Carnival of Kids and Money

Well, this carnival is up a bit late, but it was worth waiting for.  The Carnival of Kids and Money is hosted by the Money Hacks.
My favorite posts at this carnival are:
Michael presents College Life: Is it Better to Live On-Campus or Off-Campus? posted at Michael Emilio.  It’s a great post that lays out the pros and cons of all the alternatives.  Furthermore, one’s decision depends a lot on what you hope to get out of college.  Plus, one’s decision might also depend on the type of college one attends.
David Cassell presents Masters Or Doctorate – Which One? posted at selectcoursesblog.com.  This lays out the basic differences between the two degrees.  I would add that one’s choice depends a lot on the field of study.  Further, one should try to calculate a “return on investment:”  what sort of salary do you expect after your degree, and how does that relate to the anticipated cost of the degree program?
Check out the Carnival of Kids and Money.  You’ll be glad you did.
Mark Montgomery
College Counselor

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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