• The educational experience at a flagship university outside your home state is not significantly different from the experience in your own state.  While there are some differences, generally speaking you’ll find the same majors, the same activities, and the same parties, whether you attend university close to home or far away.
• Tuition prices for an out-of-state public university can be 2 to 4 times as expensive as those in your home state.
• If you live on the plains but pine for the beach or the mountains, you can use the savings to pay for fantastic holidays at the resort of your choosing.  Or buy a car (or a whole fleet of cars!).
• The assumption that you can move to a new state and establish residency after one year is generally wrong:  most states have closed this loophole, making a public education out of state relatively expensive.

However, as Steve Cohen suggests in his article in the Daily Beast, there is perhaps no better time to get accepted by out-of-state universities.  The issue is money:  state universities are cash poor in today’s economy, and they are plugging holes in their budgets by accepting more out-of-state kids than ever before.
So for those for whom money is no object, it’s a great time to apply to flagship universities outside your home state.  Having the resources to pay full out-of-state tuition has become a credential in the admissions process.
From a financial point of view, however, it may not be as smart.  It all depends on how much money you have to burn, and your priorities in how you spend it.  If you want to reduce the cost of a college education, think twice before you commit to an out-of-state university.
Mark Montgomery
Educational Consultant
 

The post The Strategy of Applying to Out-of-State Colleges: Hits and Misses first appeared on College Admission Counseling.

In some ways we have a perfect storm a-brewing.  As personal savings and college funds shrink, colleges are tightening their belts, and are likely to be stingy with financial aid.

So where does that leave the student who will graduate this spring or next?  What strategies does he or she pursue in order to get the best education at the best price?

Here are ten tips for weathering this storm.

1.  Don’t panic.  Keep a cool head.  Do your homework.  Get help, if you need it.  While the statistics look bleak, you are not a statistic.  Use every resource at your disposal to plan, prepare, and get the best deal for yourself.

2.  Whether the market is up or down, good students always have more options than poor students. Good students with good grades and good test scores should not dampen their ambition or lower their sights.

3.  Remember that if your assets and income have gone down, your federally-calculated financial need will go up.  Come January, you will complete the FAFSA forms, which will calculate your family’s “Estimated Financial Contribution” or EFC.  This is the amount the government calculates that you should be able to pay toward a college education–given your financial picture today.

4.  Pay close attention to financial aid statistics reported by colleges, with special emphasis on the percentage of financial need that college has met in the past.  Even in good financial times, many colleges have been unable to meet all of their student’s financial need with the usual combination of grants, work study jobs, and federal loans.  Most rich, well-endowed colleges and universities can meet 100% of their students’ financial need.  But some colleges have met only 80% or 65% or less of their students’ needs.  These are the colleges that have relied heavily upon the willingness of students and families to take out huge loans on the private markets.  As these loan markets have dried up, these colleges are the most panicked by the economic downturn.  Yet even financially strapped colleges may offer big bargains to some students (see tip #6 below).

5.  Redefine what a “stretch” or “reach” college will be for you.  It’s not simply about getting accepted to college–it’s about being able to pay for it.  The tougher it is for you to gain admission, the less likely you will receive adequate financial aid to attend that same school.

6. Develop a “top 25%” strategy that will help increase the likelihood you will get the aid you need.  While there is a great deal of variation in financial aid policies, most colleges shower their best financial aid packages on those students in the top 25% of their incoming class. Colleges routinely report the average ACT or SAT test scores by identifying the “middle 50 percent” range of scores of admitted students.  So if  Elmer Fudd College reports an middle 50% ACT range of 22 to 26, this means 25% of students scored lower than 22, and another 25% scored 27 or higher.   An applicant to Elmer Fudd College with an ACT of 29 has a much better chance of receiving a solid financial aid package than the applicant with a 22.

7.  Remember that not all debt is bad debt.  Racking up tens of thousands of dollars on a credit card is not the same as taking out a Stafford loan.  The former is a drag on current and future spending, and high interest rates on credit cards lead to wrack and ruin.  But a student loan is an investment in your future.  The relatively low interest rate on these loans will allow you to increase your earning potential tomorrow by making it possible to get a good education today.  The average student loan debt for graduating college senior is about $20,000, which is an acceptable amount for most students.

8.  If you plan to take out a loan to partially finance an education, start shopping for that loan now.  Do not wait until admissions decisions are made. Learn what loans are available (or not) so that you can make a realistic plan for how much you can borrow.  This knowledge will make it easier to compare financial aid packages later when they are finally announced.

9.  Don’t assume that your in-state colleges and universities offer you the best deal. As an example, see my post here about cost comparisons for a Colorado student considering University of Colorado vs. Montana State University or the University of Wyoming.

10.  Students with less-than-stellar academic records in high school should consider getting their start at community colleges.  Most states now have guaranteed transfer agreements between their community colleges and flagship universities.  Go to community college, pay less, do well–and you can still graduate from a top-notch university.  In fact, you have a better chance of getting accepted as a transfer if you do well in those general education courses at the community college.

Great College Advice

The post Ten College Planning Tips For Tough Economic Times first appeared on College Admission Counseling.

The conventional wisdom says that an in-state college is the cheapest option.  As with most conventional wisdom, this assumption is wrong.

Let’s compare costs for a Colorado student considering majoring in business at three state universities in the region.

A few notes explain where these numbers come from:

1. CU-Boulder tuition is $10,852, but Colorado students automatically are eligible for the Colorado Opportunity Fund, which effectively reduces tuition by $2760.
2. Colorado students with an ACT of 28 or higher attending Montana State are eligible for a tuition discount under the Western Undergraduate Exchange (WUE–pronounced “woo-ee”).  Students with even higher ACT scores are eligible for other scholarships that reduce the overall price even further.
3. Colorado students attending the University of Wyoming also are eligible for the WUE discount.

Sometimes what you major it makes a difference, too.  Business is the most expensive major at CU Boulder.  If you major in Arts & Sciences,  tuition is less:  $7,278 per year.  Engineering, however,  is $9,568.

So parents, don’t cut off your nose to spite your face!  If your student is interested in going out of state to college, do your homework before you assume that staying in state is the cheapest option.  Here we have compared only state schools, but even some private colleges will end up costing you less than the University of Colorado at Boulder.

As with most everything in life, it pays to comparison shop!

Great College Advice

The post College Shopping Tips: When Out-of-State is Cheaper than In-State Tuition first appeared on College Admission Counseling.