We know the price of a college education can feel overwhelming. It's confusing to see one price listed online while hearing that others pay far less for the exact same degree. You aren't alone in feeling anxious about this big investment, but with the right roadmap, you can navigate this system with confidence.
Start by choosing a college based on value
What does college actually cost? It's a simple question with a very complicated answer. Think of it like booking a flight where every passenger pays a different fare for the same seat.
For example, some students might pay the full "sticker price" of $76,040 per year for tuition, housing, and meals at Princeton University. Meanwhile, others might receive a bill for just $13,405 per year, which is the average cost for students who receive financial aid there. That is a massive gap.
Most of us would obviously rather pay $13k than $76k. Over four years, that is the difference between a five-figure bill and a six-figure one. To get there, you have two main options. You can convince the college to charge you less, or you can convince a third party to help you pay.
Colleges publish their sticker prices and average aid packages on their websites, but there is an easier way to look. The College Scorecard, managed by the U.S. Department of Education, is a great tool. It includes data on prices, admission rates, and graduation rates.
When you're looking, pay close attention to the criteria colleges use for admission. If a student applies to College A (their first choice) but gets a better financial aid offer from College B (a comparable school), you can sometimes use the offer from College B to negotiate a better deal with College A.
Make the FAFSA your priority
Most schools use the Free Application for Federal Student Aid (FAFSA®) to determine need-based aid. While some schools require extra forms, the FAFSA is almost universal. You absolutely must complete and submit this form to receive aid at nearly all schools.
Here is the good news. Most families only have to fill it out once. You can distribute the same form to multiple schools. Plus, once parents and students file their tax returns, you can often link that data directly to the FAFSA to save time and reduce errors.
Keep these two things in mind regarding the FAFSA:
- Timing matters. The deadline is typically June 30, but you shouldn't wait. The sooner you submit it, the more money schools may have available to offer you.
- It's an annual task. You will have to submit a new FAFSA for every year the student is in school.
Completing the form generates an Expected Family Contribution (EFC). This is the government's estimate of what your family should contribute toward expenses. The EFC isn't binding on schools, but it's a helpful number for your own budgeting.
How to read your offer letter
College offer letters have no standard format, so they can be incredibly confusing. You likely won't see a clear line item for the "net price" you will actually pay. You have to do some math.
Here is the short version of that math. Take the total cost of attendance and subtract all grants and scholarships. You might also want to subtract potential loans listed in the letter, but be careful. Parent PLUS loans are available to all parents, but only some schools list them on the offer letter. To make a fair comparison between schools, don't include PLUS loans in your math.
Also, check if federal work-study funds are listed. Remember that work-study is optional, so the student can choose whether or not to participate. Finally, double-check that the letter includes all costs like housing, meals, and supplies. Not every letter does.
Don't be afraid to negotiate and appeal
An offer letter might look official and final, but there is often wiggle room. Many colleges have an appeals process for need-based aid.
The FAFSA is just a snapshot of your finances at a specific moment. If your situation changes unexpectedly, such as a job loss, you have grounds for an appeal. Filing one is generally simple and could result in a much better offer.
You can also use leverage. If a student's second choice offered a better financial package, it's worth asking the first choice school to match it or sweeten their deal. The key is that the schools must be competitors. An Ivy League school won't care if a school they don't consider a peer offered you less, but schools that compete for similar students are often open to negotiation.
Hustle for every scholarship
Did you know roughly 1.7 million scholarships are awarded annually? Virtually all recipients can trace their success to one thing: hustle.
Most high schools keep lists of opportunities, and you can find many online. We recommend paying attention to niche scholarships that serve a limited audience. There are scholarships for potential female engineers, students of Scottish descent, and even tall people.
Because these are niche, they can be less competitive than mainstream awards. Left-handers, vegetarians, and other specific groups often have a better chance of getting tuition money here. Don't forget to check if your employer or alumni association offers aid. Even some elementary schools offer scholarships to their former students. Just like buying a car, the sticker price is rarely the final price if you put in the effort.
The Facet difference
At Facet, we believe financial health isn't just about investment portfolios. It's about major life milestones like sending a child to college without jeopardizing your own retirement. Our membership-based model means we don't charge a percentage of your assets. We charge a flat fee to provide comprehensive advice that covers your entire life, including education planning, cash flow, and debt management. We're here to help you build a roadmap that aligns your money with your values.
