Financial Matters: Understanding Net Price

Families often experience sticker shock when contemplating the cost of college, but it’s the net price, rather than the sticker price, that prospective students need to consider. Each college publishes the Cost of Attendance (COA) for their institution. The COA includes room, board, tuition and fees, along with an estimate for books, personal expenses, and travel to and from campus. The COA is the sticker price.

Relatively few families actually pay the full COA for their child. Instead, various grants, loans, and work study earnings all affect the actual net price of college. Let’s look at the factors that affect the net price.

Net price depends upon a family’s financial situation as computed on the FAFSA (Free Application for Federal Student Aid), the form required by all colleges if applying for financial aid. The FAFSA will calculate an Expected Family Contribution (EFC). The actual net price, however, will be affected by the college’s financial aid policies that determine the percentage of need they will meet, and further affected by how much the college actually wants a particular student to enroll.

Need is the difference between the Cost of Attendance and Expected Family Contribution. Some colleges will meet 100% of need, while others with smaller endowments meet a lower percentage of need. When a college strongly wants to enroll a particular student (usually because of grades and test scores, or possibly because of institutional desires that might include geographic or ethnic diversity, interest in specific majors, or special skills, talents or aptitudes of the applicant), they will offer grants to make up a larger percentage of the difference between need and COA.

Your net price can be met in several ways. One component, the Expected Family Contribution (EFC), might be met through the family’s assets, college savings plans, and/or loans. A second way to meet your net price is through self-help money earned through the student’s employment, and money that a student might borrow through a federal or state loan. The third component, or GAP, is the amount of need that is unmet. GAP may be paid from family assets, income, or parental loans.

To reduce your net price, include colleges that meet a high percentage of established need and those that are generous with merit aid. Merit aid is free money provided in the form of scholarships and grants because the college is eager to enroll a particular student. Applicants are most likely to qualify for merit aid if their GPA and test scores place them in the top quarter of accepted students. Therefore, by carefully including colleges on your list that offer generous merit aid and where you will be a top applicant, you can greatly reduce the net price you will pay for education.

Student Support Services on Campus

Colleges and universities are a student’s new ‘home away from home’, and as such, must provide comprehensive support to their student body. That support comes in many different forms and knowing what is available should be part of the research a family completes before selecting a college. Support may be of several types – academic support, health and wellness support, professional support, and social support. Applicants need to have an awareness of both who they are and what they need in order to be successful as independent college students. Don’t be blinded by the beautiful buildings, the exciting faculty, and the excellent facilities; look beyond the obvious and ask lots of questions about your options, should you need some help while enrolled. Here are the main areas of support you should learn about:

Academic support: At some point during your college career, it is likely that you will find yourself in need of assistance in a particularly challenging course. Most colleges have a learning center, a writing center, and/or an academic support center that may offer a wide range of services. Ask about tutoring in specific subjects – is it free or do you have to pay? Who does the tutoring? Are there mechanisms in place to help students write both research papers and academic essays? In this same vein, ask about faculty support – do professors encourage students to meet with them and work through challenges? Are there small study groups created for students in very large lecture classes that encourage feedback, questions, and offer homework help? Some colleges also offer exam prep classes and one-on-one tutoring for student athletes. Also look at the library facilities on campus – what are their hours? Are there plenty of computers, either in the library or at a computer center, that you can use? Is there solid IT support should your own computer break down?

If you enter college with a diagnosed learning disability and know that you will require support services, it is imperative that you become familiar with the official process for requesting LD support on campus. This will require some paperwork on your part and is sometimes completed before you enroll. Does your college offer the specific assistance you require? Are there workshops available, learning specialists who understand your needs, and the appropriate facilities? Do they charge a fee?

Health and Wellness support: Just like at home, you may fall ill at some point during your college career. The most obvious support is a Student Health Center. Where is it? What are their hours? How do you get there if you are sick? Who runs the clinic and whom will you see there? Then, find out about the nearest hospital. If your illness or injury requires a hospital visit, know where it is located.

Some students enter college with a diagnosed psychological challenge – anxiety, depression or eating disorders are some common examples. Know about mental health support that you might need, including on-campus counseling, medication management, support groups and a crisis center. How easy is it to get an appointment? Do you have to be referred out to a local practitioner? Talk to your therapist at home to be sure you are asking the right questions; your mental health is an important part of your ability to transition well.

Professional support: Your goal, upon graduation, will be to enter the workforce right away or to enter post-graduate schooling. Does your college prepare you for the direction you have chosen? Is there a strong career center with connections to commerce, across the disciplines? Are there workshops offered for students that prepare them for writing resumes, conducting successful interviews, and meeting with prospective employers? Is there guidance for students seeking entry into a graduate program? Is there specific support for students bound for a professional graduate program – medical, law, dental, veterinary, physical therapy, or pharmacy school? And does the school help you find that important first job?

Social support: A lot students arrive on campus somewhat fearful and anxious about their unfamiliar new life and surroundings; it may even be your first time away from home. In order to connect quickly to your new community, does your college offer special orientation programs or academic courses just for first-year students? Does your residence hall conduct workshops for new students? Are the student clubs and organizations widely publicized and are new students encouraged to attend meetings? Finally, does the college offer a mentoring program – this is a wonderful way for a new student to be mentored by a senior student who can ‘show them the ropes’.

The Meaning of Fit

Most of us have a few pairs of shoes in our closet – shoes for sports, the beach or formal settings – and most of us have one or two pairs that we love and wear over and over. Why? Because they fit beautifully, look good, take us places, and bring us happiness. Fit is frequently referred to when speaking with students about choosing the ‘right’ college, and many of those same students are puzzled about what is the ‘right’ fit. So, as you gaze upon that favorite pair of shoes, let’s think through the puzzle.

First, get rid of the notion that you have to find that one ‘perfect’ college – there is no such thing! There are so many options for you to explore, and many of those options would give you what you seek: a great education in an area of interest that will move you forward into your first job or advanced training/education in your chosen field of study. So start with some serious self-reflection. Really think about what you want from your college experience. What matters to you and why? Where do your strengths, passions, interests, and abilities lie? Are you independent and self-sufficient or would you thrive living closer to home? What are your goals in life – money, happiness, knowledge? Consider it all and talk about it with your best friends and family - they probably have some interesting insights. You need to embark upon this journey before you start working on your college essay too.

There are some core components to a good fit that you should explore, compare and contrast in each of your colleges of interest:

Location – Consider urban, suburban, rural; close to home or far away.

Size of student body – Note both undergraduate and graduate population.

Academic options – Does the college have the major in which you have a primary interest? Are there other majors of interest should the first one not be what you want?

Diversity of students – Consider in-state, out of state, commuter campus, geographic, ethnic and religious diversity.

Extracurricular options – Investigate clubs of interest, variety of on-campus activities.

Housing – Are there options for single rooms, suites for students with shared majors/interests?

Campus ethos – Do you ‘feel’ comfortable when you walk around, eat in the dining halls, attend a class? Do Greek organizations rule the day? Is the college centered around their sports teams?

Cost of attendance – Go beyond the sticker price and ask hard questions about financial aid, merit aid, scholarships and work opportunities.

Career placement – Is there a strong career office that helps with internships and job placements?

Study abroad – Does the college encourage students to expand their horizons by studying abroad? Does it offer many study abroad programs?

So many families start and finish their exploration and research with rankings and this is a very narrow and imperfect way of finding the perfect college. In fact, a recent study conducted by Stanford University’s Graduate School of Education, clearly shows that the best way to find the right fit is to completely ignore those rankings. Denise Pope, a Stanford senior lecturer, stated, “…the most successful students, both in college and beyond, are the ones who engage in the undergraduate experience regardless of how selective a school may be.” Finding a great mentor while you are in college can deeply impact a student’s ability to thrive and reach forward successfully into the future. Find out if the college under consideration encourages close mentoring relationships with faculty and look for a student body that is involved in many activities that supplement their learning and build strong connections.

All of this tells us that students need to seek out affordable institutions within which they will thrive. Colleges should have a supportive and engaged faculty and student body, offer opportunities to dive deeply into your chosen field of study in and out of the classroom, and provide the ability to become part of an academic community that will nurture your interests over the years and beyond. Keep an open mind as you research the many choices, and spend time exploring those that rise to the top. Talk to your counselor, your college advisor, and teachers; visit the campus and speak to students you meet; seek out people engaged in work you are interested in and ask them about their college experiences; and do a lot of research online. Colleges provide so much information on their websites – use it as a helpful tool. You’ll see that you can be successful at many colleges; there are great options for everyone, but don’t let those ranking magazines be your guide.

Athletic Recruiting

What parent of an athlete doesn’t dream of that photograph on “Signing Day” when the big athletic scholarship for their child is real? After all those practices and games in the freezing cold and the blazing heat, after all the carpooling, snack assignments and cheering, as well as the consolation, you’re sure your kid deserves a scholarship, right? Well, we can all dream but reality tells us a different story.

According to the NCAA, there are a few million high school athletes, more than 460,000 NCAA student-athletes, and fewer than two percent of them will go pro in their sports. The probability of competing beyond high school is daunting. A chart on the site demonstrates just how challenging it is for high school athletes to become members of the NCAA and shows the percentage who then move on to professional sports. We’ll take a more in-depth look at these statistics later in this article.

Here’s what you need to know if you are interested in playing a sport in college. Your first order of business is to spend some time doing your homework on the following websites:

www.ncaa.org - The official web site of the National Collegiate Athletic Association. Read the NCAA guide for prospective collegiate athletes.

www.naia.org - The National Association of Intercollegiate Athletics, another governing body of college sports.

www.ncaaeligibilitycenter.org - the place where student athletes need to go to register and begin the recruitment process. The site helps students and families determine academic eligibility and amateur athlete eligibility status. Prospective student-athletes must register with the “Eligibility Center” to be considered for scholarships and financial aid.

Here are some things you’ll need to think about as you consider entering the athletic recruitment process:

• Think about the concept of “fit” – make sure the school is a solid academic fit for you as well as a sports/social fit. You want to make sure you will be able to graduate in four years with a solid major and a strong transcript.

• Talk with your coach to help determine at what level you may be able to play (DI, DII, DIII).

• Be responsible for the process and don’t forget to return questionnaires, send film if requested, take standardized tests, send transcripts when asked.

• Visit as many colleges as possible (unofficial). Spend some serious quality time with the coaches and other players and ask how they are treated, how well they’re doing in classes and what their life at college is like.

• Be honest throughout the process and follow the rules diligently. Be straight with the coaches recruiting you and expect coaches to be honest with you.

Here is the back-up research on the percentage of high school players who continue in their sport in college and beyond.

Football • About 6.5%, or approximately one in 16, of all high school senior boys playing interscholastic football will go on to play football at a NCAA member institution. • Less than two in 100, or 1.6%, of NCAA senior football players will get drafted by a National Football League (NFL) team. • Eight in 10,000, or approximately 0.08% of high school senior boys playing interscholastic football will eventually be drafted by an NFL team.

Men's Basketball • Approximately one in 30, or approximately 3.3%, of high school senior boys playing inter-scholastic basketball will go on to play men's basketball at a NCAA member institution. • About one in 75, or approximately 1.2%, of NCAA male senior basketball players will get drafted by a National Basketball Association (NBA) team. • Three in 10,000, or approximately 0.03% of high school senior boys playing interscholastic basketball will eventually be drafted by an NBA team.

Women's Basketball • A few more than three in 100, or 3.7%, of high school senior girls interscholastic basketball players will go on to play women's basketball at a NCAA member institution. • Less than one in 100, or approximately 0.9%, of NCAA female senior basketball players will get drafted by a Women's National Basketball Association (WNBA) team. • One in 4,000, or approximately 0.03% of high school senior girls playing interscholastic basketball will eventually be drafted by a WNBA team.

Men's Soccer • Less than three in 50, or about 5.7%, of high school senior boys interscholastic soccer players will go on to play men's soccer at a NCAA member institution. • Approximately 20 in 1,000, or about 1.9%, of NCAA senior male soccer players will be drafted by a Major League Soccer (MLS) team. • About two in 2,000 or approximately 0.09% of high school senior boys playing interscholastic soccer will eventually be drafted by an MLS team.

For Parents: Helping Your Child Succeed

In the midst of worrying about college admissions, it can be easy to forget that your child’s high school years aren’t just about getting into college. High school is also an important time for developing the life skills necessary to do well in college. Here are five ways parents can help their high schoolers prepare for success in college.

Help your child choose the appropriate level of academic challenge. High school academics lay the foundation for academic success in college. However, this doesn’t mean that piling on a full slate of AP courses is right for every teen. Encourage your child to make thoughtful course selections, taking into account both individual strengths and weaknesses, and a reasonable work-life balance. Also discuss how high school coursework aligns with what he’ll be studying in college. For instance, strong quantitative skills are a requirement to do well in many college courses; taking math through senior year in high school can help make the transition to those courses go more smoothly.

Cut the reins. It’s nice to be needed, but as your child nears the end of high school, your goal as a parent should be to be needed less. Gradually give your child more freedom to make her own decisions and manage her own schedule. Sure, it’s likely that she’ll make a few mistakes along the way, but it will be better for your child to make those mistakes – and learn how to fix them – before she goes off to college.

Make reading a family affair. Remember reading story-books to your young child? That activity likely helped your child learn to read. Even with teens, reading together as a family is just as important. Few teens, of course, want to be tucked into bed with a story, but there are ways that you can help your child continue to develop the strong reading skills he’ll need in college. Clip articles that might interest your child and suggest you discuss them. Ask your child about the books he’s reading in his English class; what does he like or dislike about the books, and what is he learning from them? Better yet, get a copy of a few of the same books, read them yourself, and talk to your child about your thoughts and impressions of the books.

Travel. College introduces students to many new ideas, cultures, and ways of doing things. Travel is a great way to help your teen get comfortable with new environments and new people. You don’t have to go to the other side of the world on a fancy trip for your child to reap the rewards. Even a quick trip to a new city an hour or two from home can help your child begin to see the larger world that awaits her in college.

Teach life skills. Academic success is important, but in order to live independently in college, your child still needs to know how to do things like his own laundry, balance a checkbook, and make simple meals. Make a list of all of the basic day-to-day tasks you do for your child today, and gradually teach your child how to do each one on the list for himself. Don’t wait until the summer before college to get started. The sooner your child is able to confidently handle these tasks on his own, the easier the transition to college will be.