved to compete for the top academic students, says Jonathan Stroble, Senior Manager at Georgia Student Finance Commission. High achieving students with a GPA above 3.8 on a 4.0 scale can negotiate with small private arts colleges, says Vicky Campbell, adviser at Oakton High School in Virginia. "These schools have a lot of money to give to help lure top students from state schools. They're going to try to come a couple grand under a state school," she says.

"During an in-person meeting, you and your teen can have a frank conversation about family finances, and the financial aid counselor can talk about potential need-based financial aid adjustments and other funding options that might be available," Campbell says. Other funding options could include, but aren't limited to, department scholarships, community scholarships and university grants, she says. Always come into the meeting with a list of your student's talents as well as family financial details, she says.

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Always ask for a financial aid review if circumstances change, as some universities have special committees for reviewing financial aid in situations where, say, a parent recently lost a job, Campbell says. The committee discusses everything from additional Pell to University Grant Eligibility based on the individual's circumstances, she says. When possible, a revised financial aid package is offered afterward. If changes in family finance are a part of the discussion, be prepared to show proof, Stroble says. Examples of documentation are layoff letters or a recent paystub that shows reduced income.

If accepted into an out-of-state school, contact the office and say, "We've only saved for in-state tuition. Can you do a match?" Campbell says. An out-of-state public school may budge on tuition if they're trying to get more students from a certain region. At Campbell's school, a student was able to get in-state tuition at an out-of-state public school just by asking that question. While not a negotiation tactic, remember that public schools in neighboring states may have programs in place for reduced tuition from normal out-of-state rates, she adds.

If your student is a future president of the United States, have her ask the financial aid office about leadership scholarships, Campbell says. Scholarships are generally limited to three to five full-boat scholarships per university, she says. These are generally available at both state and private schools. Your kid could be a good candidate if she is active in the community and in student council, she says.

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Major-specific scholarships can help fill financial aid gaps, Campbell says. If your teen will be an art major, see if there are any departmental scholarships in the art department, she says. Be prepared to help your kid write scholarship essays if needed. Remember to ask about these as soon as possible. Each scholarship could have different application deadlines. Also, remember to ask about future deadlines. It's entirely possible that, while a fall semester deadline may have passed, the spring deadline is still coming.

"So many students get one-time awards their freshman year and then never reopen the financial aid discussion," Stroble says. "Have meetings with financial aid officiers every year to discuss financial aid." The bonus to reviewing financial aid annually is that your student may be a better candidate for scholarships if he gets better grades in college than in high school. "There are specific scholarships for upperclassmen, just as there are for freshmen and sophomores," Stroble says, "and you have to apply for them." You may not get scholarships your first or second year, but they still could come in year three or four.

Start communicating with your teen's high school counselor as early as possible, and continue the communication after receiving your financial aid award letter. "They're going to have a better idea than probably anybody else about community scholarships," says Stroble. For instance, you may live in Atlanta, but your counselor may know about a scholarship from the home builders' association in Birmingham, where your teen will attend college.

Before negotiating for more financial aid, students and parents need to review financial awards letters in detail, looking not only at the final amount the family will pay, Stroble says. The total financial aid award amounts listed could include grants, scholarships and/or student loans. "Since student loans do have to be paid back, it's important that families base the acceptance of this part of the financial aid award letter on a realistic expected salary for the student's degree," he says.

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"Explain how the institution would benefit from the student attending there," says Westminster College Financial Aid Specialist Kimberly Sharratt. "What exactly is the student bringing to the table?" You or your teen can talk about his community involvement, grades or commitment to his field of study.