There is an ad running on television where a crusty old fart sweeps a bunch of books off his desk and growls, “Let me be direct, you are doing TV wrong.”
Well, here’s another crusty old fart telling you, “You are doing college wrong,” specifically, you are going about choosing a college in the wrong way. Before you start calculating a price, I want you to think about the process of choosing a school.
I have included the Money protocol in the notes. This protocol includes twelve factors. Cost is number eleven. There is nothing particularly unusual about this listing. Cost is always low on the checklists of the “experts.” (Note that their article includes ads for student loans.)
I want you to begin by thinking about the cost of college, in particular the cost as it relates to your family, aka affordability.
There is a book you need to read with your parents. It is Frank Palmasani’s Right College, Right Price. This book is dated, but it is still necessary reading. (There is a tip in this book that can reduce the sticker price of tuition by thousands.)
This book and my post are going to help you prepare a list of colleges your family can afford without excessive, financially crippling student loan debt.
Buying a college education is a little bit like buying a car. There is a “sticker” price posted on the window, but, if you know how the system works, you can navigate your way to a lower number called the “net” price.
I am sure you have heard of the Free Application for Federal Student Aid (FAFSA). By submitting that form you can gain access to various sources of financial aid, federal, state, and schools. Whether or not you think you qualify, I strongly suggest, with your parent’s help, you take the time to apply.
The FAFSA is undergoing a revision. It is being simplified. The dreaded Expected Family Contribution (EFC) is being replaced by the Student Aid Index (SAI). As I am writing this, the official, government SAI Estimator is not available. Here is an unofficial calculator:
Student Aid Index: What To Know About The Changes To Financial Aid (thecollegeinvestor.com)
The 2024-2025 FAFSA will be late. It won’t be available until December 2023.
The book, Right College, Right Price, discusses the use of Net Price Calculators. Every school’s website should have one.
Another useful tool is Hechinger’s Tuition Tracker. (See notes.)
College Data doesn’t help calculate the net cost of college, but it is a good source of data on which schools are generous with scholarships. (See notes.)
I am going to add one more tool, College Aid Pro. There is a free version which can handle three schools. Any more schools than that, there is a fee.
You need to use these tools and generate pro forma, four-year financial plans for every school you are considering. Yeah, it is a lot of work, but it is a lot less trouble than trying to figure out how to pay off your student loans.
Notes
How to Choose a College | Money
College Database Find the Best Colleges in US | CollegeData
https://www.iscollegereallytherightchoice.com/prepare-financial-plan-college/
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