With over five years experience in assisting families through the financial jungle called “paying for college”; I have compiled the seven “deadliest” mistakes most prevalent in the college process.
(1) Visit a college you cannot afford: this strategy was originated by realtors and is euphemistically called “up-selling”----------when committed in the college visit process---- it quickly leads to family arguments and eventually, MASSIVE amounts of college debt!!
(2) Closely aligned with #1, is allowing a 17 or 18 year old to greatly influence a $200,000 + college attendance decision-----------------this also usually leads to MASSIVE amounts of college debt!!
(3) Minimize the emotion associated with a massive consumer purchase----------------------particularly one being DRIVEN by a 17 or 18 year old !!
(4) CHALLENGE all financial aid packages---------------one of the biggest lies we hear is “the college gave us a GREAT financial aid package”---------our response is ALWAYS-----------------compared to what?? We have discovered most families simply cannot interpret a college financial aid package.
(5) How much is “prestige” worth in the college decision process?? It is worth a lot to High School guidance counselors (so they can boast about another graduate of their High School attending an Ivy League college)------------------however, the guidance department WILL NOT assist you in PAYING for the college!!
(6) Last year the average college graduate received a degree in 5.5 years-----NOT FOUR-----------------the most important component of saving money in college is SPENDING LESS TIME IN COLLEGE !!
(7) The average college student changes majors three times during their college career and 40% of students NEVER graduate. The only thing worst than GRADUATING college with massive amounts of college debt----------------is NOT GRADUATING college and still having MASSIVE amounts of college debt!!
Tuesday, March 31, 2009
THE SEVEN DEADLY MISTAKES CONCERNING COLLEGE!!
Tuesday, March 10, 2009
“We received a TERRIFIC Financial Aid Package for our student…………”
How many times have you heard this comment from a friend or acquaintance??
Recently I was discussing the high cost of attending college with a friend.
When he mentioned the college his daughter was attending, I responded how expensive that particular school was (almost $50,000 per year!!). My friend replied that she would never have gone to that school but “they offered her a terrific financial aid package”.
That caused me to think, has anyone ever told you that their son or daughter received a TERRIBLE financial aid package? Perhaps one of the reasons we have not heard this, is that the college ALWAYS says that we are offering you a GREAT financial aid package!!
In analyzing our clients’ college financial aid packages, we have found that the offers that most parents feel are good--------------are MEDIOCRE at best.
The ONLY way to truly understand the worth of a college financial aid offer is to compare it to offers given in the past to students and families in similar situations.
Of course, our statistical database allows us to do that, and also empowers the family to negotiate with the college in an effort to increase the financial aid package.
So the next time you hear about a “terrific financial aid package”----------a GREAT response would be------------------“compared to what??”
