Did you know that the average college student graduates with at least $21,000 in debt?  That is quite the burden to be starting a career with.  However, as with other purchases, many people overbuy college.  A study published in the journal Research in Higher Education found that while traditional economics would suggest that raising the price of college education would actually reduce demand for it, the opposite happens.  Raising tuition actually increases demand.  Liberal Arts colleges that raised their tuition $1000 saw an increase in SAT scores of 12.9 points and a 3.5% increase in the proportion of top freshmen admitted. 
 
Many people mistakenly believe that higher cost equates with higher quality.  That is not always the case.  Colleges are ranked in tiers.  Research has shown that rankings have been associated with an improvement in next year’s admissions, such as lower acceptance rates, SAT scores of admitted students and other standard measures.  So as the study referred to above shows, raising tuition is one way to possibly increase your ranking.   It’s important to do your homework. 
 
Whatever college you or your child attends, the key to avoiding college debt is to plan wisely and take advantage of the many opportunities to reduce college costs before and during your college years.
 
1.       Live at home, if possible.  Room and board, meal plans, dorm supplies, and other miscellaneous expenses add up.  For example, at Illinois State University (ISU) for the 2009-2010 academic year, the room and meal plan and miscellaneous expenses total $10,219.   
2.       Attend a community college for 2 years and then transfer to a 4 year school.  Credit hours at a community college generally cost less than a third of those at state schools.  The degree comes from the last college attended, even if only 2 years were spent there.  While teaching at a community college over the past 10 years I have had many students take classes at a much lower cost than their “regular” college and transfer the credit.    
3.       Choose an in-state college.  Tuition and room and board are significantly cheaper at a state school.  At ISU, you save $6000 a year by living in-state. 
4.       Take AP classes in high school.  Over 90% of 4-year colleges in the U.S. provide credit and/or advanced placement for qualifying scores. 
5.       Use CLEP tests to eliminate introductory courses that are required.  The College-Level Examination Program offers the opportunity to receive college credit for knowledge already possessed.  The cost of a CLEP exam is $72, less than even a credit hour at a community college. 
6.       Try to graduate in 3 years.  Accruing more credits before college means less time in college.  Consider summer school for additional credits.
7.       There are scholarships available for everyone.  WWW.fastweb.com is a great online site that scans millions of scholarships based on input information.
8.       Try not to buy textbooks at full price.  If possible, buy used textbooks.   Check websites such as amazon.com, half.com, and Ebay for deals.  Some colleges are even offering textbook rentals.
9.       If none of these appeal go to college in Canada.  Canadian colleges are often cheaper and yet provide a similar education.  Students can also still qualify for U.S. financial aid.
 
Don’t let the rising cost of college impede future goals.  Even though statistically college graduates make more money, the debt can be overwhelming.  A growing body of research suggests that tough loan payments are affecting major life decisions by recent graduates, forcing them to put off traditional milestones—from buying a first home to even marriage and having children.  Educate yourself about college expenses so you don’t make the mistake of overbuying and taking on too much debt. 
 
If we can help, please call Kendra @ 847-290-0753 for an appointment.