In a recent New York Times post from The Choice, an exclusive blog highlighting the news in higher education, the authors of “Why Does College Cost So Much?” were open about their book and the reality behind the price of higher ed. Here is a bit of their chat with the NYT:
Q. So what kind of policies might hold down the price of college? The number of low- and middle-income students who graduate from college hasn’t risen much at all in recent years, and research suggests cost is one reason. Given the budget squeezes in many states, it seems as if we should be thinking about solutions beyond government-provided financial aid.
Mr. Feldman: The real question is how we create access for people who could succeed in college if only they can get their foot in the door. The way we subsidize higher education can have a big impact on who gets to go to college
“Big state universities tend not to discount price on the basis of financial need nearly as much as the elite private schools, whose high and rapidly rising list prices garner so much of the headlines. Public universities generally use their state appropriation to reduce the tuition charged to in-state students, and they do this regardless of the student’s ability to pay. As a result, when Flagship U tries to recoup some of its lost state appropriation through tuition hikes on all in-state students, this can have a big impact on lower-income families.”
Mr. Archibald: While financial aid may not be the complete answer to the access problem, if fixed, it could be very important. The biggest problem with our current financial aid programs is their complexity. Families have to make a series of decisions early in the process to help their children to become college material. Well-to-do families usually take care of this quite well. College is expected, and in most cases the expectation is realized. On the other hand, because they think they can never afford college, children from less well-to-do families do not take the steps one has to take to prepare for college.
Federal financial aid is intended to change this. If less well-to-do families and their children had faith that government aid would be available, they could make the right early decisions. Unfortunately, federal financial aid does not have the desired effect on expectations. To obtain federal financial aid one has to fill out confusing forms. The amount of aid one actually qualifies for is determined by formulas that are very complex, so it is very difficult to know what will happen until the aid application process is finished. Also, each aid award is designed on a case-by-case basis, so it is hard to learn from the experience of others.
Avoid confusing forms and plan for the cost of college in the right way. My own story has compelled me to teach others about finding the means to fund for college without having to sacrifice your current lifestyle.
College Planning Expert Brian Safdari is a strategist and America’s leading authority when it comes to maximizing college acceptances, reducing out-of-pocket costs as well as assisting you and your family to successfully navigate through the higher education system. His own story has compelled him to help others in maximizing their education and minimizing the cost. For more on Brian and how The College Planning Experts can help you: sign-up for a FREE workshop nearest you or contact us. Also, find up-to-date news on the college planning process through our blog, twitter and facebook!
The family should always consider the student’s financial aid opportunity, prior to investing in one of the College Savings or State Prepaid Tuition Programs (529 plans). 529 plans are assessed against the family as an asset of the parent’s for financial aid purposes. Furthermore, if a student decides to attend certain private colleges, the amount accumulated in the student’s siblings’ 529 account are