The cost of college is an important consideration for most families — that cost climbs every year, and recently, at a level exceeding the rate of inflation. But value – how do we judge that? Can we take empirical indicators (which, it seems, may or may not be valid), total them up to create “academic worth” and then divide by the price tag? It’s much bigger, more individual and much more complex than that.
When you are submitting the FAFSA, common financial information is shared with each college designated. Just as your family has a unique financial situation, colleges have differing financial aid budgets, merit scholarship programs, institutional priorities, endowments and other tools at their disposal. Assessing the average “discount” given to matriculating students provides an indication of available merit aid, but shouldn’t be used to create an expectation of merit aid.
Some colleges, such Princeton (profiled by Princeton Review in the segment) have substantial endowments and have made an amazing commitment to making the school affordable to every student who is admitted. Earning admission is the hard part. Since Princeton does not offer merit scholarships, the true cost of attendance is based upon your family’s need for assistance.
If you are fortunate, and your family is planning to pay your full tuition and related expenses for college, value may still be a consideration. Are you planning to attend graduate school? How are you planning to pay for it? What are your career goals and how should you factor that into debt load? Is a state university with a lower price tag a good option for you? How about a less highly regarded college that offers you a substantial merit scholarship? Each scenario has positives and negatives, but all merit consideration in your planning.
When I begin comprehensive discussions with families, we always touch at least briefly on cost. I give them the following statement to complete:
College is expensive and…
- We are prepared to cover all costs.
- We are planning to apply for need based financial aid.
- We are specifically interested in colleges that offer merit scholarships.
- Cost of attendance will be a factor in where our child goes to college.
- We have discussed the role of finances in college choice with our child.
The answers to the first three statements help me to offer suggestions of colleges that might make financial sense to a family. The latter two statements are designed to encourage conversation.
As you compile your tax papers before April 15, consider talking with your student about financial ramifications to their college search. I don’t recommend eliminating colleges from consideration based solely on cost at this early stage. As a parent, there is nothing worse than dashing your child’s dreams. An honest discussion now is far better than seeing the joy on a child’s face after receiving an acceptance letter and dulling it with financial concerns about which he or she was previously clueless.