Navigating Higher Education Funding: Making Smart Financial Decisions in College Choice and Selection
- Sara Griffin, AFC
- May 12, 2024
- 5 min read
Choosing the right college involves more than just academic reputation or campus ambiance. It's a financial investment with long-term implications. In this article, we'll explore key financial considerations to help prospective students and their families make informed decisions about where to invest their education dollars.
There are myriad factors to consider when choosing a university - location, degree type, course of study, and more. However, it's essential to delve deeper into considerations that directly impact the cost of higher education and future earning potential. We’ll explore below how researching graduation rates, salary expectations, earning college credits early, and the cost of living at university can all impact your bottom line budget for higher education.
You might be wondering about the significance of "future earning opportunities." What I mean is the real income potential for students after graduation. Attending a prestigious technology-based school solely for its reputation, especially if pursuing an education degree, may not necessarily lead to higher earnings. In fact, it could incur additional costs. That's why I educate my clients to delve deeper into their prospective universities, examining factors such as graduation rates and first-year salaries post-graduation. This holistic approach ensures that students make informed decisions aligned with their long-term financial goals.
Graduation Rates and Income Expectations:
Before committing to a college, research its graduation rates. High graduation rates indicate an environment conducive to student success. Websites like College Scorecard or the National Center for Education Statistics provide valuable data.
Understanding the correlation between graduation rates and available services fosters a supportive environment for students. In my personal journey, I found a direct correlation between access to support and academic success. Initially, I began my university experience at a large institution where I felt lost in the crowd and struggled to access support when needed. However, after transferring to a smaller state university, I experienced a transformative shift. At this institution, professors knew me by name, and I felt empowered to seek assistance whenever necessary. This supportive environment played a pivotal role in my academic journey, ultimately contributing to the successful completion of my bachelor's degree.
Additionally, consider the first-year income expectations for graduates in your desired field. Websites like PayScale or the Bureau of Labor Statistics offer insights into average salaries for various professions. Evaluating graduation rates and income expectations helps students gauge whether the cost of attending a particular college aligns with potential financial rewards post-graduation. Additionally, this process also helps students understand what their salary level may look like for their degree field. It will help students craft their financial literacy and baseline for post-graduation life allowing students to understand their financial earnings potential, and if they will be able to afford a comfortable life.
Accumulating college credits early
Accumulating college credits early is a savvy strategy to mitigate the overall cost of a four-year degree, especially as the typical completion time extends to five years, with many students pursuing graduate studies thereafter. Whether you're a high school student or an adult returning to university, there are various avenues to expedite degree completion and minimize expenses.
Starting college credits during high school offers a head start in the pursuit of higher education. Dual enrollment programs, which allow high school students to earn both high school and college credits simultaneously, are particularly beneficial. Additionally, taking Advanced Placement (AP) classes and successfully passing the corresponding exams can earn college credit, further reducing the time and cost of obtaining a degree.
For individuals with prior adult career experience, leveraging that experience for college credit through options like the College-Level Examination Program (CLEP) or Dantes tests can fast-track degree completion. Military experience may also be credited for college, providing another avenue for earning credits. Furthermore, Prior Learning Assessment (PLA) offers a method to translate life experience into college-level learning. By documenting achievements and skills through a comprehensive portfolio, individuals can demonstrate mastery and potentially earn credits toward their degree.
Community colleges and two-year universities often offer more affordable tuition rates compared to four-year institutions, making them strategic choices for starting or completing a degree. Taking advantage of summer and winter sessions at community colleges while still in high school can further bolster available credits for transfer.
However, it's crucial to note that these options may come with associated costs, such as exam fees for AP, CLEP, or Dantes tests. Seeking out scholarships or hardship cost reductions can help alleviate these expenses. Additionally, not all universities accept all transfer credits, and specific requirements may apply to transfer students. Thorough research on transfer credit policies and regulations at prospective schools is essential.
Accumulating college credits early offers a proactive approach to reducing the financial burden of higher education. By exploring these options and understanding transfer credit policies, students can make informed decisions to optimize their academic and financial pathways.
Cost of Living Considerations:
When assessing potential universities, it's crucial to factor in the cost of living in the surrounding area. This aspect can significantly impact the overall financial burden of attending college. While two schools may appear equally appealing academically, the affordability of living in the city or town where the college is located can ultimately sway the decision-making process.
Considerations extend beyond the immediate college years; students must also contemplate their post-graduation plans. If they anticipate living off-campus after completing their degree, it's essential to assess rental prices in the area. Choosing a college in a region with a lower cost of living can translate to substantial savings on housing, transportation, and daily necessities.
Websites like Numbeo or Expatistan offer invaluable resources for comparing the cost of living between different cities. Conducting this comparison enables students to grasp the external factors that will impact their overall cost of attending college in the long run. By opting for a college situated in an area with a lower cost of living, students can enhance their financial stability throughout their college journey.
It's worth noting that while higher-cost living locations may offer higher salaries, this correlation is often driven by employers striving to remain competitive with the local cost of living. Therefore, it's essential to consider these factors holistically, recognizing that they often work in tandem with one another rather than in isolation.
Evaluating the cost of living surrounding prospective colleges is a critical step in making informed decisions about higher education. By considering this aspect alongside other factors, students can optimize their financial well-being and overall college experience.
Making smart financial decisions in college selection involves thorough research and thoughtful consideration of graduation rates, income expectations, credit accumulation opportunities, and cost of living factors. By evaluating these aspects, students can align their educational investment with their future financial goals.
Join the Sip Into Savings Community for a live Q&A session on May 23 at 7pm Eastern / 4pm Pacific on Zoom, where we'll address your questions and provide further guidance on funding higher education. Click Here to Register!
Below are links to some of the websites I mentioned in the blog today-
Helpful Resources:
Comments