With the cost of college rising every year, it is no wonder parents and kids are worried about paying for all of it.  Many times the conversation about how to pay for college starts in high school and not earlier like it should.  And it is even more common for parents to exclude their kids in this conversation.  Then, when the time comes for students to choose a college and analyze their financial aid letters, they have an idea of how much money their parents will contribute to these costs. This is usually different than the amount their parents have decided to contribute.  It is crucial for parents and kids to have this conversation way before junior year.  Ideally, parents would begin planning for college at birth by starting a 529 or another savings plan.  As the student goes through elementary and middle school, parents would talk with their kid about expectations related to college.  These conversations should include whether the parents are expecting their kid to go to college and if the kid has aspirations of going to college.  They should also talk about how college will be financed.  Will the parents pay for it completely? Does the child expect to contribute something?

A recent study by College Savings Foundation found that 82% of students believe it is their responsibility to pay for at least part of their higher education.  71% of students said they would pay for at least 25% of college costs. While this is up from 53% the previous year, 25% of college costs can be a pretty big number and if students do not have a plan for saving, they won't be able to actually contribute this money.  With cost of attendance, for one year at private 4 year colleges averaging $46,272, it is essential that families begin talking about college costs, financing, and responsibilities before junior year.  If your student expects to pay for at least 25% of college costs each year, they will need $11,000 a year. They'll need to save this amount before they graduate high school but that is just for one year of college. They'll then need a solid plan for how they'll save for their contribution of the next 3 years.  

So how can students save? Students can get a part-time job during the school year, making sure to put away most of this money for their college fund. They could also work more hours during the summer and do the same with their paycheck. Not only is this great for their savings, it will also show admissions officers that the student is responsible, is able to manage their time, and is able to juggle multiple responsibilities at the same time like school and work.  Students who do this could save $3,000-$7,000 a year! Students can also contribute to their own 529 plan with these funds!  Students should also be on the lookout for scholarships for kids their age. While there aren't as many scholarships for 9th or 10th graders as there are for seniors, there are still great scholarships for them!  Students should take the initiative and research these scholarships and apply for them! A few helpful sites: www.fastweb.com ; https://colleges.niche.com/ ; www.cappex.com.

How can parents save and make college more affordable? Well, it is important to make sure you fill out the FAFSA. This is done in the student's senior year of high school. The FAFSA is the Free Application for Federal Student Aid. By filling this out, you will automatically qualify your student for state and federal grants and some scholarships. Check to see if your employer offers tuition assistance program or scholarships for the kids of employees. Also check with your union, church, or any professional organizations  you are a part of and ask them if they offer scholarships for the kids of members.  Start a 529 savings plan and ask friends and family to contribute to it instead of buy gifts for holidays and birthdays.  This might seem odd to some people but the money really adds up!

At Riley College Advising, we counsel families through the financial aid process and help them make realistic plans for paying for college.  We're here to help make this stressful process a lot more manageable and even, enjoyable. 

The Washington Post recent published an article that chronicles a parent's frustration with financial aid.  In her article entitled When he’s accepted to college, but we can’t afford it, Tracy Major explains how she and her family must come off the high of their kid's many college acceptances to amazing colleges, many of them very selective colleges, when they realize that the financial aid packages that many of these colleges have created for their kid means that they are too expensive and unrealistic. She writes about "merit aid roulette" and how the merit aid offered by many colleges is set aside, often times, for freshmen with outstanding test scores and grades.  Merit aid is not something student can count on receiving until they see it on their financial aid letter and merit aid is at the discretion of the college. This ultimately leads her family feeling disappointed that they can only afford to send their kid to a few of the colleges that he actually got into.  

We've definitely seen this in the financial aid packages we review with families. Students and families will bring in their acceptance letters from one college after another, racking up Yes after Yes.  These Yes's eventually turn into No's for families when, after careful review of the financial aid packages they've received from these colleges, many of acceptances are not realistic because they are nor affordable.  Working with a College Advisor will help your family carefully evaluate every financial aid letter so you can make an informed decision when choosing what college your son or daughter ultimately attends.  It is important to think about cost when creating a college application list; however; you will not know how much a college will actually cost for your student until the financial aid packages is awarded. For middle class families, it often comes down to what college is most affordable but you do not want your student to only look at schools that seem inexpensive. Many colleges that look expensive on paper can turn out to be affordable once the financial aid letter is reviewed. But sometimes a college that told families they give out tons of financial aid and that they offer lots of scholarships to students, turns out to not be affordable because that money did not, in reality, make it onto the student's financial aid letter.  Make sure you work with an experienced College Advisor who will help you make a great list of colleges to apply to.  They'll have the knowledge of having seen many financial aid packages from these colleges and can recommend colleges they know give good financial aid.