I attended a webinar on college admission trends with Dr. Jen Price and the local FPA community today. Dr. Price is an experienced college admission counselor and her presentation was outstanding. Here are some of the things that resonated with me and that can be useful to our clients, with my comments.
The number of applications per student is increasing
You may remember the old days when you applied for a couple of colleges. Now, 5-12 applications per student are much more the norm. This means two things: more time spent on applications and greater cost. Costs per application are also rising. Start early and budget for it.
More competition
More applications per student mean more applications per school. This alone increases competition. In addition, the application process is becoming more complex. You used to write one essay, but now you are likely to have a core essay plus a number of supplemental ones. More families are hiring someone for help with the application process, test performance, and essay writing. All this means more competition and more work for the applicants.
Knowing what you want to study helps
You may be admitted to a college, but you might not get into the major of your choice, as competition for certain majors is intensifying. So, even if a school has a higher admission rate, it may be a very low rate for the major you want. In some schools, this also means you may not be able to transfer to your desired major later on. Start by thinking about what you’d like to major in or what your ideal career will look like, and narrow down the list of potential majors and colleges early on. This way you can focus your search on colleges where you have a reasonable chance of getting the major you want.
Balancing goals and costs
Any careful college plan should start with your goals in mind. As suggested above, the more you can define what your career goals and what you’d like to major in the better your selection is going to be. But don’t forget who you are as a student, your likes/dislikes, and in what type of settings you learn best. Keep your parents’ alma mater in mind, but accept that it may not be among the best choices for you. Be flexible in drafting the first list. Once you have a selection based on goals and preferences, check affordability. Consider what you can pay and what type of financial aid you may be able to get. The College Board and the Department of Education have some useful resources to help you understand choices and costs.
Start early
Developing a sound and informed strategy takes time. The earlier you start visualizing your future, the more likely you are to make a better, more informed decision. You should consider the pros and cons of any of the schools you are considering before you visit them, and before you fall in love with one particular college for reasons you can’t explain.
Colleges start accepting applications right after the end of your junior year, so you should aim to have everything in place to apply for college around that time. This includes your SAT and ACT scores. Test scores are declining in importance for some schools, but they are still important for others. AP classes are preferred to dual credit classes in competitive college applications. If you take a dual credit class, aim for a good grade. Application deadlines are typically on Dec 1 of your senior year.
Take a virtual tour
Touring schools can be expensive, not to mention hard to do with Covid-19 restrictions. But you can start with virtual tours. Take a look at youruniversityTV or campusreel for some real-life experiences.
Costs and financial aid applications (FAFSA)
Never look at published prices, focus on net costs, and go through the financial aid application process (called FAFSA) at least your first year, regardless of your income. When you do that, your college computes the expected family contribution (EFC) portion of tuition and other fees. Check out the College Board net-price calculator for some initial estimates of EFC. Your income has a large impact on your EFC, so if you are a high earner, you may not get any aid. However, it’s still useful to submit a FAFSA application because it is required for merit based scholarships and for student loans.
Merit scholarships are rare. Most colleges only offer need-based scholarships. But, some public colleges do offer scholarships to out-of-state students based on merit to reduce or waive the non-resident portion, making them as affordable as your in-state option.
COVID-19 considerations
If you have submitted a FAFSA application before COVID-19 and your financial situation has changed, have a conversation with the financial aid office, as you may now me eligible for more aid.
Consider how you will finance your college expenses. If a student loan makes sense, rates are lower now and a loan means you may not have to dip into your savings right now. Also consider that if you have a 529, you can use that account to repay the loan in the future.
Online classes are not for everyone. Think about it when you take the dual credit class you think it may help you with a college application. A bad grade in a community college class can hurt you in your application and in your future career.
These are the key points we discussed. If you want to learn more about financial planning for education, check out our previous post on the subject, give us a shout!
Until Next Time!
Check out our new and FREE retirement planning check-up. Massi De Santis is an Austin, TX fee-only financial planner. DESMO Wealth Advisors, LLC provides objective financial planning and investment management to help clients organize, grow, and protect their resources throughout their lives. As a fee-only, fiduciary, and independent financial advisor, Massi De Santis is never paid a commission of any kind, and has a legal obligation to provide unbiased and trustworthy financial advice.
