Concerns About College Costs Shaping More Students' Decisions

Freshman concerns about college affordability are at a 35-year high, according to a recent survey by the Higher Education Research Institute. Of the students surveyed, 39 percent said financial aid packages — the funds schools offer them in the form of grants, scholarships, work-study awards, and student loans — played a key role in their decision of which school to attend. College-bound seniors may even be passing up their first-choice schools because of these cost concerns, says John Pryor, the survey’s director. In 2007, although 80 percent of students were accepted at their first-choice school, only 64 percent enrolled in those schools. Finding Money for CollegennIf you have your heart set on your first-choice school but your financial aid package just isn’t enough to get you there, you still have other financing options available to you. Even if you don’t qualify for need-based financial aid, or if you’ve already maxed out your need-based award, there are non–need-based scholarships and student loans (http://www.nextstudent.com/) you may still be eligible for. The federal government offers non–need-based unsubsidized Stafford student loans to both undergraduate and graduate students. Graduate students may also apply for credit-based Grad PLUS student loans. If you’re an undergrad, your parents may be able to help you with a credit-based PLUS loan, which allows parents to borrow up to your full cost of attendance.n nBegin With Two Years of Community CollegennIf you’re concerned about piling up too much debt in student loans (http://www.nextstudent.com/student-loans/student-loans.asp) and you’re willing to put off attending your first-choice school for a couple years, completing your first two years of college at a community college is one way to start saving and minimizing your college loan debt. According to the College Board’s 2007 Trends in Pricing report, average tuition and fees at a community college are about $2,300, whereas average in-state tuition and fees at a four-year public university are just under $6,200. That means you could save over $7,500 over two years just by starting at a community college. Not only will you pay less per credit hour, but as a commuter student, you’ll eliminate room and board charges for those two years. Live at HomennOnce you’re done with community college and are transferring over to a four-year school, or even if you decide to attend a four-year institution for all four years, you can still save on those room and board costs by living at home if your school’s within a reasonable driving distance. You may not have the freedom you were hoping for when you’re still at home with your parents, but with room and board averaging $7,400 a year at public schools and almost $8,600 at private schools, the $30,000–$35,000 you’d be saving over four years may be worth it. Pay In-State Tuition RatesnnIf living at home isn’t an option but you don’t mind staying close to home, consider attending a public university in your home state, either for all four years or for your two years after community college. You’ll be able to take advantage of lower tuition rates as an in-state resident, which will save you an average of $10,500 a year over out-of-state rates at a public school and about $17,500 a year over a private four-year school. Private Student LoansnnEven when you’ve minimized your tuition and living costs and taken advantage of both your need-based and non–need-based federal financial aid options, you may find you still have education-related expenses to cover. In that case, private student loans (http://www.nextstudent.com/private_loans/private_loans.asp) may be able to provide the additional financial assistance you need. However, since federal student loans generally offer more attractive terms than private student loans, make sure you’ve looked at all your federal financing options first.. Learn more about private student loans (http://www.nextstudent.com/) and private student loan consolidation (http://www.nextstudent.com/private-consolidation-loans/private-consolidation.asp).n