Ruling our colleges based on sticker price is one of the most common mistakes.
College sticker prices are through the roof, so thoughts about the future often loom large for parents of college-bound teens. If you find yourself feeling completely stressed out when you ponder college planning, you’re not alone. Understanding how colleges make financial decisions should help reduce your stress and influence your financial planning process.
Here’s a breakdown of fundamental strategies to help you find and afford your best college options.
- College Decision-Making Process
Annually, college administrators develop and refine decisions about how to allocate their funds. Their goal is to attract the best-fit students, balancing merit-based and need-based scholarships to achieve this. This means your financial aid packages can vary significantly from one institution to another. Understanding this variability is key to managing expectations about college costs.
- Variability in Scholarships
Due to differing strategies, the scholarships and financial aid your teen receives can vary widely depending on the college. A college where your teen is a highly competitive applicant may offer more generous scholarships compared to others. Therefore, it’s unrealistic to expect the same financial offer from every college where your teen gains admission.
- Including “Likely” or “Safety” Colleges
To mitigate costs, it’s essential to include a range of colleges on your teen’s application list, including “likely” or “safety” schools. These institutions, particularly private colleges, often have more flexibility in offering huge discounts to attract students. This strategic approach can help ensure your teen has viable options that are financially very manageable.
- The Myth of Sticker Price
Many families panic in response to colleges’ “sticker prices.” These prices are misleading; in most cases, they do not reflect the actual cost after scholarships and financial aid are awarded. Understanding this can alleviate some of the financial pressure you feel in your college planning.
- Crafting a Diverse College List
As you help your teenager in building their college list, consider the potential costs associated with each institution. A strong college list should include a mix of reach schools, target schools, and safety schools. This mix encourages considerations are made not only for academic fit but also for financial feasibility.
- Leveraging Financial Aid and Scholarships
Lastly, be proactive in researching financial aid options and scholarship opportunities. Encourage your teen to apply for a diverse mix of scholarships. These funds can significantly offset college expenses. Understanding the financial aid process and deadlines is crucial to maximizing opportunities for financial assistance.
Conclusion
To reduce your college costs, you need to employ a proactive approach and to understand how colleges allocate aid. By diversifying your teen’s college list and being aware of scholarship opportunities, you can manage college expenses. Remember, above all, the “sticker price” isn’t always what you’ll pay, and strategic planning can make college more affordable.
Fitz has dedicated the entirety of his 28 year career to encouraging higher education opportunities. He worked in the Vanderbilt, Duke Law and St. Lawrence admissions offices prior to serving as an enrollment management consultant for 200+ selective colleges around the country. He created Find The Right College to make trustworthy college counseling more accessible. Fitz is also the father of two teens so he also understands first-hand the challenges associated with a college search.
