One of the dirty little secrets of paying for college is that the price tag is negotiable. Although financial aid officers don’t like to admit it, negotiating prices has become commonplace. And, that’s good news because today’s price tags at $18,943 for in-state public schools, $32,762 out-of-state schools and $42,419 for private schools are simply unaffordable.
College tuition isn’t a tab most of us think can be haggled like a used car price, but declining enrollments mean that the nation’s 4,500 degree-granting institutions are fighting each other for the privilege of educating the nation’s brightest students. Truth is, universities have spent the past couple of decades beefing up their offerings, building elaborate gyms, dorms and student centers just as tuition-paying enrollees have dropped by 930,000 students in four years. In short, they’ve spent a lot to attract a declining clientele.
For that reason, Mom and Dad are finally getting a little leverage. To best take advantage of your better negotiating position, you’ll want to plan ahead, says Kal Chany, author of “Paying for College Without Going Broke,” and founder and president of Campus Consultants. First off, before you do anything else, get all your offers in hand. The standard procedure is that admission offices send out admission letters followed by financial aid offers (by letter or online) over the next six weeks. Chances are good that you will be mystified by the aid offer. That’s okay. The letters are typically loaded with jargon and even misleading information. Contact the aid office to make sure you understand every sentence. Then, compare your offers from different schools on an apples to apples basis to determine which school is giving you the most free money vis a vis the all-in price. It’s possible you can put one school against another to get more aid out of your top choice.
Next, Chany says ask the aid office for the procedure you should use to “appeal” your aid offer. Don’t use the word “negotiate,” or even “bargain.” Financial aid officers consider that presumptuous. Your best bet for success is if you’ve had a major change to your families’ finances. If one parent lost a job or has an expensive health problem, schools are likely to take that into consideration. You’ll need to send them detailed information to document your case, such as letters of dismissal or even medical bills.
Likewise if your household has grown or if your parents are responsible for another college student, a re-look is warranted. However, many schools are now also willing to match or beat offers from other schools. The flexibility of the student aid officer varies from school to school. But some private schools admit to granting appeals to as much as a third of their entering class.
One thing to keep in mind as you work to reduce your college bill: The student aid officer isn’t your friend. In fact, their job is to get your son or daughter to enroll with the smallest financial aid package possible. So, get ready to haggle. And, don’t miss that May 1 deadline for making the big decision where your child will attend college.
Join us tonight 5pm ET on The Willis Report as we help you and your family get the aid you deserve