College Planning

Despite the media hype about rising college costs, a college education is more affordable than most people think, especially when you consider college graduates earn an average of $1 million more over their careers than high-school graduates. The average yearly cost for tuition at a four-year public school in 2010-2011 is just $7,605. There are some expensive schools, but high tuition is not a requirement for a good education.

In fact, student financial aid in 2010-2011 rose to a record level of more than $154 billion. Most students receive some form of aid. Less of this aid now comes in the form of grants, however; most aid is awarded through low-interest loans or institutional and other grants. You should consider carefully the financing packages you’ve been offered by each college to determine which makes the most financial sense.

Saving for college is always a good idea. Since most financial aid comes in the form of loans, the aid you are likely to receive will need to be repaid. Tucking away money could mean you have fewer loans to repay, and it won’t necessarily mean you’re not eligible for aid if you need it. A family’s share of college costs is calculated based mostly on income, not assets such as savings.

Experts recommend deferring cost considerations until late in the college-selection process. Most important is finding a school that meets your academic, career, and personal needs. In fact, you might have a better chance of receiving aid from a private school. Private colleges often offer more financial aid to attract students from every income level. Higher college expenses also mean a better chance of demonstrating financial need.