Picking, paying for a college
College may seem an eon away to high school seniors who are focused on that next big test or big football game. But the time to think about choosing and paying for college is now. Some early-admissions and scholarship deadlines are right around the corner, if they haven’t passed already.
That’s not to say that students without a college pick are in big trouble. But college-bound seniors and their parents should act on the following advice from those in the know sooner rather than later.
UStudy money. Parents have about nine months to teach their future freshmen how to budget. Karen Heimdahl, a financial counselor with Lutheran Social Services in Minnesota who advises college students, suggests that parents let their children in on the family bill-paying and budgeting.
As for handing a credit card to a teenager? Heimdahl says it depends on the maturity level of the teen and the level of parental commitment. Credit know-how doesn’t come with the card. It takes a responsible adult to teach the basics of interest rates and fees.
UTour and tour some more. Guidance counselor Ellen Merlin of St. Paul (Minn.) Central High School suggests that college-bound kids tour plenty of schools. “If you’re on a family vacation, stop at a school,” Merlin said, even if there’s no way you’ll go there. Tours will help an individual pinpoint which attributes are most important in a school.
UConsider your career. Although it might seem like putting the cart before the horse, it’s smart to consider your career plan when selecting a school, because some schools will be better equipped than others to prepare you for a certain job. Yes, with some colleges charging $40,000 a year, choosing a college isn’t just about awesome food in the cafeteria.
Minnesota businessman John Bendt, whose book “A Roadmap to Career Success” helps college-bound students think about careers, advises high-schoolers to also look at a college’s career planning resources, such as access to internships.
UDon’t count yourself out. Students from low-income families whose parents didn’t attend college may assume that higher education is for someone else, said Janet Tauer, president of Minnesota Trio, a group of programs working mostly with low-income, first generation students. “Put yourself out there,” she says. “Apply, talk to people, visit the schools.”
There’s also a lot of scholarship money available from community organizations, local companies — even college academic departments. But Tauer tells students to be aware of scholarship scams. “Don’t pay for applications,” she says. Instead, look for lists compiled by legitimate sites such as FastWeb.com and www.collegeboard.com.
UConsider cost. If you’ve already told your valedictorian to pick a school, no matter the cost, then let’s hope you’ve thought about how to pay for it. “Getting in [to college] is not hard, it’s paying for it that’s hard,” certified financial planner Mike Branch tells clients.
At this point, parents should learn all they can about how financial aid works at individual schools (need-based or merit-based) and get an idea of whether they will qualify for any federal aid. Also, prepare to fill out the FAFSA (Free Application for Federal Student Aid) as soon as your 2007 tax documents are available.
Then, get out the calculator for a net-cost-of-college calculation. Start with the cost of attendance including tuition, room and board and incidentals. Subtract day-to-day household expenses that will disappear when your hockey star leaves.
Parents will get to a number they either can or can’t live with, said Branch of Focus Financial Network in Roseville, Minn.
If they can’t, then it’s time to consider loans or financial adjustments such as taking out a home-equity loan, lowering retirement contributions or slashing household expenses.
It might also be time to have a tough talk with Junior, explaining the need to reduce college costs with two years of community college and/or a job.
XKara McGuire writes about personal finance. Write to her at kara@startribune.com or at the Star Tribune, 425 Portland Ave., Minneapolis, MN 55488.