Everything surrounding college today is BIG business - and expensive! Like health care costs, the cost of college has been - and is expected to continue - increasing at twice the rate of inflation. If college expenses increase 7% per year, they will double in 10 years! So if the University of Illinois costs approximately $20,000 per year today, in ten years it could be $40,000.
If your own compensation/wages increase at a rate closer to normal inflation, how can one afford to send a child to college? Unfortunately, college, besides being expensive, is essential. Studies have shown that a person with an undergraduate degree will earn on average $1,000,000 more in a lifetime than a non-graduate.
To manage these high costs, you first and foremost must learn and understand the process. Nearly 99% of parents take on the task of helping their students get into college and figuring out how to pay for it without a clue as to how the system works.
In the age of the internet, you would think there would be plenty of good and practical sources on career planning, college search, college selection, and college funding. However, that is not the case. In your search, you will find scattered pieces of information; but this information alone does not help you to thoroughly understand the process. To benefit you, these bits of information need to be converted to knowledge of the process.
You need to learn and understand the role the Department of Education plays in the process. In effect, they tell you what you can afford to spend for collegiate expenses. Their formula is elaborate, complicated, and very unfair to those families with higher levels of debt.
Don"t believe the many myths about the world of financial aid. Aid takes many forms and to assume you won"t qualify could be a huge mistake. One key is to learn how to tap into endowment funds. This information is very beneficial, but not easily found.
Make sure you file the FAFSA (Free Application for Federal Student Aid) each January. It is your ticket into the game - it makes you a player. Without it, financial aid or endowment scholarship money is not likely to come your way.
As we said before, college is big business. In many ways it"s David vs. Goliath when parents embark on this endeavor. To increase the odds in their favor, many parents today are engaging the services of professionals to help their students for career planning, college search, and college selection. Many of these highly specialized firms will also devise tax-favored funding strategies to help pay for collegiate expenses.
With college costs increasing at record rates, and the long term costs of not achieving a degree at over a million dollars, many parents feel employing these specialists is a small investment. The use of college planning advisors gives them a better understanding of the process, peace of mind, and ultimately, minimizes the total cost of a college education.