MySchoolPlans.com Blog: April College Funding Newsletter

I am going to start putting my newsletters online, and a portion of them here on my blog.

Here is a preview of April, 2007.

How to Select the Right College... For Your Child – and Your Finances!

Dear Friend,

It’s an exciting time of year. Springtime is on its way, and most graduating seniors are receiving admissions letters from the schools to which they’ve applied! At this point, you have probably reviewed that list of colleges and universities where your child could be pursuing their dreams of higher education... and you are also aware that the upcoming decisions for your family are of the utmost importance!

Making the choice of where to attend college is not an easy task, under the best of circumstances. This can be a weighty decision for the student, who considers such matters as academics, geographic location, future professional goals, and (of course) social situations... and it is every bit as demanding for the family, especially with the enormous effect it can have on your finances. This is one of those life situations where, working together, you and your child really need to make the right choice. There is a lot riding on this decision.

Obviously, the money factor cannot be ignored in choosing a school. The anticipated cost of attendance can move a school up (or down) your list of possible schools faster than just about any other consideration! However, “cost” can be a tricky matter, as some schools which give parents an initial tuition sticker-shock may not turn out to be overwhelmingly expensive in the long run. Remember to look beyond the dollars and cents to see what each institution is actually offering to your child... both in the way of financial aid, the actual expenses for the school, and any assistance available to your child from the school.

In order to assist you in analyzing these options, I am pleased to provide some specific points to consider as you review the college offers available to your child. As you focus in on each school, please be sure to go over the award letter information with a fine-toothed comb. Here are four specific areas to hone in on:

1) For better or for worse, you’re probably now on a first-name basis with your Expected Family Contribution (EFC). As you are likely aware, this is the amount that the Federal Government has dictated for you to pay the school. Bear in mind that there are two sides to this figure – your side, and the schools’ side! Most people are convinced that their EFC is too high to be manageable, while most colleges (especially spendy private schools) will look at the same figure and deem it too low. This could mean that your award letters may ask for even more money than your EFC indicated! Pay very close attention to how the college has listed your EFC, and whether or not it is correct.

2) Note that each school making an offer to your child will provide an estimate of Total Annual Expenses. These are generally quite accurate, as the school usually goes to great lengths to update these numbers annually. However, while tuition and fees are the same across the board for all students, the actual living costs can vary wildly, depending on...