As college commitment dates approach, there are few important factors high school students and their families should consider before making their final decision and paying the deposit.
Academic Fit
To get to this point, the college made some favorable impression but now it’s time to dig in a little deeper. This is the time for a revisit, discussion with a current student or a little more research into the majors offered, internship opportunities, job placement rates, social activities, etc. Consider how the campus experience matches up with the students’ interests and ultimately whether the student can visualize her/himself on the campus?
Affordability
Along with their acceptance letters, students receive a financial aid award letter that outlines the total cost of tuition, room & board, fees, etc. and what financial aid the student has available. The award letter will list free money such as grants, scholarship, and work study as well as federal student loan options.
The total cost of attendance is often the most important factor in selecting which college to attend. The most affordable college is arguably the one with the lowest remaining balance after all free money is applied. When reviewing the total cost, consider any savings that may be designated for college expenses or earned income that could be used to help offset the balance. If a gap remains, the next step is to review student loan options. Here are a few important tips when it comes to borrowing student loans:
- Borrow as little as possible: Whatever is borrowed needs to be repaid, with interest. Think seriously about how much will likely need to be borrowed over the course of the entire college experience, not just the first year.
- Pick a loan that makes the most sense for your situation: Most often, students are encouraged to exhaust their federal student loan options before pursuing parent or private student loans. Any federal student loans the student qualifies for will be outlined on their financial aid award letter. After graduation, federal loan programs offer several type of repayment plans the student may be eligible for. There are also parent loans available through the federal government (PLUS loans) and private student loans are available through credit unions, banks, financial companies, and some state agencies.
- Figure out your monthly payment before you take out the loan: Not only is it important to understand how much student loan debt you’ll graduate college with, it’s also important to understand what the monthly payment will be. Repayment on student loans typically begins six months after graduation or leaving college early. Consider what type of income can be earned with different types of jobs and how the monthly loan payment compares. A good rule of thumb is not to borrow more than the first year’s salary.
The goal for students is to graduate from college having enjoyed a great campus experience with a job offer in hand and if necessary, manageable debt that will enhance their credit rating as they repay the loan. Weighing the options and choosing wisely now will set students up for success in college and beyond.