I've used quite a bit of ink over the years on the subject of saving for college. And for good reason: Tuition, room and board at a four-year, in-state public university will run you $18,326 a year these days, according to the College Board. Go to a private school and you're looking at $37,390 per year, at least.
Luckily, there's also more than $143 billion in financial aid available to students, in the form of loans, grants and scholarships. Applying for a piece of that pie can significantly reduce your out-of-pocket costs.
What financial aid doesn't cover, unfortunately, is the cost of the admissions process, which can be expensive in its own right: On average, families spend about $3,500 preparing for and applying to colleges, says Dr. Katherine Cohen, CEO and founder of ApplyWise.com. Sounds crazy, but when you add up the costs associated with taking (and often re-taking) the SAT and ACT, plus college visits and application fees, you can see it's not too off the wall.
These expenses are made worse by the fact that most parents aren't prepared for them, particularly in this climate of lay-offs and high debt loads. So you have to look at cutting costs, which fortunately, is completely feasible. Here are some of the best options:
Visit via the Internet. "You can visit colleges online now, and there is a tremendous amount of information on their Web sites," says Jon Reider, the director of college counseling at San Francisco University High School and co-author of "Admission Matters: What Students and Parents Need to Know About Getting Into College." You and your child will be able to see photos and read about the courses of study, curriculum, professors, activities and clubs, and pretty much anything else you'd learn from a college tour.
But once you've narrowed your choices down, in-person visits are necessary. One of the best ways to save is by combining them with other trips -- so if you have a business trip in D.C., why not bring your son along (even if he's only a sophomore) and take a tour of a few local colleges? If it's too late for that kind of advanced planning, there are other ways to save, says Cohen. "A lot of colleges offer overnights, with a current freshman, which is a great way to stay for free." You might also buddy up with other parents, and split up visits to save money. And remember to make the most of your time -- ask questions, schedule meetings, talk to current students -- so you only have to visit once.
Make a (short) list. A lot of students -- and parents -- want to cover their bases by applying to 12, 14, even 20 colleges. But each application can run $30 to $75, and applying to this many schools is completely unnecessary, says Reider. Any good high school counselor can at least give your child an idea of what colleges are feasible and which are out of range, academically -- and financially -- speaking. "You don't need to apply to a whole bunch of schools where you're likely to get in. If you have a couple of those that you like, and you think the odds of admission are high, you should apply to two," Reider explains. The same goes for more elite schools. The bonus side of this, of course, is that your child can devote his time to four or five well-thought out applications, instead of hastily writing ten or fifteen.
Prepare wisely. There are a variety of ways to prep for standardized tests -- one-on-one tutoring, weekend or after-school classes, online courses, or test-prep books. Only your student knows what will be most effective based on the way he or she processes information. The cheapest method, of course, is buying a study book, which will run you $20-$25. But the savings evaporates if it's not effective, and you end up spending a few hundred dollars to re-take tests in hopes of a better score. Very few students need one-on-one tutoring, which is the most costly option, but many can benefit from an online or in-person course. Take the time to look at all options, and choose the one that makes the most sense, from both a financial and educational perspective.
Cut out extras. "Both the SAT and ACT associations are apparently non-profit, but they are very much businesses and they have a lot of extra fees that they dangle in front of families," says Reider. Most, like rush reporting, are completely unnecessary if you manage your time well and schedule the test far enough in advance. Both tests will send your scores to up to four schools, free of charge, if you provide that information within the time frame they require. After that, you'll pay $9 for the ACT and $9.50 for the SAT for each additional school. That might sound like small change, but it adds up fast -- if you send scores to ten schools, you're looking at about $60 right there. Keep in mind that there are some colleges that are test-optional, says Reider, meaning if you do very well, it might be worth it to send your scores, but if your score is average or below, you're better off -- financially and academically -- keeping them to yourself.
With reporting by Arielle McGowen
Jean Chatzky is the financial editor for NBC's "Today," a contributing editor for More magazine, and a contributor to "The Oprah Winfrey Show." She is the author of six books, including the book The Difference: How Anyone Can Prosper in Even the Toughest Times (Crown, March 10, 2009). To find out more and to read her blog, visit her Web site, www.jeanchatzky.com
Copyright 2009, Jean Chatzky. Distributed by United Feature Syndicate, Inc.
