College 101

Here is what I have learned so far about trying to afford and find a college. 

You know how people say small liberal arts schools cost less than state schools?  It is true (sort of). If you do not qualify for need-based aid and do qualify for merit-based scholarships, it might be worth looking at private schools.  College is an excellent study in economics and the law of supply and demand.  In our situation, the most our children would get at state schools like CSU and CU Boulder was 1000 off a year, even with high test scores and higher than 4.0 gpa’s and many activities.   In addition, many classes have hundreds of students taught by TA’s. This did not feel like a fair value for $27,000.  The small liberal arts schools level the playing field by giving money not just need based but also lots of merit based. (Note- not all schools are like this. Some are need blind. From what I can gather this is also bad for middle class. They also do not give merit based and all money is based on need. If you are middle class in an area of the country with a relatively high cost of living, the formula is not going to work out in your favor. )

You know how people say test scores aren’t everything?  Not so true. We chose to have our daughter miss a very academic-heavy year to do some amazing adventures. I do not regret this. Her life is richer and she is more prepared for college. But, especially in the area of math, it probably effected her scores. And while she had very good scores, they were not high enough for some of the most lucrative scholarships. I would listen to this podcast and heed the advice.  Disciplined test prep and practice will go a long way and possibly pay off.  I wish I heard this podcast before this week. 

As far as the final package, it felt a lot like buying a new car. There is the sticker price which does not even come close to what we will pay. There is the initial offer which is a ballpark idea and then there is the final offer which is significantly lower than the initial package. 

When all is said and done, it is still way more than you would have saved if all you rely on is the maximum college savings plan. We started this when each child was born. We deposited 150 monthly. This equaled about 32000 and it grew to 46000 for each child by the time we started drawing it down. But it won’t come close to paying for college. 

So where does all this leave us?  

The final decision is up to the children. We can contribute a set amount per child per year. Anything above that will be for them to cover. So they might decide to do community college for a year or summer school or college loans (greatly discouraged) or get some high paying jobs. We were clear from the beginning what this amount would be. 

Here is one more interesting piece of information. The more competitive the school, the less merit money you will get. So, unless you want to pay full price, you might not want to look at the more selective schools unless you qualify for need-based aid. Here are rough stats. A school with 25% acceptance rate, accepted but no merit scholarships. A school with 50% acceptance rate provided a $30,000 merit scholarship which left $30,000 balance and a school with 93% acceptance rate gave a package that would have cost $18,500 for tuition, room and board. So bottom line is if you won’t qualify for need based aid, consider less competitive schools if you want better packages. However if you want your child to attend a more competitive school you need to weigh if it is worth the debt you or your child will take on. 

Good luck. At a minimum I would suggest a tour at a small liberal arts school as part of your college search. They have a lot to offer and it is important to consider and weigh these factors as you make the big decision. 

I found The College Finder Book a really great resource.   
I also really found this article interesting. 

https://www.vox.com/the-highlight/2019/5/1/18311548/college-admissions-secrets-myths

This was my favorite quote:  "The four years of college are as important socially as they are educationally — the right fit is far more important than getting into the highest-ranked school you can."  The whole article is a reminder to keep things in perspecive, but I especially liked point #7.
 

Update:  In March we went to a Scholars Weekend at one of her final choices.  There was the chance to be selected for a four year full tuition scholarship.  Since this school was in her top three and the dates fell over spring break, we decided to go.  She loved the school and when we returned home she learned she was chosen for the full tuition scholarship.  Better yet, since this school is in the Mid-West, housing costs are significantly lower than Colorado.  So that is something else to consider.... All in all it was a very eye opening experience.  We do not have it totally figured out but maybe this info will help get someone started who, like us, does not believe debt is the only way to get through college.