Consider the Investment in Your Education (Part Four of Four)
For families of students recently admitted to college, the weeks immediately following the arrival of the “thick” envelope are a time to re-focus on the final choice of a college. With a May 1 enrollment deadline looming, important decisions must be made. After months, if not years, of researching options and “shopping” for the best “fit,” it is time to determine which opportunity represents the best investment. It is also a time when the cost of attending comes more sharply into focus. The following, then, are thoughts to ponder as you engage in a cost/benefit analysis of your college options.
The first thing you need to do is revisit your priorities. Why are you going to college? You know it is going to happen–the only question is “Where?” In order to figure that out, you need to make sure you know what you expect to get out of your college experience. Specifically, what are the three things you want to accomplish by the time you graduate from college four years from now? Use these priorities to guide you further in choosing among the colleges that accepted you. Which of them provides the best opportunity to achieve your goals?
Next, you and your parents need to determine what that opportunity is worth. Start by looking at the price tags. What is the comprehensive cost of attendance at each school? This number is important if you expect to be a full-time, residential student as it will include room, board, and related fees–on top of tuition. Many schools will report the cost for each semester. Be sure to calculate the total for the year if that hasn’t already been done for you. Does the value that is attached to achieving your educational goals justify the cost of attending a given institution? In answering the question, be careful not to correlate price with the quality of the opportunity, as in doing so, it is easy to lose sight of your priorities.
If you applied for financial aid, sit down with your parents to compare the various financial aid awards or “packages” you have received. Your first question should be: “What will be my family’s degree of financial exposure at each school?” How much do we need to come up with out of pocket and can we manage it? The second question must be considered within the context of each college: “Will my experience as a student and the likely outcomes (earning potential) merit this level of financial exposure?” In other words, what is the value proposition for you in attending that school?
If you are fortunate to have received scholarships or financial aid from any of these schools, subtract the amounts of the gift aid (you don?t need to work for it or repay it) from the cost of attendance for each school. The remaining balance is your expected family contribution (EFC). The award letter may even include references to possible sources of these funds (cash from earnings and savings, educational loans, campus work study jobs, etc.).
You need to be discriminating in your evaluation of the award letters. Some may present seemingly generous packages that are much less robust when you subtract the amount of self-help (loans or work study) you will need to assume. It is important that you compare the actual EFC for each institution. Resist the temptation to compare financial aid awards or the amounts of scholarships received. Taken out of context–without regard to comprehensive fees–a relatively large scholarship at one school may still leave a greater EFC than is the case with a smaller scholarship at a school with a lower price tag.
Ideally, each college would respond to you with the same financial aid. That is not likely to be the case, though, because schools work with different pricing scenarios. For example, you may receive substantial assistance at a high-priced private college but not be eligible for much assistance at a lower priced state-supported university. Or two private institutions that appear similar to you might provide financial aid awards that are very different in terms of the amount your family is expected to contribute as well as the composition (scholarships or loans) of the awards themselves. Remember, each institution will direct its resources toward the students it values most.
That said, if you are confused by your financial aid letter or you see dramatic discrepancies between awards received from different schools, now is the time to seek clarification. While financial aid officers are not inclined to negotiate financial aid awards, they are usually willing to hear appeals based on new information. A few will even offer to match the offer of a competitor. While there are no guarantees associated with the appeal process, you have nothing to lose by asking.
Note to Parents: Most successful appeals are driven by data, not emotions. If you initiate an appeal, remember that you are seeking clarity and fair treatment. You cannot, however, expect or even insist that your student is entitled to anything more or less.
Stick to Your Priorities
In assessing relative value, then, look at each college option within the context of what you are getting in exchange for your investment of time and money. Be careful not to confuse the prestige or ranking of an institution with the strength of the academic opportunity you are seeking. Your success in life beyond college will hinge much more on how you take advantage of your undergraduate experience than on the name of the institution you choose to attend. Again, stick to your priorities. If you have been diligent about searching out learning environments that fit you well–a program that meets your needs, a style of instruction that is consistent with the way you like to learn, and a degree of rigor that is commensurate with your ability and preparation–you will find the best educational investment value for you.
Additional tips for assessing value among your college options:
- If you have been offered a merit scholarship, make sure you are clear about the criteria for renewing it after your first year.
- Find out how each institution will apply the credit associated with any community-based scholarships you might receive to your cost of attendance. Some schools will reduce the amount of scholarship they are offering; others will reduce the amount of self-help (loans or work-study) in your financial aid award.
- Get a review of your potential college credits (AP, IB, courses taken on college campuses) as collectively they have the potential to reduce graduation requirements and, as a result, your out-of-pocket expenses.
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