Over the next six weeks, millions of high school seniors will get word whether the colleges they have applied to are offering them admission for this coming fall. More than three and a half million applications will be filed, but only about two million will be accepted. Nobody, however, will be watching the mailbox more closely than Mom and Dad. That’s because acceptance letters are followed in short order by financial aid offers.
With the price of college rising 3 to 4 percent faster than inflation each year, anxiety about college aid is no surprise. Average tuition, fees, room and board for students enrolled at in-state public schools for the 2014-15 school year will total $18,943. All-in costs for students attending public universities out-of-state will be $32,762. Opt for a private school, and you’re looking at a tab of $42,419 – for one year! Prices are so out of control that states as diverse as California and Michigan are offering educational aid to middle class families earning more than six figures. Frankly, the price hikes are nothing new. Many families have grown accustomed to the fact that the average grad hitting the jobs market will be burdened by a $33,000 college debt load. Strangely, people balk at paying $4 for a gallon of milk, but when it comes to footing a $150,000 tab for four years of university, parents just grin and bear it.
Fortunately, there are ways to reduce this debt burden even after you’ve received the financial aid offer. All next week on The Willis Report, we’ll help you decode these aid letters and negotiate a better deal. We’ll start by helping you understand the confusing jargon used by admission officers, and show you how to determine the real out-of-pocket costs. Beware of student loans masquerading as gift aid! It’s possible the letter won’t even include the full cost of sending Junior to school. Chances are things like books, transportation, even living expenses may be left out. If you have multiple offers, you’ll want to compare them, and use them as leverage to get more aid.
Don’t stop there. One of the dirty little secrets of applying for the financial aid package is that you can appeal the school’s decision. Thirty to 50 percent of families that ask for additional money get it. All next week, we’ll show you how to squeeze financial aid officers for the best aid package you can get.
Bottom line, keep an open mind. Some of the most expensive schools in the country offer the highest levels of free money, or financial aid. Sticker prices for college, like the ones on a car lot, are just a starting point in the negotiations. And, with enrollment numbers shrinking, many schools are eager to fill classrooms.
Join us starting March 2nd on The Willis Report as we help you and your family get the aid you deserve.