About

How to Afford a College Education? Start Early!

  • Financial Aid
  • Merit Aid
  • Need-Based Financial Aid
Janan Sabeh

As we shared in the recent "Affording a College Education" presentation, one of the mistakes many students and parents make in the college application process is waiting too long to talk about a family's financial capability to afford the cost (all the costs!) of a college education. We can all agree that we want our students to attend a university that meets their academic goals and where they socially belong. However, there is a third component that is often overlooked… a family's budget. Many teenagers are either unaware or unconcerned about cost because they will not be responsible for paying. They will, however, have to budget their finances in college and understand or coordinate how their parents will pay for tuition and fees. If a student is worried about finances in college, then arguably their social life and academic achievements will suffer because no one likes to worry about money!

To begin the conversation around affording a college education, parents and students should first define a good college "fit" for them: 1) socially (Personal), 2) academically (Instruction), and 3) financially (Expenses). Or put another way, what pieces of your P.I.E. chart require more consideration than others? 

Some families may need to consider finances more than others or perhaps a $25,000/year scholarship could make a big difference on the family's overall budget. Thus we recommend that parents and students talk frankly about their financial situation and the amount they are able to pay for college EARLY in the process. There are two types financial aid (or scholarships) that students can receive:

Merit-based aid or scholarships: This is essentially free money that you don't have to pay back! And who doesn't want free money!? Many merit-based scholarships are awarded automatically when a student is admitted, as they take into consideration a student's academic performance and/or their special talents (i.e. sports, music) without considering a family's ability to pay. There are competitive scholarship programs to consider, including honor's programs that require an additional application or essay. The majority of merit-based scholarships will be awarded by institutions that are somewhat less competitive in order to incentivize students to choose their institution over others. So, spend more time in the "likely" or "match" schools on the college list because oftentimes, that is where the money will be found!

Need-based aid or scholarships: These forms of aid or scholarships take into consideration a family's financial situation. As such, a family must apply for need-based financial aid at the time of applying for admission. Families will be required to share detailed information about their income, assets, and expenses in order to estimate a family's ability to pay. Need-based aid is also primarily found at U.S. colleges and universities and is also reserved for top students academically or for students who have overcome great obstacles.

In closing, there are three areas that families should consider to determine if a college is a good "fit" for a student…the academic program, the social scene, and, last but not least, the cost! The sooner you have conversations with your family and share this information with your college counselor, the more poised your child will be to earn merit-based scholarships and/or receive the financial aid they need. Start early and it will be as easy as P.I.E.!

For more information, check out the recorded presentation from 24 May 2022.