Imagine that you are purchasing your first home. Your realtor takes you to tour a few places and along the way you find the perfect house. You decide to make an offer, and your realtor tells you, “Don’t worry about the amount! Give me your bank and personal information, and I will take it from here.” Would you reject your realtor’s proposal and demand to be more involved?
The average cost of a four-year college degree is close to that of a starter home. You should treat the decision to make this sort of investment with the same level of scrutiny and planning—if not more! And yet, so many families wait to consider the financial aspects of the college decision until it is too late. Paying for college is a great test of financial stewardship that requires strategic planning.
There are three questions you should ask before making this sizable investment in your student’s future:
1. Is this college worth it?
There are two considerations for determining if a college is worth the investment.
- You must consider if the college will prepare your student for the vocation they desire to pursue in life. Does the college have the right courses of study and provide the right experiences for your student to gain the skills, knowledge, and wisdom they need to succeed? You should meet with faculty and staff to determine if the school can deliver on its promises to train your student.
- You must consider if your financial investment in the school will be returned by the school’s investment in your student. If a school provides technical skills but does not care about life experiences and character growth, then your investment may be wasted. College is about vocational preparation, but it should be even more about personal formation.
2. How much will this college cost?
This seems like a simple question. When you go to the grocery store, you see a price tag under the item you are seeking, and when the cashier rings up your purchase, the cost matches (before tax). Many colleges do not make it easy for you to know how much the cost will be upfront. There are at least two ways this happens:
- Schools might disclose certain costs like tuition but make it hard to find other costs. You may not be able to easily find cost information for housing, meal plans, and student fees. A school that wants to serve you and invest in your student will make all costs easily accessible and be willing to talk to you about what those costs cover.
- Schools might play the “scholarship game.” This is especially prevalent among private schools. These schools will be quick to offer your student a significant scholarship, but after the scholarship is applied, your remaining cost may still be higher than that of a school who does not play this “scholarship game.” When comparing schools, be sure to compare the final cost rather than the initial scholarship amount.
3. How can I make sending my student to this college work financially?
Once you determine that a school is worth your investment, and you can detail the size of that investment, you must be able to actually pay for it! Any school that wants to serve you and invest in your student will provide clear avenues for paying for college. These include but are not limited to:
- Grants
- Scholarships
- Student Jobs
- Loans
- Payment Plans
In fact, you should work through your payment options in that order. The school should help you determine what grants your student is eligible for and how to access them. Then, you should complete the school’s scholarship application. Third, your student should inquire about on-campus and off-campus jobs. The school should provide these opportunities and ensure they can work around your student’s class schedule. Next, loans can be a great way to close the remaining financial gap, and the school’s financial aid counselors ought to help you and your student utilize them wisely. Finally, any remaining balance should be paid as you go to spread out the financial burden throughout each year.
The best time to work through these questions is when choosing a college, not when submitting the first payment. Take great care in this process, and choose a school that cares just as much.
