Consider the Cost of College and What You Can Afford

Start thinking about the cost of college and how much you and your family can afford. Talk with your parents; knowing how much you and your family can afford may help with decisions on which colleges and universities to apply to next year.

A good starting point for discussion is the evaluation of your Expected Family Contribution (EFC).  Your EFC the amount of money you and your family are expected to contribute toward the cost of college as calculated by the U.S. Department of Education.  Your EFC is used by the U.S. Department of Education and State Departments of Education to determine your eligibility for government financial aid and by colleges and universities to determine your eligibility for need-based institutional financial aid (from the schools themselves).

Even if your EFC appears to be higher than your family can afford, keep in mind that your dream school may offer you very significant scholarship and grant awards.  Private schools have millions of dollars in endowments (many have billions of dollars in endowments) and these institutions typically give large financial aid awards to their students.  The private schools that accept you for enrollment in fall 2010 may award you significant scholarships and grants.  Commonly, financial aid awards from private colleges and universities are so substantial that the overall cost to students is less than the cost of attending a public State college.

Numerous families have earned income too high to qualify for any need-based scholarships and grants from State colleges and universities (public schools), yet their incomes are not high enough to afford expensive private schools.  Students in this financial situation should apply to both the less expensive public colleges and the more expensive private universities; students accepted to private universities have good potential to receive large financial aid awards.  Again, frequently private universities award such large scholarships and grants (both need-based and merit-based) that it is cheaper for students to attend a private university rather than a State college.

NOTE: The more expensive out-of-state tuition costs apply only to State (public) colleges and universities.  The costs for attending private colleges and universities are the same whether you are an in-state or out-of-state resident.