The Low Cost of College Tuition

The New York Times published an article today that provides a comprehensive look at the colleges that have been moving swiftly to lower their tuition rates for lower income and middle class families. Primarily, the colleges that are making these price reductions are the more wealthy, upper-tier institutions. But the article points out, as I often do to anyone who will listen, that most families do not pay the “sticker price”–and many pay far lower tuition rates that we might expect.
Amid all the hullaballoo about ever-rising tuition costs, it pays to consider that how one chooses a college has a bearing on one’s financial aid strategy. One of the problems, however, is that families with limited means–including middle class families–often don’t know enough about their college options to develop compatible college selection and financial aid strategies.
Mark Montgomery
College Counselor in Colorado

Claremont-McKenna and Lafayette: Changes in Financial Aid

Two more colleges have readjusted their financial aid policies in the wake of Harvard’s decision to woo the middle classes by offering richer aid packages (which I wrote about here). The changes were reported in Inside Higher Ed:

Two more colleges have joined the growing number pledging to eliminate loans for low-income students. Claremont McKenna College announced Monday that it would eliminate loans from the aid packages of all current and new students, effective this coming fall. Lafayette College on Monday announced that it would eliminate loans in the packages of students from families with incomes of up to $50,000 and limit to $2,500 a year the loans in aid packages of families with incomes of between $50,000 and $100,000. Lafayette also announced plans to increase the size of its faculty by 35 positions (or about 20 percent) over five years, without increasing the size of the student body.

Families concerned about paying for college should take note of these changes at many of the nation’s most selective and well-endowed colleges. They are becoming more affordable.
However, also keep in mind that these financial aid changes will also lead to higher application numbers and increasing selectivity at these colleges. Harvard’s applications were up 19% this year over last, and you can expect that all the colleges with revamped aid policies will experience similar increases next year.
Mark Montgomery
College Counselor
Montgomery Educational Consulting

Columbia Joins the Bandwagon and Changes Financial Aid Policies

Columbia University announced today that it was joining its Ivy League sister institutions in revamping its financial aid policies to make the University more affordable for the middle class. Families with incomes of less than $60,000 will pay nothing. Families with incomes of less than $100,000 will see a significant increase in the amount of aid awarded. And all institutional loans will be replaced by grants.Columbia University
Since Harvard announced changes in its financial aid policies (see my post here), other well-heeled institutions (e.g., Dartmouth, Yale, Bowdoin, Stanford) have followed suit. Expect others to join in.
Stay tuned.
Mark Montgomery
Independent College Counselor

College is an Investment: Choose Wisely

If you’re like most parents, you’ve begun saving money for college. You know what a huge investment college can be.
But have you thought about about the investment in choosing the right college?
Consider these facts:

  • A college education is the biggest investment a family will make, aside from a home.
  • The cost of attending an in-state college is now well over $100,000.
  • The cost of a private four-year college can easily amount to $250,000.
  • Most students take MORE than four years to graduate, so plan on at least 4 1/2 to 5 years of tuition payments.

Add to these facts another, sobering statistic: almost half of all students entering college either drop out or transfer to some other institution.
Moreover, families can save considerable amounts of money if they take more care in choosing colleges that are more likely to award their student merit-based financial aid.
So it makes sense to invest in choosing the right college.
More and more families across the country are turning to professional advisers to help them in choose the right college. The Independent Educational Consultants Association (the IECA, of which I am an associate member) estimates that 22% of students attending private, four-year colleges have had some sort of professional assistance in the admissions process. Closer to home, a college counselor in a premier district in Colorado estimates that at least 25% of its student body hires a professional educational consultant.
So as you consider whether it makes sense to invest in hiring me to help map out your college journey, ask yourself these questions:

  • Do you seek professional advice to help you manage your other investments?
  • Did you buy your house without the assistance of a real estate broker?
  • Do you get legal advice from the internet or books you pick up in the bookstore?

My fees are a tiny fraction of what you can expect to pay for a college education. An investment in the college selection and admission process will pay off in terms of:

  • dollars saved
  • headaches avoided
  • student’s happiness on the college campus
  • student’s academic success
  • peace of mind

So if you’re ready to invest in choosing the right college for your student, give me a call or send me an email today. I’d be happy to talk to you personally about how I can help you and your student invest your educational dollars wisely.
Mark Montgomery
Independent College Consultant
720.279.7577
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Which College to Choose? Follow the Money! (or, the Road To Rhodes)

As I explained in a previous post, I recently asked a group of friends and acquaintances about their experiences in selecting a college or university.
Below, a graduate of Rhodes University in Memphis recounts how she chose her college.Rhodes college
“I followed the money. When looking at schools, I sought out schools that had good reputations for liberal arts and hands-on instruction. Although I was accepted to my top picks, I ultimately chose the school that offered me the most money, even though it was at the bottom of my list.
Was this a good choice? It’s hard to say. I do believe that students should ultimately follow their gut instinct, but I also think that college is what you make of it. I knew that I could survive anywhere, so it was the right decision for me to get a quality education for a good price. If tuition was not a concern, I would have chosen the school that I felt best complemented my personality, learning style and interests. (And I probably would have had a more positive collegiate experience.)
I suggest to students that they pick a dealbreaker quality. What one thing is most important to them? Be it cost, location, course offerings, etc. Then eliminate all schools that don’t fulfill the qualifications of their dealbreaker. What is left is generally a short list, so then I suggest that they trust their instincts and pick the school that feels right and fulfills their key requirement.”
This correspondent went on to pursue two graduate degrees, and is now an information specialist and reference librarian in Memphis.
Her strategy is an excellent one, and one that many students and parents don’t consider. There are literally thousands of colleges in the US, and hundreds of excellent ones. If money is a consideration, build your college list around that principal criterion. Many colleges are willing to pay top dollar (by giving substantial tuition discounts and scholarships) to well-qualified applicants.
Do NOT sell yourself short. If you have talents and academic abilities, be prepared to show them off during the admissions process. And depending on the audience for whom you are prepared to show off, you may get money thrown at you!
Mark Montgomery
Montgomery Educational Consulting

Bowdoin College Eliminates Loans from Financial Aid Packages

Bowdoin College announced that it has joined the ranks of colleges that have eliminated loans from their financial aid packages. These loans are being replaced by outright grants (or need-based scholarships) to its current and incoming students. It is the first college with an endowment of under $1 billion.Bowdoin Hubbard Hall
Others that have made similar announcements are Harvard, Yale, Princeton, Williams, Pomona, Amherst, and Swarthmore. Both Haverford and Davidson have announced similar plans.
This should be good news for middle income families who would like to see their kids attend prestigious eastern universities. I predict many more universities will follow suit in the coming weeks and months.
Mark Montgomery
Montgomery Educational Consulting

Dartmouth College Revamps Financial Aid

In the wake of similar moves by its sister institutions in the Ivy League, Dartmouth announced today several major enhancements to its financial aid program.
First, it will offer free tuition to families with income below $75,000.275px-dartmouth_college_baker_building.jpg
Second, it will replace all loans with scholarships or grants.
Third, it will extend need-blind admissions to international students (which currently represents about 7% of each incoming class.
Fourth, it will release financial aid recipients from the current requirement to earn at least $2950 during a leave term; this change will allow these same students to pursue unpaid research, community service, or internship opportunities that will enhance their educational and career prospects.
These initiatives add up to an increased commitment of $10 million in financial aid, on top of the $61 million per year the College now awards.
As an alumnus, I’m proud that my alma mater is able to increase its financial aid to continue to attract the best and brightest who seek a quality liberal arts experience. Perhaps I had better increase my annual gift!
Mark Montgomery
Montgomery Educational Consulting
UPDATE:  The New York Times reported Dartmouth’s changes in financial aid policy here.

Harvard Announces Tuition Break for Middle Class

Harvard University announced today that it is restructuring its financial aid packages to provide more assistance to middle class families. With the price of tuition at elite private colleges continuing to skyrocket, more and more middle income families are feeling the pain of hefty price tags. A college education today can cost more than many people paid for their house.
Harvard had noticed that the number of applications from middle-income families has begun to decline. Accepted students from lower income families earning less than $60,000 already receive full tuition scholarships. And the rich can find ways to pay the sticker price—however shocking it might be. But today’s middle income families are feeling the squeeze, and the prospect of liquidating assets and borrowing to finance their kids’ education has become too much of a burden for most people.
So Harvard responded. With the class entering in 2008, families earning less than $180,000 per year will have to pay no more than 10% of their income to finance a Harvard education. As a business, Harvard is trying to keep the pipeline of middle-income applicants as strong as ever by competing on price as well as quality.
Some analysis:
First, if Harvard is experiencing a decline in applicants that can be traced to the increasing price of tuition, you can be sure that other private colleges at every point on the selectivity curve are experiencing the same trend. As the economy cools, colleges need to be cognizant that tuition increases today could deter even more applicants tomorrow.
Second, Harvard’s move to alter its financial aid formula will put pressure on its competitors to do the same. But many lack the financial muscle of a multi-billion dollar endowment. Less well-endowed universities will have to find other ways to compete in the higher education market. If they cannot match Harvard’s “tuition bonanza” (as Inside Higher Education calls it), they will have to find other ways to both control costs and provide educational value.
Third, students considering where to apply in the next year or two should not overreact to this kind of information. There are still many colleges and universities that offer excellent educational value for middle-income students and their families. One should not assume that because the “sticker price” of tuition is high that the actual cost of attendance will be anywhere near that. Depending on your particular combination of talents and interests—coupled with the range of institutions to which you apply—you may not have to send the family into perpetual poverty and indefinite indebtedness.
So be armed with up-to-date information and expert, independent advice. This is the best way to map out your own educational journey.
Mark Montgomery
Montgomery Educational Consulting
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Congress Seeks Expanding Role in Controlling College Tuition Increases

An article today in Inside Higher Ed announces that the House Education and Labor Committee released draft legislation to more closely monitor and control skyrocketing tuition increases at state institutions of higher learning.
You should read the entire article, but here’s a quick excerpt:

The expanded federal role is clearest in the realm of college costs and prices. Like companion legislation already passed by the Senate and previous versions of the Higher Ed Act legislation drafted by Republicans in the previous Congress, the House Democrats’ bill would require greatly increased reporting about how colleges spend their money, and create “Higher Education Price Increase Watch Lists” of institutions that increase their tuitions above the average for their peers.
Each institution on the lists — which would essentially serve as a “Hall of Shame” for colleges — would be required to create a “quality efficiency task force” that must analyze the ways in which the institution is operating “more expensively [than its peers] to produce a similar result” and figure out how to cut its costs.

While it is clear that the price of tuition has been increasing, in part this is because state legislatures (including ours here in Colorado) have been strangling the universities by reducing state support. Will the states support further federal intervention in higher education? Will they assert that this is an unconstitutional interference in a legislative arena that is the primary responsibility of the states?
While I understand the frustration with price increases, and while I agree that there is a compelling national interest in improving our K-12 school system (thus warranting some interventions along the lines of No Child Left Behind), I do not see that there is a compelling national interest in holding down tuition rates.
That said, I do see that the Feds can play an important role in providing greater access to higher education through an expanded Pell Grant program, which is part of the proposed legislation.
Mark Montgomery
Montgomery Educational Consulting
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Sports Recruiting Visits to Colleges: Questions That Need Answers

A couple of my current clients are in the midst of athletic recruiting, and are visiting colleges. I always recommend that they be prepared to ask some pointed questions of coaches, admissions officers, and other students when they make the visit.
The list of questions below comes from a book on sports recruiting that I particularly like, and that I recommend to all my clients who hope to play college sports. It’s called The Sports Scholarships Insider’s Guide, by Dion Wheeler, published by Sourcebooks, Inc.
The questions are divided in to four categories: Athletic, Academic, Legal, and Financial.

Athletic

  1. How much time is spent in practice?
  2. When does the season begin? End?
  3. Are there additional training periods?
  4. What are practice hours?
  5. What are my off-season responsibilities?
  6. Can I compete in other sports?
  7. What is the team’s past record?
  8. What conference and division does the team compete in?
  9. How often does the team travel?
  10. Can she/she describe the athletic facilities? (If not, wait and observe during the visit.)
  11. What is the coach’s philosophy?
  12. What are my chances of regularly competing and when?&
  13. What position/event/class am I being considered for?
  14. How many freshmen at your position are being recruited?
  15. What position am I on the recruiting depth chart?
  16. Will I be redshirted?
  17. What are the housing arrangements for athletes?
  18. Have you seen me play or compete?
  19. Do my skills fit into your program?

Academic

  1. Are my career goals compatible with the college’s majors and programs?
  2. Am I allowed to make up classes and tests missed because of the competition schedule?
  3. Am I qualified to meet the admission standards?
  4. Are tutors provided for athletes?
  5. What percent of freshmen graduate? Graduate with their class?
  6. What is the college’s policy toward student athletes during summer session?
  7. Will I have an academic advisor?
  8. Will the coaches provide any guidance if I have academic problems?
  9. How many hours of studying per day is average for my major?
  10. Do professors teach?

Legal

  1. Do I receive a written contract/tender?
  2. If I get injured or become sick,will I lose my financial aid?
  3. What medical expenses does the college cover?
  4. How many credits are required for me to be eligible to compete? How many credits are required for me to keep my financial aid?
  5. What is the status of the college’s relationship with the NCAA?

Financial

  1. Is there academic or need-based financial aid available?
  2. What is the amount of financial aid being offered?
  3. How many years is it being offered?
  4. What criteria is used to determine renewal of aid?
  5. What portion of the total (yearly/semester) cost is covered by the financial aid I receive?
  6. What expenses does the financial aid cover (tuition, room, board, books, special assessments, supplies, etc.)?
  7. What sources and types of financial aid will be include in the total financial aid package (state, Pell, USEOG, institutional, special awards, grants, loans, etc.)?
  8. Am I eligible for additional financial aid now? In future years?
  9. If I need five years to graduate, will I continue to receive the same amount of financial aid as the other four years?

Never go into the process of athletic recruiting underprepared. The whole process is a snake pit, and students and parents need to fully understand the process so that they can “play the game” to their advantage. That is why so many parents are turning to consultants to help them navigate these roiling waters.
Mark Montgomery
Educational Consultant
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