Where do I go from here?

A story in KJRH, Tulsa, by Leanna Landsmann recounts just such a tale, in which a reader recounts that her daughter “doesn’t want to go to the colleges she applied to for regular decision” – “She has her heart set on her first choice (early decision).”

Ms. Landsmann provides solid information and advice, and we will take it a step further.

Mitigate this situation with a viable college search plan …

Avoid Unnecessary Pain … Keep an Open Mind

Beware of the strategic difference between being single minded versus tough-minded. Everyone admires the latter. Healthy persistence can achieve many worthwhile goals.

But being obsessively single-minded in the college search and selection process all too often results in self inflicted pain.

This usually occurs when parents or students fail to embrace a goal with a range of potentially successful outcomes. They ascribe abnormal value to a single college or university due to the school’s popularity or reputation for academics, athletics etc.

They allow themselves to obsess on the merits of only one institution due to legend, myth or, even, misinformation. Unfortunately early decision policies foster this mindset.

Students believe they will gain an admissions edge by showing a strong desire to attend early in the game. They also see early decision as a way to bring the whole process to an end. It is indeed very tempting.

Admittedly, if counseled, they will prepare additional applications, but they are just “phantom apps”, because in their hearts they have no intention of attending anywhere but their first choice.

Worse yet, competitive reality is usually ignored.

Any analysis of a college’s admission track record is usually unwanted or, at best, only tolerated during the early stages of the college search and application process.

Look beyond reputation

These applicants and, often, their most trusted advisors do not want to hear about potential obstacles.

Many simply want to know what they can do to guarantee the path to their “dream” college.

Some Hard College Admissions Facts

• Competition for admission in the freshman class at selective and highly selective colleges is grossly underestimated
• The opportunity for significant financial assistance from a “dream” college is grossly overestimated
• The radar screen of a student in the top 10% of their high school class and with 1400 on their SATs does not even sense that they could be only at the mid-range of the applicant pool at these schools

Sad but true …

After twenty years counseling families in public and private high schools as well as in an independent practice that has been active in over a dozen states, I can honestly say this set of circumstances is a real bummer…

It’s like a virus!

And the cruelest cut of all might be the assignment to the infamous waitlist.

It prolongs the agony for everyone with statistically little hope of a favorable change of status.

What Can We Do?

Parents, try to inoculate your family from it from the outset. Recognize that we are blessed in the United States with hundreds if not thousands of excellent post secondary colleges and universities, any one of which can provide a challenging and wholesome educational experience.

Some have even had the good fortune to rise to the surface in popular magazine rankings!

However with that popularity have come tens of thousands of applicants from the USA and all over the world with outrageously competitive credentials. Admissions personnel have an extremely tough set of decisions to make and some very capable students will be denied.

Some College Planning Elements To Help

• Parents, get involved in the college search process early (no later than Sophomore year)
• Approach this as a family team, with parents as coaches and cheerleaders
• Build your college search campaign with a solid foundation
• Assess your student’s competitive position with a thorough look at the available stats for your candidate colleges. This includes:

1. The number of applications
2. The percent of applicants admitted
3. The 25th percentile test scores and high school GPAs of last year’s admitted class tells a lot … not everything, but a lot
4. Include your top choice in your final list but find 4-6 quality alternatives that you evaluate and determine are a good fit
5. Then visit, apply and embrace them if the need occurs

In other sections of this blog, we explain how the college admissions process is largely data driven, certainly from the perspective of the colleges. We encourage students and their families to adopt a similar attitude, while understanding the high levels of emotions that are in play.

We cannot guarantee an emotion/stress free experience with the above approach, but it will give you a strong opportunity to avoid the heartache of the student in Ms. Landsmann’s story.

Fear Of FAFSA?

It is ironic that people who write (and sell) books related to college search and student financial aid, often advise their readers to “go it alone” and that they do not have to pay for counseling in this area.

“Don’t listen to their words; fix your attention on their deeds.” ~ Albert Einstein

Well, in fact, they are correct. Nobody has to engage a professional college counselor, just as they can prepare their own taxes or manage their own investment portfolio. Obviously, as professional counselors, we believe that families gain enormously from working with a qualified independent college counselor.

In a recent blog exchange, we agreed with a poster who argued the merits that “not everyone has the interest, time, or knowledge to prepare the some 130 asset, income, and dependency questions on the FAFSA”.

In the same exchange, we pointed out that “Even doing one’s homework cannot always prevent mistakes”* and that parents should at least do some homework on how the aid formulas work before attempting to complete the FAFSA, to say nothing of the CSS Profile.

Financial Aid – It’s Not An Easy Process

Let’s be clear, the FAFSA is, in many ways, a daunting document, and completing it and other financial aid documents can fill the most hardy soul with dread.

Confusion and nervousness can become even more acute when the CSS Profile and Institutional Methodology come into play, or when the situation involves divorced and separated parents, or a small business owner.

It must be stated that much of the stress relating to the FAFSA stems from the fact that most families don’t plan the financial aspects of college in a timely manner, and have little or no idea of their Expected Family Contribution (EFC) and financial aid entitlement before they actually fill out the forms.

However, these forms represent only one element in the overall process of college search, admissions and financial aid, and should not be viewed with such trepidation, as long as solid planning has been put in place.

FAFSA Stress – How Do You Find Relief?

“Good plans shape good decisions. That’s why good planning helps to make elusive dreams come true.” ~ Lester Robert Bittel

It may well suit many families to have their FAFSA prepared by a qualified and reputable preparer (just as they do with tax returns). But this does not alleviate the tension of submitting these forms and then waiting to see how much the system is going to impose upon them for their Expected Family Contribution.

A well known financial planning group published a calendar of things to do in 2010. On January 1st. parents of college bound high school seniors were told to complete the FAFSA as soon as possible (and we echo that recommendation).

Yet nowhere was there a recommendation for parents of Juniors and Sophomores to begin to get their financial plan together to optimize their students’ college search process. As financial planners, surely they should be making a clarion call to these parents to get their financial house in order with regard to college funding (see the graphic below).

Quite simply, parents can avoid much unnecessary stress and the uncertainty of financial aid forms by simply understanding the concept of the “base year”, and using a free EFC calculator tool to estimate their Expected Family Contribution (for both Federal and Institutional formulas).

This allows at least one element of a solid college funding plan to be put in place well ahead of any forms having to be completed.

This does not resolve all the issues facing the family, but it will certainly relieve some of the tension.

A Simple Image To Show The FAFSA Base Year (Class of 2011)

Base Year For FAFSA Information

There are several ways for a family to maximize the amount of financial aid, or to avoid being “over taxed”. Since the information to be submitted in the FAFSA and institutional forms is based largely on tax data, the ideal time to put these measures in place is before December 31st. of the Sophomore going into Junior year. Note also that by getting your “ducks in a row by October 31st. you have two months to correct any errors and omissions.

Adjustments during the Junior year may be limited, and by the time it gets to January 1st. of the high school Senior year, there is no time left to plan, and this is when parents acquire that “deer in the headlights” look.

*Note:

On page 27 of The College Solution (which is an excellent piece of work in general terms) there is erroneous information about the impact of 529 savings plans on college financial aid.

While it is true that these accounts are treated as parent assets on the FAFSA for dependent students, the same cannot be said for the CSS Profile. The instructions clearly state, in fact, that 529 savings plans originating with UGMA/UTMA funds are to be reported as student assets.

A parent following this lead would be confused at best having read this part of the book in addition to the instructions for the CSS Profile.

“If it weren’t for the last minute, I wouldn’t get anything done.”
~Author Unknown

The admissions applications are submitted! Now what? Wait until April 1st. to see if you were accepted?

Not quite. The second round of applications (for Student Financial Aid) begins now. And now is the time to submit your Free Application for Federal Student Aid (FAFSA).

The (In)Famous FAFSA

Typically, families are scrambling to gather their financial data for the 2009 tax year so that they can prepare the FAFSA for submission. While many of us would like to forget about the financial ups and downs of the last few years, colleges and universities are ready to use that information to the fullest extent of the law!

The FAFSA form for the 2010-2011 school year is now available online. It is with this form that students apply for need-based financial aid each and every year they plan to attend. Yes, EACH AND EVERY YEAR!

Procrastination Can Hurt You

“Procrastination is, hands down, our favorite form of self-sabotage.”
~Alyce P. Cornyn-Selby

I used to work in the financial aid office of a private university several years ago, and I cannot tell you how many shell shocked students I saw in the month of March, each and every year.

Why? They had simply forgotten to get their financial aid renewal forms in on time and then had to face some daunting money issues for the upcoming school year.

Many families end up waiting to file their financial aid applications forms until after their taxes are done.

Do Not Wait – Be An Early Bird!

In my experience, it is more important to get the forms (new or renewal) in on time, than to have them be filled out with completed tax information.

It is better to estimate the financial information based on the previous tax year (2008 in this case) and get the forms in on time, than it is to get all of the (2009) numbers verified before putting them on the forms.

Be Aware Of Your College’s Requirements

Also check with the schools you have applied to (or are enrolled at since the Financial Aid deadlines for new and returning students are usually different) to validate the deadlines and number and types of forms you need to file for consideration for financial aid.

Every school asks for the FAFSA (federal form required by all colleges) and several will ask that you file the CSS Profile (institutional form required by some colleges). Certain schools may even ask that their own institutional financial aid forms be completed.

The simple message is: Get your forms in ON TIME! Don’t be guilty of procrastination, or …

“A year from now you may wish you had started today.”
~Karen Lamb

A recent Washington Post article told the story of a well qualified student who, with the agreement of her parents, decided to attend community college and transfer after two years to a four year school.

Happy Students Learn Better

Attending A Community College …
… Don’t Let It Be A Panic Button Decision

The decision to attend a community college should be as well planned as the one to enter a four year college or university.

Like all strategies it is important to both look at the whole playing field and to pay attention to details to ensure your choice matches your objectives.

Community colleges provide a valuable alternative for many different students with a range of academic abilities, social skills and interests, career goals and financial considerations.

Students who did fairly well in high school may complete prerequisite and core courses for two years at a more reasonable cost.

This group of students often plans to transfer to a four year college or university after one or more years at a community college (many states have guaranteed transfer-admissions tracks available for community college graduates – check your individual state for the options there).

The timing itself may even help their family financially by waiting for a sibling to become college age and thus enhancing financial aid eligibility with more than one family member in college at the same time (Check out financial aid rules).

Above all, families need to fully understand the workings of student financial aid to avoid being misled and discouraged by the “sticker price” of a four year school.

Get Ahead Of The Game

These variables suggest that the family and student will benefit tremendously if they plan ahead:

• Investigate and evaluate candidate four year colleges to which they hope to transfer while still in high school.
• Also keep in mind that most four year colleges admit fewer transfer students than they do regular admission applicants.
• Admission may not be not automatic!
• A community college, in some cases, may also admit transfer students in only one semester during the year. This can be costly if it catches a student and parents by surprise.
• Investigate thoroughly the transferability of community college course credits at the candidate four year college(s) they are considering for completion of their bachelors degree.
• The range of courses at a community college may be limited and the level of academic achievement may or may not meet the expectations of the four year institution.
  (Don’t make the mistake of assuming, for example, that calculus at a community college is the same as calculus at a four year college specializing in business or engineering.)
• Verify, verify, verify.

Pluses & Minuses

Students may well find some of the best professors they will ever experience at community college.

They may also enjoy greater access to these professors than they would at a four year college. However they also will find a very broad mix of capability and goals among their classmates.

Social interaction at a community college is somewhat more restrained than at a four year school. People tend to go their own way after class, and many classes may be scheduled in the evening hours.

Campus life through dormitories and sports is obviously more limited. For those who plan to transfer they must also consider that they will be parachuting into existing social networks when they arrive at their four year college.

This not impossible to overcome, but should not be overlooked either. Some colleges provide orientation or counseling that addresses this factor. Know yourself and act accordingly.

The more relaxed admissions criteria at community colleges open the door to higher education for a number of students who may have struggled in high school. It allows them to catch up academically, focus on or even intern in their intended careers and all at a reasonable cost.

This sometimes forces the introduction of remedial or elementary class work that can frustrate students that are more academically competitive.

In summary, attending a community college can be a rewarding experience, but the decision to go there should not be as a last resort.

Are you facing a mammoth tuition bill?

Massachusetts now has nine schools with a
“college cost/sticker price” above $50,000 per year (Chronicle of Higher Education).

As of last year, no school in Massachusetts surpassed that mark.

Last year only 5 schools in the nation had total fees exceeding $50,000. This year, nearly 60 schools charge that much per year! That’s a 1,060% increase! What will the increase look like next year?

This all makes for great headlines, and there is real cause for concern about the steady inflation of college costs.  But …

What better questions can be asked by families intimidated by the published college cost?

How important is a college’s sticker price?

The key to this question is the role of financial aid.

Sixty-six percent of all undergraduates received some financial aid in 2007-2008, according to the Department of Education. Full-time students approached a rate of nearly 80%.

While the average published private college cost last year was $37,390 (public, in-state was $18,326), that is not reflective of the actual fees each individual student may have paid based on the type and amount of grant, scholarship, loan, and work-study aid they may have received. (Note: college cost includes tuition, room and board, and allowances for items such as books, travel and fees).

Because of financial aid, there may often be a significant difference between the published “sticker” price versus the actual “net” price paid.

We hear so many stories of families insisting that their students could only apply to state schools last year because a private college education was going to be cost prohibitive.

If only they knew what the Wizard behind the curtain was really trying to hide!

By peeling back the layers of the onion and calculating their exposure (EFC) based on the Federal and Institutional Methodology, many families would discover that many private schools will end up with a net cost that may be very close, if not lower than the net cost of a public school.

Armed with this knowledge (what is the “true” college cost) before they begin the college search, rather than following the “guidance” received from the media, they’re much more likely to have a broader selection of schools that are a great fit, academically and financially.

Does the sticker price reflect superior quality?

There are some great cars out there with hefty price tags, and they certainly have quality. But let’s face it: the “snob” factor plays a pretty big role too.

There is a similar attitude towards colleges (college cost equals college quality). Yet many studies (including one by Princeton economist Alan Krueger) explain that where a bright student goes to college really doesn’t mean much in terms of finding the right career or more importantly, earning power.  The research indicates that what really matters is how well the student performs at whatever institution of higher learning they attend – not the number on the price tag.

What we can be sure of is that an informed college search is fertile ground for a savvy shopper.

* Tufts’ mascot is Jumbo, and has an interesting “tail”.

Icebergs — Just giant floating chunks of ice, right?

Well, maybe not.

As with many things, there is much more to them than meets the eye.

As it turns out, icebergs have a lot more going on than most of us know about (and a lot more in common with the college admissions process than you would think) …

Most of an iceberg’s bulk lies unseen beneath the surface of the ocean, what you see is not all there is (I suppose most people know this).

The higher an iceberg rises above the ocean surface, the more visible it is, and the deeper its base projects into the water.

The unseen portion of an iceberg will be three to nine times the iceberg’s height above the water line.

It might look like nothing’s happening, but these seemingly sterile ice slabs also harbor their own complex ecosystems.

Icebergs are rather ominous, as the history of an “unsinkable” ocean liner can attest — they dot high-latitude oceans like mines.

They are very difficult and time consuming to study — in fact, it can be hard just getting to one.

Scientists explore on top of, inside and underneath icebergs to find out how they work, what lives in them and what makes them so dangerous.

All in all, a pretty hostile environment. (Those of you who have been through the college admissions process know where I’m going with this, I’m sure.)

Oh! And one other thing you should know about icebergs before we compare them to that experience …

Sometimes, they explode!

Let’s draw some parallels between that big old iceberg and The College Admissions Process

The college admissions ritual involves over two million students and their families each and every year.

What should parents and students know about this process before they begin?

As it turns out, plenty. But most have, at best, a superficial view – Just like the tip of the iceberg.

Most of what you need to know is not readily evident. Of course, there is lots and lots of “information” just about every place you look. But the bulk of what you need to know is not on the surface.

In fact, just knowing precisely what you need to know is a daunting task. Where is that list archived? And what you don’t know, or cannot see, can be as destructive as the hidden part of the iceberg when hit by a vessel.

The college admissions process is an all-consuming event for most students. It should rise high above the other extra-curricular events in the life of a high school junior (or senior) taking prominent place among competing priorities.

Yet most students and parents delay starting this process until the last possible moment thus inviting a brush with disaster.

Identifying the right candidate schools takes a lot longer to complete than most parents and students might think!

Like an iceberg, the college admissions process (and each individual college for that matter) has its own very complicated ecosystem (by definition, an ecosystem is a system formed by the interaction of a community of organisms with their environment).

Do you understand the interactions of this “community of organisms” in the college admissions process? Do you know how to identify the organisms?

The college admissions process will not only seem ominous, it will become ominous to those who don’t understand what’s below the surface. There are many mines and pitfalls along the way.

The process is time consuming. Like a scientific exploration, most folks need to allow at least 18-24 months to study the process, understand how it works, account for all the variables and develop an action plan.

Yes, it calls for a more scientific approach than you appreciate. Like the scientists who venture into the cold and inhospitable environment of the iceberg, you will need to take a deep breath and be prepared to work hard and investigate in great detail so that you can hope to have all your bases covered.

If you don’t …

There is a good chance that something will go “boom!” during the process.

Todd Fothergill

Well, here it is, our first “official” post delivered by e-mail or RSS feed from our new blog site. 

Won’t keep you long on this one, but wanted to explain a little about how this all started.

Tom McGrath and I looked at online delivery of our services some years ago, and, to cut a long story short, we invested a lot of money in the project only to find that it just wasn’t practical at the time. So, we continued with our regular practice.

Then early this year, an old friend and colleague got back in touch with me, and as our conversation went along, he brought up the online delivery idea.

Well, you shouldn’t hang up the phone on an old friend …

… but, given my past negative experience, shall we say I was less than enthusiastic?

Yet as he went into more detail, I began to see that the landscape had changed, and that the project really was feasible.

My pal also held a trump card.

He knew I had always wanted to “democratize” college consulting to families, to make it affordable for those who could not afford our private consulting fees, let alone some of the outrageous sums you hear about in the news.

And the need for our services and our proprietary tools grows by the day.

Look at what is facing us …

• An uncertain economy
• Fear of job loss
• Student debt
• Parental debt and loss of savings to fund a child’s education
• A changing environment of college admissions added to the already confusing college search and finance process

… to say nothing of the absolute GLUT of information on the subject.

The more I thought about it, the more I was convinced that just providing an organized structure – simply what to do, when to do it, where to find the best resources, you know … - would be highly valued in the information dominated world in which we live.

But we’ll be providing a whole lot more in the upcoming months.

So this is our approach …

• This blog will focus on insights and advice to parents and students, and will point our readers toward free access to some very nice resources we have discovered. 
• In the near future, you will also be able to navigate to our membership site to check out the Interactive Learning Environment we are developing.  (From my research to date, there is absolutely nothing like this anywhere on the Internet.)
• Eventually, we will be able to deliver high quality services in a web based Interactive Learning Environment at a fraction of our private practice fees.
• This will allow more families to benefit from our knowledge and expertise and in turn, level the playing field for those who simply cannot afford a private consultant.

Please note. We have no intention of abandoning our private practice.  We will continue to provide this personal service as we move forward for those who want personal attention.

We will release my next article later this week. The title?

“Icebergs & College Admissions – What Do They Have In Common?”

That’s all for now.  Thank you for joining us on this journey, and we hope you consider us a trusted resource. Comments and suggestions invited!

Yours in success,

Todd

P.S.  Almost forgot to introduce you to my colleagues involved in this project who will be authoring articles from time to time.  Here they are …

Tom McGrath, Nashville, TN – former President of Strategies For College, Inc.

Michael Prime, Atlanta, GA – longtime colleague for over 15 years

Todd Weaver, Canton, MA – currently with Strategies For College, Inc. managing the Canton, MA office

Howard Verman, Burlington, VT – currently with Strategies For College, Inc. managing the Shelburne, VT office

P.P.S. We will also be inviting some highly qualified professionals in related fields to contribute to the blog. So stay tuned!

A recent article in Kiplinger.com urges parents to “keep on saving” to fund college education for their child (or children). In particular, the piece vigorously encourages the use of 529 saving accounts (see link to the article below).

While we are certainly proponents of saving for college, we also stress that saving for college does not equal planning for college. Saving plans are but one element in the college search and admissions campaign.

While technically correct, this article makes some broad assumptions.

Many parents are ten years or less away from college bills with only a few thousand dollars in savings, and I think it’s safe to assume just about all of these folks would like to be sitting on enough cash to make a dent in college expenses.

Saving for college, however, is but a small part of planning for college, and for many families, setting up a 529 savings account may not be the best strategy in the long run.

The author fails to account for several key issues facing families who find themselves in this situation.

Many questions pose themselves before parents rush into a 529 savings account. These are some of the more crucial issues:

• How much do they have saved in qualified retirement plans right now, and how much are they contributing annually?
• What are the tradeoffs between saving for college in a 529 plan versus saving as much as possible for retirement – especially with regards to potential eligibility for need-based financial aid?
• Will it be possible for these parents to fund college and still be on track for a reasonable retirement?

Here are my thoughts on each…

Current retirement plans:

If parents have not been saving consistently for retirement, saving for college is not their
major concern. I’m of the opinion that the majority of financial planners would recommend that they take a hard look at where the money goes and tighten their belts to allow for putting money aside for their future.

By creating additional cash flow to fund retirement for ten years, they don’t lose the time value on their investments. When it comes time for college, the cash flow could be diverted to paying for college directly from income, or a combination of income and parent loans.

In any case, the discipline of saving allows them to solve two problems with one solution.

Trade Offs:

Yes, the tax advantaged 529 is a plus, but it’s after tax money that funds those plans.

Putting the cash flow into retirement plans has major income tax advantages in addition
to the future value of the investments. Even more potentially harmful, is the impact the
529 accounts could have on potential financial aid eligibility.

For example, money set aside in retirement plans is 100% exempt from the aid formulas, while money in 529 plans could be assessed as much as 5.65%.

In other words, if a family saved $20,000 in a 529, it would cost them about $1,130 in potential financial aid in addition to an additional $3,000 in federal income tax (assuming the 15% bracket) and even more in state income tax.

Funding college and retirement:

No doubt, this is perhaps the largest hurdle most middle to upper-middle income families will face.

The solution lies in getting sound financial advice from a financial planner or personal financial specialist who understands how to strategize for both the college financial aid formulas AND the appropriate retirement savings strategies.

And, I would be remiss without mentioning www.savingforcollege.com – the most informative site on 529 savings plans available.”

We nevertheless recommend reading the original article and the good points it raises, “College: Keep On Saving” by Jane Bennett Clark, Senior Associate Editor, from Kiplinger’s Personal Finance magazine, October 2009.

But remember the old adage:

“Look before you leap!”

Parents entering the college admissions process are prone to “Four Fatal Errors.”

They are:

1. Choosing a college before understanding their financial options

The myth of “Choose first, pay later” is just that, a myth.

Too many families get themselves in situations where financial offers from some highly visible colleges, make attending their student’s “Dream School” a financial nightmare. It’s imperative for families to learn what their financial options are.

Make sure you have a sound financial strategy in place before beginning the college search.

If you fail to plan, you plan to fail.

2. The delusion that billions of scholarships go unclaimed each year

This fiercely held belief is simply not true.

Many students spend hours needlessly searching for and applying for random scholarships.

However, once colleges find out that a student has an outside scholarship, it’s possible that the value of the scholarship could actually be deducted from the financial aid package, resulting in a zero net gain.

It’s best to check the policy on private scholarships and research specific campus-based scholarships at schools to which your student is applying. Those scholarships will actually reduce your total college costs.

The Arthur Holly Compton Scholarship at the College of Wooster is an example of this.

Also, academic merit scholarships, which many schools offer to strong, academically qualified students, can make a high tuition college affordable.

3. Suffering from “brand name paralysis”

Many students and their families suffer from the delusion that only highly visible (top U.S. News Ranked Colleges) offer the best educational opportunities.

Truth is, there is a staggering number of excellent colleges offering top-quality educations at a cost a family can manage.

The landscape has changed!

Colleges that were second and third tier schools when parents applied several years ago, are now first tier institutions.

What’s more important? A college’s name recognition or a school that is a great “fit “ for your child?

4. Grossly underestimating the work load/level of detail required

Many parents and students new to the college admissions process don’t believe their friends who tell them that it can be “overwhelming.”

In fact, college selection and admissions has become so complex that many families don’t start soon enough and end up having it be more stressful than necessary.

A thoughtful and deliberate undertaking starting at the beginning of a student’s junior year will make the process manageable and, hopefully, fun!

** This article was written by Howard Verman, Director of Strategies for College, and published in collaboration with Lauren Starkey of Examiner.com

We are responding to a recent article in the Nashua Telegraph, Mounting Tuitions Test Multi-children Families

A sad conclusion to be drawn from this story is that many families only consider the “sticker” price of colleges, a mistake that is often costly both in terms of finance and education.

The article brings up several essential issues. However, we feel that some clarifications would be helpful.

We see two areas where obvious preconceived notions limit a family’s goal of putting their children through college.

The first essential issue is that the parents probably do not even know what they can afford. The Estimated Family Contribution (EFC) – not mentioned in the article – is the figure all colleges use to determine financial aid eligibility. Much like buying a house, where you need to have a pre-approved mortgage in place in order to make an offer, families need to know what they can afford prior to embarking on the college search process. The EFC helps get them started. From there, a family can then figure out the more realistic “Workable Family Contribution.”

The second issue arises from a parent’s comment that they made a decision to not have to worry about paying for college. That is, the kids would have to take care of college funding themselves. It may not be that it is a God given right to go to college and that the parents should fund that dream. However, parents and students should know that colleges think differently.

When a student files for financial aid, the college’s expectation is that the parents will contribute to their student’s education. Whether a family decides to fund all or part of the funding of college, it is paramount that they know, or work with someone who does know, how to strategically approach the transaction. There is no reason a 21 year old college graduate needs to start out “in the hole” with thousands of dollars in debt, and/or leave the parents in a similar position.

An effectively planned college search puts the student and family in control of the process, and allows a range of options when it comes time to make a final college selection.

A competent counselor can explain that a high priced college may, in some cases, require less funding and less debt than a state university, but because of this misconception, students do not apply to schools they believe to be “out of their price range”, or they and their parents resign themselves to incurring significant debt.