Financial Aid and College Affordability | Episode 005

Guest: Amber Gilsdorf

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Understanding Financial Aid Basics

  • Financial aid is any money from any source that helps pay for education.

  • Under the “financial aid umbrella,” one side is need-based aid, the other is merit-based aid.

  • Need-based aid is driven by income and assets (parent and student) and can include grants, scholarships, loans, and work-study.

  • Merit-based aid is often “money for being awesome”—based on academics, talents, or other achievements—but in practice functions as a tuition discount determined by the college.

Need-Based Aid, FAFSA, CSS Profile, and SAI

  • The FAFSA (Free Application for Federal Student Aid) is required at all schools that offer federal aid and uses “prior-prior year” tax information.

  • The FAFSA looks at income and a snapshot of assets at the time you file, for both parents and student (if the student files taxes).

  • Some colleges (often more selective ones) also require the CSS Profile, a more detailed financial aid application that asks about home equity, private school tuition, trust funds, and more.

  • The Student Aid Index (SAI) is the dollar amount colleges think a family can afford per year—and it is often higher than families expect.

  • Appeals are possible, but they happen at the college level, after aid offers are issued.

Merit Aid: What Families Often Misunderstand

  • A strong GPA or impressive activities do not guarantee merit scholarships.

  • The biggest driver of whether you receive merit aid is the college’s own financial aid policy, not just the student’s profile.

  • Not all colleges offer merit aid at all—some (like Ivy League schools) offer need-based aid only.

  • Some merit awards are automatic with admission; others require extra applications, essays, or interviews and are awarded to a small number of students.

Building a Realistic Plan and Budget

  • The primary driver of what college will cost you is the college you attend, not just your grades or test scores.

  • Families should talk about budget and expectations early, before the college list is finalized.

  • Think of it like buying a house or car: you don’t just shop first and figure out the price later—you start with a realistic budget.

  • Build your plan around: what’s been saved, what can be covered from cash flow, and what you expect the student to contribute.

Tools and Calculators That Can Help

  • Use NAPFA’s SAI estimator to get an estimate for both FAFSA-only and FAFSA+CSS schools.

  • Use MEFA’s SAI estimator as a second data point for FAFSA-only schools.

  • Once you have a college list, run each school’s Net Price Calculator on its website to estimate total out-of-pocket cost.

  • Treat all calculators as estimates, not guarantees—some are more sophisticated than others, especially around merit.

Communication and Expectations

  • Transparency within the family—parents with students and with anyone else helping pay—is essential.

  • When there’s space for assumptions, there’s space for inaccuracy and disappointment.

  • Clarity about cost and expectations early on can prevent heartbreak later and help students build lists that are both exciting and affordable.

EPISODE

Summary

College is expensive—but it’s also confusing. Families hear terms like need-based aid, merit aid, SAI, FAFSA, and CSS Profile and are somehow expected to turn that into a plan they can afford.

In this episode of The College Talk Show, host Chris Bell talks with college affordability expert Amber Gilsdorf about how financial aid actually works. Together, they unpack the difference between need-based and merit-based aid, how colleges decide who gets money, and why the biggest factor in what you pay is often the college itself, not just your GPA or test scores.

Amber shares how her own experience with student loan debt led her to dive deep into financial aid, and how that knowledge now shapes the way she advises families. She explains the key ingredients of the FAFSA and CSS Profile, what the Student Aid Index (SAI) really represents, and why families should treat college costs more like buying a house or car—by starting with a realistic budget.

You’ll hear specific tools and calculators families can use, common myths that cause confusion or false hope, and practical advice on when and how to talk about money as a family. This episode is designed to help students and parents move from vague worry to informed decision-making.

Episode Quotes

“What you pay for college depends less on your GPA and more on the college you apply to.” — Amber Gilsdorf

“Merit aid is often talked about as ‘money for being awesome,’ but in practice it’s a discount the college chooses to offer.” -- Amber Gilsdorf

““An SAI is the dollar amount the college thinks you can afford each year. No one has ever said to me, ‘That number looks great, can’t wait to pay it.’” -- Amber Gilsdorf

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About The Guest

Amber Gilsdorf is a college affordability specialist and experienced Independent Educational Consultant who has built her practice around helping families understand the real cost of college. Her own experience with significant student loan debt pushed her to learn everything she could about financial aid, borrowing, and long-term impact—and that expertise now informs the guidance she provides to students and parents.

Amber works with families to:

  • Clarify college budgets and expectations

  • Understand the difference between need-based and merit-based aid

  • Use calculators and tools to estimate likely costs

  • Build college lists that are both academically and financially realistic

She is also a contributor to Estrela Consulting’s blog, including the popular “Hidden Scholarships” post that helps families discover competitive, lesser-known scholarship opportunities that go beyond general internet searches.

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