Parents worry about how much college will cost and how they will afford college. Other than purchasing a home, college is usually the largest investment a family will make. Hopefully, families have been saving for college from the time their children were small. But with four years of college costing as much as a quarter of a million dollars, family savings are typically not enough.
The biggest source of aid is through the colleges. Families can save thousands of dollars by selecting the right colleges. Some parents might jump to the wrong conclusion when reading this. They might think that this means their child needs to attend a college with a low sticker price. Colleges, however, are like airplanes. Different people are paying different amounts for the same service. Surprisingly, private colleges may be less expensive than a public in-state college.
Students need to select colleges that fit them financially, as well as academically and socially. The junior year of high school is a great time to begin the college selection process. If you are a rising senior, and haven’t considered the following financial questions, try to address them now.
On the financial side, you need to know:
- Which colleges meet a high percent of need?
- How many years will it take to graduate? (Students will want to check the 4-year, 5-year and 6-year graduation rates at the colleges they are considering.)
- How much money is the most the student should borrow?
- How much money is the most the parents should borrow?
Some families, without the money to pay the college sticker price, ignore these issues and stick their heads in the sand. I don’t recommend that since the family may run out of money before college is completed or the student/family may be saddled with incredible debt for years to come.