This is a sentiment expressed by more and more parents as they
contemplate the staggering costs of sending their kids to college.
Tuition, room and board, meal plans, fees, books and other costs
associated with higher education are soaring due to severe budget cuts at
the federal, state and even institutional levels. Throw into the mix an
uncertain economy, widespread job loss and a stock market slump, and
middle-income and even upper-middle income families are frightened.
But Vincent Waterhouse, president of GetCollege.Com, Inc., says that
families can save up to 50 percent or more on the total cost of attendance
if they are armed with the right information. “There is a lot of myth
and misinformation out there that can cause families to make bad financial
decisions,” he says.
Waterhouse, who advises families with college-bound children, states
that middle-income Americans, the backbone of America, have been
especially hard-hit when it comes to paying for college. “With today’s
economy, 401(k) plans down, the stock market tanking, and the total cost
of attendance at a college or university increasing three times faster
than the rate of inflation, middle-income and upper-middle income families
are experiencing what is known as “financial meltdown,” he explains.
Compounding the problem is the kind of advice they are getting. “These
families with college-bound students are about to make the biggest
investment they will ever make concerning their child’s future, and they
make their decisions based on a 15-minute conversation with a 50-something
guidance counselor named Mildred, who has had limited if any training in
the complexities of higher education financing,” bemoans Waterhouse.
Making matters worse is the antiquated federal methodology used for
determining who is eligible for assistance. “Based on formulas designed
in 1965, the government estimates that a family of five with one child in
college can live on $23,000 a year. That’s your electrical bill in L.A.!”
says Waterhouse.
There is a lot that the federal government and the institutions
themselves don’t want the public to know, says Waterhouse. The following
are five of the most pervasive myths that are working against families
with college-bound kids:
Myth 1 -- Only Low-income Families Get Financial Assistance
Financial assistance in the real world of higher education is given to
everyone. Parents must understand what the true definition of need-based
and need-blind means. To reduce the total cost of attendance at both
public and private institutions, families must understand the practices
and principles of tuition reduction, tuition overrides, ward of the court,
and retention grants. How is the average American family supposed to
figure out what sort of financial aid package is right for them? It takes
a lot of knowledge and planning to figure out the best way to acquire
college financing.
Myth 2 -- There are Billions of Dollars in Scholarships
“Of the so-called billions in scholarship funding only about five
percent ever get awarded,” says Waterhouse. “We call these carpal
tunnel scholarships because you must write out 50 to 60 applications in
hopes of getting a windfall of $1,000. Now if you waive that $1,000 in
front of a financial aid officer, you could lose up to $3,000 in aid
dollars that the institution was already going to give you. In fact,
Waterhouse says that colleges are very reluctant to lose good,
academically minded students. They will find the dollars to help them stay
in school if they need financial assistance. All schools have their own
grant funds, they can even tap into their own piggy-bank of endowment
funds if need be. “Princeton University has been helping middle-income
and upper-middle-income students with their endowment funds for years,”
he adds.
Myth 3 -- Loans Are the Best Way to Pay for College
“When a student graduates from college with thousands of dollars in
loan debt how is he or she going get a decent apartment, a car that really
runs and even entertain the thought of having a family?” asks
Waterhouse. “Our children are buried in debt before they have a
realistic understanding of what debt really is.” Waterhouse recommends
that families avoid large loans at all costs and do a financial
self-evaluation of all their options for financial assistance while their
child is in their junior year of high school.
Myth 4 -- You Must Have a Very High GPA to Get Into an Ivy League College
Although first-tier colleges and universities court students who have
exceptional grades, they look at a variety of factors when making
admission decisions. “In today’s world, the high school population is
more academically armed and your better schools understand this, so they
now are looking for a more ‘angular student’ to keep the balance in
their student selection. Remember, colleges admit human beings, not
numbers,” cautions Waterhouse.
Myth 5 -- Families Shouldn’t Seek Help with Educational Firms That Charge a Fee
Financing a college education has become more complex than ever in
recent years. “Americans seek the services of professionals in the
fields of law, medicine, accounting, real estate, financial planning and a
host of other services,” says Waterhouse. “Higher education is no
different. The uneducated consumer needs help understanding the
complexities of the higher education market.”
About the Author: GetCollege.Com, Inc. provides services for families with college-bound
kids that cover everything from completing the FAFSA form, CSS Profile,
the admissions application, college selection, and obtaining adequate
financial aid. All services are tailored to each student’s abilities and
their family’s needs. “Unique to this firm is that we stay with the
family and student for the entire four to five year enrollment,” adds
Waterhouse.
“I want to transform educational needs into educational solutions,”
emphasizes Waterhouse. “I can’t stand to see money become a barrier in
developing our future. I do not want to see anything stop a child from
getting a college education.” For more information, visit www.getcollege.com.
Financial Aid & Scholarship
Resources
