Who Should You Trust?

Sallie Mae and the Gallup Polling Organization recently released the results of a survey entitled “How America Pays for College.” The survey was conducted during the 2007-2008 academic year and questioned 684 students and 720 parents of traditional-aged undergraduates.

The results underscore the lack of understanding in general about the entire college process and the expected payback resulting from an expensive and prestigious college degree.

Most respondents felt that “the best assistance available on figuring out their family’s financial situation was the college’s financial aid office.” This belief can be compared to following the financing and purchasing advice of your local car dealer when buying an automobile!!

One respondent to the survey results wrote: “when I went to college, I was pushed hard by the FINANCIAL AID OFFICE to take out the full $40,000 in federal and private loans. They told me it was because a BA degree GUARANTEED me a starting salary of $50,000. Well, it’s 9 years later, and I’m still waiting to see that starting salary. Sometimes it’s NOT what the consumer knows, but what the financial aid people do to the consumer.”

Perhaps the most startling finding was that 40% of families DO NOT CONSIDER the cost of a college when making a decision on attendance!!