Smart Tips for College Financial Planning

For many families, the cost of a college education today is daunting. The total cost for a year at a CSU is now around $26,000; at a UC, $33,000; and many private colleges have sticker prices of $40,000 or more. 

To help manage college costs and make informed financial decisions, I recommend families do three things: 

• Plan ahead
• Set clear priorities
• Understand actual costs

Planning ahead means not just saving money for college, but understanding early on what the cost of college is likely to be and how much financial aid through scholarships and loans your student can expect to receive. You can get a head start by using the FAFSA Forecaster to determine how much colleges expect you to pay toward the cost of college (your Expected Family Contribution). Knowing your EFC can help you estimate what your actual costs will be at various colleges and use this information to make smart choices about where to apply. 

Setting clear priorities early can also help guide a successful college search. What are the top three to five things that matter to your student and family? If cost is one of those factors, be sure to make it a priority in your search. Looking only at schools that are within your financial parameters or that you can reasonably assume might be with the assistance of scholarship dollars can help you avoid disappointment and wasted time. 

Understanding the actual cost of colleges can be tricky. While at a public college you can generally expect to pay close to the "advertised price" (most public colleges offer few scholarships), the actual cost of a private college can vary widely and is usually far less than their "advertised price" (thanks to plentiful scholarship offerings). But many other factors such as graduation rates, travel costs, and extremely varying costs of living at certain campuses also impact the overall total cost. 

In an effort at transparency, colleges now provide a net price calculator to help families get an estimate of the total cost of attendance based on the college's financial aid policies. These tools are very helpful and can easily be found on the financial aid page of college's websites. 

If you need help navigating the complex world of college financial planning, I provide basic guidance on the necessary forms and timelines as part of my comprehensive packages. For families in need of more extensive guidance, I offer three options to provide you with in-depth understanding of the financial aid process and your expected costs, detailed financial comparison of various colleges and expected scholarship dollars tailored to your specific situation, and much more. I'm happy to work with your family to make college a rewarding and affordable experience!