With the price of admission rising every year at universities around the nation you’re probably worried about how you’ll afford to pay for college. But no matter what your family’s financial situation you can almost always find a way to pay for college. Whether you take out student loans apply for scholarships start saving in advance or do a combination of all three a college education is within your reach! And even though you’re still in high school there are a few things you can do to prepare in advance.
CALCULATING THE COST
One of the most important steps in preparing is to understand how much an education will cost. When figuring out your expenses be sure to factor in the “net cost” which includes tuition fees room and board books and all sorts of other personal expenses less the amount of “gift aid” such as scholarships and grants you don’t have to pay back.
According to the College Board’s Trends in College Pricing 2011 report the average budget for an in-state public college for the 2011-2012 year was $21,447. For a private college the cost was almost double averaging $42,224 while the cost for nonresidents at public colleges was $33,973.
Here’s the good news: The average private school student received $15,530 per year in gift aid while the average public college student received $5,750 per year in gift aid. This drives down the “net cost” which then can be partially or fully covered by loans.
Tuition and school fees combined accounted for roughly 70 percent of the total cost of education. Room and board if you choose to live on campus accounts for around 20 percent of a total student budget.
The remaining 10 percent of college expenses come from transportation books incidentals (e.g. cell phone and clothes) and entertainment. Because let’s be honest even though you’ll be studying hard you’ll still want to have fun!
SCHOLARSHIPS: LOOK FOR AS MUCH FREE MONEY AS YOU CAN!
If you want to help your family’s quest to make college more affordable nothing can beat scholarships. Unlike loans which need to be paid back most scholarships amount to free money! While many scholarships are based on merit there are others available for specific talents interests or majors as well as those that are need-based.
WHY LOANS CAN BE A GOOD THING
At the outset you may be borrowing more money for college than you could ever imagine paying back! But the investment is a good one because a college education no matter what background you come from is a path to future success. “College is a long-term investment that should be viewed as such and not as a four-year commitment,” explains Christopher Coons associate vice president of enrollment management at Mercyhurst College.
And even the federal government realizes the value of making education affordable for students no matter what career path they choose after graduation. The Health Care and Education Reconciliation Act of 2010 cuts monthly payments on any loans taken out on or after July 12014 by a third from 15 percent of discretionary income to 10 percent. It also forgives all federal loans taken out after July 12014 after 20 years of payment. In the past these types of loans were forgiven after 25 years.
The good news is if you’re currently a high school sophomore the Act will be in effect by the time you begin your freshman year of college!
PREPARING TO PAY FOR IT NOW
There are many ways that you can start to prepare to pay for college right now.
1. Explore Scholarships
As a first step to preparing to pay for school Cheryl Howerton director of financial aid at Millikin University recommends that high school students “make looking for scholarships their jobs.”
Most scholarships are available through the college you enroll in as well as through private organizations. However don’t wait until you start applying to colleges to find out what’s available.
“Students can improve their chances for good financing including scholarships by taking challenging courses in the subjects they enjoy working to excel in most of them and contributing to their community through activities leadership and work,” says Jonathan Burdick, Dean of Undergraduate Admissions and Financial Aid at the University of Rochester.
Other great resources include sites like www.fastweb.com and www.finaid.org which catalog various community civic awards. “I would only caution that you can find information about how to apply without paying a fee—don’t get ripped off” warns Burdick.
2. Prepare To Borrow Money
The first step to borrowing money is to understand what types of loans exist how interest rates work and how you can get the best deals with private banks. “Sallie Mae advises families to follow its ‘1-2-3 approach’ to paying for college,” says Patricia Nash Christel a spokeswoman for Sallie Mae. “First maximize scholarships and grants and tap college savings. Second explore federal student loans which may offer lower rates. Third fill the gap with a responsible private education loan.”
They also offer www.collegeanswer.com a website for high school students that designs savings plans offers a college preparation timeline to ensure that sophomores don’t miss out on opportunities builds a personalized budget compares prices of different schools and searches for scholarships among a database of 3 million scholarships worth $16 billion.
Ultimately however it’s important to know that most of your financial aid will come from the university or college you choose to attend. “As a general rule most students get financial aid from their schools rather than from some third party,” notes Curt Eley Vice Provost for Enrollment Management at the University of Texas at Dallas.
3. Focus on Academics
“If you’re in tenth grade don’t focus on money focus on academics,” suggests Eley. “In the last few years even state-funded financial aid has become tied to merit. Being academically qualified is the best way to get financial aid.”
CURRENT TRENDS IN FINANCIAL AID
Although the media paints a dire picture of increasing tuition costs coupled with declining availability of financial aid many schools are taking steps toward making a college education more affordable.
Many universities like the University of Texas at Dallas are implementing fixed tuition rates. “The family knows what it will pay in the third year because it’s the same as the first year,” Eley explains. At schools like Millikin University the administration did not increase tuition fees or room expenses for the 2012-13 academic year. “This is just our first step in confronting the issue of tuition so we’ll see what the future brings,” Howerton says.
Ultimately your future is in your own hands. Devoting just a little bit of time during your sophomore year to researching what colleges are best for you and how you can pay for them will pay off enormously in the end. You deserve a great education and with so many financial aid opportunities you’ll certainly be able to get one!
10 WAYS TO CUT COSTS
1. Take AP classes in high school especially in subjects that you think you might want to major in.
2. Start paying back the interest on loans while you are still a student.
3. Get college credits through dual enrollment or by taking pre-college summer courses that provide college credit.
4. Plan on graduating in four years even if it means taking on debt to go to school full time and start your career sooner.
5. Consider colleges close to home in order to keep travel costs down.
6. Apply for as many scholarships as possible.
7. If you’re planning on a graduate degree consider dual degree programs.
8. Buy your books at sites like www.usedtextbooks.net.
9. Buckle down and study hard to increase your chances of being awarded a merit scholarship.
10. Learn how to budget by eating at home buying less stuff you don’t need and saving more for the future.
Brienne Walsh is a freelance writer based in Brooklyn, NY.
