Choosing The Right College

Select a college that fits you financially, culturally, and socially. Aim to earn your degree with minimal debt, which may involve prioritizing affordability over the perfect college experience. Make practical choices now to ensure a better return on your investment. Stay focused on what’s best for you, and don’t be swayed by external pressures.

Tip: You can apply to as many colleges as you’d like, but to make an informed financial decision, it’s essential to evaluate and compare your financial aid award letters before selecting a school. To keep your options open, be sure to apply to at least one in-state public university and one local public college, as these often offer more affordable options.

1. Evaluate Your Financial Aid Offers

Your college acceptance offers will include a financial aid package detailing your net cost (see section below). Though what’s included in a financial aid package varies from school to school, it will generally include:

• Grants and scholarships, which don’t have to be paid back.
• Federal student loans, which do have to be paid back with interest.
• Work-study, which must be earned.

2. Compare Net Costs

To find your net cost, begin with the published cost of attendance, covering tuition, fees, housing, food, books, and transport. Deduct grants, scholarships, and work-study offers. The remainder is your out-of-pocket expense, which you may cover with savings or loans. 

Also, scrutinize loan options, prioritizing federal loans over potentially costlier private loans with less flexible repayment terms.

Get more in-depth guidance on understanding & comparing financial aid award letters. 

3. Consider Appealing for More Aid

If your top choice school didn’t offer enough financial aid:

• Contact their admissions office for more assistance. But don’t let them know they are your top choice. 
• Have a meaningful conversation expressing your situation.
• Mention offers from comparable schools.
• Ask for increased institutional aid or scholarships. 
• Be ready to submit a written appeal with evidence of other offers.

4. Talk with Your Family About College Costs

Discussing college finances can be stressful, but clear communication can help streamline the process.

By having these conversations early, you can develop a practical plan to finance your education while safeguarding your family’s financial health.

5. Review Career Services

Some tips to ensure career success at your chosen school:

• Consider future employment prospects, especially if out-of-state.
• Assess campus tours, student connections, rankings, and majors.
• Evaluate career services for job support, internships, and faculty connections.
• Research career fair participation and companies attending.

6. Research the School’s Financial Health

Consider the school’s financial health especially post-pandemic:

• COVID-19 has impacted colleges financially, especially smaller liberal arts schools.
• A significant number of private four-year colleges are financially vulnerable.
• Assess the school’s endowment per student for a clearer picture of financial stability.
• Larger public universities and elite private schools generally have better financial resources.
• Research the financial outlook of the college to make an informed decision.

7. Explore the Investment’s Potential Returns

College costs are rising, but it’s not just about the price tag.

Higher education typically leads to higher earnings:

• Bachelor’s degree holders earn a median $64,896 annually.
• Master’s and professional degree holders earn even more.
• Doctorate holders earn the most and have the lowest unemployment rates.

Investing in a reputable graduate degree can pay off.

Do your research on the expected return on investment (ROI) for your top contenders. You can compare the ROI of 4,500 colleges and universities here.

Source: MassMutual, “Tips for choosing the best ‘financial fit’ college”, March 22, 2023

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